Farallon announces $80 Million agreement with Silver Wheaton

Dick Whittington, President and CEO of Farallon Resources Ltd. announces that the company and its wholly owned subsidiaries have entered into an arrangement with a subsidiary company of Silver Wheaton Corp. (Silver Wheaton) to sell up to 75% of the silver produced from the Campo Morado polymetallic (zinc, gold, silver, copper, lead) project in Guerrero State, Mexico.

Under the agreement, Silver Wheaton will pay $80 million in cash to Farallon in the following stages: a $15 million payment upon signing, a $15 million payment upon the completion of certain formalities in Mexico (expected to take one week) and a $50 million payment in a series of pre-arranged installments over the next few months.

Upon delivery of the silver, Silver Wheaton will also pay Farallon a fixed price payment per ounce of silver produced equal to the lesser of $3.90 and the spot price at the time of sale (subject to a 1% annual adjustment starting in the third year of silver production).

A portion of the funds from Silver Wheaton will be used to retire the Company’s Bridge Facility, with the balance used for the completion of construction and startup working capital for the Company’s G-9 Project.

Mr. Whittington said we are very pleased to have completed this transaction with Silver Wheaton, which will greatly assist us in our plans to complete the G-9 Project.

Silver Wheaton is the largest public mining company with a 100% of its operating revenue from silver production and we are extremely pleased with the establishment of this new relationship, added Mr. Whittington.

This is an exciting time for the Company and its shareholders. We are now fully funded to production at G-9, which coupled with recent exploration successes, positions the Company to deliver on both of its corporate objectives: to advance G-9 to production and to find another G-9, continued Mr. Whittington.

Farallon is advancing the G-9 Project through a parallel track program. Exploration drilling is expected to further confirm the high-grade mineralization within the G-9 deposit, and mine planning and design, equipment acquisition and site preparation activities are all taking place concurrently, with the goal of beginning production in July 2008.