Falcon Oil & Gas Ltd.: Australia Beetaloo B...

FOR:  FALCON OIL & GAS LTD.

TSX VENTURE SYMBOL:  FO
AIM SYMBOL:  FOG

December 17, 2013

Falcon Oil & Gas Ltd.: Australia Beetaloo Basin Agreement to Reduce Overriding Royalty to 1%

DUBLIN, IRELAND--(Marketwired - Dec. 17, 2013) - Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC) ("Falcon" or
the "Company") announces that its subsidiary, Falcon Oil & Gas Australia Ltd ("FOGA"), has entered into an Agreement
("the Agreement)" with Malcolm John Gerrard, Territory Oil & Gas LLC and Tom Dugan Family Partnership LLC ("TOG Group")
to acquire up to 7% (seven eighths) of the remaining 8% private Overriding Royalty Interest ("ORRI") over FOGA's
Exploration Permits in the Beetaloo Basin for the following consideration:

/T/

--  FOGA will make a payment to TOG Group of US$5m to acquire 5% (five
    eighths) of their ORRI only on completion of a Beetaloo farm-out
    transaction acceptable to Falcon
--  TOG Group will grant FOGA a five year call option to acquire a further
    2% (one quarter) of their ORRI for a payment of US$15m
--  All ORRIs acquired under the Agreement will be immediately cancelled by
    FOGA
--  TOG Group will retain a 1% ORRI

/T/

Philip O'Quigley, CEO of Falcon commented:

"We are delighted to have concluded a further significant reduction in the private Overriding Royalty Interest over our
Australian assets.

This transaction, combined with the ORRI transaction announced on the 1st November 2013, will allow for the reduction of
the privately held Overriding Royalty Interests from 12% to just 1% and will help to further progress our farm-out
negotiations, which are at an advanced stage.

We have now completed two agreements to acquire 8% of the privately held Overriding Royalty Interests at a total cost of
just $7m, of which $6m is payable only upon completion of a farm-out acceptable to Falcon. In addition, we have secured
agreement to acquire a further 3% based on two five year call options granted to Falcon at a future combined cost of
$20m leaving only a 1% Royalty in private hands."

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. FOGA is a 98% subsidiary of Falcon and is the registered holder of four Exploration Permits covering
seven million acres in the Beetaloo Basin, Northern Territory, Australia.

About the Overriding Royalty Interests

The total amount of the private ORRI's is 12%. The ORRI entitles its owners to earn 12% of the gross well head proceeds
of any future production, subject only to transportation and marketing costs. The TOG Group, predominately based in the
USA is the owner of 8% with the balance of 4% being held by CR Innovations. The privately held ORRI's were created
during the years 2006 to 2008 when the Exploration Permits were sold by their original owners.

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, including comments made with
respect to when payments due under the agreement will be made. 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]
www.falconoilandgas.com

OR

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

OR

Falcon Oil and Gas Ltd.
John Craven
Non-Executive Chairman
[phone]

OR

FTI Consulting
Edward Westropp
[phone]

OR

FTI Consulting
Natalia Erikssen
[phone]

OR

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

OR

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

OR

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

OR

GMP Securities Europe LLP (Joint Broker)
Liz Williamson
[phone]

OR

Cantor Fitzgerald Europe (Joint Broker)
David Porter
[phone]

OR

Cantor Fitzgerald Europe (Joint Broker)
Richard Redmayne
[phone]

Falcon Oil & Gas Ltd.