Why did they do this on Friday??

DENVER, June 5 /CNW/ - Falcon Oil & Gas Ltd. (TSXV: FO) announced today that, under the stock option plan approved at Falcon's annual and special shareholders meeting held on September 18, 2007, it has granted incentive stock options to purchase an aggregate of 12,610,000 common shares of Falcon to a number of recipients, including directors, officers, employees and consultants. The stock option grants are all subject to regulatory approval.

Terms of the options include an exercise price of $1.18 per share, a vesting schedule allowing for 20% of the options to vest immediately with an additional 20% vesting each subsequent year until the options are fully vested on June 5, 2012, respectively, and an expiry date of the options of June 5, 2013.

A maximum of 10% of the issued and outstanding shares of Falcon are reserved for the issuance of the Falcon's stock option plan.

About Falcon Oil & Gas Ltd.

Falcon Oil & Gas Ltd. is a British Columbia corporation which is in the business of oil and gas exploration and production. It has operations in Hungary through its wholly-owned subsidiary TXM Exploration and Production, LLC, and in Romania through its wholly-owned subsidiary JVX Energy Corporation. Further information about Falcon is available at www.falconoilandgas.com.

In the interests of providing Company shareholders and potential

investors with information regarding the Company, including the Company's

assessment of its and its subsidiaries' future plans and operations,

certain statements included in this press release may constitute forward-

looking information or forward-looking statements (collectively,

"forward-looking statements"). All statements contained herein that are

not clearly historical in nature are forward-looking, and the words

"anticipate", "believe", "expect", "estimate" and similar expressions are

generally intended to identify forward-looking statements. Similarly,

forward-looking statements in this press release include, but are not

limited to anticipated developments of the Company's drilling project in

Hungary and the timing thereof, the Company's drilling project in Romania

and the timing thereof, capital investment levels and the allocation

thereof, pipeline capacity, government royalty rates, reserve and

resources estimates, the level of expenditures for compliance with

environmental regulations, site restoration costs including abandonment

and reclamation costs, exploration plans, acquisition and disposition

plans including farmout plans, net cash flows, geographic expansion and

plans for seismic surveys. In addition, please note that statements

relating to "reserves" or "resources" are deemed to be forward-looking

statements, as they involve the implied assessment, based on certain

estimates and assumptions, that the reserves and resources described can

be profitably produced in the future. Such statements represent the

Company's internal projections, estimates or beliefs concerning, among

other things, an outlook on the estimated amounts and timing of capital

expenditures, anticipated future debt levels and incentive fees or

revenues or other expectations, beliefs, plans, objectives, assumptions,

intentions or statements about future events or performance. These

statements are only predictions. Actual events or results may differ

materially. Although the Company believes that the expectations reflected

in the forward-looking statements are reasonable, it cannot guarantee

future results, levels of activity, performance or achievement since such

expectations are inherently subject to significant business, economic,

competitive, political and social uncertainties and contingencies. Many

factors could cause the Company's actual results to differ materially

from those expressed or implied in any forward-looking statements made

by, or on behalf of, the Company and the foregoing list of important

factors is not exhaustive. These forward-looking statements made as of

the date hereof disclaim any intent or obligation to update publicly any

forward-looking statements, whether as a result of new information,

future events or results or otherwise. Company shareholders and potential

investors should carefully consider the information contained in the

Company's filings with Canadian securities administrators at

www.sedar.com before making investment decisions with regard to the

Company.

The TSX Venture Exchange does not accept responsibility for the adequacy

or accuracy of this release.