Farallon Raises $7.75 Million Through Notes

    VANCOUVER, Oct. 17 /CNW/ - Dick Whittington, President and CEO of
Farallon Resources Ltd. ("Farallon" or the "Company") (TSX: FAN; OTCBB:
FRLLF), announces that the Company has raised $7.75 million through a private
placement of unsecured convertible promissory notes (the "Notes").
    Each $500,000 principal amount Note entitles the holder to receive a
bonus of 40,000 common shares of the Company (aggregate of 620,000 shares) and
a cash payment of $37,500 for each six months that the Notes are outstanding.
The Notes mature six months from the Closing Date but the Corporation has the
right to a one time extension for six months for equivalent cash and share
bonuses. The $7.75 million principal amount of the Notes is convertible at
maturity into common shares of the Company at a fixed price of $0.33 per
    The Notes were issued on a private placement basis to qualified
purchasers outside of Canada. A 6% referral fee was paid on the placement. The
Notes and all shares will be subject to a hold period in Canada of four months
and one day. The Notes will not be registered under the US Securities Act of
1933 and may not be resold in the US or to a US person absent an exemption
from registration.
    The proceeds will be used for working capital and to repay an existing
loan of $3.8 million announced by the Company on May 13, 2008.
    Commenting on the placement, Mr. Whittington stated: "I am very pleased
that the Company was able to complete this financing at a time of such
uncertainty in world financial markets. These funds are a welcome addition to
the treasury and, while not needed to fund our current work plan, provide the
Company with added insurance during the production ramp up phase of building
the G-9 mine. As the Company is also evaluating the potential to expand
production to 2,200 tonnes per day (up from the current plan of 1,500 tonnes
per day) and these funds will enable us to carry out the necessary work to
conduct these studies earlier than anticipated."


    /s/ J.R.H. (Dick) Whittington

    J.R.H. (Dick) Whittington
    President and 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. and its Campo Morado
property, please visit the Company's website at www.farallonresources.com or
contact Investor Services at (604) 684-6365 or within North America at

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Farallon Mining Ltd.

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