I am currently a target for extortion...what do I do?

I will keep this as short as possible. I recently posted an ad on Craigslist in the casual encounters section of the site. Someone replied to my post and we began conversing. Everything seemed to go fine. They then asked me if it would be okay if I texted them. I agree, gave them my #, and kept it moving. I received a text from them shortly after. When I received the text, we began talking about a meeting. They told me where they would like to meet and I gps'd the location. When I arrived, I waited around and they texted asking "Are you here?". I replied "Yes". They replied "How much is my secrecy worth to you?". The unthinkable then happened. They threatened to expose text messages, emails and the CL ad to everyone on my FB friends list, if I didn't pay them money or give them something valuable. To show that they really had my info, they mentioned my real last name. Today is supposedly the "deadline". What should I do? I'm not gonna pay but should I go to the cops now or threaten to?