Announcement PDF Talisman Mining Limited ABN 71 079 536 495 Financial report for the half-year ended 31 December 2015 Talisman Mining Limited Half-Year Report 31 December 2015 Corporate Directory Board of Directors Mr Alan Senior Mr Gary Lethridge Mr Brian Dawes Ms Karen Gadsby Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director Company Secretary Mr Daniel Madden Registered and Principal Office Ground Floor, 6 Centro Avenue Subiaco, Western Australia 6008 Tel: +61 8 9380 4230 Fax: +61 8 9382 8200 Website: www.talismanmining.com.au Auditors HLB Mann Judd Level 4, 130 Stirling Street Perth, Western Australia 6000 Share Registry Link Market Services Ground Floor, 178 St Georges Terrace Perth, Western Australia 6000 Tel: 1300 554 474 Securities Exchange Listing Australian Securities Exchange Limited Level 8, Exchange Plaza 2 The Esplanade Perth, Western Australia 6000 ASX code: TLM Talisman Mining Limited Half-Year Report 31 December 2015 Contents Page Directors’ Report 1 Auditor’s Independence Declaration 4 Condensed Consolidated Statement of Comprehensive Income 5 Condensed Consolidated Statement of Financial Position 6 Condensed Consolidated Statement of Changes in Equity 7 Condensed Consolidated Statement of Cash Flows 8 Notes to the Condensed Consolidated Financial Statements 9 Directors’ Declaration 16 Independent Auditor’s Review Report 17 Talisman Mining Limited Half-Year Report 31 December 2015 Directors’ Report The directors of Talisman Mining Limited (the Company) submit the financial report of the consolidated entity (referred to hereafter as the Group) for the half-year ended 31 December 2015. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows: Directors The names of directors who held office during or since the end of the half-year and until the date of this report are noted below. Directors were in office for this entire period unless otherwise stated. Alan Senior Gary Lethridge Brian Dawes Karen Gadsby Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director Principal Activities The principal activity of Talisman Mining Limited during the course of the financial half-year was the exploration for minerals, primarily base metals. Review of Operations Doolgunna Copper-Gold Projects (Farm-in JV with Sandfire Resources) Joint Venture In December 2013, Talisman signed a $15 million Joint Venture Farm-in Agreement with Sandfire Resources NL (ASX: SFR) enabling Sandfire to farm into up to 70% of Talisman’s interests in the Springfield, Halloween and Halloween West Projects (Doolgunna Projects). As at 31 December 2015, Sandfire had sole funded expenditure of $15 million on the Doolgunna Projects under the terms of the Joint Venture Farm-in Agreement and accordingly earned its 70% interest in Talisman’s interests in the Doolgunna Projects. As at 31 December 2015 Talisman had formally transferred 51% of the 70% interest to Sandfire with the final 19% transfer being subject to completion of satisfactory audit by Talisman of the final tranche of earn-in expenditure incurred by Sandfire. Talisman contributed $724,063 to the Joint Venture during the half year representing the initial Joint Venture cash call for the month of December 2015. Exploration Activities The primary focus of exploration activities undertaken during the half year has been on exploration and resource definition drilling at the Monty Deposit, a significant high-grade VMS copper-gold discovery within the Springfield Project which is located approximately 10km east of the DeGrussa Copper Mine. Drilling undertaken at Monty during the half year has indicated the presence of high grade mineralisation (including the identification of ultra-high grade bornite mineralisation). Resource definition drilling of Monty commenced during the half year and was ongoing as at 31 December 2015. Other exploration activities commenced during the half year to actively target potential additional accumulations of mineralisation along the 5km Monty trend and also within the broader Springfield Project. Page 1 of 18 Talisman Mining Limited Half-Year Report 31 December 2015 During the half-year 17,274 metres of diamond drilling, 14,825 metres of RC drilling and 80,523 metres of air core drilling were undertaken at the Doolgunna Projects by Sandfire in accordance with the Joint Venture Farm-in Agreement (and subsequently as part of the Joint Venture). In addition to the exploration activities noted above, the Joint Venture also commenced initial study assessments during the half year. Sinclair Nickel Project In the first quarter of the half year, Talisman continued a regional exploration targeting exercise to identify priority exploration targets at Sinclair. As a result of the regional targeting exercise, and following a high powered fixed loop electromagnetic (FLEM) survey at the Delphi Prospect, Talisman commenced its maiden exploration drill program at Sinclair in September 2015. Five diamond drill-holes were completed