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Management Discussion & Analysis - Falcon Oil & Gas, Ltd.

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No other new accounting policies were adopted by the Company during the three months ended March31, 2009, and the Company is not expected to adopt any new accounting policies during the remainder of2009.Business Risks and UncertaintiesThe business risks and uncertainties affecting the Company have not changed from those described in theMD&A for the year ended December 31, 2008.<strong>Management</strong>’s Responsibility for MD&AThe information provided in this MD&A, is the responsibility of management. In the preparation of thisMD&A, estimates are sometimes necessary to make a determination of future values for certain assets orliabilities. <strong>Management</strong> believes such estimates have been based on careful judgments and have beenproperly reflected in this MD&A.The audit committee has reviewed the MD&A with management, and has approved the MD&A aspresented.14

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