Announcement PDF Quarterly Activities Report June 2015 31st July 2015 COMPANY SNAPSHOT Highlights Board of Directors Alan Senior Non-Executive Chairman Doolgunna Cu-Au Projects – (Farm-In JV with Sandfire Resources NL) Gary Lethridge Managing Director  Program of diamond drilling commenced by Sandfire at Springfield Project including drilling at Monty and Homer Prospects. Brian Dawes Non-Executive Director  Karen Gadsby Non-Executive Director Significant high-grade VMS copper-gold discovery at Monty Prospect located approximately 10km east of the DeGrussa Copper Mine.  Results include: Contact Details Telephone: +61 8 9380 4230  Email: o TLDD0004A – intersection of 16.5m @18.9% Cu & 2.1g/t Au from 409.5m downhole o TLDD0005 – further intersection of 9.2m @ 11.8% Cu & 2.9g/t Au from 417m downhole and ~70m along strike from TLDD0004A o TLRC0004 – 18m of massive sulphides intercepted from 108m downhole, 200m along strike from TLDD0004A. (assays pending) Follow-up drilling continues with the aim of determining the extent of identified mineralisation at the Monty Prospect and to develop understanding of its economic and geological context. info@talismanmining.com.au Website: www.talismanmining.com.au Sinclair Nickel Project Capital Structure  Regional exploration targeting review has identified Delphi North & South as being prospective for Sinclair look-alike nickel occurrences.  Electromagnetic (EM) surveys and drilling programs at the Delphi Prospect set to commence in first-half of August 2015.  Regional exploration targeting review now focusing on the remainder of the tenements.  Geological modelling of the Sinclair deposit (incorporating both the deposit extension and remnant mine mineralisation) progressed.  Scenario planning of development options continued.  Transfer of tenement titles to Talisman completed in April 2015. Shares on Issue: 148,559,904 (TLM) Options on Issue: 6,250,000 (Unlisted) Capital Raising  Subsequent to the end-of-quarter, Talisman raised $8.0 million through a strongly supported share placement of 17 million shares at 47 cents. Doolgunna Copper-Gold Projects (Exploration Farm-in JV with Sandfire Resources) Talisman has a portfolio of high-quality VMS copper-gold exploration projects in the Bryah Basin region of Western Australia (see Appendix 1). Leading Australian copper producer Sandfire Resources NL (ASX: SFR) is funding active exploration at these projects as part of a joint venture exploration farm-in. Sandfire has the right to earn up to a 70% interest in Talisman’s Doolgunna Projects by spending $15 million on exploration over five-and-a-half years. Sandfire commenced a new program of reconnaissance diamond drilling at the Springfield Project during the quarter, targeting the Monty and Homer prospects. The key achievement during the quarter was the discovery of two significant zones of high-grade massive sulphide mineralisation at the Monty Prospect which is emerging as an important new VMS discovery within the Springfield Project. Monty Prospect Diamond drill hole TLDD0004A at the Monty Prospect intersected a significant zone of high-grade coppergold mineralisation approximately 10km east of the DeGrussa Copper Mine, with final assays returning an exceptional massive sulphide intercept of 16.5 metres grading 18.9% Cu and 2.1g/t Au from 409.5m to 426m down-hole (not true width & from 365m below surface vertical depth). Full details of the hole are provided in the Company’s ASX Announcement dated 25 June 2015. TLDD0004A was drilled as a follow-up hole to TLDD0002A, completed in May, and was designed to intersect an off-hole EM response detected in a down-hole electro-magnetic (DHEM) survey on TLDD0002A. The intersection in TLDD0004A represents a significant development for Sandfire and Talisman and the ongoing exploration efforts within the Springfield Project. While exploration of this emerging VMS prospect is still at an early stage, the width, exceptional grade and tenor of the copper-gold mineralisation intersected is considered to be very encouraging. This is also the first significant intersection of high-grade copper-gold mineralisation to be discovered by Sandfire or Talisman outside of the known lenses of VMS mineralisation at DeGrussa. Additionally, the massive sulphide mineralisation intersected in TLDD0004A (see Figure 1) is similar to that seen in the DeGrussa, Conductor 1, 4 and 5 VMS lenses and occurs within a host sequence that bears many similarities to that which hosts the massive sulphide mineralisation at DeGrussa. Figure 1: Drill Core photos of massive sulphide mineralisation from hole TLDD0004A A follow-up