Farallon Announces Exploration Drill Results:

High grade zinc and precious metals continue to be discovered

5 m of 36% zinc, 2.9% copper & 13 m of 20 grams of gold/tonne in the North zone

Stratigraphic integrity of G-9 Abajo horizon model further confirmed

VANCOUVER, Dec. 16 /CNW/ - Dick Whittington, President and CEO of Farallon Mining Ltd. (TSX: FAN) ("Farallon" or the "Company"), is pleased to provide an update of the recently restarted surface exploration drilling program on the G-9 deposit at the Campo Morado polymetallic (zinc, copper, silver, gold, lead) project in Guerrero State, Mexico. Results of several underground exploration drill holes are also included.

Three rigs are currently deployed - two surface drills and one underground drill - with two main objectives: to increase the resources around G-9 and to test for extensions of the G-9 Abajo zone to the north while, at the same time, testing for continuity of the stratigraphic horizon that hosts the Abajo zone to the north and northeast under the El Largo and Naranjo deposits.

The new results which include surface holes to hole 796 and selected "step out" holes drilled from underground, are listed in the attached Table of Assay Results. Hole locations are shown on the attached G-9 Drill Hole Location Map (http://files.newswire.ca/844/G-9HoleLocationMap.pdf). As well, two cross sections are attached, one that highlights the newly discovered extension of the North zone to the southeast of hole 522 (Section A - http://files.newswire.ca/844/SectionA.pdf) and, a general section (Section B - http://files.newswire.ca/844/SectionB.pdf) through the various deposits at Campo Morado, showing the spatial relationship between the Abajo stratigraphic horizon and the stratigraphic horizon that hosts the El Largo and Naranjo deposits. The Abajo horizon is wide open in several directions indicating the excellent exploration potential to the north of the main G-9 deposits.

Highlights are tabulated below:

    
                 TABLE OF ASSAY RESULTS - DECEMBER 16, 2009
    -------------------------------------------------------------------------
                                           Estimated
    Drill Hole       From     To   Interval   True    Au   Ag   Cu   Pb   Zn
      Number       (metres)(metres)(metres)  Width   g/t  g/t    %    %    %
                                           (metres)
    -------------------------------------------------------------------------
                 North West North Zone (Hole 690 Extension)
    -------------------------------------------------------------------------
    UG-09-103        24.70   34.70   10.00    5.60  1.99   97 1.59 0.94 26.17
    -------------------------------------------------------------------------
    UG-09-104        37.75   46.70    8.95    6.80  2.16  305 3.20 3.30 24.96
    -------------------------------------------------------------------------
    UG-09-105        38.95   46.90    7.95    4.30  1.51  113 3.79 0.70 36.40
    -------------------------------------------------------------------------
    UG-09-105 incl.  38.95   45.00    6.05    3.27  1.69  125 3.62 0.89 39.10
    -------------------------------------------------------------------------
    UG-09-108        68.00   77.40    9.40    4.90  1.34  101 1.86 0.78 20.07
    -------------------------------------------------------------------------
    UG-09-118        45.86   52.00    6.14    5.60  1.25  129 3.58 0.80 33.06
    -------------------------------------------------------------------------
    UG-09-120        45.20   57.50   12.30   10.20  1.25   73 2.41 0.97 27.73
    -------------------------------------------------------------------------
    UG-09-120 incl.  46.20   52.20    6.00    4.98  1.64   83 2.90 1.13 36.09
    -------------------------------------------------------------------------
                 South East North Zone (Hole 522 Extension)
    -------------------------------------------------------------------------
    UG-09-134       188.13  203.65   15.52   10.70  1.98  154 1.46 1.50 12.52
    -------------------------------------------------------------------------
    UG-09-134 incl. 193.00  203.00   10.00    6.44  2.32  169 1.67 1.24 16.02
    -------------------------------------------------------------------------
    DDH 09-795      492.95  495.20    2.25    2.25 21.30 1165 0.69 4.23  7.95
    -------------------------------------------------------------------------
    DDH 09-795      496.30  501.00    4.70    4.70  3.07  278 2.02 1.24 12.17
    -------------------------------------------------------------------------
                   Abajo Zone (West of Holes 607 and 608)
    -------------------------------------------------------------------------
    UG-09-056       211.00  236.00   25.00    9.62  2.06  140 1.41 1.19 15.60
    -------------------------------------------------------------------------
    UG-09-061       240.00  255.00   15.00    6.27  2.28  266 2.01 1.05 21.57
    -------------------------------------------------------------------------
                     Upper North Zone (Hole 486 Location)
    -------------------------------------------------------------------------
    UG-09-060        60.00   89.15   29.15   13.42 19.67 1700 0.35 4.04  4.57
    -------------------------------------------------------------------------
    UG-09-061        33.00   48.00   15.00    8.44 19.51 1004 0.35 4.69  4.18
    -------------------------------------------------------------------------
                                   El Largo
    -------------------------------------------------------------------------
    DDH 09-794      158.00  173.00   15.00      NA  0.10   30 3.24 0.08  0.23
    -------------------------------------------------------------------------
    Note: NA = True Width not available.
    

