Announcement PDF TALISMAN MINING LTD A.B.N. 71 079 536 495 Securities Trading Policy 1 Applicability In this policy a reference to the Company is a reference to Talisman Mining Limited ABN 71 079 536 495. A reference to the Group is a reference to the Company and its child entities. This policy applies to Restricted Persons (you). A Restricted Person is: (a) a person having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, including any director (whether executive or otherwise) of the Company (Key Management Personnel); (b) an employee of the Group (Employee); (c) a Connected Person of a person referred to in paragraph (a) or (b). A Connected Person means your spouse or partner, child or step-child under 18 years, a parent, an unlisted body corporate which you are a director of, a trust of which you are a trustee and of which you or any of the persons referred to above is a beneficiary or any other person over whom you have significant influence or control. You must take all reasonable steps to procure that your Connected Persons comply with this policy. All Restricted Persons will be given access to this policy via the Company's website. Training or awareness sessions on this policy will be held from time to time, as required. 2 Purpose The purpose of this policy is to: (a) assist you to comply with your obligations under the insider trading provisions of the Corporations Act (2001) (Cth) (Corporations Act); (b) protect the Company's reputation; (c) establish a procedure for trading in the Company’s securities; (d) comply with the requirements of the Listing Rules of the Australian Securities Exchange (ASX). If you do not understand any part of this policy, you should contact the Company Secretary. It is your responsibility to make sure that none of your trading breaches the law or this policy. 3 Securities and trading This policy applies to Securities. Securities are securities issued by the Company and include shares, share acquisition rights, options, debentures (including bonds and notes) and derivatives of any of the aforementioned. To “trade” in Securities means, whether as principal or agent, to apply for, acquire, or dispose of Securities, or to enter into an agreement to apply, for, acquire, or dispose of Securities or procure another person to do so. Talisman Mining Limited Securities Trading Policy 1 4 Insider trading is prohibited at all times A summary of the insider trading prohibition is set out in the Appendix to this policy. Engaging in insider trading can subject you to civil and/or criminal liability. If you have Inside Information (as defined in the Appendix to this policy) you must not trade in Securities. Insider trading is prohibited at all times. The insider trading provisions in the Corporations Act also apply to the securities of other companies and entities if you have inside information about that company or entity. These other companies and entities may include suppliers or customers of the Company or companies that the Company has entered (or is planning to enter) into a transaction with, for example a takeover or asset sale. 5 Blackout period You must not trade in Securities during the periods between the end of each of the March, June, September and December quarters and 24 hours immediately following the release to ASX of the Company's quarterly report for those financial quarters (Blackout Periods), unless the circumstances are exceptional and the procedure for prior written clearance described in section 7 has been met. In addition to the Blackout Periods, the Board may from time to time declare additional periods during which you are prohibited from trading in Securities (for example because the Company is considering matters that would require disclosure to the market but for Listing Rule 3.1A) (Additional Period), unless the circumstances are exceptional and the procedure for prior written clearance described in section 7 has been met. This prohibition is in addition to the Blackout Periods. The Blackout Periods and the Additional Period are together referred to as a Prohibited Period in this policy. You must not disclose to anyone that an Additional Period is in effect. The Company may at its discretion vary this rule in relation to a particular Prohibited Period by general announcement to all Key Management Personnel either before or during the Prohibited Periods. However, if a Key Management Personnel is in possession of price sensitive information which is not generally available to the market, then he or she must not deal in the Company’s securities at any time it is in possession of such information. Please note that even if it is outside a Prohibited Period, you must not trade in Securities if you are in possession of Inside Information. 6 Exceptional circumstances If you are not in possession of Inside Information, you may request prior written clearance to trade in Securities during a Prohibited Period in accordance with the procedure set out in section 7 in the following exceptional circumstances: (a) where you are in severe financial hardship; or (b) where there are other circumstances deemed to be exceptional by the person granting the prior written clearance. The determination of whether you are in severe financial hardship or whether there are other exceptional circumstances can only be made by the relevant Approving Officer in accordance with the procedure for obtaining clearance set out in section 7. You may be in severe financial hardship if you have a pressing financial commitment that cannot be satisfied otherwise than by selling the relevant Securities.1 A circumstance may be considered exceptional if you are required by a court order or a court enforceable undertaking to transfer or sell, or accept a transfer of, Securities or 1 A tax liability would not normally constitute severe financial hardship unless you have no other means of satisfying the liability. Talisman Mining Limited Securities Trading Policy 2 there is some other overriding legal or regulatory requirement for you to do so. Ultimately, it is a decision to be made by the relevant Approving Officer, in their sole and absolute discretion. 