diamond hole TLDD0005, which was completed subsequent to the end of the June quarter, intersected the mineralised horizon approximately 70 metres south-west of TLDD0004A, returning an outstanding high-grade massive sulphide intercept of:  9.2 metres grading 11.8% Cu and 2.9 g/t Au from 417.0m to 426.2m down-hole (not true width & from 370m below surface, vertical depth) This intercept occurs within a broader mineralised zone of:  13.1 metres grading 8.4% Cu and 2.1 g/t Au from 416.7m to 429.8m down-hole Also subsequent to the end of the June quarter, Sandfire drilled RC drill-hole TLRC0004 as a pre-collar for planned diamond drilling and as a platform for down-hole EM surveying along strike from the massive sulphide intercepts in TLDD0004A and TLDD0005. TLRC0004 hole intersected 18 metres of massive sulphides from 108.0m to 126.0m down-hole. (Note all intercepts are stated as down-hole, true widths are not currently known). Based on field observations, the massive sulphides intersected in TLRC0004 also contain visible chalcopyrite. This new intersection (TLRC0004) is located approximately 135 metres along strike to the south-west from the massive sulphide mineralisation intersection reported in TLDD0005 and approximately 200 metres along strike from the high-grade intersection in TLDD0004A (see Figure 2). TLRC0004 was completed to a final depth of 306 metres and will provide an optimal platform for Sandfire to undertake down-hole EM (DHEM) surveys. It is important to note that, while the new intersections have increased the known footprint of mineralisation, the continuity with the mineralisation seen in holes TLDD0004A, TLDD0005 and TLRC0004 is not known. Further drilling will be undertaken by Sandfire to determine the geological setting. Step-out diamond hole TLDD0006, which was collared to intersect the interpreted strike extension of the previously intersected high-grade mineralisation 80m further to the south-west from hole TLDD0005, was also completed subsequent to the end of the June quarter to a final depth of 553.9 metres. The hole intersected a potentially significant fault zone and an extension of what is interpreted by Sandfire to be the sedimentary host horizon to the intercepts seen in TLDD0004A and TLDD0005. The fault zone was intersected between 407.2 metres and 445.6 metres down-hole with a thick sedimentary sequence of 80 metres observed from 422.5 metres to 502.2 metres down-hole. Sandfire have advised that this sedimentary sequence is similar to that observed on the margins of the massive sulphide mineralisation at DeGrussa. While no massive sulphides have been recorded in TLDD0006, the hole provides valuable geological and stratigraphic information to guide ongoing drilling to test the extent and orientation of the high-grade copper-gold mineralisation intersected in the previous three holes. (TLDD0004A, TLDD0005 and TLRC0004). The significance of this fault zone, including sense of movement and potential offsets, is not yet known. This includes the relationship of the fault zone to the mineralisation intersected in TLDD0004A and TLDD0005 and the shallower massive sulphide zone intersected in step-out hole TLRC0004. Additional drilling will be required to inform and enhance the growing understanding of the local geological context of the Monty Prospect. As at the date of this report assay results are awaited for TLRC0004. Figure 2 Plan view of recent Monty and Homer exploration diamond and RC drilling relative to the DeGrussa Copper Mine. Drilling is continuing and the next diamond drill-hole (TLDD0007) is targeted approximately 80m down-dip of the mineralisation seen in TLDD0004A. The hole is being drilled as a diamond tail, off an existing Reverse Circulation (RC) pre-collar that was drilled to a depth of 186m. Sandfire have advised Talisman that scout drill hole TLRC0005 was completed subsequent to the end of the June quarter without intersecting economic mineralisation and that the Reverse Circulation (RC) drill rig will continue both, scout drilling to define the location of the prospective horizon and drilling pre-collars for the diamond drill rig. Sandfire will continue to explore the area to determine the potential extents of the mineralisation and to develop further understanding of the broader geological context. A multi-faceted approach to the exploration in the area will include collating information from ongoing down-hole EM surveys, structural geological reviews, geochemical vectoring and stratigraphic analysis. Homer Prospect TLDD0001 was the first diamond hole drilled by Sandfire on the Springfield Project and was completed