Proposed admission to trading on AIM and ESM

14 March 2013

NOT  FOR  PUBLICATION, DISTRIBUTION OR RELEASE IN OR INTO THE UNITED STATES, AUSTRALIA, JAPAN, THE REPUBLIC
OF SOUTH AFRICA  OR ANY OTHER JURISDICTION WHERE SUCH RELEASE OR PUBLICATION WOULD BE UNLAWFUL

                               Proposed admission to trading on AIM and ESM

                                   US$25 million (£16.9 million) Placing

Falcon  Oil  &  Gas Ltd. (TSXV:FO) ("Falcon" or "the Company"), is pleased to announce its application  for
admission ("Admission") to trading on the AIM market of the London Stock Exchange (symbol: FOG) and the ESM
market of the Irish Stock Exchange (symbol: FAC) of the Company's existing share capital and the additional
120,381,973  new  common  shares  in the capital of the Company to be issued  pursuant  to  the  concurrent
conditional  brokered  private  placement (the "Placing") of new common shares  at  a  price  of  14  pence
(C$0.215) per share to raise gross proceeds of US$ 25 million (£16.9 million). It is expected that dealings
will commence on AIM and ESM on 28 March 2013.

The  following  directors  and  significant shareholders, as  defined  in  the  AIM  and  ESM  Rules,  have
participated in the Placing

                                        Existing             Placing           Enlarged       % of Enlarged
                                    Shareholding       Participation       Shareholding       Share Capital

John Craven                              500,000           2,357,143          2,857,143               0.35%
Philip O'Quigley                       1,000,000             513,696          1,513,696               0.19%
Gregory Smith                            420,000              50,000            470,000               0.06%
David Harris                                   -             150,000            150,000               0.02%

Soliter Holdings Corp                 85,572,277          27,237,857        112,810,134              13.80%
Persistency                           49,269,484          10,035,000         59,304,484               7.26%

Falcon  is  an  international oil & gas company engaged in the acquisition, exploration and development  of
conventional and unconventional oil and gas assets. Falcon is incorporated in British Columbia, Canada  and
headquartered in Dublin, Ireland with a technical team based in Budapest, Hungary.

Falcon's  strategy  is  to leverage the Group's expertise in the unconventional oil  and  gas  industry  to
acquire  interests  in  licences  covering large acreages of land  and  to  build  on  its  internationally
diversified  portfolio of unconventional assets and interests, which are located in  countries,  which  the
Board believes support the exploitation of unconventional oil and gas.

The  Board  of  Falcon  believes that a listing on AIM and ESM will give the Company access  to  additional
sources of finance not currently available to it, providing the Company with further opportunities to  fund
growth  in  the future, including work in Australia and South Africa, potential strategic acquisitions.  In
addition  a listing on AIM and ESM is also closer to the new corporate headquarters in Dublin, Ireland  and
is  intended  to establish a broad institutional shareholder base in London and increase liquidity  of  the
stock.

The  Board  intends  to use the proceeds of the Placing to repay the Company's outstanding  debentures,  to
finance the Group's work commitments in Australia and South Africa, to enable the Company to make strategic
acquisitions and for general corporate purposes

Davy  is  acting as Falcon's nominated adviser, ESM adviser and joint broker in connection with the Placing
and  the Admission, and GMP Securities Europe LLP ("GMP") is acting as joint broker in connection with  the
Placing.  Pursuant to a placing agreement, the Company has agreed to pay each of GMP and Davy one per  cent
on  the  aggregate value of Common Shares placed with certain existing shareholders prior to the  Admission
who  are also Placees in the Placing, and five per cent on the aggregate value of the Common Shares  placed
pursuant  to  the Placing by each of Davy and GMP with Placees other than such existing shareholders.  Such
amounts  will be withheld by Davy and GMP from the proceeds of the Placing with the balance to be  paid  to
the  Company by Davy and GMP, as applicable, on the closing of the Placing, which is currently expected  to
occur within three business days of Admission.

The Placing is conditional on approval from the TSXV. The new common shares whilst freely tradable on the
AIM and ESM market immediately after Admission cannot trade over the TSXV for a period of 4 months and one
day.

Key Highlights:
Falcon has an internationally diverse portfolio
    *   The Group has existing interests covering approximately 14.75 million acres.
            o    Australia - four exploration permits covering approximately 7 million acres in the Beetaloo Basin.
            o    South Africa - Technical Cooperation Permit covering approximately 7.5 million acres onshore Karoo
                 Basin
            o    Hungary -  Makó Production Licence adjacent to Algyö field.
    *   The Board currently believes that these are some of the most prospective unconventional oil and
        gas basins in the world.

Balanced portfolio with significant upside potential
    *   Estimated gross unrisked recoverable prospective resources (play level) of 162 Tcf of gas  and
        21,345 Mmbo of oil (P50) in the Group's Beetaloo Exploration Permits in Australia.
    *   Gross un-risked recoverable prospective gas resources of 568 Bcf (P50) (the Algyö Play).
    *   Gross recoverable contingent resources of 35.3 Tcf of gas and 76.7 Mmbo of oil (P50) (the Deep
        Makó Trough) in the Makó Production Licence in Hungary.

Falcon has established partners in place in each country
    *   Partnered with significant, well-established multinational energy companies.
    *   Hess and Naftna Industrija Srbije Jsc ("NIS") carrying the Company through the initial respective
        work programmes and providing technical skills and financial resources in Australia and Hungary.
    *   Joint Cooperation Agreement with Chevron in South Africa,

Operating in countries that support the exploitation of unconventional oil and gas
    *   Regions characterised by high regional demand for energy
    *   Jurisdictions with governments that the Board believes are favourable towards unconventional oil
        and gas exploration.

Falcon has an experienced board and management team
    *   Individuals with established track records in acquiring and developing oil and gas assets.
    *   Non-Executive Chairman John Craven, Petroleum Geologist with 35 years of E&P experience. Current
        CEO of Discover Exploration, formerly Cove Energy, Petroceltic and Dana Petroleum.
    *   Chief Executive Officer Philip O'Quigley with 20 years E&P experience. Previously Finance Director
        of Providence Resources.

Philip O'Quigley, CEO of Falcon commented:

"I  am delighted to announce our application for admission to trading on AIM and the ESM and the placing of
US$25  million; we feel that this is the right time to bring the Company to AIM and ESM in order to further
support the next stage of Falcon's development.

"With  our  established  portfolio in Australia, South Africa and Hungary, we are differentiated  from  our
peers  in  the  unconventional sector and we believe that the Admission will be an important  step  in  the
Group's  continued  growth, allowing the Company access to additional sources of finance,  as  we  and  our
partners  strive  to realise the value proposition from the large resource potential contained  within  our
asset portfolio."

