Falcon Oil & Gas Ltd.

Earnings Release • Aug 23, 2018

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FALCON OIL & GAS LTD.

("Falcon")

Filing of Interim Financial Statements

23 August 2018 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG, ESM: FAC) announces that it has filed its Interim Financial Statements for the three and six months ended 30 June 2018 and the accompanying Management's Discussion and Analysis ("MD&A").

The following should be read in conjunction with the complete unaudited unreviewed Interim Financial Statements and the accompanying MD&A for the three and six months ended 30 June 2018, which are available on the Canadian System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com and on Falcon's website at www.falconoilandgas.com.

2018 Operational Highlights

• Strong financial position, debt free with cash of US$7.7 million at 30 June 2018 (31 December 2017: US$9 million).

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

CONTACT DETAILS:

Falcon Oil & Gas Ltd.	+353 1 676 8702
Philip O'Quigley, CEO	+353 87 814 7042
Anne Flynn, CFO	+353 1 676 9162
Davy (NOMAD & Joint Broker)
John Frain / Barry Murphy	+353 1 679 6363
RBC (Joint Broker)
Matthew Coakes / Martin Copeland	+44 20 7653 4000

Interim Condensed Consolidated Statement of Operations and Comprehensive Loss

(Unaudited)

		Three months ended 30 June 2018 $'000	Three months ended 30 June 2017 $'000	Six months ended 30 June 2018 $'000	Six months ended 30 June 2017 $'000
Revenue
Oil and natural gas revenue		2	2	3	5
		2	2	3	5
Expenses
Exploration and evaluation expenses		(38)	(58)	(79)	(125)
Production and operating expenses		(5)	(3)	(9)	(6)
Depreciation		(1)	(1)	(1)	(2)
General and administrative expenses		(497)	(484)	(1,001)	(961)
Share based compensation		(22)	(130)	(81)	(413)
Foreign exchange (loss) / gain		(134)	142	72	146
		(697)	(534)	(1,243)	(1,361)
Results from operating activities		(695)	(532)	(1,240)	(1,356)
Fair value gain / (loss) - outstanding warrant		283	266	227	(1,854)
Finance expense
Interest income on bank deposits		25	11	31	45
Accretion of decommission provisions		(55)	(48)	(110)	(96)
Net foreign exchange (loss) / gain		(52)	37	(57)	40
		(82)	-	(136)	(11)
Loss and comprehensive loss for the period		(494)	(266)	(1,149)	(3,221)
Loss and comprehensive loss attributable to:
Equity holders of the company		(494)	(266)	(1,148)	(3,220)
Non-controlling interests		-	-	(1)	(1)
Loss and comprehensive loss for the period		(494)	(266)	(1,149)	(3,221)
Loss per share attributable to equity holders of the company:
Basic and diluted		(0.001 cent)	(0.000 cent)	(0.001 cent)	(0.003 cent)

Consolidated Statement of Financial Position

(Unaudited)

		At 30 June 2018 $'000	At 31 December 2017 $'000
Assets
Non-current assets
Exploration and evaluation assets		39,656	39,630
Property, plant and equipment		2	3
Trade and other receivables		22	33
Restricted cash		2,330	2,412
		42,010	42,078
Current assets
Cash and cash on deposit		7,722	8,995
Trade and other receivables		206	186
		7,928	9,181
Total assets		49,938	51,259
Equity and liabilities
Equity attributable to owners of the parent
Share capital		383,627	383,570
Contributed surplus		45,018	44,937
Retained deficit		(391,371)	(390,223)
		37,274	38,284
Non-controlling interests		700	701
Total equity		37,974	38,985
Liabilities
Non-current liabilities
Decommissioning provision		9,995	9,886
		9,995	9,886
Current liabilities
Accounts payable and accrued expenses		633	825
Derivative financial liabilities		1,336	1,563
		1,969	2,388
Total liabilities		11,964	12,274
Total equity and liabilities		49,938	51,259

Interim Condensed Consolidated Statement of Cash Flows

(Unaudited)

		Six months ended 30 June
		2018 $'000	2017 $'000
Cash flows from operating activities
Net loss for the period		(1,149)	(3,221)
Adjustments for:
Share based compensation		81	413
Depreciation		1	2
Fair value (gain) / loss - outstanding warrant		(227)	1,854
Net finance expense		136	11
Effect of exchange rates on operating activities		73	(149)
Change in non-cash working capital:
Trade and other receivables		(9)	(60)
Accounts payable and accrued expenses		(196)	83
Net cash used in operating activities		(1,290)	(1,067)
Cash flows from investing activities
Decrease / (increase) in cash deposits - other receivables		3,528	(3,007)
Interest Received		31	45
Exploration and evaluation assets		(26)	(12)
Net cash generated from / (used in) investing activities		3,533	(2,974)
Cash flows from financing activities
Proceeds from the exercise of share options		57	539
Net cash generated from financing activities		57	539
Change in cash and cash equivalents		2,300	(3,502)
Effect of exchange rates on cash & cash equivalents		(45)	43
Cash and cash equivalents at beginning of period		2,967	5,857
Cash and cash equivalents at end of period		5,222	2,398

Cash and cash on deposit

Cash and cash equivalents includes cash on hand, deposits held on call with banks, other short term highly liquid investments with initial maturities of three months or less at inception and bank overdrafts where a legal right of offset exists. Cash on deposit represents cash on deposit with a maturity in excess of three months.

	30 June 2018	31 December 2017
	$'000	$'000
Cash and cash equivalents	5,222	2,967
Cash on deposit	2,500	6,028
	7,722	8,995

All dollar amounts in this document are in United States dollars "$", except as otherwise indicated.

About Falcon Oil & Gas Ltd.

Falcon Oil & Gas Ltd is an international oil & gas company engaged in the acquisition, exploration and development of conventional and unconventional oil and gas assets, with the current portfolio focused in Australia, South Africa and Hungary. Falcon Oil & Gas Ltd is incorporated in British Columbia, Canada and headquartered in Dublin, Ireland with a technical team based in Budapest, Hungary.

For further information on Falcon Oil & Gas Ltd. please visit www.falconoilandgas.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Falcon assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Falcon. Additional information identifying risks and uncertainties is contained in Falcon's filings with the Canadian securities regulators, which filings are available at www.sedar.com.

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*This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Falcon Oil & Gas Ltd. via Globenewswire*