Falcon Oil & Gas Ltd-Spudding of Second Wel...

FOR:  FALCON OIL & GAS LTD.

TSX VENTURE SYMBOL:  FO
AIM SYMBOL:  FOG

May 16, 2014

Falcon Oil & Gas Ltd-Spudding of Second Well in Hungary & Operational Update

DUBLIN, IRELAND--(Marketwired - May 16, 2014) - Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC)
("Falcon" or the "Company") is pleased to announce that the second of three exploration wells "Besa-D-1", with
our partner Naftna Industrija Srbije JSC ("NIS") to evaluate the gas potential of the Algyo Formation at a
depth of approximately 3,000 meters in the Mako Trough, Hungary has been spudded. The well testing operations
on the first well, Kutvolgy-1 are now completed. The testing indicated that the well experienced improved
recovery from certain intervals however well production did not meet commercial rates. Falcon, with our partner
NIS, has discontinued testing Kutvolgy-1, the well is to be plugged and abandoned. Falcon and NIS are now
focused on Besa-D-1.

In addition, to the spudding of Besa-D-1, our partner NIS continues to study the hydrocarbon potential of the
entire Mako Trough including the Deep Mako play.

In accordance with 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:

"Following from our press release on 2 May 2014 of the Transformational Farm-out of our Beetaloo permits, I am
pleased to announce we have spudded the second well of our three well programme with NIS in Hungary. I look
forward to sharing the results of the second well and building on the knowledge of what we have learned from
the testing of Kutvolgy-1 with the market in due course."

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 & Gas Ltd.
[phone]
Philip O'Quigley, CEO
[phone]
John Craven, Non-Executive Chairman
[phone]

OR

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

OR

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

OR

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

Falcon Oil & Gas Ltd.