Falcon Receives Updated Assessment from RPS Scotia for Mako Trough

Falcon Oil & Gas Ltd. announced that it has received a new, updated, independent report from RPS Scotia disclosing an updated resource estimate of the Mako Trough Pannonian Basin Gas Accumulation within the production license area of Falcon's deep gas exploration project in southeastern Hungary (the "RPS Scotia Report").

The RPS Scotia Report is compliant with National Instrument 51-101 "Standards of Disclosure for Oil and Gas Activities" ("NI 51-101").

The RPS Scotia Report on the resource of the Mako Trough describes a probabilistic distribution of the potentially recoverable portion of "Contingent Resources" as defined by the Canadian Oil and Gas Evaluation Handbook and does not represent an estimate of reserves.

Based on all available data, RPS Scotia has assigned the following probabilistic estimation of potentially recoverable contingent resources in the Szolnok formation, the Lower Endrod, the Basal Conglomerate and the Synrift Sequence. The RPS Scotia Report measures the Mako Trough in trillions of cubic feet (Tcf) and millions of barrel oil (mmbo): With a probability greater than 90%, 25.8 Tcf and 42.6 Mmbo.