Falcon Oil & Gas Ltd-Hungary Drilling Update

FOR:  FALCON OIL & GAS LTD.

TSX VENTURE SYMBOL:  FO
AIM SYMBOL:  FOG

July 23, 2013

Falcon Oil & Gas Ltd-Hungary Drilling Update

DUBLIN, IRELAND--(Marketwired - July 23, 2013) - Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC) ("Falcon" or
the "Company"), is pleased to announce that initial drilling operations on the Kutvolgy-1 well have ceased, the well
having reached total depth ("TD") of 3,305 metres.

Kutvolgy-1 is the first of a planned three well programme to evaluate the gas potential of the Algyo formation in the
Mako Trough. As prognosed, 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
rigless testing programme later this year. No operational problems or accidents occurred during drilling.

The location of the second of the three well programme will be decided after a full evaluation of the Kutvolgy-1 well
results. Operations on the second well are expected to commence in Q4 this year.

In accordance with the terms of the agreement with NIS, announced on 14 January 2013, Falcon is fully carried, as all
costs associated with this three well drilling program are funded by NIS. Any hydrocarbon sales revenue resulting from
this program will be shared equally between Falcon and NIS.

Philip O'Quigley, CEO of Falcon commented:

"We are pleased to confirm that our well successfully reached its target Algyo formation and encountered hydrocarbons,
and thanks to the close collaboration with NIS, drilling was completed without any operational difficulties. I am
looking forward to the technical evaluation of the well results and then the testing programme that will take place
during Q4 2013."

This announcement has been reviewed by Dr. Gabor Bada, Falcon's Head of Technical Operations. Dr. Bada obtained his
geology degree at the Eotvos L. University in Budapest, Hungary and his PhD at the Vrije Aniversiteit Amsterdam, the
Netherlands. He is a member of AAPG, EAGE and SPE. Definitions in this press release are consistent with SPE guidelines.

About the Algyo

The Algyo is a relatively shallow play between 2,300m and 3,500m. A number of Falcon wells have been drilled through the
Algyo in recent years, some of which encountered gas shows, but to date no well has ever tested the play concept at an
optimal location as previous wells targeted deeper intervals of up to 6,000m.

Multiple Algyo prospects have subsequently been identified by Falcon through extensive AVO analysis. The ongoing
exploration drilling program with NIS is targeting three separate high-graded prospects.

A recent independent study by RPS Energy (January 2013) included for the first time Prospective Resource recoverable
volumes attributable to the shallow Algyo Play. According to the RPS report, eight of the ten prospects identified by
Falcon contain 568 BCF of prospective recoverable gas resources, each with a 10% Geological Probability of Success
("GPoS").

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.

About NAFTNA INDUSTRIJA SRBIJE JSC ("NIS")

NIS is one of the largest, vertically integrated oil and gas companies in Southeast Europe, focusing on exploration and
production of hydrocarbons, refining of crude oil and sales of a broad range of petroleum products.

For further information on NIS please visit www.nis.rs.

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 & Gas Ltd.
[phone]

OR

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

OR

FTI Consulting
Billy Clegg
[phone]

OR

FTI Consulting
Edward Westropp
[phone]

OR

FTI Consulting
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.