Farallon Resources holds a 100% interest in the Campo Morado precious-metals-rich massive sulphide project in Guerrero State, Mexico. The property is located 160 km southwest of Mexico City. Campo Morado comprises one of the largest polymetallic mineral systems in Mexico.

Farallon acquired the Campo Morado Project in 1995, and since work was initiated later that year, has invested $34.2 million in acquisition, exploration, engineering and support activities. This large commitment resulted in the discovery of six previously unknown deposits and mineralized zones.

Preliminary mineral resources have been estimated for four deposits -- Reforma, Naranjo, El Rey and El Largo. At a $90/tonne cut-off grade, the inferred mineral resource is 9.2 million tonnes, grading 4.08% zinc, 0.79% copper, 1.29% lead, 3.34 g/t gold and 176 g/t silver.

Reforma and Naranjo have been, largely, delineated but the limits of the El Rey and El Largo deposits have not been defined. Other promising mineralized zones, such as Estrella de Oro, G-9 and El Profundo also await drill delineation.

A substantial financing in early 2004 set the stage for project planning, designed to advance the project toward production in 2009. A comprehensive, multi-phased program has begun, involving multi-rig drilling to further outline the Campo Morado deposits and increase the project resources. In parallel, metallurgical, engineering and other studies have been initiated to determine the optimum methods of developing the deposits. It is anticipated that a series of underground, polymetallic mines will be developed at Campo Morado.

Farallon's corporate structure has also been enhanced to facilitate the Company's longer term plans to expand its operations in Mexico, once the Campo Morado project has been taken to production. Dick Whittington, a mining engineer with extensive project development, finance and marketing experience, was appointed Chief Operating Officer in 2004. He is responsible for guiding the Campo Morado project through the exploration and development phases. Farallon has also engaged Jorge Villasenor, a mining and metallurgical engineer with over 30 years' experience with mining operations in Mexico, as General Manager, Farallon Mexicana. Based in Farallon's corporate office in Mexico City, Mr Villasenor's will focus on management of the technical facets of mine development as well as communicating with government and other stakeholders on the technical, environmental and socio-economic aspects of Campo Morado and subsequent projects in Mexico.

Website: http://www.farallonresources.com/