Union Negotiations Concluded for Farallons G-9 Project

Dick Whittington, President and CEO of Farallon Resources Ltd. announces that the Company has successfully concluded negotiations with Sindicato Nacional de Trabajadores Mineros, Metalurgicos y Similares de la Republica Mexicana, the Mexican mining labour union at its G-9 Project at the Campo Morado property in Mexico. The monetary settlement will be effective September 1, 2008 and be in effect until August 31, 2009. Unionized employees at the G-9 Project will receive a 5% increase to their base wage and an additional 1% lump sum payment (calculated utilizing an estimate of annualized base wage). All other terms of the current collective agreement have been extended and will continue to be in force until the parties meet in January to discuss potential language amendments.

President and CEO Dick Whittington said “I am pleased to have reached this agreement with the union at G-9. It is a testament to the strong relationship we have developed with the union on a number of fronts over the last year. This agreement will provide Farallon and the union with the required labour stability in which to make the transition to an operating mining company. I wish to thank all the individuals that were able to bring these negotiations to a very timely conclusion.”

Farallon is advancing the G-9 polymetallic (zinc, copper, silver, gold, lead) project at Campo Morado. Employing a ‘Parallel Track’ program, Farallon has expanded and confirmed the high-grade mineralization within the G-9 deposit through drilling in parallel with project development activities. An underground decline has reached the North and West Extension zones of the G-9 deposit and underground drilling, and stope access and development is underway. Mill commissioning is well underway and concentrate is being produced. Haulage and sale of concentrates is expected to begin in October. Access for stope development in the high-grade Southeast zone is expected in December, with full production at 1,500 tonnes per day targeted for January 2009.