Several highlights emerge from these results. First, the high grade potential of the G-9 deposit has been re-affirmed with outstanding grades of zinc being discovered in the northwest of the North zone (hole 690 extension) and excellent precious metal grades in the upper area of the North zone (hole 486). Underground hole 120 intersected 5 metres of 36% zinc, which is a new record in terms of zinc grade for G-9; however, the 13 metres of 20 grams of gold and 1,700 grams of silver per tonne intersected in underground hole 060 is also exceptional.

Secondly, the North zone and Abajo zones are both being extended. A new lens has been discovered by underground hole 134 and surface hole 795; this lens extends to the southeast of the North zone and confirms the results of hole 522 in this area. Intersections of massive sulphide mineralization in holes that appear to further extend this lens are currently being assayed. The attached section (Section A) through this new area shows the location of these new results. This lens (hole 522 extension) remains open in two directions.

Extensions have also been made to the Abajo zone. Underground holes 056 and 061 have extended the Abajo zone to the west, while some of the grades intersected are higher than previous Abajo intercepts, which is encouraging.

Thirdly, the stratigraphic separation of the El Largo deposit and Abajo zone has been further confirmed by the drilling. Section B shows the deeper Abajo horizon that is being tested and confirmed by these drill results. Hole 794 was drilled through both horizons, and intersected 15 metres of 3.2% copper in the El Largo horizon to the southwest of known El Largo mineralization before reaching the Abajo horizon. This also indicates the potential for higher copper grades in the El Largo deposit, a development that the Company will be investigating further as part of its ongoing drilling program.

President and CEO Dick Whittington said:

"These excellent results indicate the continuing potential of the G-9 and Campo Morado district. The surprising new intercept of 15 metres of 3.2% copper at El Largo is very encouraging; however, the zinc and precious metal grades announced today for G-9 are exceptional. The extensions to the North and Abajo zones are proof of our ability to add resources in the immediate vicinity of G-9. The high grades also highlight the potential to find high grade lenses of very rich massive sulphides at G-9. These results continue to confirm our structural - stratigraphic model for the Campo Morado district and the ongoing exploration potential of G-9. Exploration is, once again, a part of the Farallon story going forward."

Underground drill holes are generally oblique to the section, or deposit being tested, and have a 12 - 15 metre drill spacing (at target). Surface drill holes are generally perpendicular to section, or the deposit being tested, and have a 25 metre drill spacing (at target). The combination of both surface and underground drill results is expected to continue for the foreseeable future.

The in-house qualified person for the drilling program and selection of samples for metallurgical testwork at Campo Morado is Daniel Kilby, P.Eng., who has reviewed the contents of this release. Acme Analytical is the analytical laboratory for the project; sample preparation is done in Guadalajara, Mexico and analysis is done in Vancouver, BC. All samples are assayed for gold by fire assay fusion with an Inductively Coupled Plasma - Atomic Emission Spectroscopy (ICP-AES) or gravimetric finish. Silver, copper, lead, zinc and 20 additional elements are determined for all samples by Aqua Regia digestion, followed by an ICP-AES finish. Silver values greater than 300 g/t were re-analyzed by Fire Assay Fusion gravimetric finish. Duplicates are analyzed by the Farallon G9 Mine Laboratory on site.

Farallon's G-9 zinc, copper, silver, gold and lead mine at the Campo Morado Property in Mexico reached commercial production in April 2009. The Company is targeting to produce at an annualized production rate of 120 million pounds of zinc and 15 million pounds of copper per 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, or is targeting, 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, financial 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 are no mineral reserves at Campo Morado and there is no assurance that the mineralization at Campo Morado will ever be classified as mineral reserves. 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.

