Farallon announces financing update



    
    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
    UNITED STATES/

                     ADDITIONAL PRIVATE PLACEMENT SECURED
    PROCEEDS TO BE UTILIZED TO PAY OFF NOTES ISSUED IN OCTOBER 2008
    

    VANCOUVER, April 6 /CNW/ - Farallon Resources Ltd. ("Farallon" or the
"Company") (TSX: FAN) announces that the Company has completed the closing of
a private placement financing for gross proceeds of $8.3 million through the
issuance of 41.7 million shares at a price of $0.20 per share.
    The proceeds will be used to pay off the $7.75 million in promissory
notes issued in October 2008 (see press release dated October 17, 2008). By
paying off the notes, the Company will reduce its short-term liabilities. In
conjunction with the repayment, a bonus fee of $581,250 and an aggregate of
620,000 bonus shares will be issued to the note holders.
    The Company also announces the final closing of the brokered offering
arranged by a syndicate led by Paradigm Capital Inc and including Wellington
West Capital Markets Inc. (the "Agents"), which raised $5 million through the
issuance of 25 million shares at the price of $0.20 per share (see press
release dated February 26, 2009).
    Dick Whittington said "Together with the proceeds from the private
placement that was partially closed in February, the Company has raised a
total of $13.3 million. This is a great achievement given the current market
situation. Both financings were completed at current market prices and no
warrant was included. The funds received will allow us to reduce the Company's
short-term debt, improve our working capital position and strengthen our
balance sheet. Coupled with the recent extension of the remaining $25 million
promissory notes, the Company's short-term outlook has strengthened
considerably."
    The securities issued under the offering will be subject to a four month
hold period under Canadian securities legislation and these securities will
not be registered under the United States Securities Act of 1933 and may not
be offered or resold in the United States absent an exemption from
registration under that Act.
    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 in 2007 and 2008. 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 commercial production and
reached design capacity of 1500 tpd on a sustained basis in March (see
separate news release of today's date April 6, 2009). Vessel shipments of
concentrates commenced in February 2009 and are now expected on a regular
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.





For further information:

For further information: on Farallon Resources Ltd., please visit the
Company's website at www.farallonresources.com or contact Investor Services at
(604) 638-2160 or within North America at 1-800-667-2114

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Farallon Mining Ltd.

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