For further information on Falcon Oil & Gas Ltd. please visit www.falconoilandgas.com

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

FTI Consulting:                         
Billy Clegg                             [phone]
Edward Westropp                         [phone]

Davy:                                   
John Frain / Anthony Farrell            [phone]

GMP Securities Europe LLP:              
James Pope                              [phone]
Alexandra Carse                         [phone]

The common shares to be offered have not been and will not be registered under the United States Securities
Act  of  1933,  as amended, or under any state securities laws, and may not be offered or sold  within  the
United  States except in certain transactions exempt from the registration requirements of such  Act.  This
release  does not constitute an offer to sell nor the solicitation of an offer to buy the common shares  or
any  other  securities and shall not constitute an offer to sell or solicitation of an offer to buy,  or  a
sale of, the common shares or any other securities in any jurisdiction in which such offer, solicitation or
sale is unlawful.

                                         INFORMATION ON THE GROUP

1. INTRODUCTION

Falcon  Oil & Gas Ltd. is an international oil and gas company engaged in the acquisition, exploration  and
development  of  conventional  and unconventional oil and gas assets. Falcon's  interests  are  located  in
internationally diversified countries that are characterised by a high regional demand for  energy  and  in
some  cases are close to existing infrastructure allowing rapid delivery of oil and gas to market. In  each
territory, Falcon is partnered with a large, credible multinational energy company.

Falcon's  strategy  is  to leverage the Group's expertise in the unconventional oil  and  gas  industry  to
acquire  interests  in  licences  covering large acreages of land  and  to  build  on  its  internationally
diversified portfolio of unconventional assets and interests, which are located in countries that the Board
believes support the exploitation of unconventional oil and gas. Falcon seeks to add value to its assets by
entering  into  farm-out arrangements with major oil and gas companies that will fully or  partially  carry
Falcon  through  seismic and drilling work programmes. The Group's principal interests are located  in  two
major  underexplored  basins  in Australia and South Africa and in Hungary,  covering  approximately  14.75
million gross acres in total.

Falcon  is  incorporated in British Columbia, Canada and headquartered in Dublin, Ireland with a  technical
team  based  in Budapest, Hungary. On Admission, Falcon's Common Shares will be traded on AIM,  the  market
operated  by the London Stock Exchange (symbol: FOG), the TSX Venture Exchange (symbol: FO.V) and ESM,  the
market regulated by the Irish Stock Exchange (symbol: FAC).

Beetaloo Basin, Northern Territory, Australia

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. (see Note 1)

In  its entirety, the Beetaloo Basin covers approximately 8.7 million acres (approximately 35,260 km2) and,
as  far as the Company is aware, a total of 11 wells have been drilled in the Beetaloo Basin to date.  This
work  was  undertaken by a Rio Tinto Group subsidiary company exploring for conventional  hydrocarbons  and
while not leading to a conventional development, the data from the cores demonstrated the presence of tight
oil and gas and several horizons were shown to be prospective for unconventional oil and gas.

In April 2011, Falcon Australia entered into a joint venture with Hess (the "Hess Agreement"), whereby Hess
agreed  to  collect  seismic  data over an area covering three of the four  Beetaloo  Exploration  Permits,
excluding an area covering approximately 100,000 acres (approximately 405 km2) surrounding the Shenandoah-1
well-bore.

Since  the date of the Hess Agreement, Hess has spent in excess of US$55 million acquiring 3,490 kilometres
of  2D seismic data which is currently being interpreted. Hess has the option, valid until 30 June 2013, to
acquire a 62.5 per cent working interest in the Hess area of interest in the Beetaloo Basin (the "Hess Area
of  Interest") by committing to drill and evaluate five exploration wells at Hess' sole cost, one of  which
must be a horizontal well.

Karoo Basin, South Africa

Falcon holds a Technical Cooperation Permit (the "TCP") covering an area of approximately 7.5 million acres
(approximately  30,327 km2) onshore Karoo Basin, South Africa. In geological terms the Karoo  refers  to  a
geological period lasting some 120 million years and the rocks laid down during that period of time.  These
rocks were deposited in a large regional basin and resulted in the build-up of extensive deposits, some  of
which have been identified as having potential for shale gas.

The TCP grants Falcon an exclusive right to apply for an exploration right over the underlying acreage.  In
February  2011,  a  moratorium on the processing of all new applications relating to  the  exploration  and
production  of  shale  gas in the Karoo Basin was put in place, and in April 2011  the  processing  of  all
existing  applications was suspended whilst the South African Department of Mineral Resources conducted  an
environmental  study  on the effects of hydraulic stimulation and developed a system  to  regulate  onshore
exploration  activities. In September 2012, the South African Government announced a decision to  lift  the
moratorium  on  the  processing  of  existing  shale gas  exploration  permit  applications  following  the
publication  of legislation (expected in Q2 2013), and consequently the Board expects that the  exploration
right over the acreage will be awarded in the second half of 2013.

In  December 2012, Falcon entered into a Cooperation Agreement with Chevron  to jointly seek unconventional
exploration opportunities in the Karoo Basin. The Chevron Agreement provides for Falcon to work exclusively
with  Chevron  for a period of five years to jointly seek to obtain exploration rights in the  Karoo  Basin
subject  to the parties mutually agreeing participation terms applicable to each right. Further details  of
the Chevron Agreement are provided in Section 15.2.1 of Part VI of this document.

Makó Trough, Hungary

Falcon  began  operations in Hungary in 2005 and it is the most developed asset in its portfolio.  Falcon's
subsidiary, TXM, holds the 35-year Makó Production Licence covering an area of approximately 245,775  acres
(approximately  1,000  km2)  located in the Makó Trough, part of the greater  Pannonian  Basin  of  central
Europe.  The Makó Production Licence is located approximately ten kilometres from the MOL Group  owned  and
operated  Algyö  field, which the Company understands has produced approximately 2.5 Tcf and  220  Mmbo  to
date.  The Makó Licence area is transected by existing gas pipelines, including a 12 kilometre gas pipeline
built by Falcon in 2007, which together offer potential access to local and international markets.

The Makó Trough contains two distinct plays:

*   a  play targeting gas prospects in the Algyö Play at depths between 2,300 metres and 3,500 metres;
    and
*   a deeper unconventional play targeting significant contingent resources in the Deep Makó Trough.

RPS Energy estimates that eight prospects in the Algyö Play contain gross un-risked recoverable prospective
gas  resources  of  568  Bcf  (P50)  (see Note 1). In January 2013, Falcon  agreed  a  three-well  drilling
exploration  programme with NIS, owned 56 per cent. by Gazprom Group, to target the Algyö  Play.  NIS  have
made  a cash payment of US$1.5 million to Falcon and agreed to drill three exploration wells by July  2014.
NIS  will earn 50 per cent. of net production from the first three wells, and has the option to participate
in  any  future drilling on terms to be negotiated, after paying Falcon US$2.75 million. Falcon  is  to  be
fully carried on the drilling and testing of the three exploration wells.

Drilling preparations are already underway. NIS has informed the Company that it expects the first well  to
spud by the end of Q2 2013 and the three-well drilling programme to be completed before the end of 2013.

Between 2005 and 2007, Falcon acquired 1,100 kilometres of 3D seismic data and executed a six-well drilling
programme on the Deep Makó Trough. Each of the six wells encountered thick sequences of hydrocarbon bearing
rocks, and tests flowed hydrocarbons from each tested horizon. Early exploration efforts focused on proving
hydrocarbon  potential and delineation of the basin in order to secure the Makó Production Licence.  Falcon
may seek to partner with an industry player to re-enter and develop the Deep Makó Trough play.

