Falcon Oil & Gas Ltd. Interim Results for N...

NEWS RELEASE TRANSMITTED BY MARKETWIRED

FOR:  FALCON OIL & GAS LTD.

TSX VENTURE SYMBOL:  FO
AIM SYMBOL:  FOG

November 28, 2013

Falcon Oil & Gas Ltd. Interim Results for Nine Months Ended 30 September 2013

DUBLIN, IRELAND--(Marketwired - Nov. 28, 2013) - Falcon Oil & Gas Ltd. (TSX VENTURE:FO) (AIM:FOG) (ESM:FAC) ("Falcon")
announces its results for the nine months ended 30 September 2013.

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

Highlights

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--  Farm-out discussions advancing in Australia
--  Consolidation of interest in Australian subsidiary completed
--  Results of Seismic Program in Beetaloo Basin, Australia encouraging
--  The Overriding Royalty, Beetaloo Basin, Australia reduced, thus
    increasing the asset value
--  Drilling of first well in Hungary, fully carried by Naftna Industrija
    Srbije JSC ("NIS"), completed and awaiting start of extensive testing
--  Focus on strict cost management and efficient operation of the portfolio
--  Healthy financial position with cash and cash equivalents at US$10.8
    million

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Philip O'Quigley, CEO of Falcon commented:

"As expected, we have had an extremely busy start to the second half of 2013. Our attention is focused on securing a new
farm-out of 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. We are delighted to report that progress to date on all of
these fronts is in line with our expectations."

Australia

Farm out discussions advancing in Australia

Further to the announcement on 1 July 2013, Falcon has been approached by several oil and gas companies interested in
farming into its assets in the Beetaloo Basin. Falcon is well advanced in its discussions with a number of those
companies and is confident of securing an attractive farm - out with a large oil and gas company. Falcon will provide an
update to the market when appropriate.

Consolidation of interest in Australian subsidiary

Falcon completed the acquisition of a 25.4% minority interest in its subsidiary Falcon Oil & Gas Australia Ltd ("Falcon
Australia"). Falcon Australia is the registered holder of four exploration permits in the Beetaloo Basin, Northern
Territory, Australia. Following the completion of the above transaction, Falcon holds 202,462,686 shares in Falcon
Australia, representing 98.1% of its issued share capital.

Results of Seismic Program in Beetaloo Basin, Australia

Under the terms of the joint venture with Hess, in 2011 and 2012, Hess acquired 3,490 kilometres of 2D seismic data and
invested approximately US$80 million during that period, substantially more than initially expected and at no cost to
Falcon. The seismic database has now been passed on to Falcon and along with existing well data, provides a very solid
platform to extrapolate a detailed structural and stratigraphic model for the main parts of the Beetaloo Basin.

All the necessary elements of a productive unconventional and conventional petroleum system have been identified in
multiple shales and sand reservoirs, and it is now clear that the Beetaloo Basin is an active petroleum system.

Three hydrocarbon plays have been identified:

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--  the shale gas potential in the basin centre;
--  a shale oil play in the northern part of the permits; and
--  conventional prospects throughout the acreage.

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Recent interpretation of the seismic database mapped out several conventional drilling targets that are promising areas
of hydrocarbon accumulation in the form of structural closures and traps.

Reducing the Overriding Royalty, Beetaloo Basin, Australia

On 1 November 2013, Falcon announced that Falcon Australia, had entered into an agreement with CR Innovations AG
("CRIAG") to acquire its 4% Overriding Royalty Interest ("ORRI") relating to its exploration permits in the Beetaloo
Basin ("the CRIAG Agreement"). The transaction details were:

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--  Falcon Australia made an initial payment to CRIAG of US$999,000 on
    signing the CRIAG Agreement;
--  Falcon Australia to make a second payment to CRIAG of US$999,000 to
    acquire the first 3% of the ORRI;
--  Second payment to be made upon completion of a farm - out deal in
    Australia;
--  CRIAG has granted Falcon Australia a five year call option to acquire
    the remaining 1% for US$5 million; and
--  All ORRI's acquired under the CRIAG Agreement have been immediately
    cancelled by Falcon Australia.

