Falcon Oil & Gas Ltd. Announces its Interim...

Falcon Oil & Gas Ltd. Announces its Interim Results & Filing of its Financial Statements and Accompanying MD&A:
Six Months Ended 30 June 2013

DUBLIN, IRELAND, Aug. 29, 2013 - Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC)
("Falcon") announces its results for the six months ended 30 June 2013; and that it has filed its Interim
Financial Statements with the TSXV for the six months period ended 30 June 2013 and the accompanying
Management's Discussion and Analysis.

The following should be read in conjunction with the complete Interim Financial Statements and the accompanying
Management's Discussion and Analysis for the 6 months period ended 30 June 2013. These filings are available at
www.sedar.com and on Falcon's website at www.falconoilandgas.com.

Highlights

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--  Consolidation of interest in Australian subsidiary
--  Retained full interest in Betaloo permits in the interest of Falcon
    shareholders; active discussions with third parties ongoing
--  Drilling of first well in Hungary, fully carried by NIS, completed now
    and awaiting testing
--  Focus on strict cost management and efficient operation of the portfolio
--  Admission to trading on AIM and ESM and successfully raising US$25.7
    million of new capital

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Australia

Falcon completed the acquisition of Sweetpea Petroleum Pty Ltd's 24% minority interest in its subsidiary Falcon
Oil & Gas Australia Ltd ("Falcon Australia"). Falcon Australia is a subsidiary of Falcon and is the registered
holder of four exploration permits in the Beetaloo Basin, Northern Territory, Australia. Following the
completion of the share purchase, Falcon owns 200 million shares in Falcon Australia representing 96.9% of the
issued share capital of Falcon Australia. Falcon is consolidating its interest in this high potential asset.
The extensive seismic program carried out and funded by Hess over the past two years added to Falcon's
confidence in the resource potential of this basin. In addition Falcon is in the process of purchasing shares
from certain of the remaining shareholders in Falcon Australia.

Falcon has retained its interest the Beetaloo permits after Hess' request to defer its drilling decision was
rejected by the Falcon Board. Falcon regards the Beetaloo Basin as a potential world class conventional and
unconventional play with significant oil and gas potential. Hess requested a one month extension to allow them
sufficient time to conclude a farm-out deal with a third party. Falcon's rejection of their request and Hess's
subsequent decision not to elect by the agreed deadline was viewed by the Board of Falcon as an opportunity for
Falcon shareholders to increase their interest in what promises to be a basin enhanced and de-risked by the new
seismic data.

Hungary Drilling

Initial drilling operations on the Kutvolgy-1 well have ceased, the well having reached total depth ("TD") of
3,305 metres. As expected, the top of the Algyo formation was encountered at 2,985 metres; the well then
penetrating an alternating sequence of sandstones, siltstones and shales over a gross interval of 320 metres to
TD, with gas shows throughout. Two conventional cores have been taken and extensive wireline logs were run. As
planned the well has been cased to TD and is now suspended while further technical evaluation is undertaken
prior to carrying out an appropriate testing programme later this year.

Admission to trading on AIM and ESM

In March 2013, Falcon was admitted to trading on the AIM market of the London Stock Exchange and the ESM market
of the Irish Stock Exchange of the Company's existing share capital and the additional 120,381,973 new common
shares in the capital of the Company issued pursuant to the concurrent conditional brokered private placing, at
a price of GBP 0.14 (CDN$0.215) per share, raising gross proceeds of $25.7 million (GBP 16.9 million).

Debt repayment

Falcon repaid the full amount outstanding on its Convertible Loan Note of CDN$10.657 million. This repayment
means that the Company is now completely debt free.

Results for operating activities

The Group incurred a loss of US$3.2 million in the six months ended 30 June 2013, decreased from a loss of
US$6.4 million in the six months ended 30 June 2012.

The Group's cash and cash equivalent balance at 30 June 2013 was US$14.7 million (31 December 2012: US$2.9
million).

Philip O'Quigley, CEO of Falcon commented:

"We have been extremely busy during the first half of 2013, successfully raising US$25.7 million of new
capital, achieving debt-free status and significantly reducing our operating loss.

Our attention has now switched to securing a new farm-out on our acreage in Australia, preparing for the
testing of the Kutvolgy-1 well in Hungary and working with Chevron under our Cooperation Agreement in South
Africa. Based on progress to-date on all of these fronts we expect the second half of 2013 to be even busier."

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Falcon Oil & Gas Ltd.

Interim Condensed Consolidated Statements of Operations and Comprehensive
Loss
(Unaudited)

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                        Three months Three months   Six months   Six months
                            ended 30     ended 30     ended 30     ended 30
                           June 2013    June 2012    June 2013    June 2012
                               $'000        $'000        $'000        $'000
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Revenue
Oil and natural gas
 revenue                           4            5            7           11
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                                   4            5            7           11

Expenses
Exploration and
 evaluation expenses            (210)        (429)        (408)      (1,114)
Production and operating
 expenses                         (7)          (7)         (12)         (12)
Depletion and
 depreciation                    (62)        (171)        (207)        (238)
General and
 administrative expenses      (1,419)      (1,702)      (2,604)      (3,247)
Share based compensation        (178)        (913)        (273)      (1,441)
Restructuring expenses             -         (612)           -         (612)
Other income                     102          101          339          238
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                              (1,774)      (3,733)      (3,165)      (6,426)
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Results from operating
 activities                   (1,770)      (3,728)      (3,158)      (6,415)

Fair value gain / (loss)
 - outstanding warrants          557       (1,108)      (1,324)         622