7 Prior written clearance You must not trade in Securities at any time (including in the exceptional circumstances referred to in section 6) unless you first obtain prior written clearance from: Your role Approving Officer Approving Officer alternate Person other than a director or officer of the Company Chief Executive Officer Company Secretary Director or officer (other than the Chief Executive Officer or the Chair) Chair Chief Executive Officer Chair or Chief Executive Officer Chair of the Audit Committee Board A request for prior written clearance to trade must be made in writing using the specified form and given to the relevant Approving Officer (or Approving Officer alternate). The request may be submitted in person or by mail or email. Any written clearance may be given in person or by mail or email and will be valid for the period determined by the Approving Officer, which period will usually be 5 business days from the date that the clearance is given. The Company Secretary will maintain a register of clearances given in accordance with this section 7, and must report all clearances given to the Board at its next following meeting. 8 Trading not subject to this policy The following trading is excluded from the restrictions outlined in section 5: (a) acquisition of Company securities under a bonus issue made to all holders of securities of the same class; (b) acquisition of ordinary shares in the Company by conversion of securities giving a right of conversion to ordinary shares; (c) transfers of Securities between a Restricted Person and their spouse, civil partner, child, step-child, family company, family trust or other close family member or of Securities already held in a superannuation fund or other saving scheme in which the Restricted Person is a beneficiary; (d) acceptance of a takeover offer or participation in a scheme of arrangement; (e) trading under an offer or invitation made to all or most of the security holders such as, a rights issue, a security purchase plan, a dividend or distribution reinvestment plan and an equal access buy-back, where the plan that determines the timing and structure of the offer has been approved by the Board. This includes decisions relating to whether or not to take up the entitlements and the sale of entitlements required to provide for the take up of the balance of entitlements under a renounceable pro rata issue; (f) the exercise or automatic conversion of options or other convertible rights issued under an employee incentive scheme (but not the disposal of the underlying share following exercise or conversion); (g) an acquisition, or agreement to acquire, or grants, allocations or vesting of shares, rights or awards under an employee incentive scheme (but not the disposal of the underlying share following exercise or conversion); (h) a disposal of Securities that is the result of a secured lender exercising their rights, for example, under a margin lending arrangement; Talisman Mining Limited Securities Trading Policy 3 (i) where a Restricted Person is a trustee, trading in the Securities by that trust provided that the Restricted Person is not a beneficiary of the trust and any decision to trade during a Prohibited Period is taken by the other trustees or by the investment managers independently of the Restricted Person; or (j) trading under a non-discretionary trading plan for which prior written clearance has been provided in accordance with procedures set out in this Policy and where: (a) the Restricted Person did not enter into the plan or amend the plan during a Prohibited Period; and (b) the trading plan does not permit the Restricted Person to exercise any influence or discretion over how, when, or whether to trade. 9 Restricted transactions 9.1 Hedging transactions Before entering into any transactions or arrangements which operate to limit the economic risk of your security holding in the Company you must first obtain prior written clearance from the appropriate Approving Officer in accordance with the procedure set out in section 7. You are prohibited from entering into transactions or arrangements which limit the economic risk of participating in unvested entitlements under any equity based remuneration schemes. 9.2 Margin loans You must not enter into margin loan agreements or other secured lending arrangements in relation to Securities without first obtaining prior written clearance from the appropriate Approving Officer in accordance with the procedure set out in section 7. 