Falcon Retains Interest in Beetaloo Permits, No...

FOR:  FALCON OIL & GAS LTD.

TSX VENTURE SYMBOL:  FO
AIM SYMBOL:  FOG

July 1, 2013

Falcon Retains Interest in Beetaloo Permits, Northern Australia

Hess request to defer drilling decision rejected by Falcon board

TORONTO, ONTARIO--(Marketwired - July 1, 2013) - Falcon Oil & Gas Ltd. (TSX VENTURE:FO) (AIM:FOG) (ESM:FAC)
("Falcon" or the "Company"), announces that Hess Australia (Beetaloo) Pty Ltd ("Hess"), did not elect to commit
to drilling the five wells required to earn their interest in the Beetaloo permits by the agreed deadline of
10pm Friday the 28th June.

In accordance with the Participation Agreement dated 28th April 2011, as amended on the 2nd August 2012, which
granted Hess the first extension, failure to elect on time means that Hess forfeits their right to earn 62.5%
in three of the Beetaloo permIts. A late request by Hess to defer the election date again was unanimously
rejected by Falcon's Board for reasons outlined below.

/T/

--  Falcon retains a 100% working interest in the four Beetaloo exploration
    permits which puts Falcon in a stronger position going forward.
--  Hess has transferred a perpetual, royalty-free and irrevocable licence
    to Falcon over the 3,490 km of seismic acquired by them.
--  The interpretation of 3,490 kms of new seismic data, acquired and
    processed at no cost to Falcon, is extremely encouraging.
--  Identification of a shale oil play in the northern part of the permits
    in addition to the shale gas and conventional plays throughout the
    acreage.
--  Unsolicited interest from major oil and gas companies.
--  Falcon had already granted Hess an extension from August 2012 to June
    2013.

/T/

Philip O'Quigley, CEO of Falcon commented:

We regard 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, which they described as one of the largest oil and gas companies in the world.

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 very prolific basin enhanced and de-risked by the new seismic data.

I would like to thank Hess for their significant contribution to the Beetaloo project both in terms of their
technical input but also in terms of their financial investment which we estimate to be approximately US$80m to
date.

I look forward to updating the market as we move forward on our extensive acreage in the Beetaloo Basin"

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 the Beetaloo Basin

Falcon Australia, Falcon's 72.7 per cent. owned subsidiary, is the registered holder of four exploration
permits covering approximately 7 million acres (approximately 28,000 km2) in the Beetaloo Basin, a sparsely
populated area of the Northern Territory. The Beetaloo Basin is a Proterozoic and Cambrian age tight oil and
gas basin that the Board believes is well suited for unconventional oil and gas projects. RPS Energy, in its
independent Competent Person's Report ("CPR") dated 1 January 2013, estimates gross un-risked recoverable
prospective resource (play level) potential of 162 Tcf of gas and 21,345 Mmbo of oil (P50) for Falcon
Australia's Beetaloo Exploration Permits.

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.

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FOR FURTHER INFORMATION PLEASE CONTACT:

Falcon Oil and Gas Ltd.
[phone]

OR

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

OR

Falcon Oil and Gas Ltd.
John Craven, Non Exec Chrmn
[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]

INDUSTRY:  Energy and Utilities-Oil and Gas
SUBJECT:   MEX

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Falcon Oil & Gas Ltd.