in August 2014 to a final depth of 1,099m. The hole was designed to target a modelled conductor at a vertical depth of 400m below surface which was interpreted to sit within the extension of the prospective DeGrussa stratigraphic horizon, approximately 5km to the east of DeGrussa. The conductor resulted from the analysis of high-powered FLEM and DHEM surveys in six drill holes previously drilled by Talisman. TLDD0001 intersected a 37m package of rocks from 931.10m to 967.97m which Sandfire have interpreted as being potentially analogous to the DeGrussa host horizon. The package consisted of siliciclastic rocks with variable haematite alteration, ranging from unaltered to pervasively altered. Sporadic jasper clasts were observed throughout the package. Within the most altered component of the package, a narrow zone of strong silicification, banded magnetite and fine sulphides was intersected from 957.08m to 957.50m. The VMS stratigraphic package (including trace disseminated Cu mineralisation) identified in TLDD0001 is interpreted to be indicative of a proximal VMS environment. During the June 2015 quarter, Sandfire drilled TLDD0003 at the Homer Prospect (see Figure 2 and Table 2) designed to test the eastern strike extension of the interpreted C5 host horizon roughly 450m ENE of the TLDD0001 intersection. The location of the drill collar coincided with a recently completed seismic line to facilitate stratigraphic interpretation. The drill-hole intersected haematitic exhalite with jasper clasts, which is interpreted by Sandfire to be the C5 target horizon. This horizon returned weakly anomalous base metal and trace elements. The hole confirms the continuation of the C5 host horizon and supports additional work by Sandfire in the area heading further east along strike. Drill-hole Information Summary The aggregate exploration metres drilled by Sandfire at the Springfield Project, as part of the Doolgunna Joint venture, along with hole information, and co-ordinates of drill holes are in Table 1 and Table 2 at the end of this announcement. Sinclair Nickel Project The Sinclair Nickel Project is located in the prolific Agnew-Wiluna Greenstone Belt in WA’s North-eastern Goldfields, one of the world’s premier nickel provinces with over 9 million tonnes of reported contained nickel metal. The Sinclair nickel deposit was discovered by the former highly successful nickel miner and explorer, Jubilee Mines NL, in October 2005. It was developed and commissioned in 2008 by Xstrata and operated successfully before being placed on care-and-maintenance in August 2013, having produced approximately 38,500 tonnes of nickel at an average life-of-mine head grade of 2.44% Ni. Transaction Update With the completion of the acquisition in February 2015 and payment of stamp duty in April 2015, the registration of all Sinclair Nickel Project tenement titles to Talisman Nickel Pty Ltd was completed during the June quarter. Sinclair Nickel Project – Regional Targeting During the quarter Talisman commenced a project-wide exploration targeting review that has already identified numerous high priority exploration target areas across the Sinclair Nickel Project. The compilation and critical assessment of existing and historic data across the project has highlighted the significant exploration potential of this largely under explored region to host significant nickel sulphide mineralisation with a number of high priority target areas emerging during the early stages of the regional targeting review. Delphi Prospect The Delphi Prospect area, located between 4 to 10 kilometres south of the Sinclair mine (see Figure 4), has delivered historic high grade nickel sulphide intersections in sparse historic drilling including:  0.44 metres at 5.43% Ni; and,  0.32 metres at 2.99% Ni. (See ASX announcement 16 February 2015 for further details) Figure 4 Long section looking west extending from Delphi prospect in the south to Cody Well in the North. Priority surface and down-hole geophysical EM anomalies shown. Reinterpretation of the geology extending south of Sinclair through the Delphi Prospect area has shown similarities in the ultramafic rock units to those seen at Sinclair. In addition, historic geophysical EM anomalies are now interpreted to lie in favourable stratigraphic positions and are interpreted by Talisman to be indicative of possible accumulations of nickel sulphide mineralisation. Talisman believes that similarities at Delphi to Sinclair are indicative of greater potential for massive sulphide deposits than previously interpreted. As such the Delphi prospect is considered to be the highest