Farallon Closes US$30 Million Term Loan with Credit Suisse



    VANCOUVER, June 8 /CNW/ - Farallon Mining Ltd. ("Farallon" or the
"Company") (TSX: FAN) announces that it has closed the US$30 million term loan
(the "Agreement") with Credit Suisse - Zurich of Switzerland ("Credit
Suisse"), announced on May 7, 2009. The term of the loan is four years and the
Company has chosen to fix the interest rate over the four year period.
Proceeds will now 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
were due to mature on September 9, 2009.
    Farallon has now fulfilled all of its obligations under the Notes and has
initiated repayment to Note-holders totalling US$23.6 million. This
effectively concludes the Company's recent strategy to restructure the balance
sheet by increasing working capital and replacing current liabilities with
long-term debt at significantly reduced interest costs.
    Dick Whittington, President and CEO, said: "I am extremely pleased to
have finalized this four-year term loan. We look forward to working with
Credit Suisse as one of our strategic partners as we seek to grow as a mining
company. Our ultimate goal is to create a low-cost, multi-mine, mid-tier
mining company with significant exploration upside potential."
    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 expects to produce at an annualized production rate of 120 million
pounds of zinc and 15 million pounds of copper for the remainder of 2009.

    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 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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