DENVER, Feb. 6 /PRNewswire-FirstCall/ -- Falcon Oil & Gas Ltd. (TSXV: FO) announced today that it has entered into a non-binding letter of intent for a US$250,000,000 credit facility with Macquarie Bank Limited ("Macquarie"). Under the letter of intent, the parties will undertake a six weeks due diligence period and also will need to agree upon specific terms and conditions, and to obtain final approval of Falcon's Board of Directors and of Macquarie Bank's Board of Directors, in order to enter into a definitive agreement. The letter of intent currently anticipates that any advances of funds would be made upon satisfaction of performance thresholds, including mutually satisfactory and successful production testing of one or more wells drilled. The letter of intent also anticipates that Macquarie Bank would receive warrants to purchase 10 million shares of Falcon common stock upon establishment of the secured credit facility, and warrants to purchase an additional 10 million shares upon an initial draw down of $50 million and upon each additional draw of $50 million. It is anticipated that the warrant exercise price will be based on a 25% premium over Falcon's average stock price for an approximately 30-day period prior to closing the credit facility. Falcon's President, CEO and Chairman Marc A. Bruner commented, "We welcome the financial support of Macquarie Bank, and we regard them as an important strategic partner and advisor as Falcon grows." About Macquarie Bank Limited Macquarie Bank Limited operates in a range of investment banking, commercial banking and selected retail financial services markets both in Australia and overseas. Headquartered in Sydney, Australia, Macquarie is the only substantial, majority Australian owned investment bank and is a licensed trading bank under the Australian Banking Act 1959. About Falcon Oil & Gas Ltd. Falcon Oil & Gas Ltd. is a British Columbia corporation which is in the business of oil and gas exploration and production. It has operations in Hungary through its wholly-owned subsidiary TXM Oil and Gas Exploration, and in Romania through its wholly-owned subsidiary JVX Energy Corporation. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has in no way passed upon the merits of the above-described transaction and has neither approved nor disapproved the contents of this press release. Contacts: Falcon Oil & Gas Ltd. Marc A. Bruner President, CEO and Chairman Allan D. Laird Director (303) 803-3646 United States CTA Public Relations Bevo BeavenVice President/General Manager (303) 665-4200 United Kingdom 4C Burvale Carina Corbett, John Carrick Smith Directors 020-7907 4760 / 4761 First Call Analyst: FCMN Contact: Shirley@ctapr.com DATASOURCE: Falcon Oil & Gas Ltd. CONTACT: Marc A. Bruner, President, CEO and Chairman, and Allan D. Laird, Director, both of Falcon Oil & Gas Ltd., +1-303-803-3646; or in the United States: Bevo Beaven, Vice President/General Manager of CTA Public Relations, +1-303-665-4200; or in the United Kingdom: Carina Corbett, +44-20-7907-4760, or John Carrick Smith, +44-20-7907-4761, Directors, both of 4C Burvale

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