Farallon Closes Bought Deal Financing

    
    /THIS PRESS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS
    NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
    DISSEMINATION IN THE UNITED STATES./
    

VANCOUVER, Oct. 8 /CNW/ - Farallon Mining Ltd. ("Farallon" or the "Company") (TSX:FAN) is pleased to announce that it has closed its previously announced bought deal financing (the "Offering"). Under the Offering, the Company issued 27,710,975 common shares (the "Common Shares"), including the common shares issued upon the full exercise of the underwriters' over-allotment option, at a price of C$0.415 per Common Share, for aggregate gross proceeds of approximately C$11.5 million. The Offering was co-led by Paradigm Capital Inc. and Raymond James Ltd. and included Wellington West Capital Markets Inc. The Common Shares were offered in Canada by way of a short form prospectus and in the United States by way of private placement pursuant to available exemptions of the United States Securities Act of 1933, as amended.

Proceeds from the Offering will be used to commence G-9 Mine mill expansion to 2,000 tpd, exploration drilling at Campo Morado, as well as other corporate and working capital purposes.

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 potential, continuity of mineralization, exploration drilling, exploitation activities 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. The likelihood of future mining at Campo Morado is subject to a large number of risks and may require achievement of a number of technical, economic and legal objectives, including obtaining lower than expected grades, quantities of mineralization, resources, recovery rates, mining rates, changes in and the effect of government policies with respect to mineral exploration and exploitation, the possibility of adverse developments in the financial markets generally, delays in exploration, development and construction projects, fluctuations in the prices of zinc, gold, silver, copper, lead and other commodities, completion of pre-feasibility and final feasibility studies, preparation of all necessary engineering for underground and processing facilities as well as receipt of additional financing to fund mine construction, if necessary. 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 Mining Ltd.

For further information: For further information: For further details 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 1-800-667-2114

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Farallon Mining Ltd.

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