Farallon Arranges $20 Million Financing.

VANCOUVER, British Columbia -- Dick Whittington, President and CEO of Farallon Resources Ltd. (TSX:FAN) announces that Farallon has reached agreements in principle to privately place 24,390,244 million equity units in its capital at a price of Cdn $0.82 for gross proceeds of Cdn$20 million to a number of accredited investors, including Company insiders. Each unit consists of one common share and one common share purchase warrant exercisable to purchase an additional common share at a price of Cdn$1.02 for a two year period from completion of the financing, which is expected to occur in December. The financing is currently subject to execution of definitive agreements and TSX acceptance, both of which are expected to occur in the normal course. The common shares in the units and the shares issuable on exercise of the warrants will be subject to a four month resale restricted period in the principal Canadian jurisdictions.

Intermediary fees of approximately 6% will be paid in cash or shares, excluding units sold to Company insiders.

Proceeds from the placement will be used for the Company's Campo Morado polymetallic massive sulphide project in Guerrero State, Mexico. Funds are planned to be expended in 2005 for exploration drilling programs, engineering studies and metallurgical test work as well as for general working capital purposes.

Mr. Whittington said "This financing is another important step in our plan to advance the Campo Morado Project through the pre-feasibility stage and to a Bankable Feasibility Study by year-end. We continue to be on track to open a mine by January 1, 2009."

ON BEHALF OF THE BOARD OF DIRECTORS

J.H.R. (Dick) Whittington, President & CEO

Information for US Persons and Forward Looking Information

These materials are not an offer of securities for sale in the United States. The securities offered have not been, and will not be, registered under the Securities Act of 1933 and may not be offered or sold in the United States absent such registration or an exemption from registration.

This release includes certain statements that may be deemed "forward-looking statements" in that until definitive agreements are executed and the financing funds are actually received by Farallon there can be no certainty that the financing will complete for the full amount or at all. Sudden developments in international financial markets and other factors may intervene to prevent closing of this financing. 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.

No regulatory authority has either approved or disapproved of the contents of the news release.