RPS  Energy in its independent CPR estimates gross recoverable contingent resources for the Makó Production
Licence of 35.3 Tcf of gas and 76.7 Mmbo of oil (P50) (see Note 1)

2. KEY INVESTMENT CONSIDERATIONS

The Directors believe that an investment in the Company should be attractive to potential investors for the
following reasons:

*   The  Group has existing interests covering approximately 14.75 million acres in an internationally
    diversified  portfolio  and the Board currently believes that these are some of  the  most  prospective
    unconventional oil and gas basins in the world;

*   RPS Energy, in a report published 1 January 2013 estimates gross un-risked recoverable prospective
    resources (play level) of 162 Tcf of gas and 21,345 Mmbo of oil (P50) in the Group's Beetaloo Exploration
    Permits in Australia, gross un-risked recoverable prospective gas resources of 568 Bcf (P50) (the Algyö
    Play), and gross recoverable contingent resources of 35.3 Tcf of gas and 76.7 Mmbo of oil (P50) (the Deep
    Makó Trough) in the Makó Production Licence in Hungary;

*   The Group has significant, well established partners in place in each country, and in the case  of
    Hess in Australia and NIS in Hungary, carrying the Company through the initial respective work programmes
    and providing technical skills and financial resources;

*   The  Group  has  interests  located  in  countries close to  existing  energy  infrastructure,  in
    jurisdictions which the Directors currently believe have governments favourable towards unconventional oil
    and gas exploration; and

*   The  Company has an experienced board and management team, including individuals with  established
    and successful track records in acquiring and developing oil and gas assets.

3. GROUP STRATEGY

Falcon's  strategy  is  to leverage the Group's expertise in the unconventional oil  and  gas  industry  to
acquire  interests  in  licences  covering large acreages of land  and  to  build  on  its  internationally
diversified portfolio of unconventional assets and interests, which are located in countries that the Board
believes  support the exploitation of unconventional oil and gas. Following acquisition,  Falcon  seeks  to
develop  a  deeper  technical  understanding of the potential of its acreage  and  establish  good  working
relations  with  landowners, regulators and the local community. In parallel, Falcon seeks strategic  joint
ventures  with technically capable and well-funded partners to participate in and advance their exploration
efforts. The Board currently intends that Falcon will be fully or partially carried by its partners through
seismic  and  drilling  programmes  by  entering into farm-out arrangements  in  relation  to  its  acreage
positions,  with  the objective of retaining a material minority stake in the assets.  It  is  the  Board's
current intention to proactively manage its portfolio and monetise assets at a significant premium  to  the
acquisition costs. Falcon may also seek to take advantage of opportunities as they arise to make  strategic
corporate acquisitions to expand its portfolio.

4. BACKGROUND AND HISTORY

Falcon was incorporated in British Columbia, Canada in 1980 as Sanfred Resources Ltd., which was listed  on
the TSX Venture Exchange in 1999. It subsequently changed its name to Falcon Oil & Gas Ltd. in 1999, and in
2002  it  acquired an interest in four producing gas wells in Hackett, Alberta, Canada. In  February  2005,
Falcon  acquired  the entire issued share capital of Makó Energy Corporation, in a reverse  takeover.  Makó
Energy  Corporation  held  a  number of exploration licences in Hungary. The  Group  conducted  a  six-well
drilling programme in the Deep Makó Trough between 2005 and 2007.

In  September  2008  Falcon,  through Falcon Australia, acquired a 50 per cent.  working  interest  in  the
Beetaloo  Exploration Permits from PetroHunter Energy Corporation and its subsidiary, Sweetpea and  in  May
2009,  the  Group acquired a further 25 per cent. working interest in the Beetaloo Exploration Permits.  In
December  2009,  Falcon Australia acquired the remaining 25 per cent. interest in the Beetaloo  Exploration
Permits from Sweetpea in consideration for, inter alia, the issuance to Sweetpea of 25 per cent. of  Falcon
Australia's  shares.  In  April  2010, the Northern Territory's Department of  Resources  confirmed  Falcon
Australia's ownership of 100 per cent. of the Beetaloo Exploration Permits and in the course of 2010 Falcon
Australia raised approximately US$6.1 million by way of a private placement of its ordinary shares.

In  2009, the Group was granted a TCP in the Karoo Basin in South Africa. Between 2005 and 2011, the  Group
raised  approximately US$341 million in a number of private placements of Common Shares. In  addition,  the
Company issued Debentures worth C$10.7 million (approximately US$11 million) that mature in June 2013.

In September 2011, John Craven was appointed as Non-Executive Chairman and in May 2012 Philip O'Quigley was
appointed Chief Executive Officer. In September 2012, the Company relocated its corporate headquarters from
Denver, Colorado to Dublin, Ireland.

Assets                                      Interest                                              
(Country)                                        (%)  Operator      Status         Area (km2)    Expiry
Exploration Permit EP-76 (Beetaloo Basin,     72.7%(1)Hess          Exploration    4,976.3       31/12/2013
Northern Territory, Australia)
Exploration Permit EP-98 (Beetaloo Basin,     72.7%(1)Hess(2)       Exploration    11,412.1      31/12/2013
Northern Territory, Australia)
Exploration Permit EP-99 (Beetaloo Basin,     72.7%(1)Falcon        Exploration    2,587.2       31/12/2013
Falcon Northern Territory, Australia)                 Australia
Exploration Permit EP-117 (Beetaloo Basin,    72.7%(1)Hess          Exploration    9,218.3       31/12/2013
Northern Territory, Australia)
Technical Cooperation Permit, (Karoo            100%  Falcon        TCP            30,326.9      In Force(3)
Basin, South Africa)
Makó Production Licence (Makó Trough,           100%  TXM           Production     994.6         21/05/2042
Hungary)

Notes:
1  Falcon  owns  72.7 per cent. of Falcon Australia, which holds a 100 per cent. interest in  the  Beetaloo
Exploration  Permits.  Of the remaining 27.3 per cent. of Falcon Australia, 24.2  per  cent.  is  owned  by
Sweetpea,  a  wholly owned Australian subsidiary of PetroHunter Energy Corp. and 3.1 per cent. interest  is
held by others.

2  Falcon  Australia retains operatorship in the Shenandoah-1 well and approximately 405 km2 (approximately
100,000 acres) land around the Shenandoah-1 well-bore in exploration permit EP-98.

3  In  compliance with the terms of the TCP, Falcon submitted its application for an exploration permit  in
August  2010  prior  to  the moratorium being introduced in April 2011. Local counsel  has  confirmed  that
despite the TCP expiry date of October 2010 having passed, Falcon's interests remain valid and enforceable.

Beetaloo Basin, Northern Territory, Australia

Overview

Falcon  Australia, Falcon's 72.7 per cent. owned subsidiary, is the registered holder of  four  exploration
permits,  comprising  approximately  7 million acres (approximately 28,000  km2)  in  the  Beetaloo  Basin,
Northern  Territory,  Australia. The Beetaloo Basin is located 600 kilometres  south  of  Darwin  close  to
infrastructure  including  a  highway,  two pipelines and a railway,  offering  transport  options  to  the
Australian market and beyond via the existing and proposed LNG capacity in Darwin.

