Notes6,

This portion of the document seem to indicate that Falcon will acquire the 25% working interest in exchange for the $5 million loan Falcon landed to Petrohunter.

On April 27, 2009, the Company issued a press release announcing that it had entered into the LOI with PetroHunter stipulating that Falcon Australia will acquire (the “Acquisition”) an additional 25% working interest in the Beetaloo Basin Project, bringing Falcon Australia’s total working interest in the Beetaloo Basin Project to 75%. The principal consideration proposed to be paid in the Acquisition is the Company’s acceptance of such working interest as full and complete payment of the US$5 million loan to PetroHunter. The LOI also stipulates that, on closing of the Acquisition, Falcon Australia will become operator of the Beetaloo Basin Project and that PetroHunter and certain of its affiliates will enter into an escrow agreement governing the release of all remaining Common Shares previously issued to PetroHunter. Closing of the Acquisition is subject to the execution of definitive agreements, the fulfillment of certain closing conditions, and receipt of required regulatory approvals. Subject to the satisfaction of

these conditions, the Company anticipates the Acquisition will close in June 2009.