across three prospects at Delphi North, Cody Well and Fly Bore for a total of 1,053 metres of diamond drilling and 1,960 metres of RC drilling. Encouraging results were received in the first hole completed at Delphi North. Detailed interpretation of results from this campaign will continue towards advancing the Talisman’s geological understanding of the prospects tested during the campaign and the prospectivity of the broader Sinclair Nickel Project. Future developments Doolgunna Projects Joint Venture Resource drilling at the Monty Deposit is expected to continue into the second half of the financial year with a maiden Mineral Resource estimate for Monty expected to be delivered by the Joint Venture in late March/April 2016. Other Joint Venture exploration activities for the second half of the financial year are anticipated to include exploration activities along the 5km long Monty trend and also within the broader Springfield Project. In addition to the exploration activities undertaken by the Joint Venture at Springfield, it is anticipated that feasibility related activities at the Monty Deposit may commence once an initial Mineral Resource estimate is prepared. Sinclair Project - 100% Owned A number of targets within the Sinclair Nickel Project remain to be tested at numerous prospects including Fly Bore and Delphi. Detailed interpretation of the drill-holes completed in the exploration program undertaken in the first half of the year will continue during the second half of the financial year and is expected to provide further information towards greater definition and re-evaluation of exploration targets across the project. Subsequent Events Formal transfer of Sandfire’s final 19% interest in Talisman’s interest in the tenements subject to the Doolgunna Projects Joint Venture was completed on 9 February 2016 following the satisfactory audit of the final $5 million tranche of the $15 million total sole funded exploration expenditure by Sandfire at Talisman’s Doolgunna Projects. Page 2 of 18 Talisman Mining Limited Half-Year Report 31 December 2015 AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the review of the consolidated financial report of Talisman Mining Limited for the half-year ended 31 December 2015, I declare that to the best of my knowledge and belief, there have been no contraventions of: a) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and b) any applicable code of professional conduct in relation to the review. Perth, Western Australia 3 March 2016 M R W Ohm Partner HLB Mann Judd (WA Partnership) ABN 22 193 232 714 Level 4, 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC 6849 Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533. Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au Liability limited by a scheme approved under Professional Standards Legislation HLB Mann Judd (WA Partnership) is a member of International, a worldwide organisation of accounting firms and business advisers. Page 4 of 18 Talisman Mining Limited Half-Year Report 31 December 2015 Condensed Consolidated Statement of Comprehensive Income For the Half-Year Ended 31 December 2015 Half-year ended Note 31 Dec 15 31 Dec 14 $ $ Continuing operations Other income 2 143,087 264,355 Employee benefits expense 3 (387,587) (384,405) (146,613) (566,966) (3,248,716) (4,117,985) Exploration expenditure expensed as incurred Impairment of exploration expenditure 4 Occupancy expenses 3 (83,325) (90,480) Administrative expenses (411,592) (229,516) Finance costs (120,688) - Depreciation and amortisation expense (31,004) (54,275) - 1,818 (3,000) (426,000) (4,289,438) (5,603,454) 70,449 1,546,666 Loss after tax from continuing operations (4,218,989) (4,056,788) Net loss for the period (4,218,989) (4,056,788) (7,000) (154,500) Disposal of fixed assets Impairment of available-for-sale financial assets Loss before income tax expense Income tax benefit Other comprehensive income for the period, net of tax Items that may b e reclassified to profit or loss Net change in the fair value of available-for-sale financial assets Other comprehensive income for the period, net of tax (7,000) (154,500) (4,225,989) (4,211,288) Basic loss per share (cents per share) (2.87) (3.08) Diluted loss per share (cents per share) n/a n/a Total comprehensive loss for the period Loss per share: The accompanying notes form part of these financial statements. Page 5 of 18 Talisman Mining Limited Half-Year Report 31 December 2015 Condensed Consolidated Statement of Financial Position As at 31 December 2015 31 Dec 15 30 Jun 15 $ $ Cash and cash equivalents 9,825,270 4,865,632 Trade and other receivables 290,567 200,627 10,115,837 5,066,259 Receivables 60,184 60,184 Other financial assets 120,700 130,700 2,801,834 2,810,786 39,332,680 40,084,747 Total Non-Current Assets 42,315,398 43,086,417 Total Assets 52,431,235 48,152,676 1,033,878 380,886 106,843 72,500 1,140,721 453,386 - 70,449 Provisions 8,166,522 8,045,834 Total