The  Beetaloo  Basin is a Proterozoic and Cambrian tight oil and gas basin. In its entirety,  the  Beetaloo
Basin  covers  approximately 8.7 million acres (approximately 35,260 km2) and is a relatively underexplored
onshore  exploration  basin  with,  as far as the Company is aware, 11 exploration  wells  drilled  in  the
Beetaloo  Basin to date. The area is remote and sparsely populated and the Board believes that it  is  well
suited  for  oil  and gas projects. Australia has a developed resources industry with a  stable  political,
legal and regulatory system.

RPS  Energy,  in its independent 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.

Exploration Permits

A  summary of Falcon Australia's Beetaloo Exploration Permits is contained in the table above. The  acreage
interests covered by the Beetaloo Exploration Permits cover the majority of the Beetaloo Basin and are held
100 per cent. in the name of Falcon Australia.

In  April  2011,  Falcon Australia agreed a joint venture with Hess whereby Hess agreed to collect  seismic
data  over an area made up of three of the four Beetaloo Exploration Permits, excluding exploration  permit
EP-99  and  area  within  exploration permit EP-98 (the Shenandoah-1 well and approximately  100,000  acres
(approximately  405  km2) of land around the well-bore), referred to as the Hess Area of  Interest.  Falcon
Australia  is the operator of exploration permit EP-99 and Hess is the operator of exploration permits  EP-
76,  EP-98  and  EP-117.  Falcon  Australia  also  retained  operatorship  in  the  Shenandoah-1  well  and
approximately  100,000  acres  (approximately 405 km2) of land around  the  Shenandoah-1  well-bore  within
exploration  permit  EP-98.  The  work  commitments for the Beetaloo Exploration  Permits  held  by  Falcon
Australia  have been met for previous years, with the exception of exploration permit EP-99,  on  which  an
extension  was granted to 31 December 2013. In September 2012, Falcon Australia obtained Northern Territory
Department  of  Resources approval for a 12 month extension of the Beetaloo Exploration  Permits  until  31
December 2013.

In  accordance  with  local law and regulations, all Falcon Australia's acreage interests  are  subject  to
royalties  on production values of up to approximately 12 per cent. to government and native title  holders
and  up  to  approximately  13  per cent. to other parties. In addition, Falcon  Australia  is  subject  to
Commonwealth  Government  corporation tax of 30 per cent., and to the Commonwealth  Government's  Petroleum
Resource  Rent  Tax  ("PRRT") levied at the rate of 40 per cent. on the taxable profits  derived  from  the
petroleum project in a year of tax.

Discoveries and Prospectivity

The  Board believes that the Beetaloo Basin is relatively under-explored and has shale oil, shale  gas  and
Basin  Centered Gas Accumulation potential. As far as the Company is aware, 11 wells have been  drilled  in
the  Beetaloo  Basin to date. The Company understands that this work was undertaken by a  Rio  Tinto  Group
subsidiary  company  exploring  for  conventional hydrocarbons and while  not  leading  to  a  conventional
development,  the  data from the cores demonstrated the presence of tight oil and gas and several  horizons
were shown to be prospective for unconventional oil and gas.

There  are  no  existing  fields but there are numerous mudlog and core oil and gas  shows  throughout  the
Beetaloo Basin in prospective formations. The Shenandoah-1 was a vertical hole well drilled by Sweetpea  in
2007. The well was deepened by Falcon Australia in 2009 to finish at 2,714 metres. It was re-entered in  Q3
2011  and  five  short tests were conducted including several fraccing operations. Gas was  recovered  from
three zones with some liquids. One gas zone flowed gas at rates between 50 to 100 Mcfpd.

Current activity

Hess  paid  Falcon Australia a sum of US$20 million on signing the Hess Agreement and since then  Hess  has
acquired  3,490  kilometres of 2D seismic data at an estimated cost in excess  of  US$55  million.  The  2D
seismic  data is currently being processed and interpreted. Hess has the option, valid until 30 June  2013,
to  acquire  a  62.5  per cent. working interest in the Hess Area of Interest by committing  to  drill  and
evaluate  five exploration wells at Hess' sole cost, one of which must be a horizontal well. All  costs  to
plug and abandon the five exploration wells will also be borne solely by Hess. The Board estimates that the
gross  costs associated with the five-well programme will be approximately US$75 million. Hess has  agreed,
subject  to proceeding to the development phase, to carry Falcon Australia, on the first development  well,
up  to  a  gross cost of US$10 million, which the Board currently believes will be the total gross cost  of
this  well. Costs to drill wells after the five exploration wells and the first development well (and after
the  initial  US$10  million) will be borne 62.5 per cent. by Hess and 37.5 per cent. by Falcon  Australia.
Further details of the Hess Agreement are provided in Section 15.1.1 of Part VI of this document.

Under  the minimum work commitments for exploration permit EP-99, Falcon Australia must spend a minimum  of
US$1.5  million  by  31  December  2013 in collecting 2D seismic data  on  the  underlying  acreage  within
exploration  permit EP-99. Falcon Australia is currently finalising a 2D seismic acquisition programme  for
exploration  permit EP-99 in order to meet this requirement in 2013. This 2D seismic data  is  expected  to
provide  the necessary information to plan a potential well programme in the coming years. Falcon Australia
currently  intends  to  meet  this  commitment either through a farm-out arrangement  or  through  its  own
resources. Falcon Australia has received expressions of interest from a number of third parties regarding a
possible  farm-out  arrangement  on  the combined area outside of the  Hess  Area  of  Interest  comprising
exploration  permit EP-99 and approximately 100,000 (approximately 405 km2) acres around  the  Shenandoah-1
well,  measuring  approximately  739,388 acres (approximately 2,992 km2)  in  total.  The  Board  currently
estimates that the gross costs associated with the initial drilling programme on the combined area  outside
of the Hess Area of Interest will be between US$25-US$50 million.

Karoo Basin, South Africa

Overview

Falcon  holds a TCP covering an area of approximately 7.5 million acres (approximately 30,327 km2), in  the
southwest Karoo Basin, South Africa, which grants Falcon exclusive rights to apply for an exploration right
over  the  underlying acreage. In August 2010, Falcon submitted an application to the Petroleum  Agency  of
South  Africa for an exploration right over the acreage covered by the TCP and, as part of the  application
process, Falcon submitted an environmental management plan in January 2011.

