Farallon & Credit Suisse Agree to US$30 Million Term Loan Commitment


    Proceeds to pay off Notes issued in September 2008

    VANCOUVER, May 7 /CNW/ - Farallon Resources Ltd. ("Farallon" or the
"Company") (TSX: FAN) announces that it has signed a binding term sheet (the
"Agreement") with Credit Suisse - Zurich of Switzerland ("Credit Suisse"),
whereby Credit Suisse will lend the Company up to US$30 million in the form of
a four-year term loan. The proceeds will be used to refinance imported
equipment related to the construction and commissioning of the 1,500 tpd mine
and mill at G-9. The equipment was originally financed with Promissory Notes
(the "Notes") which are due to mature on September 9, 2009. The Agreement has
standard terms and conditions for an agreement of this nature and will be
subject to due diligence and final legal documentation. Closing is expected to
occur on or about June 1, 2009, at which time, Farallon will initiate early
repayment of the Notes.
    As part of Farallon's ongoing objective to strengthen its balance sheet,
the Company has been actively pursuing a number of options to re-finance the
Notes. This Agreement with Credit Suisse enables the Company to do so much
earlier than anticipated and at significantly reduced borrowing cost. Closing
of the facility with Credit Suisse and the repayment of the Notes will move
the Company's modest debt level from a short-term liability to a long-term
liability, thereby improving its working capital position. With a strong asset
base and minimal long-term debt, Farallon will have achieved the objective of
restructuring its balance sheet and positioning itself for future growth.
    Dick Whittington, President and CEO, said: "I am extremely pleased to be
able to establish a banking relationship with Credit Suisse. They are a first
ranking bank with a strong presence in the mining industry. We look forward to
finalizing the facility and having Credit Suisse play a prominent role in our
growth profile in the future. I am also very pleased to have reached this
agreement at a time of continued turmoil in banking and equity circles,
reinforcing our belief that we have a first class asset at G-9 and that this
asset can be used as a platform for growth, even in the most difficult
    Farallon's G-9 zinc, copper, silver, gold and lead mine at its Campo
Morado Property in Mexico reached commercial production in April 2009. The
Company expects to produce at an annualized rate of 120 million pounds of zinc
and 15 million pounds of copper for the remainder of 2009. The Company's
ultimate goal is to be a low-cost, multi-mine, mid-tier mining company.
    For further details 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.

    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, 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 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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