9.3 Non-discretionary trading plans You must not put in place a non-discretionary trading plan in respect of Securities without first obtaining prior written clearance from the appropriate Approving Officer in accordance with the procedure set out in section 7. You must not cancel any such trading plan during a Prohibited Period, unless the circumstances are exceptional and the procedure for prior written clearance set out in section 7 has been met. 10 Consequences of breach Breach of the insider trading prohibition could expose you to criminal and civil liability. Breach of this policy (irrespective of whether the insider trading prohibition or any other law is breached) will also be regarded by the Company as serious misconduct which may lead to disciplinary action and/or dismissal. This policy does not contain an exhaustive analysis of the restrictions imposed on, and the very serious legal ramifications of, insider trading. Restricted Persons who wish to obtain further information are encouraged to contact the Company Secretary. 11 ASX notification The Company will give a copy of this policy to ASX for release to the market. The Company will also give any amended version of this policy to ASX when it makes a change to: the periods within which Restricted Persons are prohibited from trading in Securities; the trading that is excluded from the operation of the policy; or the exceptional circumstances in which Restricted Persons may be permitted to trade during a Prohibited Period within five business days of the amendments taking effect. The Company will also give this policy to ASX immediately on request by ASX. Talisman Mining Limited Securities Trading Policy 4 Appendix – Insider trading prohibition 1.1 What is Inside Information? Inside Information is information that: (a) is not generally available; and (b) if it were generally available, a reasonable person would expect it to have a material effect on the price or value of the securities. A reasonable person would be taken to expect information to have a material effect on the price or value of securities if (and only if) the information would, or would be likely to, influence persons who commonly acquire securities in deciding whether or not to acquire or dispose of those securities. In other words, the information must be shown to be material to the investment decision of a reasonable hypothetical investor in the securities. It does not matter how you come to know the Inside Information. For the purpose of the insider trading provisions of the Corporations Act, “information” is given a wide meaning and includes matters of supposition and other matters that are insufficiently definite to warrant being made known to the public and matters relating to the intentions, or the likely intentions of a person. Examples of information which, if made available to the market, may depending on the circumstances be likely to have a material effect on the price of Securities are: 1.2 (a) a material mineral or hydrocarbon discovery; (b) drilling results; (c) exploration results; (d) a transaction that will lead to a significant change in the nature or scale of the Company’s activities; (e) a material acquisition or disposal; (f) the granting or withdrawal of a material licence; (g) becoming a plaintiff or defendant in a material lawsuit; (h) the fact that the Company’s earnings will be materially different from market expectations; (i) the appointment of a liquidator, administrator or receiver; (j) the commission of an event of default under, or other event entitling a financier to terminate, a material financing facility; (k) under subscriptions or over subscriptions to an issue of securities; (l) giving or receiving a notice of intention to make a takeover; (m) any rating applied by a rating agency to the Company or its securities and any change to such a rating; (n) any actual or proposed change to the Company’s capital structure for example, a share issue. When is information generally available? Information is generally available if: it consists of ‘readily observable matter’; it has been made known in a manner that would, or would be likely to, bring it to the attention of persons who commonly invest in securities of a kind whose price or value might be affected by the information and since it was made known, a reasonable period for it to be disseminated among such persons has elapsed; or it consists of deductions, conclusions or inferences made or drawn from information of the kind referred to in (a) or (b) above. 1.3 Prohibited conduct In summary, the Corporations Act prohibits three types of conduct relating to Inside Information: • the direct or indirect acquisition or disposal of securities using Inside Information; Talisman Mining Limited Securities Trading Policy 5 • the procurement of another person to acquire or dispose of securities using Inside Information; and • communication of Inside Information to another person for the purpose of the other person acquiring or disposing of securities. You must not, whether in your own capacity or as an agent for another, apply for, acquire or dispose of, or enter into an agreement to apply for, acquire or dispose of, any securities, or procure another person to do so if you: possess Inside Information; and know or ought reasonably to know, that: (i) the information is not generally available; and (ii) if it were generally available, it might have a material effect on the price or value of the securities or influence a person's decision to buy or sell the securities. You also must not either directly or indirectly pass on this kind of information to another person if they know, or ought reasonably to know, that this other person is likely to apply for, acquire or dispose of the securities or procure another person to do so. Talisman Mining Limited Securities Trading Policy 6