On 1 February 2011, the Minister of Mineral Resources (the "Minister") published a notice in the Government
Gazette  declaring a moratorium on the processing of all new applications relating to the  exploration  and
production  of shale gas in the Karoo Basin. This moratorium did not extend to existing applications,  such
as  Falcon's, that were submitted prior to 1 February 2011. In April 2011, the Minister announced a further
moratorium,  which was not officially declared in terms of a notice in the Government Gazette,  prohibiting
all  new  applications and suspending the processing of all pending application whilst  the  South  African
Department  of Mineral Resources conducted an environmental feasibility study on the effects  of  hydraulic
stimulation   and  developed  a  system  to  regulate  onshore  exploration  activities  (the   "Undeclared
Moratorium"). The Undeclared Moratorium has no legal effect since it is a requirement of the South  African
petroleum legislation that all such moratoriums be published in the Government Gazette. In September  2012,
the  South  African  Government  announced  a decision to lift  the  Undeclared  Moratorium  on  shale  gas
exploration. The Minister has indicated that although the Undeclared Moratorium has been "lifted",  pending
exploration right applications will not be processed and awarded until the regulations regarding  hydraulic
fracturing  have  published.  These  regulations  are currently  expected  to  be  published  in  Q2  2013.
Consequently,  the Board currently expects that the exploration right over the acreage will be  awarded  in
the second half of 2013.

The  South African Government is entitled to a royalty on the sale of mineral resources of up to seven  per
cent. of gross sales (in the case of unrefined resources) and five per cent. of gross sales (in the case of
refined resources, such as oil and gas). The Liquid Fuels Charter provides that an oil and gas company must
reserve  not less than nine per cent. for Historically Disadvantaged South Africans ("HDSA") to  buy-in  to
any  offshore production right granted. On the advice of South African counsel, the Board believes that the
HDSA  buy-in  will  also apply to onshore production rights in South Africa, including  any  right  granted
pursuant  to the TCP. Similarly, the State has an option to acquire an interest of up to ten per  cent.  in
any  production right granted. However, it is not required to pay any consideration for its ten  per  cent.
interest or contribute to past costs, but must contribute pro rata in accordance with its interest  towards
production costs going forward.

Corporation tax in South Africa is imposed at a rate of 28 per cent. of taxable income. Dividends tax is
imposed on the shareholder at a rate of 15 per cent.

Discoveries and Prospectivity
In  its  entirety, the Karoo Basin is approximately 173 million acres (approximately 700,000 km2)  in  size
located  in  central and southern South Africa and contains thick, organic rich shales such as the  Permian
Whitehill  Formation. The Karoo describes a geological period lasting some 120 million years and the  rocks
laid  down during that period of time, covering the late Palaeozoic to early Mesozoic interval. These  were
deposited in a large regional basin and resulted in the build-up of extensive deposits.

Until  recently,  the Karoo Basin was not considered prospective for commercial hydrocarbons  resulting  in
very  limited modern hydrocarbon exploration onshore in South Africa. In an independent report dated  April
2011,  the  U.S.  Energy Information Administration ("EIA") estimated that there are  485  Tcf  technically
recoverable resources in the Karoo Basin which would rank it fifth in the world after China, USA, Argentina
and  Mexico  for  shale gas potential. In particular, the EIA stated that the Permian Ecca  group  contains
three  potential shales identified as having potential for shale gas. The shale in the Whitehall Formation,
in particular, is ubiquitous, has a high organic content and is thermally mature for gas.

Current activity

In  December  2012,  Falcon entered into an exclusive Cooperation Agreement with Chevron  to  jointly  seek
unconventional exploration opportunities in the Karoo Basin. The Chevron Agreement provides for  Falcon  to
work  exclusively with Chevron for a period of five years to jointly seek to obtain exploration  rights  in
the  Karoo Basin subject to the parties mutually agreeing participation terms applicable to each right.  As
part of the Chevron Agreement, Chevron made a cash payment to Falcon of US$1 million in February 2013 as  a
contribution to past costs.

Makó Trough, Hungary
Overview

Falcon  has been active in the Makó Trough since 2005 when it acquired two exploration licences,  the  Makó
and  the  Tisza exploration licences. Between 2005 and 2007, Falcon pursued a work programme consisting  of
the  acquisition of 1,100 kilometres of 3D seismic data and a six-well drilling programme. Each of the  six
wells  encountered  thick sequences of hydrocarbon bearing rocks, and tests flowed hydrocarbons  from  each
tested  horizon. In 2007, Falcon's subsidiary, TXM, was awarded the 35-year Makó Production  Licence  which
covers some of the acreage originally covered by the Makó and the Tisza exploration licences.

Hungary  is an established oil and gas producing country and the Makó Production Licence is in the vicinity
of the largest producing field in Hungary, the MOL Group owned and operated Algyö field, which has produced
approximately 2.5 Tcf and 220 Mmbo to date, and is located approximately ten kilometres to the west of  the
Makó  Production Licence boundary. The Makó Production Licence area is transected by existing gas pipelines
and  infrastructure,  including  a 12 kilometre gas pipeline built by Falcon  in  2007,  together  offering
transport and potential access to local markets and larger distribution centres for international markets.

Makó Production Licence

The Makó Production Licence was granted by the Hungarian Mining Authority over a gas exploration project in
the  Makó  Trough,  located  in south-eastern Hungary. The lands within the Makó  Production  Licence  were
formerly part of the Group's two hydrocarbon exploration licences - the Tisza exploration licence  and  the
Makó exploration licence.

The  Makó  Production License covers approximately 245,775 acres (approximately 1,000 km2) and is held  100
per  cent. by TXM, a wholly owned subsidiary of the Group. Under the terms of the Makó Production  Licence,
the  Group  is  obliged  to pay a 12 per cent. royalty to the Hungarian Government  on  any  unconventional
production  and  has  a further five per cent. royalty payable under an agreement with  Prospect  Resources
Inc.,  the  previous  owners of the acreage covered by the Makó Production Licence. Corporate  profits  are
taxed  at  19 per cent. In 2009, an additional profit based energy industry tax, levied on energy supplying
companies,  was  introduced. The rate was originally set at eight per cent but, as part of  Hungary'  third
package  of  austerity measures, the rate has increased to 31 per cent for 2013, with deductions  allowable
for  certain capital expenditures. TXM is the operator and there are no outstanding work commitments on the
Makó Production Licence.

Discoveries and Prospectivity

The Makó Trough contains two plays;

*   a play targeting gas prospects in the Algyö Play at depths between 2,300 metres and 3,500 metres;
    and
*   a deeper unconventional play targeting significant contingent resources in the Deep Makó Trough.

The Algyö Play

The  Algyö  Play is a relatively shallow play of between 2,300 and 3,500 metres. A number of  Falcon  wells
have  been drilled through the Algyö Play in recent years, some of which encountered gas shows, but to date
none  of  these wells tested the shallow play concept at an optimal location, as these wells  targeted  the
Deep  Makó  Trough,  at  intervals of up to 6,000 metres. Multiple Algyö prospects have  subsequently  been
identified  by  the  Group through extensive AVO analysis, and 3D seismic data has shown  the  presence  of
possible gas zones above the Szolnok formation (part of the Deep Makó Trough). In total, ten prospects have
been  identified  within  the  Algyö Play from which RPS Energy, in its  independent  CPR  estimates  eight
prospects contain gross unrisked recoverable prospective gas resources of 568 Bcf (P50). (See Note 1)

In  January  2013, Falcon agreed a three-well drilling exploration programme with NIS to target  the  Algyö
Play,  whereby  NIS made a cash payment of US$1.5 million to Falcon in February 2013, and agreed  to  drill
three  exploration wells by July 2014. NIS will earn, after undertaking the three-well drilling obligation,
50  per  cent. of the net production revenues from the three wells drilled.  The Board estimates  that  the
gross costs of the three-well drilling programme will be approximately US$21 million. In addition, NIS will
have  an  option to acquire a right of first negotiation for future drilling operations in the Algyö  Play,
sharing  any  potential  future costs and revenue with the Group, on terms to be negotiated,  after  paying
Falcon US$2.75 million. Falcon will be fully carried on the drilling and testing of three exploration wells
and  will  retain 100 per cent. interest in the Deep Makó Trough. Further details of the NIS Agreement  are
contained in Section 15.3.1 of Part VI of this document.