priority target and will be covered by a program of geophysical surveys which are scheduled to commence in the first half August 2015. It is anticipated that targeted exploration drilling will follow shortly thereafter, subject to assessment and review of the results. Cody Well A similar, detailed review of Cody Well, approximately 3km north of Sinclair (see Figure 5), has revealed three prospective targets, interpreted to lie in favourable stratigraphic positions coincident with geophysical EM targets and geochemical anomalies that have not previously been tested by drilling. The historic EM surveys at Cody Well were reprocessed, interpreted and verified by Newexco geophysical consultants during the quarter and Talisman will extend this process into the forthcoming quarter with other EM targets in the area as well as conducting an ongoing review of geological and geochemical datasets in order to develop future drill targets. Figure 5: Plan showing geological interpretation extending north of Sinclair to Cody Well, geophysical plates and geochemical anomalies shown. Fly Bore The Fly Bore Prospect is located approximately 15 kilometres north of Sinclair (see Appendix 2). Fly Bore represents a significant exploration opportunity with very sparse historic drilling over an area in excess of 10 strike kilometres of ultramafic stratigraphy (see Figure 6). A number of historic geochemical and geophysical anomalies are untested by drilling and have not been subject to any modern exploration activities. Figure 6. Fly Bore interpreted geology with historic EM and geochemical anomalism shown Talisman, in conjunction with Newexco geophysical consultants, will review, re-process and reinterpret the historic geophysical data in the forthcoming quarter with a view to confirming the validity of the historic surveying and possibly developing targeted modern geophysics programs with the aim of developing high priority drill targets. Sinclair Nickel Deposit – Geological Modelling & Studies The Sinclair deposit comprises an elongated body of massive and heavily disseminated sulphide mineralisation with a shallow plunge of around 20 degrees to the north (see Figure 7). The underground development and stoping extended to 445m below surface and provides a near-mine nickel sulphide exploration opportunity within the down-plunge extensions of the Sinclair ore body as well as the possibility for extraction of remnant mineralisation adjacent to the existing stopes. Talisman continued work on a geological model of the entire Sinclair deposit during the quarter. The intent of this work is to improve understanding of the deposit, provide target vectors for drill programs and to be a pre-cursor to any potential resource estimate for the Sinclair deposit. Scenario planning for the recommencement of the Sinclair Nickel Project continued during the quarter. This work focused on improving Talisman’s understanding of issues including:    the regulatory approvals process particular to the Sinclair Project; the dewatering and rehabilitation requirements for re-entering the existing underground mine; and understanding the practicalities of mining any potential remnant mineralisation. Figure 7: Sinclair Nickel deposit longitudinal projection with mine development showing mineralised Ni drill intercepts greater than 2% Ni beyond the limit of existing mine development as well as targets at Skye and Stirling Stirling and Skye Prospects – Near-Mine Exploration Potential The Stirling and Skye Prospects comprise two mineralised ultramafic channels parallel to, and beneath the main Sinclair orebody, proximal to the Sinclair underground mine development. Stirling and Skye show strong similarities to the Sinclair orebody, with massive nickel sulphides associated with at least two positions at the base of a complexly folded ultramafic sequence. Both prospects have returned significant nickel intersections at their near-surface positions, but are largely untested downplunge beneath Sinclair (see Figure 7). Talisman continued to integrate the new 3D geological and electromagnetic models during the June quarter, together with historical drill-hole data. The Company anticipates evaluating potential drill programs to test the highest priority EM drill targets in optimal geological positions along the Stirling and Skye mineralised channels during the forthcoming quarter. Care and Maintenance The annual Groundwater Monitoring Summaries for the Marshall Creek and Sinclair Ground Water Licences were submitted during the June quarter. Applications to transfer the titles of the Department of Environment Regulation (DER) Licence, Registration and Works Approval associated with Sinclair were lodged during the previous quarter and ongoing dialog with the DER to progress these applications was undertaken during the June quarter. Final approval by the DER is expected shortly. Murchison Exploration Projects Livingstone Project (TLM 80%) and Muddawerrie Gold Project (TLM 80%) Talisman completed the withdrawal from the Livingstone and Muddawerrie Joint Ventures and the surrender of the accompanying tenement areas following notification to its Joint venture party (Zebina Minerals Pty Ltd) of its intention to withdraw from the Joint Venture in the March 2015 quarter. Corporate At the end of the quarter Talisman had cash reserves of $4.7 million. On 10 July 2015, subsequent to the end of the June quarter Talisman announced that it had successfully raised a total of $8.0 million (before costs) through a share placement of approximately 17 million shares at 47 cents. The placement was exceptionally well supported by both existing and new shareholders despite extremely volatile and challenging global equity market conditions. On 17 July 2015 Talisman issued 17,021,277 Fully Paid Ordinary Shares to strategic, professional and sophisticated investors within its 15% placement capacity in accordance with ASX Listing Rule 7.1. The funds raised will provide support for any potential future requirements for Talisman to contribute to joint venture funding at the Doolgunna copper-gold joint venture with Sandfire Resources NL, including the recent high-grade Monty discovery, to progress the growth strategy at the Sinclair Nickel Project and for working capital purposes. ENDS For further information, please contact: Gary Lethridge – Managing Director on +61 8 9380 4230 For media inquiries, please contact: Nicholas Read – Read Corporate on +61 419 929 046 Competent Persons’ Statement Information in this report that relates to Exploration Results is based on information compiled by Mr Graham Leaver, who is a member of the Australian Institute of Geoscientists. Mr Leaver is a full-time employee of Talisman Mining Ltd and has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Leaver consents to the inclusion in this report of the matters based on information in the form and context in which it appears. Table 1: Aggregate exploration metres drilled by Sandfire at the Springfield Project as part of the Doolgunna Cu-Au Exploration Farm-in Joint venture Aggregate exploration metres drilled by Sandfire at the Springfield Project during the June quarter: Aircore/RAB Drilling RC Drilling Diamond Drilling Total 30,929 metres 60 metres 2,256 metres 33,245 metres Table 2: Drill-hole Information Summary, Springfield Project Details and co-ordinates of the historical drill-hole SPD021 and recent drill holes completed by Sandfire at the Springfield Project, TLDD0001, TLDD0002A, TLDD0003 and TLDD0004A, together with details of step-out drill-holes TLDD0005 and TLDD0006, the new diamond drill hole TLDD0007 and RC holes TLRC0004 and TLRC0005 are provided below: Hole ID Depth Dip Azimuth SPD021 553 -60° TLDD0001 1099 TLDD0002A East North RL Lease ID Hole Status 180° MGA94_50 743598 7171437 598 E52/2282 Complete -62° 357° MGA94_50 740146 7174149 589 E52/2313 Complete 463 -61° 110° MGA94_50 743544 7171211 602 E52/2282 Complete TLDD0003 658 -62° 355° MGA94_50 740596 7174550 589 E52/2313 Complete TLDD0004A 817 -60° 148° MGA94_50 743588 7171281 601 E52/2282 Complete TLDD0005 478 -62° 139° MGA94_50 743544 7171211 602 E52/2282 Complete TLDD0006 554 -62° 138° MGA94_50 743479 7171160 602 E52/2282 Complete TLRC0004 306 -62° 143° MGA94_50 743497 7171025 605 E52/2282 Complete TLRC0005 306 -62° 138° MGA94_50 743321 7170993 602 E52/2282 Complete Ongoing -62° 138° MGA94_50 743505 7171271 602 E52/2282 In Progress TLDD0007 Grid_ID Appendix 1 – Talisman’s Doolgunna Copper-Gold Projects subject to the $15M Exploration Farm-In Joint Venture with Sandfire Resources NL Appendix 2: Plan showing Talisman tenement holding at the Sinclair Nickel Project and selected prospect names Appendix 3 – Talisman Mining Tenement Schedule as at 30 June 2015 Project/Tenement Location and blocks (Area) Interest at Beginning Quarter Interest at End Quarter Acquired during Quarter Surrendered during Quarter LIVINGSTONE W.Australia E52/2565 15 80% 0% - 80% E52/2566 31 80% 0% - 80% E52/2593 P52/1423 E52/2931 24 (195 HA) 2 80% 100% 100% 0% 0% 0% - 80% 100% 100% MUDDAWERRIE W.Australia E51/1447 17 80% 0% - 80% HALLOWEEN WEST E52/2275 W.Australia 6 63% 63% - - HALLOWEEN W.Australia (200 HA) 100% 100% - - W.Australia 70 14 14 100% 100% 100% 100% 100% 100% - - W.Australia 