August 19, 2010, Vancouver, BC  Farallon Mining Ltd. (�Farallon� or the �Company�) (TSX:FAN) announces that it has extended its zinc and copper concentrates contracts for 2 � years with Trafigura Beheer BV Amsterdam, up to December 2014. More favourable terms have been agreed in both contracts reflecting the current market situation and adjusted to Farallon's quality.

For zinc, a fixed treatment charge has been negotiated for tonnage shipped between July 1st, 2010 and March 30th, 2011. From April 1st 2011 to September 30th 2012, a discount over the benchmark treatment charges will be applied to 50% of zinc concentrates production and starting 1st October 2012, a discount over the benchmark treatment charges will apply to 100% of Farallon production of zinc concentrates. In the case of copper concentrates fixed treatment and refining charges apply; however, from August 2011 benchmark treatment and refining charges will be applied.

For more than 2 years, since Farallon started production at the G-9 mine, the Company's concentrates have been shipped to smelters in Korea, China, Japan and Canada. Both Farallon zinc and copper concentrates are �clean� concentrates with unusually low levels of impurities. At the same time, both concentrates are high in precious metals. As a result, all smelters are fully satisfied with Farallon's quality, confirming the positioning of the Farallon brand in the international market�

To view this news release in its entirety, please click on the link below or copy and paste it into your web browser.

http://www.farallonmining.com/fan/NewsReleases.asp?ReportID=415087

For further details on Farallon, please visit the Company's website at www.farallonmining.com or contact Neil MacRae, Investor Relations Manager, at (604) 638-2160 or within North America at 1-877-688-2050.

Best Regards,
Investor Services

Hunter Dickinson
Toll Free 1-800-667-2114 | Main 1-604-684-6365
info@hdgold.com | www.hdgold.com

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