Falcon Oil & Gas Limited Operational Update

FOR:  FALCON OIL & GAS LTD.

TSX VENTURE SYMBOL:  FO
AIM SYMBOL:  FOG

September 3, 2013

Falcon Oil & Gas Limited Operational Update

DUBLIN, IRELAND--(Marketwired - Sept. 3, 2013) - Falcon Oil & Gas Ltd. (TSX
VENTURE:FO)(AIM:FOG)(ESM:FAC) ("Falcon" or the "Company"), announces the
following operational update.

Highlights

BEETALOO BASIN AUSTRALIA

/T/

--  Evaluation of new seismic confirms three distinct hydrocarbon plays
    --  An unconventional oil play
    --  An unconventional gas play
    --  A conventional play of prominent structural ridges near the basin
        margins
--  On-going evaluation of core and well data supports presence of world
    class oil source rocks in Beetaloo with TOC values in excess of 10%
--  Falcon approached by several oil and gas companies interested in farming
    in
--  Farmout progressing well with the objective to ensure that all the plays
    are drilled.
--  Successful consolidation of interest in Australia with the acquisition
    of Sweetpea's 24% holding completed

/T/

HUNGARY

/T/

--  Preparations for testing the recently drilled Kutvolgy-1 well in Hungary
    are now underway

/T/

SOUTH AFRICA

/T/

--  Awaiting award of unconventional exploration licence in Karoo Basin.
    Continue to work under the Cooperation Agreement with Chevron.

/T/

Results of Seismic Program in Beetaloo Basin, Australia

Under the terms of the 2011 Participation Agreement, in 2011 and 2012 Hess
acquired 3,490 kilometres of 2D seismic data and invested in excess of $80
million during that period but at no cost to Falcon. The seismic database, along
with existing well data, provides a very solid platform to extrapolate a detailed
structural and stratigraphic model for the main parts of the Beetaloo Basin.

All the necessary elements of a productive unconventional and conventional
petroleum system have been identified in multiple shales and sand reservoirs, and
it is now clear that the Beetaloo Basin is an active petroleum system.

Three hydrocarbon plays, the shale gas potential in the basin centre, a shale oil
play in the northern part of the permits and conventional prospects have been
identified throughout the acreage. Recent interpretation of the seismic database
mapped out several conventional drilling targets that are promising areas of
hydrocarbons accumulation in the form of structural closures and traps.

Farm-out Discussions in Australia Advancing

Further to our press release dated 1st July 2013 Falcon has been approached by
several oil and gas companies interested in farming into the Beetaloo Basin.
Falcon is well advanced in its discussions with a number of companies and is very
confident of securing an attractive farm-out deal with a large oil and gas
company. Falcon will provide an update to the market when able to do so.

Acquisition of Sweetpea's shares in Falcon Australia

In order to consolidate its interest in Australia Falcon acquired Sweetpea
Petroleum Pty Ltd.'s ("Sweetpea") 50 million shares or 24.22% interest in Falcon
Oil & Gas Australia Limited ("FOGA") in July 2013. FOGA is a subsidiary of Falcon
and is the registered holder of four exploration permits in the Beetaloo Basin,
Northern Territory, Australia. Following the completion of the Share Purchase,
Falcon owns 96.9% of the issued share capital of FOGA. The total value of the
consideration was CAD22.6 million including CAD3 million in cash and the balance
in Falcon common shares. Sweetpea, a wholly owned subsidiary of PetroHunter
Energy Corporation, now owns 10.7% of the issued share capital of Falcon.

Preparing to Test the Kutvolgy-1 Well, Hungary

The Kutvolgy-1 well was the first of a planned three well programme to evaluate
the gas potential of the Algyo formation in the Mako Trough. As expected, the top
of the Algyo formation was encountered at 2,985 metres and the well then
penetrated an alternating sequence of sandstones, siltstones and shales over a
gross interval of 320 metres to TD, with gas shows throughout. Two conventional
cores have been taken and extensive wireline logs were run.

As planned, the well has been cased to TD and is now suspended. Technical
evaluation of the well results has been concluded and preparations are now well
underway to complete and test this well. The process will involve conventional
testing of up to 8 gas bearing intervals as a first phase. A decision on whether
hydraulic fracturing of the penetrated tight sands is required will be made upon
evaluating the results of conventional flow tests. We expect testing operations
to commence before the end of November.

Karoo Basin, South Africa

Falcon expects the conversion of its Technical Cooperation Permit (TCP) to an
Exploration Licence to take place in the near term. Recent comments from Rob
Davies, Minister for Trade and Industry are encouraging in that regard. "We need
to advance the work on taking a decision on shale gas exploration. We want to
move before the end of this administration." In the meantime Falcon is working
closely with Chevron under the Terms of the December 2012 Cooperation Agreement.

Philip O'Quigley, CEO of Falcon commented:

"The first half of 2013 has been extremely busy for Falcon with drilling in
Hungary and seismic in Australia paving the way to the realisation of the
potential of our assets. We are encouraged by the on-going discussions and
comments from government ministers in South Africa and are well positioned to
progress in the region alongside our partner Chevron. With active discussions
currently underway regarding our assets in Australia we look forward to further
significant developments in the second half of the year."

About Falcon Oil & Gas Ltd.

Falcon 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 spread between Australia, South Africa and
Hungary. Falcon 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. 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 and Gas Ltd.
[phone]

OR

Falcon Oil and Gas Ltd.
Philip O'Quigley
CEO
[phone]

OR

Falcon Oil and Gas Ltd.
John Craven
Non Exec Chrmn
[phone]
www.falconoilandgas.com

OR

FTI Consulting
Edward Westropp
[phone]

OR

FTI Consulting
Natalia Erikssen
[phone]

OR

Davy (NOMAD & Joint Broker)
John Frain
[phone]

OR

Davy (NOMAD & Joint Broker)
Anthony Farrell
[phone]

OR

GMP Securities Europe LLP (Joint Broker)
Rob Collins
[phone]

OR

GMP Securities Europe LLP (Joint Broker
Alexandra Carse
[phone]

OR

Cantor Fitzgerald Europe (Joint Broker)
David Porter
[phone]

Falcon Oil & Gas Ltd.