Farallon Mining Ltd. - News Releases - Farallon Raises $7.75 Million Through Notes

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	Fri Oct 17, 2008 Farallon Raises $7.75 Million Through Notes
	October 17 2008, Vancouver, BC -- 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 share. 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." For further details 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 1-800-667-2114. ON BEHALF OF THE BOARD OF DIRECTORS 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.

	You can view the Next News Releases item: Tue Oct 28, 2008, Farallon Initiates Off-Take Agreement With Trafigura You can view the Previous News Releases item: Thu Oct 16, 2008, Farallon Trucks First Concentrate Produced At G-9

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