It is a pencil drawing. Diego Fazio sure fooled me (and you too I bet).
Diego Fazio is a 22 year old self-taught artist living in Italy. He began his career designing tattoos and perfected his photorealism technique over a period of several years.
In his home country, he won an award in 2011 for Best New Artist and has been gaining fame and accolades every since. With art like this, it's easy to see why.
Thanks to Google for translating Diego's Deviant Art biography.
Photos Of The Drawing As A Work In Progress