Farallon Announces Year-End 2008 Financial Results



    G-9 MINE COMMISSIONING PHASE SUCCESSFUL, RAMPING UP TO FULL PRODUCTION

    VANCOUVER, April 1 /CNW/ - Farallon Resources Ltd. ("Farallon" or the
"Company") (TSX: FAN) announces the Company's year-end financial results at
December 31, 2008. Farallon changed its fiscal year-end date from June 30 to
December 31; therefore, these financials are for the six month period ended
December 31, 2008. All currency amounts are in US$ unless otherwise stated.
The full version of the financial statements can be viewed on the Company's
web site at www.farallonresources.com or on SEDAR at www.sedar.com.
    During the period ending December 31, the Company carried out
commissioning and ramp up activities at the G-9 Mine, located in Guerrero
State Mexico, to bring the operation towards the full design production
capacity of 1,500 tonnes per day. Further to the update of operational
activities at the G-9 Mine provided in its news release of January 22, 2009,
the Company's initial production targets were met during the period. The
Company incurred a loss for the period of $40.1 million, including $19.1
million in commissioning costs that reflect the higher costs associated with
commissioning and ramp up. These costs are higher than those anticipated once
design production is achieved.
    The Company's final reconciliation of the capital costs associated with
the construction and development of the G-9 Mine have been completed. The
final capital cost is $149.7 million, which is approximately 20% higher than
the estimate of $124 million in the December 2007 Preliminary Economic
Assessment ("PEA").
    Concentrate production at the G-9 Mine during the period was 13,362
tonnes of zinc concentrate, 1,943 tonnes of copper concentrate, and 1,143
tonnes of lead concentrate. Production and grade for each concentrate is
provided in the table below.

    
    -------------------------------------------------------------------------
                     G-9 Mine Zinc Concentrate Production
    -------------------------------------------------------------------------
                                                              Grade
                                                 ----------------------------
            Period                 Tonnes              Zn%   Ag g/t   Au g/t
    -------------------------------------------------------------------------
    July 1 to Dec 31, 2008         13,362             48.2    273      2.53
    -------------------------------------------------------------------------
                   G-9 Mine Copper Concentrate Production
    -------------------------------------------------------------------------
                                                              Grade
                                                 ----------------------------
            Period                 Tonnes              Cu%   Ag g/t   Au g/t
    -------------------------------------------------------------------------
    July 1 to Dec 31, 2008          1,943             16.6    588      8.0
    -------------------------------------------------------------------------
                       G-9 Lead Concentrate Production
    -------------------------------------------------------------------------
                                                              Grade
                                                 ----------------------------
            Period                 Tonnes              Pb%   Ag g/t   Au g/t
    -------------------------------------------------------------------------
    July 1 to Dec 31, 2008          1,143             16.9    844      22.6
    -------------------------------------------------------------------------
    

    The Company has been trucking concentrates to the Port of Manzanillo
since October 12, 2008 and at December 31, 2008 had received advance payments
of $3.2 million under the terms of its off-take contract. Subsequent to the
year-end in February 2009, the Company announced the first vessel shipment of
concentrates to smelters in Asia.
    Additional highlights from the period include successfully fulfilling the
completion guarantee under the Silver Wheaton agreement. The Company fulfilled
the main condition of the completion guarantee by averaging more than 1,050
tonnes per day through the milling facility over a 30 day period. During the
period, the Company also received the full amount of $80 million as per the
agreement (announced in May 2008).
    As a result of the deterioration of metal prices during the period and
consistent with GAAP accounting practices, a valuation analysis was completed
to determine whether there was a value impairment which would necessitate a
write-down on the carrying cost of the G-9 mine asset. It was deemed that, at
metal prices prevailing at the time of analysis on December 31, 2008, no value
impairment had occurred and therefore a write down was not necessary.
    The Company is now poised to enter full commercial production, and
expects to provide an update in mid-April on commissioning and production
activity in the first quarter of 2009. As well, in future producing quarters,
the Company plans to hold regular analyst conference calls to discuss both
operational and financial results as we progress through this year as an
operating mining company.
    President and CEO Dick Whittington stated "We are very pleased to have
built the G-9 Mine at a cost that is very close to the original PEA estimate.
Many other companies with full feasibility studies have come in over budget
and have experienced long delays. This is a great achievement for everyone
associated with the construction of the G-9 Mine. The mine is now in
production and we anticipate being in "Commercial" production shortly. G-9 is
now a reality and Farallon is poised to take advantage of any improvements in
metal prices and to take the next step in becoming a mid-tier mining company."

    
    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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