The Deep Makó Trough

This is a deeper unconventional play targeting gas, and to a lesser extent oil, in the low permeability and
low  porosity  rocks in the deeper horizons of the basin. RPS Energy in its independent CPR  (contained  in
Part IV of this document) estimates gross recoverable contingent resources for the Deep Makó Trough of 35.3
Tcf of gas and 76.7 Mmbo of oil (P50). (See Note 1)

Between 2005 and 2007, Falcon acquired 1,100 kilometres of 3D seismic data and executed a six-well drilling
programme  on the Deep Makó Trough. Early exploration efforts focused on proving hydrocarbon potential  and
delineation  of the basin in order to secure the Makó Production Licence. Each of the six wells encountered
thick  sequences  of  hydrocarbon bearing rocks, and tests flowed hydrocarbons from  each  tested  horizon.
Several  wells flowed gas on test and one well, the Magyarcsanád-1, tested light oil. The deepest well  was
the Makó-7 which, along with the Makó-4, was not tested. The Makó-7 results demonstrated the presence of  a
very large column of hydrocarbons in the well-bore. In 2007, Falcon constructed a 12 kilometre gas pipeline
which  connected  the  Makó-6 and Makó-7 wells with a MOL operated pipeline, offering potential  access  to
local  and  international markets. The Company plans to re-enter the untested Makó-7 and Makó-4  wells  and
will  seek  a technically and financially capable partner to test and produce the shale gas and  tight  gas
formations in the Deep Makó Trough. The Board estimates that the gross costs of re-entering and testing the
Makó-7 and Makó-4 wells will be approximately US$25 million.

Current Activity

Drilling preparations are already underway in the Algyö Play. NIS has informed the Company that it  expects
the  first well to spud by the end of Q2 2013 and the three-well drilling programme to be completed  before
the end of 2013.

Alberta, Canada

For  the  12  months  ended 31 December 2011, Falcon had revenue of US$33,000 (2010: US$28,000)  which  was
earned from non-operating working interests in three producing, and one recently shut-in, natural gas wells
located in Alberta, Canada. Falcon does not currently anticipate any further exploration or development  of
these wells and no further material revenue is expected to be generated or material costs incurred.

6. REASONS FOR THE PLACING AND ADMISSION

The  Board  believes  that a listing on AIM and ESM will give the Company access to additional  sources  of
finance  not currently available to it, providing the Company with further opportunities to fund growth  in
the  future.  A listing on AIM and ESM is also closer to the new corporate headquarters in Dublin,  Ireland
and is intended to establish a broad institutional shareholder base in London and increase liquidity.

7. CURRENT TRADING, TRENDS AND PROSPECTS

The  Group  currently  has no material revenue generating operations. Cash and cash equivalents  as  at  30
September  2012  were  US$5.6  million. In Q3 2012, the Company relocated its corporate  headquarters  from
Denver,  Colorado to Dublin, Ireland. As a result, the Company recorded an estimate of the expenses related
to  this  restructuring,  including severance and employee related benefits  and  certain  other  expenses,
totalling approximately US$1.9 million.

On  12  December 2012, Falcon entered into the Chevron Agreement to jointly seek unconventional exploration
opportunities  in  the  Karoo Basin. The Chevron Agreement provides for Falcon  to  work  exclusively  with
Chevron  for a period of five years to jointly seek to obtain exploration rights in the Karoo Basin subject
to  the  parties  mutually agreeing participation terms applicable to each right. As part  of  the  Chevron
Agreement, Chevron made a cash payment to Falcon of US$1 million in February 2013 as a contribution to past
costs.

On  21 January 2013, the Group announced the completion of the acquisition of 2D seismic data by Hess  over
the  Hess Area of Interest in the Beetaloo Basin, Northern Territory, Australia. During 2011 and 2012, Hess
acquired  3,490 km of 2D seismic data at an estimated cost in excess of US$55 million, which  is  currently
being interpreted.

On  22 January 2013, Falcon agreed a three-well drilling exploration programme with NIS to target the Algyö
Play.  NIS has made a cash payment of US$1.5 million to Falcon and agreed to drill three exploration  wells
by  July 2014. NIS will earn 50 per cent. of net production from the first three wells, and has the  option
to  participate  in  any  future drilling on terms to be negotiated, after paying Falcon  US$2.75  million.
Falcon is to be fully carried on the drilling and testing of the three exploration wells.

On  24  January 2013, the Group announced that an independent CPR carried out by RPS Energy estimates gross
recoverable prospective resources for the Group's Beetaloo Exploration Permits in Australia of 162  Tcf  of
gas  and 21,345 Mmbo of oil (P50), gross recoverable prospective gas resources in the Algyö Play of 568 Bcf
(P50)  and gross recoverable contingent resources in the Deep Makó Trough of 35.3 Tcf of gas and 76.7  Mmbo
of oil (P50), both in Hungary. (See Note 1)

In  Q2  2013,  the  Company currently intends to repay approximately C$10.7 million (approximately  US$10.4
million) relating to outstanding Debentures which have a maturity date of 30 June 2013.

Under the terms of Falcon Australia's exploration permit EP-99, which is not covered by the Hess
Agreement,  Falcon Australia must spend a minimum of US$1.5 million by 31 December 2013  in  collecting  2D
seismic  data on acreage within exploration permit EP-99. Falcon Australia currently intends to  meet  this
commitment either through a farm-out arrangement or through its own resources.

On  receipt of an approved exploration right in South Africa, the Group will be required to make a  payment
to  the  South  African  government of approximately US$0.7 million as part of the  process  to  obtain  an
approved  work  programme  and an exploration permit. The Group is not currently planning  any  independent
technical  operations  in  Hungary other than joint operations with NIS, and as such  no  material  capital
expenditures are expected.

The  prospects  for  Falcon are dependent on, inter alia, the decision by Hess to exercise  its  option  to
acquire a 62.5 per cent. working interest in the Hess Area of Interest, the outcome of the drilling of  the
initial  three  wells by NIS in the Algyö Play, the award of an exploration right over the Group's  acreage
interest in South Africa and the success of the Company in implementing its strategy.

