Falcon Gold Announces $1,350,000 Private Placement

(via Thenewswire.ca)

Sudbury, ON. November 14, 2011. (FG: TSX-V). Falcon Gold Corp. (the "Company") announces that it has entered into an agreement with IBK Capital Corp. (the "Agent"), under which the Agent has agreed to offer $1,350,000 in securities of the Company, on a "commercially best efforts" private placement (the "Offering"). The Offering will consist of up to $1,350,000 of common share units and flow through shares of the Company. The common share units are priced at $0.15 per unit with a unit consisting of one common share and one-half common share purchase warrant. The flow-through shares are priced at $0.20 per flow-through share. The warrants have a two year term and are exercisable of $0.25 during the first year and $0.35 in the second year. The warrants are subject to an acceleration clause which allows the Company to accelerate the warrants expiry date to 30 days in the event the closing price of trading in the Company's common shares is equal to or greater than $0.50 for twenty consecutive days. Closing of the offering is anticipated on or before December 31, 2011. Closing of the Offering is subject to receipt of regulatory approvals, including the approval of the TSXV. The securities issued will be subject to a four month hold period under applicable securities laws in Canada.

In consideration of the Agent's services, the Company has agreed to pay the Agent a cash commission of 8% of the gross proceeds of the Offering and to issue to the Agent warrants equal to 10% of the number of shares issued by the Company with respect to the Offering. The Agent's warrants will be priced at the respective price of the shares included in the Offering and will expire two years following the closing of the Offering.

The proceeds raised from the Offering will be used to continue the exploration of the Company's properties, and for general corporate purposes.

The Company also announces that with the expiry of the Letter of Intent, previously announced on August 3, 2011, it will not be proceeding with the acquisition of the Maki Property in Northern Ontario from Markinch Resources Inc.

About Falcon Gold Corp.

Falcon Gold Corp. is a Canadian mineral exploration company focused on generating, acquiring, and exploring a quality pipeline of mining opportunities in the Americas. The advanced-stage 100% owned Burton Gold Property is located in the Abitibi Greenstone/Swayze Extension Gold Belt which hosts the world-class mining centres of Kirkland Lake, Timmins, and Val d'Or and is situated approximately 8 km west of Trelawney Mining's Jerome Mine deposit and 38 km west of Trelawney Mining's Cote Lake deposit.

On Behalf of the Board of Directors

FALCON GOLD CORP.

"Edward Stringer"

Edward Stringer

President, CEO and Director

For Further Information:

Timea Carlsen

Manager, Corporate Communications

timea.carlsen@falcongold.ca

778-998-2473 (BIRD)

This news release may contain forward looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, native issues, etc. Forward looking statements address future events and conditions and therefor, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Neither 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.

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