FALCON OIL & GAS LTD. COMPLETES $40,000,000 EQUITY FINANCING

FOR IMMEDIATE RELEASE (TSXV Symbol:  FO) DECEMBER 17, 2007

BUDAPEST, Hungary – December 17, 2007 –Falcon Oil & Gas Ltd. (TSXV: FO) (“Falcon” or the “Company”) is pleased to announce that it has completed today its previously announced public offering (the “Offering”) of 100,000,000 common shares in the capital of the Company (the “Common Shares”) at $0.40 per Common Share (the “Issue Price”) for aggregate gross proceeds of $40,000,000.

The Offering was completed by a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd., which included Evergreen Capital Partners Inc. (collectively, the “Underwriters”).

The Company intends to use the net proceeds from the Offering for completion and testing of three of its existing wells (Mako-4, Mako-6, and Mako-7), which the Company previously drilled in the Mako Trough on its licenses in Hungary, and for general working capital purposes.
In connection with the Offering, the Company also granted the Underwriters an over-allotment option, exercisable in whole or in part in the sole discretion of the Underwriters at any time until January 17, 2008, to arrange for the sale of up to an additional 15,000,000 Common Shares at the Issue Price to cover over-allotments, if any, and for market stabilization purposes.

The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), and may not be offered or sold in the United States or to U.S. Persons (as defined in Regulation S under the 1933 Act) except in accordance with an exemption from the registration requirements of the 1933 Act and applicable state securities laws.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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, LLC, and in Romania through its wholly-owned subsidiary JVX Energy Corporation. Further information about Falcon is available at www.falconoilandgas.com.

Investor and Public Relations
Falcon Oil and Gas Ltd:
Alexander Hubbard-Ford
+44 (0) 79 8448 1541

Investor Relations North America:

Weber Shandwick
Peter Duda / JJ Rissi
+1 (212) 445-8213 / +1 (917) 587-7090

In the interests of providing Company shareholders and potential investors with information regarding the Company, including the Company’s assessment of its and its subsidiaries’ future plans and operations, certain statements included in this press release may constitute forward-looking information or forward looking statements (collectively, “forward-looking statements”). All statements contained herein that are not clearly historical in nature are forward-looking, and the words “anticipate”, “believe”, “expect”, “estimate” and similar expressions are generally intended to identify forward-looking statements. Similarly, forward-looking statements in this press release include, but are not limited to anticipated developments of the Company’s drilling project in Hungary and the timing thereof, the Company’s drilling project in Romania and the timing thereof, capital investment levels and the allocation thereof, pipeline capacity, government royalty rates, reserve and resources estimates, the level of expenditures for compliance with environmental regulations, site restoration costs including abandonment and reclamation costs, exploration plans, acquisition and disposition plans including farmout plans, net cash flows, geographic expansion and plans for seismic surveys. In addition, please note that statements relating to “reserves” or “resources” are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described can be profitably produced in the future. Such statements represent the Company’s internal projections, estimates or beliefs concerning, among other things, an outlook on the estimated amounts and timing of capital expenditures, anticipated future debt levels and incentive fees or revenues or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These statements are only predictions. Actual events or results may differ materially. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company and the foregoing list of important factors is not exhaustive. These forward-looking statements made as of the date hereof disclaim any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. Company shareholders and potential investors should carefully consider the information contained in the Company’s filings with Canadian securities administrators at www.sedar.com before making investment decisions with regard to the Company.