8. DIRECTORS AND SENIOR MANAGEMENT

John Craven: Non-Executive Chairman (63)
Mr.  Craven  has  been Non-Executive Chairman of the Board since September 2011 and has over  35  years  of
experience  in  technical, commercial, financial and leadership roles at major international  upstream  oil
companies  and junior independents. John is currently CEO of Discover Exploration and his career  has  been
noted  for  a  series  of  successful  new venture negotiations, the exploration  of  which  led  to  major
discoveries in Mozambique, Algeria, Colombia, offshore Ghana and Indonesia. Along with his co-directors, he
led  Ardmore  Petroleum,  Dana Petroleum, Petroceltic International and recently Cove  Energy  through  the
acquisition of major upstream assets and key exploration and developmental milestones. During this time Mr.
Craven  has  been  actively involved in corporate finance and was responsible for raising  initial  capital
through private sources and floating Petroceltic International on the Irish Stock Exchange and Cove  Energy
on  AIM. Mr. Craven holds an MSc in Petroleum Geology from the Royal School of Mines in London and  an  MBA
from Queen's University in Belfast.

Philip O'Quigley: Chief Executive Officer (49)
Mr.  O'Quigley has been a member of the Board since September 2012 and has been Chief Executive Officer  of
Falcon since May 2012. Mr. O'Quigley brings 20 years' experience in senior management positions in the  oil
and  gas  industry. His career, which spans a number of London and Dublin listed exploration and production
companies, includes experience working in countries such as Argentina, the United States, Algeria,  the  UK
and  Ireland. Most recently, he served as Finance Director for Providence Resources, an Irish oil  and  gas
exploration  and production company and he remains on the board of Providence Resources as a  non-executive
director. Mr. O'Quigley is a Fellow of the Institute of Chartered Accountants in Ireland and qualified as a
Chartered Accountant with Ernst & Young in Dublin.

Dr. György Szabó: Director (72)
Dr.  Szabó has been a Director of Falcon since 2006. He has also previously served as Consultant and Mining
Bureau  Registered Technical Responsible Person for Falcon's wholly-owned subsidiary TXM. Dr.  Szabó  is  a
widely  recognized authority in the Hungarian and international petroleum industry. In addition to being  a
university professor, Dr. Szabó has overseen the design and implementation of the deepest HP-HT  well  ever
drilled in Hungary. In 1991 he was in charge of successful fire control and well abandonment operations  by
Hungarian  teams  in  Kuwait.  He was instrumental in the privatisation and the  strategy  related  to  the
capitalisation and structure of Hungary's former national oil company (presently MOL Group), as well as the
landmark  listing  of  the  company on domestic and international securities exchanges  in1995.  Dr.  Szabó
graduated  from Miskolc University and received a degree in petroleum engineering in 1963. He received  his
Ph.D. in 1975.

Daryl H. Gilbert: Non-Executive Director (61)
Mr.  Gilbert  has been a member of the Board since September 2007 and is a Professional Petroleum  Engineer
with  over  35 years experience in both the Canadian and international oil and gas industries. Mr.  Gilbert
serves as a director of several energy related public entities in addition to Falcon including AltaGas Ltd.
and  Penn West Petroleum Ltd. He is also currently a Managing Director of JOG Capital Inc. a private equity
oil  and gas investment firm located in Calgary Alberta. The greater part of Mr. Gilbert's career was spent
in  the  independent energy evaluation consulting sector. In 1979, he joined the predecessor  oil  and  gas
engineering and geological firm which became Gilbert Laustsen Jung Associates Ltd. ("GLJ") where he  served
as  a Principal Officer beginning in 1988 and as President and Chief Executive Officer from 1994 through to
his  retirement  from consulting in 2005. Mr. Gilbert has a BSc from the University of  Manitoba  in  Civil
Engineering  and is a member of the Association of Petroleum Engineers, and Geoscientists of  Alberta,  the
Society of Petroleum Engineers and the Society of Petroleum Evaluation Engineers.

Joachim Conrad: Non-Executive Director (48)
Mr.  Conrad has been a member of the Board since October 2008 and is currently a Senior Advisor at  Gazprom
Germania  GmbH and Managing Director of BosphorusGaz Corporation, Turkey, Istanbul (a 71 per cent.  Gazprom
owned company). With a strong track record in the European natural gas industry, he was formerly serving in
the  position as Managing Director of Gazprom Marketing and Trading GmbH (100 per cent. Gazprom owned)  and
as  member  of  the  group executive board of Elektrizitätsgesellschaft Laufenburg AG ("EGL"),  a  European
energy  trading company with its own energy producing assets listed on the Swiss stock exchange,  where  he
was responsible for EGL's gas division. At the same time, Mr. Conrad was member of the supervisory board of
certain of EGL's foreign subsidiaries including the Trans Adriatic Pipeline AG, a joint venture of EGL  and
StatoilHydro. Prior to joining EGL, Mr. Conrad was Head of Trading at WINGAS GmbH, Germany, a joint venture
of  Wintershall and Gazprom. He served in various management functions for 10 years in the German  oil  and
gas  corporation Wintershall. Mr. Conrad graduated with an Economics degree from Georg-August  Universität,
Germany, in 1992 focusing on Economics and Information Technology, Graduation in Artificial Intelligence.

Gregory Smith: Non-Executive Director (65)
Mr.  Smith has been a member of the Board and Chairman of the Audit Committee since December 2009 and is  a
Chartered  Accountant  and  President of Oakridge Financial Management Inc., a provider  of  financial  and
management consulting services to private and public companies. He is also the CFO and a director of Maglin
Site  Furniture Inc., a corporation that manufacturers and distributes public site furniture  primarily  in
Canada  and the United States. He is currently a director and chairman of the audit committee of  Armistice
Resources  Corp  and  a  director of a number of private corporations. He is  a  past  director  and  audit
committee chairman of a number of public and private resource corporations, including director and chairman
of  the  audit committees of TriWestern Energy Inc., Manson Creek Resources Ltd., CDG Investments Inc.  and
Tyler  Resources Inc. Mr. Smith was admitted to the Institute of Chartered Accountants of Alberta  in  1975
and holds a Bachelor of Commerce degree from the University of Calgary.

Igor Akhmerov: Non-Executive Director (47)
Mr.  Akhmerov  has been a member of the Board since December 2010. He was also on the Board from  September
2007  until  May  2008.  Mr. Ahkmerov graduated from the Moscow Institute of Management  in  1989,  Wharton
Business  School in 1995, and Lauder Institute of Business and International Relations, also in 1995.  From
1989  through 1993 Mr. Akhmerov worked at the Moscow office of Bain & Company, specialised in privatisation
and banking. After graduation from Wharton Business School, Mr. Akhmerov joined the Boston office of Bain &
Company.  In  1998  Mr. Akhmerov returned to Russia and joined Sputnik Group, the largest  Russian  private
equity  investment  group,  as  a partner. In 2001 he moved to TNK as First Vice  President  for  planning,
budgeting,  investment governance, taxes, and reporting. From 2004 until 2006 he served as chief  financial
officer  of Renova Group. He has served as Chief Executive Officer of Avelar Energy Group since  2007.  Mr.
Igor Akhmerov is also a non-executive member of the board of directors of Kerself SpA, a leading player  in
the Italian solar market, since 24 September 2008.