Finance income                   268           18          262           38
Finance expense                 (951)      (1,054)      (2,422)      (1,968)
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Net finance expense             (683)      (1,036)      (2,160)      (1,930)

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Net loss and
 comprehensive loss for
 the period                   (1,896)      (5,872)      (6,642)      (7,723)
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----------------------------------------------------------------------------

Net loss and
 comprehensive loss
 attributable to:

Equity holders of the
 company                      (1,805)      (5,802)      (6,506)      (7,562)
Non-controlling
 interests                       (91)         (70)        (136)        (161)
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Net loss and
 comprehensive loss for
 the period                   (1,896)      (5,872)      (6,642)      (7,723)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net Loss per share attributable to equity holders of the company:

Basic and diluted        (0.002 cent) (0.008 cent) (0.009 cent) (0.011 cent)
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Falcon Oil & Gas Ltd.
Interim Condensed Consolidated Statements of Financial Position
(Unaudited)
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                                                 At 30 June  At 31 December
                                                       2013            2012
                                                      $'000           $'000
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Assets
Non-current assets
Exploration and evaluation assets                    72,777          74,019
Property, plant and equipment                         5,482           5,703
Trade and other receivables                             584           1,265
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                                                     78,843          80,987
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Current assets
Cash and cash equivalents                            14,713           2,884
Restricted cash                                         377             386
Trade and other receivables                             542           1,756
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                                                     15,632           5,026

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Total assets                                         94,475          86,013
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----------------------------------------------------------------------------

Equity and liabilities

Equity attributable to owners of the parent
Share capital                                       362,840         339,334
Contributed surplus                                  42,131          41,858
Retained deficit                                   (340,785)       (334,279)
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                                                     64,186          46,913
Non-controlling interests                            10,746          10,882
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Total equity                                         74,932          57,795
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Liabilities
Non-current liabilities
Derivative financial liabilities                      1,117           5,292
Decommissioning provision                            10,833          10,955
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                                                     11,950          16,247
----------------------------------------------------------------------------

Current liabilities
Accounts payable and accrued expenses                 2,094           3,122
Convertible debentures                                    -           8,773
Derivative financial liabilities                      5,499              26
Decommissioning provision                                 -              50
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                                                      7,593          11,971
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Total liabilities                                    19,543          28,218

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Total equity and liabilities                         94,475          86,013
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Falcon Oil & Gas Ltd.
Interim Condensed Consolidated Statements of Cash Flows
(Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                   Six months ended 30 June

                                                         2013          2012
                                                        $'000         $'000
----------------------------------------------------------------------------

Cash flows from operating activities
Net loss for the period                                (6,642)       (7,723)
Adjustments for:
  Share based compensation                                273         1,441
  Depletion and depreciation                              207           238
  Fair value (loss) / gain - outstanding
   warrants                                             1,324          (622)
  Net finance expense                                   2,160         1,930
  Other                                                     -          (180)
Contribution to past costs - Chevron                    1,000             -
Change in non-cash working capital                       (693)        1,649
Interest paid                                            (573)         (579)
Interest received                                          63            38
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Net cash used in operating activities                  (2,881)       (3,808)

Cash flows from investing activities
Exploration and evaluation assets                        (560)       (2,676)
Proceeds from farm-out transaction - NIS                1,500             -
Property, plant and equipment                             (26)          (21)
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Net cash generated by / (used in) investing
 activities                                               914        (2,697)

Cash flows from financing activities
Proceeds from private placement - March 2013           25,672             -
Transaction costs relating to private placement
 - March 2013                                          (1,897)            -
Repayment of 11% debenture                            (10,197)            -
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Net cash from financing activities                     13,578             -

Change in cash and cash equivalents                    11,611        (6,505)
Effect of exchange rates on cash & cash
 equivalents                                              218           (62)

Cash and cash equivalents at beginning of period        2,884        15,358

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Cash and cash equivalents at end of period             14,713         8,791
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About Falcon Oil & Gas Ltd.

Falcon is an international oil & gas company engaged in the acquisition, exploration and development of
conventional and unconventional oil and gas assets, with the current portfolio spread between Australia, South
Africa and Hungary. Falcon is incorporated in British Columbia, Canada and headquartered in Dublin, Ireland
with a technical team based in Budapest, Hungary.

For further information on Falcon Oil & Gas Ltd. please visit www.falconoilandgas.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain information in this press release may constitute forward-looking information. This information is based
on current expectations that are subject to significant risks and uncertainties that are difficult to predict.
Actual results might differ materially from results suggested in any forward-looking statements. Falcon assumes
no obligation to update the forward-looking statements, or to update the reasons why actual results could
differ from those reflected in the forward looking-statements unless and until required by securities laws
applicable to Falcon.

Additional information identifying risks and uncertainties is contained in Falcon's filings with the Canadian
securities regulators, which filings are available at www.sedar.com.

FOR FURTHER INFORMATION PLEASE CONTACT:

Falcon Oil and Gas Ltd.
[phone]
Philip O'Quigley, CEO
[phone]

OR

FTI Consulting
Billy Clegg: [phone]
Edward Westropp: [phone]
Natalia Erikssen: [phone]

OR

Davy (NOMAD & Joint Broker)
John Frain/Anthony Farrell
[phone]

OR

GMP Securities Europe  LLP (Joint Broker)
Rob Collins/Alexandra Carse
[phone]

OR

Cantor Fitzgerald Europe (Joint Broker)
Stewart Dickson/Richard Redmayne/Julian Erleigh
[phone]

Falcon Oil & Gas Ltd.