Flag Resources (1985) Limited would like to clarify a news release issued in error May 24, 2012

CALGARY, June 15, 2012 /CNW/ - R.J. Snider is not chief administrative officer of the corporation nor a director nor an employee, and is not authorized by the corporation to act on its behalf.

We apologize for any misunderstanding this may have caused.

For further information:

Please visit flagresources.ca for more information, or contact Murdo Duncan McLeod, Director and Corporate Secretary toll free in North America at 1 888 531 7798