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Farallon Announces Favourable Ruling on Wiltz Case

March 16, 2009

COURT FINDS FINAL APPEAL WITHOUT MERIT – CASE IS CLOSED

VANCOUVER, March 16 /PRNewswire-FirstCall/ – Dick Whittington, President and CEO of Farallon Resources Ltd. (“Farallon” or the “Company”) (TSX: FAN;) announces that the Second Collegiate Court in the Fifth Circuit in the city of Hermosillo, Sonora State, Mexico has dismissed an appeal filed by Wiltz Investment, S.A. (“Wiltz”) in November 2008, as being without merit. The appeal was related to a ruling made by the First Unitary Court for the Fifth Circuit in the city of Hermosillo, Sonora State, Mexico on September 9, 2008. The latest ruling is final and has, once again, vindicated the Company’s position in this matter. In addition to the previous ruling, the Second Unitary Court has also awarded costs to Farallon. The case is now closed.

On January 22, 2004, in a writ filed in the Second District Court for the Fifth Circuit in Hermosillo, Sonora, Mexico, Wiltz Investment S.A. (“Wiltz”) made certain allegations and, as a consequence, demanded the rescission of the option and assignment agreements between Minera Summit de Mexico (“Minera Summit”) and Farallon dated October 15, 1995 whereby Farallon purchased the Campo Morado property. On November 6, 2007, the Company was advised (see Farallon News Release November 8, 2007) that the Second District Court of the Fifth Circuit in Hermosillo had issued a ruling declaring that Wiltz had not proven its allegations under the civil action and that there was no justification to rescind the option agreement between Minera Summit and Farallon. Wiltz appealed the ruling, which was then reviewed by the First Unitary Court for the Fifth Circuit in Hermosillo. On February 26, 2008, the Company was advised that the basis for the appeal was denied. Wiltz then filed another appeal to have this ruling reviewed and on August 26, 2008 the Second Collegiate Court from Sonora granted the appeal for the effects of reviewing, once again the file by the First Unitary Court. The said court rendered a new judgment on September 9, 2008 confirming the ruling issued by the Second District Court in November 2007. Wiltz then filed an appeal to have the September 9 ruling reviewed by the Second Collegiate Court in Hermosillo, Sonora State. The latest ruling made on March 3, and published on March 6, has denied Wiltz’s appeal, re-affirmed the September 9, 2008 ruling and has, in addition to the September 9, 2008 ruling, awarded costs to Farallon. This is the final appeal on this matter and concludes the civil action initiated by Wiltz in January 2004.

Dick Whittington said: “Farallon has prevailed again in this matter and it is now closed. With the series of successful resolutions of the various legal cases against the Company now behind us, Farallon can fully focus on getting on with the job of bringing the G-9 mine to full production and to get on with building a mid-tier mining company. The Company will take all necessary actions to recover the costs awarded by the court which are not insignificant. Again, I would like to thank our legal counsel for their professionalism and focus on bringing this, and the other matters announced recently, to a successful conclusion.”

Farallon has advanced the G-9 polymetallic (zinc, copper, silver, gold, lead) project at its Campo Morado Property in Mexico through a ‘Parallel Track’ program. Surface facilities were largely completed in mid 2008, followed by mill commissioning and underground stope development during the balance of 2008. The mine is currently in production and targeting reaching design capacity of 1500 tpd in March 2009. Vessel shipments of concentrates commenced in February 2009 and regular vessel shipments are now expected on a continuous basis throughout the year.

    ON BEHALF OF THE BOARD OF DIRECTORS

    J.R.H. (Dick) Whittington
    President & CEO

    No regulatory authority has approved or disapproved the information
    contained in this news release

                         Forward Looking Information

This release includes certain statements that may be deemed “forward-looking statements.” All statements in this release, other than statements of historical facts, that address future production, reserve or resource potential, continuity of mineralization, exploration drilling, operational activities, production rates, costs to completion and events or developments that the Company expects are forward-looking statements. Although the Company believes that the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements and may require achievement of a number of operational, technical, economic and legal objectives. The likelihood of continued future mining at Campo Morado is subject to a large number of risks, including obtaining lower than expected grades and quantities of mineralization and resources, lower than expected mill recovery rates and mining rates, changes in and the effect of government policies with respect to mineral exploration and exploitation, the possibility of local disputes including blockades of the company’s property, the possibility of adverse developments in the financial markets generally, fluctuations in the prices of zinc, gold, silver, copper and lead, obtaining additional mining and construction permits, preparation of all necessary engineering for ongoing underground and processing facilities as well as receipt of additional financing to fund mine construction, development and operation, if needed. Such funding may not be available to the Company on acceptable terms or on any terms at all. There is no known ore at Campo Morado and there is no assurance that the mineralization at Campo Morado will ever be classified as ore. For more information on the Company and the risk factors inherent in its business, investors should review the Company’s Annual Information Form at www.sedar.com.

SOURCE Farallon Resources Ltd.


Source: newswire



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