Farallon Resources Ltd.: Stock Trading Update.

VANCOUVER, British Columbia -- In response to the recent volatility in the price of Farallon shares, the Company wishes to update its shareholders and investors at large on recent developments that are likely behind this volatility. First of all, drill results from the ongoing program at its Campo Morado Project are proving to be better than anticipated with drill intersects and mineralization grades being higher than expected at the outset of the program. A press release was issued on the initial results on September 7th, 2004. Secondly, and most likely related to the success of the drilling program, the Company was notified on September 6th, 2004, that a writ has been filed in the Federal Court of Mexico, wherein it is named as a defendant along with various other parties, including the Government of Mexico, in a series of claims filed by David L. Hermiston as Plaintiff.

The Company has completed a preliminary review of the writ and it appears that the claims are substantively the same assertions made by Mr. Hermiston since 1996 which involve an allegation that he was cheated out of a certain interest in Farallon's Campo Morado mineral concession. In previous lawsuits by the same David L. Hermiston and associates, these claims have been dismissed by law courts in Canada, the United States and Mexico, as being without merit and/or deficient for a myriad of substantive and technical reasons. As these claims have been refuted on every occasion, their resurgence is not considered material to the future direction of the corporation.

Dick Whittington, President and CEO says: "I am very pleased with the direction that the recent drilling program is taking and am not at all surprised by the reappearance of Mr Hermiston. While unexpected - particularly given his complete lack of success in the past - his actions are no doubt driven by the recent positive drilling results on site. We are prepared for actions like this, and have reconstituted our legal team to vigorously defend our shareholders' interests. I am looking forward to once again, proving these claims to be without any merit whatsoever. Shareholders are reminded that the Company secured a default judgement against Mr Hermiston in a Nevada court, for US$650,000 which we are in the process of enforcing. In the meantime, shareholders can be reassured that these claims will not affect the direction of the Company, the recent drilling program or the target date for opening a mine - January 1, 2009."

ON BEHALF OF THE BOARD OF DIRECTORS,

Dick Whittington, President and CEO

No regulatory authority has approved or disapproved the information contained in this news release.

Farallon Resources Ltd. (TSX:FAN)