Farallon Initiates Off-Take Agreement With Trafigura



    VANCOUVER, Oct. 28 /CNW/ - Farallon Resources Ltd. ("Farallon" or the
"Company") (TSX: FAN; OTCBB: FRLLF) announces that it has initiated the
off-take agreement with Trafigura Beheer BV Amsterdam ("Trafigura") for zinc
concentrate produced from the Company's G-9 mine at the Campo Morado
polymetallic (zinc, copper, lead, silver, gold) property in Guerrero State,
Mexico.
    G-9 concentrates are being trucked in bulk from the site to the port at
Manzanillo, a full service facility utilized by a number of mines in central
Mexico. Farallon trucked its first concentrate on October 12, 2008, and since
that time some 2,000 tonnes have been transported to the storage facilities at
the port. Concentrate shipments will increase to 2,600 tonnes per week once
full mine production is achieved.
    The contract with Trafigura provides for the receipt of advance payments
for concentrates stored at the port. Farallon has chosen to initiate the
contract to take advantage of this provision. Payments are to be made in
US dollars. An advance payment for 500 tonnes of zinc concentrate, a total of
US$133,000, has been received.
    President and CEO Dick Whittington said "It is my pleasure to announce
receipt of the first payment from production at the G-9 mine. The initiation
of our off-take agreements with Trafigura and commencement of revenue
generation for the G-9 mine is another major milestone for the Company,
achieved through the focused efforts of the project team over the past two
years."
    Farallon has advanced the G-9 Project through a 'Parallel Track' program.
Drilling expanded and confirmed the high-grade mineralization within the
G-9 deposit in parallel with project construction and development activities.
Underground drilling, stope access and development, and mining using an open
stope method is currently taking place in the North and West Extension zones
of the G-9 deposit. The mill is mechanically and electrically complete, and
commissioning has been underway over the past two months. The rated mill
capacity of 1,500 tonnes per day has been achieved, producing zinc concentrate
over a sustained period. Completion of access to the high-grade Southeast zone
and initial stope development in this zone is expected in December, with full
production targeted for January 2009.

    
    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 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 and quantities of mineralization and resources,
recovery rates and 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, obtaining
additional mining and construction permits, completion of pre-feasibility and
final feasibility studies, preparation of all necessary engineering for
underground and processing facilities as well as receipt of any additional
financing that may be required to fund mine construction. 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
and the Company's annual report on Form 20-F at www.sec.gov.





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) 684-6365 or within North America at 1-800-667-2114

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Farallon Mining Ltd.

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