Table of Assay Results

http://files.newswire.ca/844/AssayResults.pdf

    
    -------------------------------------------------------------------------
                                                                    Estimated
    Drill Hole                     From         To       Interval       True
      Number     Deposit/Zone    (metres)    (metres)    (metres)      Width
                                                                     (metres)
    -------------------------------------------------------------------------
    UG-09-056   Abajo             211.00      236.00       25.00        9.62
    -------------------------------------------------------------------------
    UG-09-056   Abajo      incl.  213.00      230.00       17.00        6.54
    -------------------------------------------------------------------------
    UG-09-060A  North Zone  486    39.40       51.00       11.60        5.34
    -------------------------------------------------------------------------
    UG-09-060A  North Zone incl.   43.00       51.00        8.00        3.68
    -------------------------------------------------------------------------
    UG-09-060A  North Zone  486    60.00       89.15       29.15       13.42
    -------------------------------------------------------------------------
    UG-09-060   North Zone incl.   67.00       81.00       14.00        6.40
    -------------------------------------------------------------------------
    UG-09-060   Abajo             290.00      302.00       12.00        4.21
    -------------------------------------------------------------------------
    UG-09-061A  North Zone  486    33.00       57.00       24.00       13.51
    -------------------------------------------------------------------------
    UG-09-061   North Zone incl.   33.00       48.00       15.00        8.44
    -------------------------------------------------------------------------
    UG-09-061   Abajo             226.00      233.00        7.00        2.93
    -------------------------------------------------------------------------
    UG-09-061   Abajo             240.00      255.00       15.00        6.27
    -------------------------------------------------------------------------
    UG-09-061   Abajo      incl.  244.00      255.00       11.00        4.60
    -------------------------------------------------------------------------
    UG-09-103   North Zone  690    24.70       34.70       10.00        5.60
    -------------------------------------------------------------------------
    UG-09-103   North Zone incl.   27.70       33.70        6.00        3.36
    -------------------------------------------------------------------------
    UG-09-104   North Zone  690    37.75       46.70        8.95        6.80
    -------------------------------------------------------------------------
    UG-09-105   North Zone  690    38.95       46.90        7.95        4.30
    -------------------------------------------------------------------------
    UG-09-105   North Zone incl.   38.95       45.00        6.05        3.27
    -------------------------------------------------------------------------
    UG-09-105   North Zone  690    53.15       56.90        3.75        2.03
    -------------------------------------------------------------------------
    UG-09-108   North Zone  690    68.00       77.40        9.40        4.90
    -------------------------------------------------------------------------
    UG-09-108   North Zone incl.   73.10       77.00        3.90        2.03
    -------------------------------------------------------------------------
    UG-09-118   North Zone  690    45.86       52.00        6.14        5.60
    -------------------------------------------------------------------------
    UG-09-120   North Zone  690    45.20       57.50       12.30       10.20
    -------------------------------------------------------------------------
    UG-09-120   North Zone incl.   46.20       52.20        6.00        4.98
    -------------------------------------------------------------------------
    UG-09-134   North Zone  522   188.13      203.65       15.52       10.70
    -------------------------------------------------------------------------
    UG-09-134   North Zone incl.  193.00      203.00       10.00        6.44
    -------------------------------------------------------------------------
    UG-09-138   North Zone  522   151.00      153.14        2.14        1.80
    -------------------------------------------------------------------------
    UG-09-139   North Zone  522   163.35      169.60        6.25        3.70
    -------------------------------------------------------------------------
    UG-09-140   North Zone  522   177.05      181.40        4.35        4.35
    -------------------------------------------------------------------------
    UG-09-141   North Zone  522   186.25      192.95        6.70        4.70
    -------------------------------------------------------------------------
    DDH 09-793  El Largo, No Significant Intercept
    -------------------------------------------------------------------------
    DDH 09-794  El Largo          158.00      173.00       15.00          NA
    -------------------------------------------------------------------------
    DDH 09-794  Abajo             292.77      293.15        0.38        0.38
    -------------------------------------------------------------------------
    DDH 09-795  North Zone  522   492.95      501.00        8.05        8.05
    -------------------------------------------------------------------------
    DDH 09-795  North Zone incl.  492.95      495.20        2.25        2.25
    -------------------------------------------------------------------------
    DDH 09-795  North Zone incl.  496.30      501.00        4.70        4.70
    -------------------------------------------------------------------------
    DDH 09-796  El Largo          115.80      119.80        4.00        4.00
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------

    Drill Hole
      Number     Deposit/Zone     Au g/t   Ag g/t     Cu %     Pb %     Zn %

