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Falcon Oil & Gas Ltd RNS Release

Falcon Oil & Gas Ltd.: Full Year Results





FOR: FALCON OIL & GAS LTD.

TSX VENTURE SYMBOL: FO
AIM SYMBOL: FOG
ISE SYMBOL: FAC

April 29, 2016

Falcon Oil & Gas Ltd.: Full Year Results

DUBLIN, IRELAND--(Marketwired - April 29, 2016) - Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC) is
pleased to announce its financial results for the year ended 31 December 2015.

The following should be read in conjunction with the complete audited Financial Statements and the accompanying
Management's Discussion and Analysis ("MD&A") for the three and twelve months ended 31 December 2015.

2015 Highlights:

Operational

-- Commencement of the Australian nine well exploration and appraisal
programme, with the drilling of Kalala S-1, Amungee NW-1 and Amungee NW-
1H with our joint venture partners Origin Resources Limited ("Origin")
(35%) and Sasol Petroleum Australia Limited ("Sasol") (35%).
-- Acceleration of Australian drilling programme with first horizontal well
(Amungee NW-1H) brought forward to 2015.
-- Encouraging results from the drilling of the first three Australian
wells indicating favourable shale properties with excellent gas shows
indicating the likelihood of high levels of gas saturations.
-- Preparation for 2016 Beetaloo Basin Australia, drilling programme at an
advance stage.
-- Processing of Falcon's exploration license application in South Africa's
Karoo Basin continues to progress and the South African Department of
Mineral Resources ("DMR") is expected to issue licences in 2016.
-- Conclusion of the termination agreement with Naftna Industrija Srbije
jsc ("NIS"). NIS paid Falcon US$3.7 million in December 2015 in
fulfilment of its contractual obligations.

Financial

-- Strong financial position, debt free with cash of US$12.7 million at 31
December 2015.
-- Continued focus on strict cost management and efficient operation of the
portfolio.
-- General & administrative expenses decreased 38% year on year to US$2.5
million (31 December 2014: US$4 million).

Philip O'Quigley, CEO of Falcon Oil & Gas commented:

"Operationally it has been a busy twelve months for Falcon, with the drilling of the joint venture's first
three wells in the Beetaloo Basin. Results have been encouraging with excellent gas shows encountered
signalling the likelihood of high level of gas saturation which is a strong indication of the potential
prospectively.

As announced yesterday, planning and preparation is underway for our 2016 Beetaloo basin programme. We look
forward to updating the market as this progresses.

We continue to make solid progress in South Africa and were encouraged with the recent confirmation by the
Petroleum Agency of South Africa that it expects to finalise a recommendation to the Minister of Mineral
Resources on Falcon's application for a shale gas exploration licence in South Africa's Karoo Basin, by May
2016. We remain optimistic on securing a shale gas exploration licence in South Africa's Karoo Basin in 2016.

Falcon is uniquely placed in this challenging oil price environment with its strong cash position, fully funded
drilling programme and high quality assets.

With our fully funded 2016 Australian drilling campaign on track to commence next month and a decision expected
from the South African DMR later this year, Falcon's shareholders can look forward to another exciting year of
exploration activity which has the potential to transform the value of your company."

Filing of Financial statements, MD&A, AIF and Reserves data

Falcon has filed its audited financial statements for the year ended 31 December 2015, the accompanying MD&A
for year ended 31 December 2015 dated 28 April 2016, its Annual Information Form ("AIF") dated 28 April 2016
and the Statement of Reserves Data and Other Oil and Gas Information (National Instrument 51-101, Forms 51-
101F1, 51-101F2 and 51-101F3) with the relevant provincial securities regulators. These filings are available
for review on the Canadian System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com.
The audited financial statements, MD&A and AIF are also available on Falcon's website www.falconoilandgas.com.

Communications update

The Group's engagement with its public relations firm, Camarco has now ended.

Annual General & Special Meeting

As previously announced, Falcon's Annual General and Special Shareholder Meeting will be held at Calgary
Petroleum Club, 319 5th Avenue S.W., Calgary, AB T2P 0L6, Canada on 21 June 2016 at 11:00 a.m. (Calgary time).

A complete notice and related documents will be sent to the shareholders of record as at 10 May 2016 and will
also be filed at www.sedar.com and Falcon's website at www.falconoilandgas.com.

Falcon Oil & Gas Ltd.

Consolidated Statement of Operations and Comprehensive Loss

----------------------------------------------------------------------------
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Year Ended 31 Year Ended 31
December 2015 December 2014
$'000 $'000
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Revenue
Oil and natural gas revenue 7 26
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7 26

Expenses
Exploration and evaluation expenses (679) (852)
Production and operating expenses (20) (27)
Depreciation (39) (128)
General and administrative expenses (2,491) (4,046)
Share based compensation (256) (197)
Restructuring expenses - (444)
Impairment - (26,526)
Foreign exchange loss (143) (189)
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(3,628) (32,409)

Other income 3,594 482
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3,594 482

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Results from operating activities (27) (31,901)
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Fair value gain - outstanding
warrants 79 883

Finance income 78 49
Finance expense (220) (799)
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Net finance expense (142) (750)

----------------------------------------------------------------------------
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Loss before tax (90) (31,768)
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Taxation (110) -

----------------------------------------------------------------------------
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Loss and comprehensive loss for the
year (200) (31,768)
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Loss and comprehensive loss
attributable to:

Equity holders of the company (193) (31,744)
Non-controlling interests (7) (24)

----------------------------------------------------------------------------
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Loss and comprehensive loss for the
year (200) (31,768)
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Loss per share attributable to
equity holders of the company:

Basic and diluted ($0.000) ($0.034)
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Falcon Oil & Gas Ltd.

