Having 250`000 shares until the departure of XMO from HungaryMOL ,I have been doing my DD on Falcon et al in regards to Beetaloo to determine my re-entry point ,if any, in the Australian site.

Reading the recent posts about various positions/inquires on Falcons cash situation and suspect management of shareholders monies,and MAB and company`s past performances, I felt step "one" would be to read the prospectus offered for Falcon Aust. ISO.

The one line that jumped out at me was "Beetaloo 100% owned by Falcon Australia". Not owning any of this company I sent an e-mail inquiry to Martin Place Securities which is handling the New Co. FO aust. IPO. for clarification of arms length status and propriety of this as regards the two Falcons,and what portion if any V.FO has in this venture.

Below is MPS`s e-mail response. Iwill post any further info I can glean in regards V.FO

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Bxxxxx

Thanks for our email.

Falcon Oil and Gas Ltd (Fo.v) has vended its 75% interest in the Beetaloo Basin project to Falcon Australia for 150 m Falcon Australia shares.

Petrohunter ( PHUN) has vended its 25% interest in the Beetaloo Basin project to Falcon Australia for 50m shares.

So Falcon Australia holds 100% of the Beetaloo Basin project and Falcon Oil and Gas owns 75% of Falcon Australia prior to any dilution by capital injection.

All is straight forward and above board.

MPS is assisting in raising funds for Falcon Australia prior to an IPO later in 2010.

I hope this helps.