FALCON OIL & GAS LTD.

("Falcon" or the "Company" or the "Group")

Interim results for the nine months ended 30 September 2015

25 November 2015 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG, ESM: FAC) is pleased to announce its financial results for the three and nine months ended 30 September 2015.

The following should be read in conjunction with the complete Interim Financial Statements and the accompanying Management's Discussion and Analysis for the three and nine months period ended 30 September 2015 filed with the TSX Venture Exchange. These filings are available at www.sedar.com and on Falcon's website at www.falconoilandgas.com.

Highlights: Operational

• Commencement of the Australian nine well exploration and appraisal programme, planned from 2015 to 2018, with the drilling of Kalala S-1, Amungee NW-1 and Amungee NW-1H with our partners Origin Resources Limited ("Origin") (35%) and Sasol Petroleum Australia Limited ("Sasol") (35%).

• Acceleration of Australian drilling programme with first horizontal well (Amungee NW-1H) brought forward to 2015.

• Encouraging preliminary results from the drilling of the first three Australian wells indicating favourable shale properties with excellent gas shows indicating the likelihood of high levels of gas saturations.

• Processing of Falcon's exploration license application in South Africa's Karoo Basin continues to progress and the South African Department of Mineral Resources ("DMR") is expected to issue licences in 2016.

  
  

  Financial

  
  

• Strong financial position, debt free with cash of US$9.8 million.

• Continued focus on strict cost management and efficient operation of the portfolio.

• G&A expenses decreased 41% period on period in the nine months ended 30 September 2015 to US$1.8 million (2014: US$3.1 million).

Philip O'Quigley, CEO of Falcon Oil & Gas commented:

"During the period we have announced some very encouraging results from the drilling of our first three wells in the Beetaloo basin. Excellent gas shows have been encountered which demonstrate a high level of gas saturation and is a strong indication of the potential prospectively of our Beetaloo acreage.

Falcon is uniquely placed in this challenging oil price environment with its strong cash position, fully funded drilling programme and high quality assets. The technical evaluation of the results to date remains ongoing and we look forward to announcing these results and our 2016 drilling and exploration programme in due course."

Australia - Encouraging preliminary results from the drilling of the first three exploration wells

On 15 July 2015, Falcon announced the spudding of the Kalala S-1 well in the Beetaloo Basin, Australia. Kalala S-1 is the first of Falcon's fully funded and uncapped, 2015 three well drilling and evaluation programme in the Beetaloo Basin.

On 1 September 2015 it was announced that drilling operations had successfully concluded on the Kalala S-1 well. Results encountered were very encouraging, with the well drilled to a total depth ("TD") of 2,619 metres.

On 8 September 2015 the spudding of the second well, Amungee NW-1 well in the Beetaloo Basin, Australia was announced. The well is located approximately 25 kilometres east of the Kalala S-1 well. On 22 October 2015, it was announced that drilling operations successfully concluded on the Amungee NW- 1 well. Results encountered were also very encouraging, with the well drilled to a TD of 2,611 metres.

Following the encouraging results of the first two wells, it was decided to bring forward the drilling of the first horizontal well in the Beetaloo Basin, originally planned for the end of 2016. On 18 November 2015, Falcon announced that that drilling operations had successfully concluded on the Amungee NW-1H horizontal well. The well was drilled to a total measured depth of 3,808 metres, including 1,100 metres horizontal section in the "B Shale" interval of the Middle Velkerri Formation, 100 metres more than originally planned. Results obtained to date are very encouraging.

The joint ventures' attention will now focus on an in-depth shale evaluation program and petrophysical analysis of all the technical data gathered on the three wells drilled to date. Rig 185, which was used in drilling Kalala S-1, Amungee NW-1 and Amungee NW-1H will be "warm stacked" on location in the Beetaloo basin allowing for an early commencement of the 2016 drilling program. The cost of stacking Rig 185 will be borne by Origin and Sasol with no financial impact on Falcon.

South Africa - processing of the exploration licence by the Petroleum Agency of South Africa ("PASA") continues to progress

The PASA continues to progress the Company's application for a shale gas exploration licence in South Africa's Karoo Basin. The Company expects that the DMR will issue Falcon with a licence to explore for shale gas in 2016.

Background

Falcon was granted a Technical Cooperation Permit in 2009 covering 7.5 million (30,327 km2) acres in

the southern part of the Karoo Basin. The Company has a cooperation agreement (as announced on 12 December 2012) with Chevron Business Development South Africa Limited ("Chevron"), which enables the Group to work with Chevron for a period of five years in jointly obtaining exploration licences.

Hungary - review of operations

Falcon continues to review its operation and future plans in Hungary, evaluating all options available to the Group to deliver shareholder value. The Group maintains its 100% interest in the Máko Trough.

Financial review

Falcon's cash and cash deposits balance as at 30 September 2015 was US$9.8 million (31 June 2015: US$10.5 million).

Falcon incurred a loss of US$2.0 million during the nine months ended 30 September 2015, decreasing from a loss of US$3.97 million during the nine months ended 30 September 2014. General and Administrative expenses decreased 41% in the nine months ended 30 September 2015 to US$1.8 million (2014: US$3.1 million). The decrease reflects a continued focus on strict cost management and efficient operation of the portfolio.

Annual General & Special Meeting

As previously announced, Falcon's Annual General and Special Shareholder Meeting will be held at The Conrad Hotel, Earlsfort Terrace, Dublin 2, Ireland on 9 December 2015 at 11:00 a.m. (Dublin time).

A complete notice and related documents have been sent to the shareholders of record as at 30 October 2015. These documents have been filed on the Canadian System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com and Falcon's website at www.falconoilandgas.com.

Falcon Oil & Gas Ltd.

Interim Condensed Consolidated Statement of Operations and Comprehensive Loss

(Unaudited)