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Falcon believes that this transaction should help to further progress the farm - out negotiations, which are at an
advanced stage. Together with the significant seismic programme completed last year, this transaction further increases
the value of the Group's assets in the Northern Territory.

Hungary Drilling

Drilling operations on the first joint well between NIS and Falcon, Kutvolgy-1 well were completed in July 2013, the
well having reached total depth ("TD") of 3,305 metres. As anticipated, 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 were taken and extensive wireline logs
were run. As planned the well has been cased to TD and is now suspended. The operations were conducted to a high
standard with no accidents occurring during drilling.

Technical evaluation of the well results has been concluded and preparations are now well underway to complete and test
this well. The process will involve conventional testing of up to 8 gas bearing intervals as a first phase. A decision
on whether hydraulic fracturing of the penetrated tight sands is required will be made upon evaluating the results of
conventional flow tests. We expect technical operations to commence in January 2014.

Preparations for drilling the second well have commenced. Actual drilling operations on this well are expected to start
in Quarter 1 of 2014.

Results for operating activities

Falcon incurred a loss of US$3.7 million in the nine months ended 30 September 2013, decreased from a loss of US$16.6
million in the nine months ended 30 September 2012.

Falcon's cash and cash equivalent balance at 30 September 2013 was US$10.8 million (31 December 2012: US$2.9 million).

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Falcon Oil & Gas Ltd.
Interim Condensed Consolidated Statements of Operations and Comprehensive
Loss
(Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                        Three months Three months  Nine months  Nine months
                            ended 30     ended 30     ended 30     ended 30
                           September    September    September    September
                          2013 $'000   2012 $'000   2013 $'000   2012 $'000
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Revenue
Oil and natural gas
 revenue                           4            1           11           12
----------------------------------------------------------------------------
                                   4            1           11           12

Expenses
Exploration and
 evaluation expenses            (206)        (447)        (614)      (1,561)
Production and operating
 expenses                         (5)         (18)         (17)         (30)
Depreciation                     (54)         (57)        (261)        (295)
General and
 administrative expenses      (1,140)      (1,670)      (3,744)      (4,917)
Share based compensation        (214)        (763)        (487)      (2,204)
Restructuring expenses             -          (62)           -         (674)
Foreign exchange gain            197            -          197            -
Other income / (expense)         152          (40)         491          198
----------------------------------------------------------------------------
                              (1,270)      (3,057)      (4,435)      (9,483)
----------------------------------------------------------------------------

Results from operating
 activities                   (1,266)      (3,056)      (4,424)      (9,471)

Fair value gain / (loss)
 - outstanding warrants        3,844       (4,578)       2,520       (3,956)

Finance income                   375           15          637           53
Finance expense                  (41)      (1,299)      (2,463)      (3,267)
----------------------------------------------------------------------------
Net finance income /
 (expense)                       334       (1,284)      (1,826)      (3,214)

----------------------------------------------------------------------------
Net income / (loss) and
 comprehensive income /
 (loss) for the period         2,912       (8,918)      (3,730)     (16,641)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net income / (loss) and
 comprehensive income /
 (loss) attributable to:

Equity holders of the
 company                       2,929       (8,891)      (3,577)     (16,453)
Non - controlling
 interests                       (17)         (27)        (153)        (188)
----------------------------------------------------------------------------
Net income / (loss) and
 comprehensive income /
 (loss) for the period         2,912       (8,918)      (3,730)     (16,641)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net income / (loss) per
 share attributable to
 equity holders of the
 company:

Basic and diluted         0.003 cent  (0.013 cent) (0.004 cent) (0.024 cent)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Falcon Oil & Gas Ltd.
Interim Condensed Consolidated Statements of Financial Position
(Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                            At 30 September  At 31 December
                                                 2013 $'000      2012 $'000
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Assets
Non - current assets
Exploration and evaluation assets                    72,456          74,019
Property, plant and equipment                         5,447           5,703
Trade and other receivables                             562           1,265
----------------------------------------------------------------------------
                                                     78,465          80,987
----------------------------------------------------------------------------