6 13 5 3 (103.10 HA) (83.90 HA) (568 HA) (973 HA) (843 HA) (981.50 HA) (841.75 HA) (536.70 HA) (926.85 HA) (983.80 HA) (891 HA) (505 HA) (821 HA) (120.05 HA) (136 HA) (959 HA) 100% 100% 100% 0% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 0% 100% 100% 0%* 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% * - 100% - P52/1241 SPRINGFIELD E52/2282 E52/2313 E52/2466 SINCLAIR NICKEL PROJECT E37/538 E37/903 E37/1012 E37/1231* L36/198 L37/175 M36/444 M36/445 M36/446 M37/362 M37/383 M37/384 M37/385 M37/386 M37/424 M37/426 M37/427 M37/590 M37/692 M37/735 - Joint Venture Partner/FarmIn Party JV and Farm-in Sandfire Resources Ltd JV and Farm-in Sandfire Resources Ltd JV and Farm-in Sandfire Resources Ltd Appendix 3 – Talisman Mining Tenement Schedule as at 30 June 2015 (Continued) Project/Tenement SINCLAIR NICKEL PROJECT M37/816 M37/818 M37/819 M37/1063 M37/1089 M37/1090 M37/1126 M37/1127 M37/1136 M37/1137 M37/1148 M37/1168 M37/1223 M37/1275 P37/7228 P37/7233 Location and blocks (Area) Interest at Beginning Quarter Interest at End Quarter Acquired during Quarter Surrendered during Quarter W.Australia (818.40 HA) (806.50 HA) (380.18 HA) (604 HA) (574 HA) (478 HA) (603 HA) (603 HA) (986 HA) (850 HA) (44.78 HA) (190 HA) (675 HA) (1,961 HA) (61.57 HA) (116.01 HA) 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% - - -Intentionally Blank* EL37/1231 Exploration licence application lodged 16 June 2015 Joint Venture Partner/FarmIn Party . Appendix 4 – JORC Table 1 Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary Sampling techniques     Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down-hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.           Drilling techniques  Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, facesampling bit or other type, whether core is oriented and if so, by what method, etc). Sampling techniques employed at the Sinclair project include saw cut diamond drill core (DD) samples and reverse circulation (RC) rock chip samples. Diamond core is HQ and NQ2 size, and was sampled on geological intervals (0.2 m to 2 m), cut into half (NQ2) or quarter (HQ) core to give sample weights under 3 kg. RC drill samples were collected using a cone or riffle splitter for each metre drilled. Composite samples were taken on occasion via a second sampling chute and collected into calico bags. Sampling was guided by Xstrata Nickel Australasia (XNAO) and QAQC procedures as per industry standard. All drill samples were crushed, dried and pulverised (total prep) to produce a sub-sample for analysis by four acid digest with an ICP-MS or AAS finish. All drilling referenced in this report were drilled by XNAO between 2005 and 2012. Sampling techniques employed by Sandfire on the Doolgunna Project include half core sampling of NQ2 diamond drill (DD) core, Reverse Circulation (RC) drilling samples collected by a cone splitter for single metre samples or sampling spear for composite samples, and Air Core (AC) sample collected using spear techniques for both composite and single metre samples Sampling is guided by Sandfire DeGrussa protocols and QAQC procedures as per industry standard. RC and AC sample size reduction is completed through a Boyd crusher to -10mm and pulverised via LM5 to nominal 75µm. Pulp size checks are completed. Diamond core size reduction is through a Jaques jaw crusher to -10mm and all samples Boyd crushed to -4mm and pulverised via LM5 to nominal 90% passing -75µm using wet sieving technique. Samples are assayed using Mixed 4 Acid Digest (MAD) 0.3g charge and MAD Hotbox 0.15g charge methods with ICPOES or ICPMS. Fire Assay is completed by firing 40g portion of the sample with ICPMS finish.  Surface diamond drilling (DD) on the Sinclair project employed both HQ and NQ2 diameter holes using conventional wireline, wedging and directional drilling techniques as appropriate.  All drill core was routinely orientated where possible at nominal 6m intervals using an EzyMark core orientation system  Reverse Circulation (RC) drilling at Sinclair utilised face sampling configurations with a nominal hole diameter of 5 3/8”  Sandfire Air Core (AC) drilling is completed using industry standard practices with a blade bit, RC drilling with a face sampling hammer of nominal 140mm size and diamond drilling is completed using NQ2 size coring equipment.  All drill collars are surveyed using RTK GPS.  All core, where possible is oriented using a Reflex ACT II RD orientation tool.  Downhole surveying is undertaken using a gyroscopic survey instrument. Drill sample recovery    Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.    