Falcon Natural Gas Corp. Addition to June 29th Press Statement

Business Wire, July 16, 2004

HOUSTON -- Falcon Natural Gas Corp. (OTCBB:FNGC) ("Falcon") announced today that its June 29th press release was issued without additional information about the author of the report Landmark Graphics Corporation, a wholly owned business unit of Halliburton (NYSE:HAL).

"Unfortunately Falcon's June 29th press release was issued without obtaining the consent of Halliburton and Landmark Graphics. We also wish to reinforce what was clearly stated in the press release, that the report generated by Landmark Graphics for Falcon was an interpretation based on the existing offset data for which Falcon takes full responsibility. Landmark was commissioned among other things to investigate the potential reserves that could be associated with the prospect and not to endorse or recommend an investment in Falcon, nor did it do so in its report," said Alan Aitchison, president and CEO of Falcon Natural Gas Corp. "We look forward to working with Landmark again in the future and hope that this has not caused any inconvenience."

About Falcon Natural Gas Corp.

Falcon is a Houston-based natural gas exploration company. The company is engaged in the acquisition and exploration of commercial prospects in the Gulf Coast region of Southern Texas. Falcon's President & CEO, Alan Aitchison, has in excess of 15 years of blue chip oil services and consulting experience with major firms such as Schlumberger (NYSE:SLB), BP-British Petroleum (NYSE:BP) and Petrobras (NYSE:PBR). He brings management know how and the vital technical expertise needed to explore the potential prospects that Falcon has acquired and bring them in production.

For more information visit www.falcongas.com.

Safe Harbor for Forward-Looking Statements: This release contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions and ventures discussed in this release. The Company needs to raise substantial additional financing in order to complete its exploratory drilling of the East Bob West Prospect. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the risks inherent in oil & gas exploration, the availability of needed personnel and equipment for future exploration and development, fluctuations in gas prices, and general economic conditions.