Current assets
Cash and cash equivalents                            10,844           2,884
Restricted cash                                         387             386
Trade and other receivables                             592           1,756
----------------------------------------------------------------------------
                                                     11,823           5,026

----------------------------------------------------------------------------
Total assets                                         90,288          86,013
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Equity and liabilities

Equity attributable to owners of the parent
Share capital                                       382,844         339,334
Contributed surplus                                  42,257          41,858
Retained deficit                                   (350,771)       (334,279)
----------------------------------------------------------------------------
                                                     74,330          46,913
Non - controlling interests                             743          10,882
----------------------------------------------------------------------------
Total equity                                         75,073          57,795
----------------------------------------------------------------------------

Liabilities
Non - current liabilities
Derivative financial liabilities                        638           5,292
Decommissioning provision                            10,236          10,955
----------------------------------------------------------------------------
                                                     10,874          16,247
----------------------------------------------------------------------------

Current liabilities
Accounts payable and accrued expenses                 2,207           3,122
Convertible debentures                                    -           8,773
Derivative financial liabilities                      2,134              26
Decommissioning provision                                 -              50
----------------------------------------------------------------------------
                                                      4,341          11,971
----------------------------------------------------------------------------
Total liabilities                                    15,215          28,218

----------------------------------------------------------------------------
Total equity and liabilities                         90,288          86,013
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Falcon Oil & Gas Ltd.
Interim Condensed Consolidated Statements of
 Cash Flows
(Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                             Nine months ended 30 September
                                                 2013 $'000      2012 $'000
----------------------------------------------------------------------------

Cash flows from operating activities
Net loss for the period                              (3,730)        (16,641)
Adjustments for:
 Share based compensation                               487           2,204
 Depreciation                                           261             295
 Fair value (gain) / loss - outstanding
  warrants                                           (2,520)          3,956
 Net finance expense                                  1,826           3,214
 Other                                                 (322)           (636)
Contribution to past costs - Chevron                  1,000               -
Change in non-cash working capital                     (637)          1,308
Interest paid                                          (573)           (579)
Interest received                                        87              53
----------------------------------------------------------------------------
Net cash used in operating activities                (4,121)         (6,826)

Cash flows from investing activities
Exploration and evaluation assets                      (664)         (2,827)
Proceeds from farm-out transaction - NIS              1,500               -
Property, plant and equipment                           (29)            (21)
----------------------------------------------------------------------------
Net cash generated by / (used in) investing
 activities                                             807          (2,848)

Cash flows from financing activities
Proceeds from private placement - March 2013         25,672               -
Transaction costs relating to private
 placement - March 2013                              (1,902)              -
Repayment of 11% debenture                          (10,197)              -
Share acquisition in Falcon Oil & Gas
 Australia Ltd ("Falcon Australia")                  (3,000)              -
Transaction costs associated with share
 acquisition in Falcon Australia                        (60)              -
Increase in restricted cash                               -            (268)
Proceeds from exercise of share options                 112              90
----------------------------------------------------------------------------
Net cash from / (used in) financing
 activities                                          10,625            (178)

Change in cash and cash equivalents                   7,311          (9,852)
Effect of exchange rates on cash & cash
 equivalents                                            649              48

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

----------------------------------------------------------------------------
Cash and cash equivalents at end of period           10,844           5,554
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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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, including comments made with
respect to when payments due under the CRIAG agreement will be made, the ability to secure a new farm- out partner in
Australia and the expected timeframe for drilling operations and testing in Hungary. 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 & Gas Ltd.
Philip O'Quigley
CEO
[phone]

OR

Falcon Oil & Gas Ltd.
John Craven
Non-Executive Chairman
[phone]
www.falconoilandgas.com

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)
David Porter / Richard Redmayne
[phone]

Falcon Oil & Gas Ltd.