FALCON OIL & GAS LTD. ANNOUNCES LETTER OF INTENT WITH NAFTNA INDUSTRIJA SRBIJE FOR MAKS TROUGH PROJECT

	    (TSXV Symbol:  FO)
	    DENVER, June 9, 2011 /CNW/ - Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon"),
an international oil and gas exploration and production company, announced
today that TXM Oil and Gas Exploration Kft. ("TXM"), Falcon's 100 percent
owned Hungarian subsidiary, has entered into a Letter of Intent with Naftna
Industrija Srbije, j.s.c. Novi Sad ("NIS"), for the acquisition by NIS of an
interest in producing the Algyv play within Falcon's Maks production license
in Hungary in an area of approximately 995 square kilometers, from a depth of
2,300 m down to the base of the Algyv Formation (the "Agreement Area"). TXM
will retain all rights within the entire production license deeper than the
base of the Algyv Formation such as the Szolnok and Endrvd formations. The
Algyv Formation is a prospective, pervasive, hydrocarbon-bearing sandstone
found predominantly between 2,500 and 3,500 m from surface.
	    Under the terms of the agreement, NIS will make a US$ 1.5 million payment
to TXM upon signing of a Participation Agreement. NIS shall then, at its sole
expense drill, test and complete three wells in the Agreement Area. These
wells, to be drilled and tested before December 31, 2012, shall be located so
that each well tests an independent Algyv prospect. NIS will earn a 50 percent
interest in production from each prospect if the discovery well is tied in and
placed on production at the cost of NIS. After the drilling of the three wells
is completed, NIS has the right to acquire a 50 percent interest in production
from the entire Agreement Area by paying to TXM an additional US$ 2.75 million
(the "earn-in"). If NIS does not fulfill their drilling obligations under the
Participation Agreement, TXM will retain 100 percent interest in the Agreement
Area.
	    If the NIS earn-in is completed, NIS and TXM will share future
exploration, appraisal and development costs and production in the Agreement
Area in accordance with their participating interests held under a Joint
Operating Agreement. TXM shall be the Operator under both the Participation
Agreement and the Joint Operating Agreement.
	    Robert Macaulay, CEO of Falcon and Managing Director of TXM, said, "Our
partnership with NIS is a very exciting development for our exploration
efforts in the Maks Trough. NIS is an active player in Serbia and has a
growing presence in the region, including exploration in the same type of
targets addressed in this agreement, and brings to the table complementary
skills, knowledge and opportunities."
	    Dr. Gyvrgy Szabs, CEO of TXM, said "These signatures represent a major
latter-day milestone on the road of collaboration between the two neighboring
countries' petroleum industries, which goes back more than half century. 
Falcon-TXM is absolutely confident that the application of experiences gained
through its projects in South-Eastern Hungary, along with the adaptation of
proven North American technology and equipment, will be rewarded by success
not only in the boundaries of its own mining plot but in the field of
cooperation in Serbia as well."
	    General Manager of NIS, Kirill Kravchenko, said: "The intention of NIS to
join the project for exploration in Hungary is one more step for the company
to expand business outside of Serbia. Hungary is the fourth country in which
NIS has projects in field of research and production, in addition to Angola,
Bosnia and Romania. Realization of a joint project with TXM Oil and Gas Ltd
will allow us to participate in the development of the resources of the
exploration block Maks and will bring NIS closer to achieving our strategic
goals - increasing reserves up to 50 million tons, and production of oil and
gas to 5 million tons of oil equivalent in year 2020".
	    COO of NIS, Denis Sugaipov added: "For our company this project is first
of all the project of seeking for technology. Working closer with Falcon on
this hydrocarbon system we want to look at their ongoing unconventional
activities. Serbia has a huge potential of shale gas exploration and
cooperation with Falcon in Hungary will allow us to learn and prepare our
geologists and engineers for such us technology challenge. Working with
different international companies abroad we going to find the right high
technology experienced partner for further deep exploration in Serbia".
	    The forthcoming Participation Agreement and the Joint Operating Agreement
are subject to the approval of the Board of Directors of each of Falcon and
NIS, and the transaction as a whole is subject to receipt of all regulatory
consents, including the TSX Venture Exchange.
	    About Naftna Industrija Srbije, j.s.c. Novi Sad
	    Naftna Industrija Srbije a.d Novi Sad was established in 1991 as a public
company for exploration, production, refining and trade in crude oil,
petroleum products and natural gas.   Since 2005. In 2009, based on the
international agreement between Russia and Serbia, 51% of NIS shares were
acquired by the Russian company "Gazprom Neft", one of the largest and fastest
growing E&P companies in Russia.  Today, NIS is one of the largest, vertically
integrated oil and gas companies in Southeast Europe, dealing with
exploration, production and refining of crude oil and natural gas, as well as
with the sales of a broad range of petroleum products.
	    About Falcon Oil & Gas Ltd.
	    Falcon Oil & Gas Ltd. is an international oil and gas exploration and
production company, headquartered in Denver, Colorado, incorporated in British
Columbia, Canada, and trading on the TSX Venture Exchange under the symbol
"FO." The company specializes in the business of unconventional and
conventional oil and gas exploration and production and holds interests in
prospective properties in Australia, Hungary, and South Africa. The company is
focused on discovering, acquiring, and maturing a globally diversified
portfolio of drilling opportunities with a goal of maximizing shareholder
value through strategic relationships. 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.



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	    /For further information:
	    Additional information concerning Falcon Oil & Gas Ltd. is available
at www.falconoilandgas.com.  Investor inquiries may be directed
to investor@falconoilandgas.com. Investor inquiries may be directed
to hmitchell@falconoilandgas.com or to investor@falconoilandgas.com.