Consolidated Statement of Financial Position

----------------------------------------------------------------------------
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At 31 December At 31 December
2015 2014
$'000 $'000
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Assets
Non-current assets
Exploration and evaluation assets 39,618 39,619
Property, plant and equipment 64 103
Trade and other receivables 22 104
Restricted cash 2,239 331
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41,943 40,157
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Current assets
Cash and cash on deposit 12,683 14,753
Trade and other receivables 268 443
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12,951 15,196
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Total assets 54,894 55,353
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Equity and liabilities

Equity attributable to owners of the
parent
Share capital 382,853 382,853
Contributed surplus 42,916 42,660
Retained deficit (382,542) (382,349)
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43,227 43,164
Non-controlling interests 706 713
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Total equity 43,933 43,877
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Liabilities
Non-current liabilities
Decommissioning provision 9,565 9,493
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9,565 9,493
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Current liabilities
Accounts payable and accrued
expenses 961 1,469
Derivative financial liabilities 435 514
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1,396 1,983
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Total liabilities 10,961 11,476
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Total equity and liabilities 54,894 55,353
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Falcon Oil & Gas Ltd.

Consolidated Statement of Cash flows

----------------------------------------------------------------------------
----------------------------------------------------------------------------
Year Ended 31 December
2015 2014
$'000 $'000
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Cash flows from operating activities
Net loss for the year (200) (31,768)
Adjustments for:
Share based compensation 256 197
Depreciation 39 128
Impairment - 26,526
Fair value gain - outstanding
warrants (79) (883)
Net finance expense 142 750
Termination of farm-out
transaction - NIS (3,700) -
Foreign Exchange 143 228
Change in non-cash working capital
Trade and other receivables 257 3
Accounts payable and accrued
expenses 124 (567)
Restructuring spend (444) -
Interest received 78 49
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Net cash used in operating
activities (3,384) (5,337)

Cash flows from investing activities
Proceeds from farm-out transaction -
Origin - Sasol - 20,471
GST remitted on farm-out proceeds - (1,861)
(Increase) / decrease in restricted
cash (1,991) 219
Exploration and evaluation assets (110) (7,130)
Decrease / (increase) in cash
deposits - other receivables 4,000 (6,000)
Termination of farm-out transaction
- NIS 3,700 -
Property, plant and equipment - (9)
----------------------------------------------------------------------------
Net cash generated in investing
activities 5,599 5,690

Change in cash and cash equivalents 2,215 353
Effect of exchange rates on cash &
cash equivalents (285) (31)

Cash and cash equivalents at
beginning of year 8,753 8,431

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Cash and cash equivalents at end of
year 10,683 8,753
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This announcement has been reviewed by Dr. Gabor Bada, Falcon Oil & Gas Ltd's Head of Technical Operations. Dr.
Bada obtained his geology degree at the Eotvos L. University in Budapest, Hungary and his PhD at the Vrije
Aniversiteit Amsterdam, the Netherlands. He is a member of AAPG and EAGE.

All dollar amounts in this document are in United States dollars "$", except as otherwise indicated.

About Falcon Oil & Gas Ltd.

Falcon Oil & Gas Ltd is an international oil & gas company engaged in the acquisition, exploration and
development of conventional and unconventional oil and gas assets, with the current portfolio focused in
Australia, South Africa and Hungary. Falcon Oil & Gas Ltd is incorporated in British Columbia, Canada and
headquartered in Dublin, Ireland with a technical team based in Budapest, Hungary.

For further information on Falcon Oil & Gas Ltd. please visit www.falconoilandgas.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain information in this press release may constitute forward-looking information. This information is based
on current expectations that are subject to significant risks and uncertainties that are difficult to predict.
Such information may include, but is not limited to comments made with respect to the awarding of an
exploration license in South Africa, to the type, number, schedule, testing and objectives of the wells to be
drilled in the Beetaloo basin Australia, expected contributions of the partners, the prospectivity of the
Middle Velkerri shale play and the prospect of the exploration programme being brought to commerciality. Actual
results might differ materially from results suggested in any forward-looking statements. Falcon assumes no
obligation to update the forward-looking statements, or to update the reasons why actual results could differ
from those reflected in the forward looking-statements unless and until required by securities laws applicable
to Falcon. Additional information identifying risks and uncertainties is contained in Falcon's filings with the
Canadian securities regulators, which filings are available at www.sedar.com.

FOR FURTHER INFORMATION PLEASE CONTACT:

Falcon Oil & Gas Ltd.
+353 1 417 1900

OR

Falcon Oil & Gas Ltd.
Philip O'Quigley, CEO
+353 87 814 7042

OR

Falcon Oil & Gas Ltd.
Michael Gallagher, CFO
+353 1 417 0814

OR

Davy (NOMAD & Broker)
John Frain / Anthony Farrell
+353 1 679 6363

Falcon Oil & Gas Ltd.




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