David Harris: Non-Executive Director (53)
Mr.  Harris has been a member of the Board since September 2012. Since 2010 Mr. Harris has operated as  the
sole  proprietor  of DGH International GeoConsulting ("DGH"). DGH has been involved in a  wide  variety  of
projects,  ranging  from  brief  opinion  letters on investment opportunities  to  the  assessment  of  the
unconventional  potential of various countries, to detailed technical assessments of farm-in  opportunities
and  acquisitions. These have been done for Investment Banks, Energy Research Firms, private equity  firms,
boards  of  directors  and  management teams. Prior to this, Mr. Harris spent 22  years  at  GLJ  Petroleum
Consultants, where he held the roles of Senior Vice President, Senior Partner and director of the firm. His
responsibility  was  oversight  of the GeoSciences Group, which included 13 geologists,  geophysicists  and
support staff. Mr. Harris holds a B.Sc. in Geology (with Honours) from University of Calgary (1981).

Senior Management Team

Eoin Grindley: Chief Financial Officer (43)
Eoin Grindley was appointed Chief Financial Officer of Falcon in July 2012. Eoin has over 20 years of
financial management experience and has worked in senior management positions at Sandvik Mining and GE
Energy. Eoin is a member of the Chartered Institute of Management Accountants since 1996, having graduated
from Trinity College Dublin with a B.Sc (Management) in 1991.

Dr. Gábor Bada: Technical Operations (43)
Dr.  Gábor  Bada  is  a  geologist  with 15 years of experience in oil and gas  exploration,  research  and
assessment. Over the last six years, Dr. Bada has primarily focussed on exploring unconventional resources,
including  tight  gas,  shale gas and shale oil plays in various basins in Africa, Australia,  the  US  and
Central  and  Eastern  Europe. Dr. Bada has published more than 150 scientific  and  technical  papers.  He
obtained  his  geology degree at the Eötvös L. University in Budapest, Hungary and his Ph.D. at  the  Vrije
Aniversiteit  Amsterdam,  the  Netherlands.  He  is a member  of  the  American  Association  of  Petroleum
Geologists, the European Association of Geoscientists & Engineers and the Society of Petroleum Engineers.

                                              -       ENDS -

Note 1
The  RPS  Energy  CPR  Report,  dated January 1, 2013, entitled "Evaluation  of  the  Hydrocarbon  Resource
Potential Pertaining to Certain Acreage Interests in the Beetaloo Basin, Onshore Australia and Mako Trough,
Onshore  Hungary"  (the  "Report") can be found at www.sedar.com. The Report on  the  hydrocarbon  resource
potential  of  the  Beetaloo Basin and the Mako Trough describes a possible distribution of  the  un-risked
prospective (recoverable) portion of un-risked "undiscovered original oil-in-place resources,"  as  defined
by the Canadian Oil and Gas Evaluation Handbook ("COGEH") and does not represent an estimate of reserves or
contingent resources. The Report has been prepared in accordance with the Canadian standards set out in the
COGEH  and  is  compliant  with  National  Instrument 51-101 "Standards  of  Disclosure  for  Oil  and  Gas
Activities."

Under  Section  5.2  of  COGEH:  Undiscovered  Petroleum  Initially-In-Place  (equivalent  to  undiscovered
resources)  is  that  quantity  of  petroleum that is estimated, on  a  given  date,  to  be  contained  in
accumulations  yet to be discovered. Prospective Resources are those quantities of petroleum estimated,  as
of  a  given date, to be potentially recoverable from undiscovered accumulations by application  of  future
development  projects. Prospective resources have both an associated chance of discovery and  a  chance  of
development.  There is no certainty that any portion of the undiscovered resources will be  discovered  and
that,  if  discovered,  it may not be economically viable or technically feasible to  produce  any  of  the
resources.

Forward-looking Statements

Forward-looking  statements include, but are not limited to, statements with respect to: Falcon's  goal  of
having  its Common Shares listed on the AIM and ESM markets; the focus of capital expenditures;  the  sale,
farming in, farming out or development of certain exploration properties using third party resources;  the
impact  of  changes in petroleum and natural gas prices on cash flow; drilling plans; processing  capacity;
operating  and  other costs; the existence, operation and strategy of the commodity price  risk  management
program;  the approximate and maximum amount of forward sales; Falcon's acquisition strategy, the  criteria
to be considered in connection therewith and the benefits to be derived therefrom; Falcon's goal to sustain
or  grow  production and reserves through prudent management and acquisitions; the emergence  of  accretive
growth  opportunities;  Falcon's ability to benefit from the combination of growth  opportunities  and  the
ability  to  grow  through the capital markets; development costs and the source of  funding  thereof;  the
quantity  of  petroleum  and  natural gas resources or reserves; treatment  under  governmental  regulatory
regimes and tax laws; liquidity and financial capital; the impact of potential acquisitions and the  timing
for  achieving  such  impact; expectations regarding the ability to raise capital and  continually  add  to
reserves  through  acquisition and development; the performance characteristics of Falcon's  petroleum  and
natural  gas properties; realization of the anticipated benefits of acquisitions and dispositions; Falcon's
ability to establish a broad institutional shareholder base in London and increase the volume of trading in
Common  Shares;  expectations regarding the ability of Falcon to access additional sources of  funding  not
currently  available  following  the Admission; and Falcon's ability to  leverage  its  experience  in  the
unconventional oil and gas industry to acquire interests in licenses.

Some of the risks and other factors, which could cause results to differ materially from those expressed in
the  forward-looking statements include, but are not limited to: general economic conditions in Canada, the
Republic  of Hungary, the Commonwealth of Australia, the Republic of South Africa and globally; supply  and
demand for petroleum and natural gas; industry conditions, including fluctuations in the price of petroleum
and  natural gas; governmental regulation of the petroleum and natural gas industry, including income  tax,
environmental  and  regulatory  matters;  fluctuation in foreign exchange  or  interest  rates;  risks  and
liabilities  inherent  in  petroleum  and  natural  gas  operations,  including  exploration,  development,
exploitation, marketing and transportation risks; geological, technical, drilling and processing  problems;
unanticipated  operating events which can reduce production or cause production to be shut-in  or  delayed;
the  ability of our industry partners to pay their proportionate share of joint interest billings;  failure
to  obtain  industry  partner  and other third party consents and approvals, when  required;  stock  market
volatility  and market valuations; competition for, among other things, capital, acquisition  of  reserves,
processing and transportation capacity, undeveloped land and skilled personnel; the need to obtain required
approvals  from regulatory authorities; and the other factors considered under "Risk Factors"  in  Falcon's
annual information form ( "AIF") dated December 31, 2011. Risks and uncertainties that could cause Falcon's
actual  results  to  materially differ from current expectations have not changed from those  disclosed  in
Falcon's Management's Discussion and Analysis ("MD&A") as at September 30, 2012. The AIF and MD&A have been
filed  with  Canadian securities regulatory authorities and are available at www.sedar.com.   The  forward-
looking  statements  contained in this press release are expressly qualified by this cautionary  statement.
Falcon disclaims any intention or obligation to update or revise any forward-looking statements whether  as
a  result  of  new information, future events or otherwise, except as required under applicable  securities
regulation.

In addition, other factors not currently viewed as material could cause actual results to differ materially
from those described in the forward-looking statements.

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  statement.
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
Canadian  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.

Falcon Oil & Gas Ltd.