2010-01-14-2009-12-07

To acquire remaining 25% WI in permits in Australia Beetaloo Basin.

Falcon Oil & Gas Australia Pty Ltd., a subsidiary of Falcon Oil & Gas Ltd., Denver, (Toronto Venture: FO) plans to acquire the remaining 25% interest in four Beetaloo Basin exploration permits in northern Australia from Sweetpea Petroleum Pty Ltd., a subsidiary of PetroHunter Energy Corp., Denver, (OTCBB: PHUN). The deal stipulates that Falcon Australia be restructured, resulting in Falcon Canada, Falcon Oil & Gas's Canadian subsidiary, owning 75% of its common shares and Sweetpea holding the remaining 25%. After the restructuring, Falcon Australia will have a 100% working interest in and will operate the Beetaloo permits. Falcon chairman, president and chief executive Marc A. Bruner is the beneficial owner of PetroHunter. Bruner is also chairman of Gasco Energy Inc. To finance further exploration on the permits, Falcon Australia will privately place equity securities with Sydney-based Martin Place Securities. Neither the terms of the agreement or the amount of the financing have been determined. The boards of Falcon Oil & Gas and PetroHunter have approved the agreements. Closing is subject to Toronto Venture Exchange approval.