Farallon Resources Ltd. Announces Three, New Precious Metal-Rich Massive Sulphide Discoveries at Campo Morado Project in Guerrero State, Mexico.

VANCOUVER, British Columbia--(BUSINESS WIRE)--June 30, 1999--

Robert G. Hunter, Chairman of Farallon Resources Ltd. (TSE:FAN; VSE:FAN) is pleased to announce three, new precious metal-rich massive sulphide discoveries at Farallon's 100% owned Campo Morado Project in Guerrero State, Mexico. These new discoveries were made by classical prospecting demonstrating that exploration and development of the Campo Morado District is still in its infancy.

The first new discovery was made 500 metres west of the Estrella de Oro deposit where seven historic adits intersect highly oxidized massive sulphide mineralization over a strike length of 41 metres and a vertical distance of 42 metres. Both fresh and oxidized massive sulphides are found at this new deposit named El Profundo with exposed widths ranging from 3 to 13 metres. Systematic chip sampling across this oxidized zone on each adit level yielded the highly encouraging grades summarized in Table 1 below:

Table 1
El Profundo Deposit Results

Sample  Width    Gold   Gold  Silver Silver Copper   Lead  Zinc
Number Metres g/tonne oz/ton g/tonne oz/ton    %1     %1    %1
327      0.62    4.27  0.124     234   6.79  0.06   1.27  0.01
328      0.90    4.68  0.136     140   4.06  0.07   1.06  0.04
329      1.10    5.28  0.153     292   8.47  0.15   3.01  0.11
330      1.80    3.29  0.095    >630 >18.27  0.34   4.03  0.35
331      grab    4.53  0.131      51   1.48  0.49   0.65  0.11
332      0.66    5.13  0.149     302   8.76  0.02   0.87  0.01
333      2.33    7.40  0.215     212   6.15  0.01   1.26 trace
334      1.80    8.63  0.250      91   2.64  0.02   0.25 trace
335      0.35    8.97  0.260      81   2.35  0.02   0.28  0.01
337      2.65    6.07  0.176     174   5.05  0.14   1.04  0.32
338      0.60    6.95  0.132     203   5.89  0.01   1.53 trace
339      grab    4.99  0.145     203   5.89  0.53   0.73  0.11
340      1.90    7.09  0.206     410  11.89  0.05   4.11  0.01
341      3.35    3.18  0.092     300   8.70  0.29   2.11  0.30
342      2.80    3.27  0.095     176   5.10  1.40   1.18  2.59
343      0.70    3.47  0.101     190   5.51  0.30   0.11  0.84
347      3.60    3.95  0.115     155   2.95  0.11   1.42  0.06

1) Converted from ppm values. Brackets indicate contiguous samples.

It should be noted that the freshest sulphide sample, 342, yields significantly higher base metal values than the other samples, presumably because of less oxidation. This new discovery opens up a broad area west of Estrella de Oro that has had no systematic exploration coverage to date. Massive sulphide showings extend on surface over 60 metres south of the historic workings at El Profundo and occupy the same stratigraphic position as the other deposits in the Campo Morado District.

Further exploration work in the San Raphael area immediately east of El Profundo has provided further insight as to the significance of this zone. A historic adit was excavated to expose an additional 15 metre strike length of the occurrence. Exposed massive sulphide widths in two cross cuts range from 3.1 metres to 5.5 metres with continuous chip sampling results as shown in Table 2 below:

Table 2
San Rafael Zone Results

Sample  Width    Gold   Gold  Silver Silver Copper   Lead  Zinc
Number Metres g/tonne oz/ton g/tonne oz/ton    %1     %1    %1
348      5.45    2.65  0.077     218   6.32  1.22   1.38  3.63
349      3.15    3.41  0.099     266   7.71  1.20   2.45  3.16

1) Converted from ppm values.

Additional work is required to delineate the size of this deposit and its relationship to the Estrella de Oro and/or El Profundo deposits.

Five kilometres southeast of the best known cluster of massive sulphide deposits, in an area not currently covered by Farallon's soil geochemistry grid, prospecting has located additional new showings. Sampling provided new data and confirmed the historic Esmeralda showing recognized during Farallon's earlier completed regional geological mapping program. At Esmeralda, multi-metre sized felsic fragmental blocks containing horizons with abundant massive sulphide clasts occur as water polished boulders in a riverbed. Sampling in and around a newly located 15 metre long sulphide horizon exposure in the Esmeralda area yielded the precious metal-rich results shown in Table 3 below:

Table 3
Esmeralda Showing Results


Sample Sample    Gold   Gold  Silver Silver Copper   Lead  Zinc
Number  Desc. g/tonne oz/ton g/tonne oz/ton     %1     %1    %1

322    15 metres
 along strike   12.09  0.351     492  14.27   0.04  12.95  0.04
323 muck pile   17.26  0.501     839  24.33   0.04   8.86  0.05
324 muck pile    8.55  0.248     528  15.31   0.34   3.53  0.12
325 muck pile    8.39  0.243     399  11.57   0.15   3.14  0.10
326 2 metres
    wide         0.12  0.003      10   0.29   2.42   0.04  0.82

1) Converted from ppm values.

The large, proximal, float boulders containing massive sulphide fragments coupled with these sampling results clearly target this as an under explored area quite separate from the cluster of currently known deposits of the Campo Morado District.

The results of the current prospecting program covering the three areas (El Profundo, San Rafael and Esmeralda) have clearly demonstrated the extreme prospectivity of the Campo Morado region and its potential for substantial new discoveries. Since initiating work at Campo Morado, Farallon has completed over 64,000 metres of diamond drilling in 320 large diameter drill holes. This work has resulted in the drilling delineation of the historically known Reforma deposit as well as the discovery of five, previously unknown, "blind", copper-zinc-silver-gold massive sulphide deposits named; Naranjo, El Rey, El Largo, Estrella de Oro and G-9.

Preliminary mineral resource estimates have been calculated by Farallon for the Reforma, Naranjo, El Rey and El Largo deposits and now total over 29 million tonnes. El Rey and El Largo deposits are still open in all directions. The Estrella de Oro and G-9 deposits are insufficiently drilled to calculate resource estimates. Taken together, the expansion potential of the known deposits, along with exploration drilling at El Profundo, San Rafael, Esmeraldo and other targets offers a unique low risk, low cost opportunity to dramatically increase total massive sulphide resources by staged, step-out drilling. Farallon anticipates that current mineral resources can be expanded to the 50 million tonne range by systematic core drilling.

ON BEHALF OF THE BOARD

Robert G. Hunter Chairman

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