Falkland Gold and Minerals

16 December 2005



In accordance with Rule 17 of the AIM Rules, the Company announces that it was
informed yesterday of acquisitions (the "Acquisitions") of 13,660,000 ordinary
shares in the capital of the Company by RAB Special Situations (Master) Fund
Limited ("RAB") at a price of 10 pence per ordinary share from two of the
Company's existing shareholders, South Atlantic Resources Limited and Falkland
Islands Mineral Development Limited, representing those shareholders' entire
shareholdings in the Company.



Following the Acquisitions and previous purchases of ordinary shares in the
capital of the Company since the Company's admission to AIM on 9 December 2004
("Admission") which were also announced to the Company yesterday, RAB's total
shareholding comprises 49,494,650 ordinary shares (amounting in aggregate to
62.04% of the entire issued share capital of the Company). The legal and
beneficial ownership of the 49,494,650 ordinary shares are set out in the table
below.