Farallon Resources Ltd. (fka FRLIF)

[the cork]

Farallon to Review Original Four Deposits at Campo Morado

Approximately One Million Ounces of Gold in Indicated Resources
Studies to Target Building a Second Mine by July 1, 2013

June 29, 2010, Vancouver, BC -- Farallon Mining Ltd. ("Farallon" or the "Company") (TSX:FAN) announces that as a result of the recent rapid rise in gold prices, the Company is formally initiating studies to re-evaluate the Reforma, Naranjo, El Largo and El Rey deposits to assess the feasibility of building a second mine at Campo Morado, with a target start date of July 1, 2013. The Company already has one operation at Campo Morado - the G-9 mine - currently operating at 20 - 30% above design capacity. The second mine would piggy back on infrastructure already in place and be "incremental" to the current G-9 mine operation.

Indicated resources for the Reforma, El Rey, Naranjo and El Largo deposits total 11.2 million tonnes of 4.7% zinc, 0.7% copper, 1.4% lead, 165 grams per tonne of silver and 2.7 grams per tonne of gold (see news release dated September 19, 2005 and Table 1 attached). Contained gold totals 960,000 ounces and contained silver totals 60 million ounces. A map showing the location of these deposits, relative to the Company's operating G-9 mine is attached. The Company ceased evaluation of these deposits in late 2005 after the richness of the G-9 deposit became apparent, and since that time has been exclusively focused on building the G-9 mine and ramping it up to full production, which was achieved in the fourth quarter of last year.

Low metal prices in late 2005, particularly for by-product metals - a key component of any polymetallic deposit, the need for substantial initial capital investment, and testwork indicating low metallurgical recoveries, rendered the deposits uneconomic at that time; however, three significant developments have occurred since then:

1) The price of gold has tripled from $425/oz to $1240/oz as highlighted in the attached price chart for gold;
2) Infrastructure for the G-9 mine, including the mine, a mill, access road, power lines and administration offices has been put in place, and
3) The G-9 mine is fully operational with an established cost profile. Consequently, operating costs for the mining and milling of these deposits can be estimated with a much higher degree of certainty.

Dick Whittington said: "I have continually said that the potential of these deposits is not reflected in Farallon's share price. With approximately one million ounces of contained gold in a gold price environment of $1240/oz and an outlook of continued strength for gold going forward, as well as a fundamental change in the prices of the other metals involved, the value of these deposits has increased significantly since we last looked at them in detail. In combination with mine and mill infrastructure that is already in place and operating costs stabilized, it's time to formally revisit unlocking their value.

Our strong balance sheet and the low cost profile of the G-9 mine will provide the operating and financial platform upon which to build a second mine at Campo Morado. We are initiating studies to re-evaluate these deposits with a target goal of having a second mine in operation by July 1, 2013."

Dr. David Stone, P.Eng, a qualified person and a consultant to Farallon Mining has reviewed this news release on behalf of the Company.

Farallon operates the G-9 zinc mine on its Campo Morado Property in Guerrero State, Mexico. G-9 is a 1,500 tonnes per day, underground, zinc mine with important by-product credits of copper, gold, and silver, and with operating costs in the lowest 10% of zinc producers worldwide. The Company is targeting to produce at an annualized production rate of 120 million pounds of zinc and 15 million pounds of copper per year.

For further details on Farallon, please visit the Company's website at www.farallonmining.com or contact Neil MacRae, Investor Relations Manager, at [phone] or within North America at 1-877-688-2050.

ON BEHALF OF THE BOARD OF DIRECTORS
J.R.H. (Dick) Whittington, President & CEO


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