Operational Update

Falkland Gold and Minerals Ltd
07 February 2005


                                                                 7 February 2005

                       FALKLAND GOLD AND MINERALS LIMITED

                               Operational update

Falkland Gold and Minerals Limited ("FGML" or "the Company"), the exploration
company with exclusive rights to explore for gold and minerals in the Falkland
Islands, is pleased to provide the following update on its activities since the
admission of its shares to trading on AIM on 9 December 2004.

The on-site Project Manager has now successfully established the operational and
administrative infrastructure necessary to support the Company's exploration
activities.  This has included the formation of a Support Drill Team in
preparation for the commencement of the exploration activities.

The first LF70 surface drill has now arrived in the Falklands Islands and is
being prepared by the Senior Driller for commissioning and commencement of
drilling operations.  The Company is on schedule to start drilling the first
hole on or around 25 February.

The Sample Preparation Laboratory has also arrived and commissioning of the
laboratory at the Company's Goose Green Facility is on track for early March,
expected to coincide with the first deliveries of core sample from the site.

Enquiries

Grandfield                                               020 7417 4170
Marc Popiolek / Samantha Robbins

W.H. Ireland Limited                                     020 7397 3000
Philip Haydn-Slater



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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