I've been so busy in the last few days with Christmas related activities that I didn't even check my emails. Found this in my mail tonight.

Good Afternoon,

I have received several calls from Falcon Oil & Gas shareholders regarding today’s trading. Below, you will find a summary made by CEO Rob Macaulay this morning.

** There is no company related news that would explain this trading. We can only speculate that the selling orders are year end and tax related. Based on our research, the selling is in small amounts.

** The seismic work with Hess on our Australian property (Beetaloo Basin) continues as planned. We have our next meeting with Hess in February but even then it may be premature to get a report.

**We continue to work on finalizing the NIS deal in Hungary. We remain extremely excited about both the shallow and the deep potential for natural gas in Hungary.

**No share issuance is planned at this time. We continue to look for joint ventures to maximize the value of the company and to the best interest of shareholders.

Wishing you a Happy Holiday season and a prosperous New Year,

Helen M. Mitchell

Manager of Corporate Communications

Falcon Oil & Gas Ltd.

hmitchell@falconoilandgas.com

Dated: Mon, 19 Dec 2011 14:13:59