Falcon to Acquire Additional Interest in Beetaloo Basin Onshore Australia

Falcon Oil & Gas has entered into a non-binding letter of intent (the "LOI") with PetroHunter Energy Corporation ("PetroHunter") which stipulates that Falcon will acquire (the "Acquisition") an additional undivided 25% working interest in PetroHunter's four exploration permits covering seven million acres in the Beetaloo Basin of the Northern Territory, Australia (the "Beetaloo Basin Project"). The Acquisition will bring Falcon's total working interest in the Beetaloo Basin Project to 75%.

Under the terms of the LOI, the principal consideration being paid by Falcon for the Acquisition is the forgiveness of the $5 million due under a loan previously made to PetroHunter in October 2008. The LOI also stipulates that, on closing of the Acquisition, Falcon will become operator of the Beetaloo Basin Project, and that PetroHunter and Falcon will enter into an escrow agreement which will govern the release of all remaining shares of the Company previously issued to PetroHunter.

The closing of the Acquisition is subject to the execution of definitive agreements, the fulfillment of certain closing conditions, as well as the receipt of all required regulatory approvals. Closing of the Acquisition is expected to occur on or about May 25, 2009.

Marc A. Bruner, the Chairman, CEO and President of Falcon, continues to be a significant shareholder of PetroHunter. The negotiation and entering into of the non-binding letter of intent and the definitive agreements continue to be governed by a committee of the independent directors of Falcon.