    -------------------------------------------------------------------------
    UG-09-056   Abajo               2.06      140     1.41     1.19    15.60
    -------------------------------------------------------------------------
    UG-09-056   Abajo      incl.    2.05      132     1.56     1.28    19.57
    -------------------------------------------------------------------------
    UG-09-060A  North Zone  486    13.47      498     0.48     2.30     1.71
    -------------------------------------------------------------------------
    UG-09-060A  North Zone incl.   16.20      542     0.35     3.11     2.30
    -------------------------------------------------------------------------
    UG-09-060A  North Zone  486    19.67    1,700     0.35     4.04     4.57
    -------------------------------------------------------------------------
    UG-09-060   North Zone incl.   25.61    2,490     0.32     4.65     4.18
    -------------------------------------------------------------------------
    UG-09-060   Abajo               2.81      165     0.85     0.70     8.96
    -------------------------------------------------------------------------
    UG-09-061A  North Zone  486    17.40      860     0.48     3.61     4.85
    -------------------------------------------------------------------------
    UG-09-061   North Zone incl.   19.51    1,004     0.35     4.69     4.18
    -------------------------------------------------------------------------
    UG-09-061   Abajo               2.67      171     0.60     1.53    12.97
    -------------------------------------------------------------------------
    UG-09-061   Abajo               2.28      266     2.01     1.05    21.57
    -------------------------------------------------------------------------
    UG-09-061   Abajo      incl.    2.12      224     1.64     1.08    22.41
    -------------------------------------------------------------------------
    UG-09-103   North Zone  690     1.99       97     1.59     0.94    26.17
    -------------------------------------------------------------------------
    UG-09-103   North Zone incl.    2.30      111     1.61     0.97    32.13
    -------------------------------------------------------------------------
    UG-09-104   North Zone  690     2.16      305     3.20     3.30    24.96
    -------------------------------------------------------------------------
    UG-09-105   North Zone  690     1.51      113     3.79     0.70    36.40
    -------------------------------------------------------------------------
    UG-09-105   North Zone incl.    1.69      125     3.62     0.89    39.10
    -------------------------------------------------------------------------
    UG-09-105   North Zone  690     1.81      134     2.44     2.08    23.20
    -------------------------------------------------------------------------
    UG-09-108   North Zone  690     1.34      101     1.86     0.78    20.07
    -------------------------------------------------------------------------
    UG-09-108   North Zone incl.    2.00      100     2.93     1.01    38.21
    -------------------------------------------------------------------------
    UG-09-118   North Zone  690     1.25      129     3.58     0.80    33.06
    -------------------------------------------------------------------------
    UG-09-120   North Zone  690     1.25       73     2.41     0.97    27.73
    -------------------------------------------------------------------------
    UG-09-120   North Zone incl.    1.64       83     2.90     1.13    36.09
    -------------------------------------------------------------------------
    UG-09-134   North Zone  522     1.98      154     1.46     1.50    12.52
    -------------------------------------------------------------------------
    UG-09-134   North Zone incl.    2.32      169     1.67     1.24    16.02
    -------------------------------------------------------------------------
    UG-09-138   North Zone  522     3.68      167     0.82     0.62     6.45
    -------------------------------------------------------------------------
    UG-09-139   North Zone  522     3.12      142     0.84     0.66     6.28
    -------------------------------------------------------------------------
    UG-09-140   North Zone  522     3.73      228     0.99     1.39    10.43
    -------------------------------------------------------------------------
    UG-09-141   North Zone  522     2.15      111     0.57     0.70     5.31
    -------------------------------------------------------------------------
    DDH 09-793  El Largo, No Significant Intercept
    -------------------------------------------------------------------------
    DDH 09-794  El Largo            0.10       30     3.24     0.08     0.23
    -------------------------------------------------------------------------
    DDH 09-794  Abajo               1.35      217     1.48     4.48    22.06
    -------------------------------------------------------------------------
    DDH 09-795  North Zone  522     7.75      488     1.37     1.90     9.33
    -------------------------------------------------------------------------
    DDH 09-795  North Zone incl.   21.30    1,165     0.69     4.23     7.95
    -------------------------------------------------------------------------
    DDH 09-795  North Zone incl.    3.07      278     2.02     1.24    12.17
    -------------------------------------------------------------------------
    DDH 09-796  El Largo            2.38      175     0.93     1.18     4.67
    -------------------------------------------------------------------------
    Note: NA = True Width not available.
    

SOURCE Farallon Mining Ltd.

For further information: For further information: on Farallon Mining Ltd., please visit the Company's website at www.farallonmining.com or contact Neil MacRae, Investor Relations Manager, at (604) 638-2160 or within North America at 1-877-688-2050

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