Non-Current Liabilities 8,166,522 8,116,283 Total Liabilities 9,307,243 8,569,669 Net Assets 43,123,992 39,583,007 45,004,278 37,404,278 461,555 469,831 (Accumulated Losses) / Retained earnings (2,341,841) 1,708,898 Total Equity 43,123,992 39,583,007 Note Assets Current Assets Total Current Assets Non-Current Assets Property, plant and equipment Deferred exploration and evaluation expenditure 4 Liabilities Current Liabilities Trade and other payables Employee benefits Total Current Liabilities Non-Current Liabilities Deferred tax liabilities Equity Issued capital 5 Reserves The accompanying notes form part of these financial statements. Page 6 of 18 Talisman Mining Limited Half-Year Report 31 December 2015 Condensed Consolidated Statement of Changes in Equity For the Half-Year Ended 31 December 2015 (Accumulated Losses) / Asset Retained Revaluation Earnings Reserve Issued Capital Total Equity $ $ $ $ 37,404,278 7,103,801 177,500 1,746,400 46,431,979 - (4,056,788) - - (4,056,788) - - (154,500) - (154,500) Total comprehensive income/(loss) for the period - (4,056,788) (154,500) - (4,211,288) Shares issued during the year - - - - - Recognition of share-based payments - - - 49,478 49,478 Transfer on exercise of options - - - - - Unlisted options lapsing - 1,542,000 - (1,542,000) - Balance at 31 December 2014 37,404,278 4,589,013 23,000 253,878 42,270,169 Balance at 1 July 2015 37,404,278 1,708,898 21,200 448,631 39,583,007 - (4,218,989) - - (4,218,989) - - (7,000) - (7,000) - (4,218,989) (7,000) - (4,225,989) 7,600,000 - - - 7,600,000 Recognition of share-based payments - - - 166,974 166,974 Transfer on exercise of options - - - - - Balance at 1 July 2014 Loss for the period Net change in fair value of available-forsale financial assets Loss for the period Net change in fair value of available-forsale financial assets Total comprehensive income/(loss) for the period Shares issued during the year Unlisted options lapsing Balance at 31 December 2015 $ Share-based Payments Reserve - 168,250 - (168,250) - 45,004,278 (2,341,841) 14,200 447,355 43,123,992 The accompanying notes form part of these financial statements. Page 7 of 18 Talisman Mining Limited Half-Year Report 31 December 2015 Condensed Consolidated Statement of Cash Flows For the Half-Year Ended 31 December 2015 Half-year ended 31 Dec 15 31 Dec 14 $ $ inflows/(outflows) Cash flows from operating activities Payments to suppliers and employees (692,963) (687,174) Interest received 115,404 329,517 - - (577,559) (357,657) - - Payments for property, plant and equipment (26,263) (21,211) Proceeds from sale of plant and equipment - 1,818 Payments for exploration and evaluation expenditure (2,036,540) (890,779) Net cash used in investing activities (2,062,803) (910,172) Proceeds from issue of shares 8,000,000 - Payment for share issue costs (400,000) - Net cash provided by financing activities 7,600,000 - Net decrease in cash held 4,959,638 (1,267,829) Cash and cash equivalents at the beginning of the period 4,865,632 16,083,171 Cash and cash equivalents at the end of the period 9,825,270 14,815,342 Interest paid Net cash used in operating activities Cash flows from investing activities Payments for exploration projects Cash flows from financing activities The accompanying notes form part of these financial statements. Page 8 of 18 Talisman Mining Limited Half-Year Report 31 December 2015 Notes to the Condensed Consolidated Financial Statements For the Half-Year Ended 31 December 2015 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES Statement of compliance These interim consolidated financial statements are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134 ‘Interim Financial Reporting’, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’. This condensed half-year report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the Group as in the full financial report. It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2015 and any public announcements made by Talisman Mining Limited during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and the ASX Listing Rules. Basis of preparation The interim report has been prepared on a historical cost basis, except for the revaluation of certain financial instruments to fair value. Cost is based on the fair value of the consideration given in exchange for assets. The Company is domiciled in Australia and all amounts are presented in Australian dollars, unless otherwise noted. For the purpose of preparing the interim report, the half-year has been treated as a discrete reporting period. Accounting policies and methods of computation In the half-year ended 31 December 2015, the directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Group’s operations and effective for annual reporting periods beginning on or after 1 July 2015. It has been determined by the directors that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on the Group’s business and, therefore, no change is necessary to accounting policies. The accounting policies and methods of computation adopted are consistent with those of the previous financial year and corresponding interim reporting period. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards. Significant accounting judgments and key estimates The preparation of interim financial reports requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates. Except as described below, in preparing this interim report, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial report for the year ended 30 June 2015. In the half-year ended 31 December 2015, management reassessed its estimates in respect of: Impairment of available-for-sale financial assets The Group follows the guidance of AASB 139 Financial Instruments: Recognition and Measurement to determine when an available-for-sale financial asset is impaired. This determination requires significant judgment. In making this judgment, the Group evaluates, among other factors, the duration and extent to which the fair value of an investment is less than its cost and the financial health of and short-term business outlook for the investee, including factors such as industry and sector performance, changes in technology and operational and financing cash flows. In accordance with AASB 139 for the half-year ending 31 December 2015 the Company has recognised a reduction in the fair value of available-for-sale financial assets held in the Asset Revaluation Reserve of $7,000 and an Impairment of available for sale-assets in the Statement of Comprehensive Income of $3,000. Page 9 of 18 Talisman Mining Limited Half-Year Report 31 December 2015 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued) Carrying value of exploration expenditure The recoverability of the carrying amount of exploration and evaluation costs carried forward has been reviewed by the directors. Exploration and evaluation expenditure is accumulated in respect of each identifiable area of interest. These costs may be carried forward in respect of an area that has not at balance date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. In conducting the review, the directors also consider whether facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. These facts and circumstances include: (i) (ii) (iii) the period for which the entity has the right to explore in the specific area has expired during the period or will expire in the near future, and is not expected to be renewed; exploration expenditure on further exploration for and evaluation of mineral resources in, or relating to, the area of interest is neither budgeted nor planned; and exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area. The ultimate recoupment of the costs carried forward is dependent upon the successful development and commercial exploitation, or alternatively, sale of the respective areas of interest. As a result of this review, $3,248,716 of expenditure in relation to the Halloween Project area of interest was impaired and written off to profit & loss (refer Note 4). 2. OTHER INCOME Half-year ended Bank interest received and receivable 31 Dec 15 31 Dec 14 $ $ 143,087 256,355 - 8,000 143,087 264,355 Other income 3. EXPENSES Half-year ended 31 Dec 15 31 Dec 14 $ $ Loss for the year includes the following expenses: Operating lease rental expense Non-cash share based payment expense NB: 83,325 90,480 166,974 49,478 Non-cash share based payment expense is included in total employee benefits expense of $387,587 (2014: $384,405) Page 10 of 18 Talisman Mining Limited Half-Year Report 31 December 2015 4. DEFERRED EXPLORATION AND EVALUATION EXPENDITURE Half-year ended Year ended 31 Dec 15 30 Jun 15 $ $ Costs carried forward in respect of areas of interest in the following phases: Exploration and evaluation phase – at cost Balance at beginning of period 40,084,747 31,930,540 Expenditure incurred 2,496,649 1,468,882 Acquisition of projects - 14,000,000 42,581,396 47,399,422 (3,248,716) (7,314,675) 39,332,680 40,084,747 Expenditure written off The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phases is dependent upon the successful development and commercial exploitation or sale of the respective areas. During the half year the Group wrote off $3,248,716 of historical costs carried forward on the Halloween Project as the tenement expires in March 2016 and will be relinquished at that time. 5. ISSUED CAPITAL 31 Dec 15 30 Jun 15 $ $ Ordinary shares Issued and fully paid 45,004,278 37,404,278 Half-year ended Year ended 31 Dec 15 30 Jun 15 Number $ Number $ Movements in ordinary shares on issue Opening balance 131,538,627 37,404,278 131,538,627 37,404,278 Share placement at 47 cents 17,021,277 8,000,000 - - Share issue costs Closing balance - (400,000) - - 148,559,904 45,004,278 131,538,627 37,404,278 Fully paid ordinary shares carry one vote per share and carry the right to dividends. Half-year ended Year ended 31 Dec 15 30 Jun 15 Number $ Number $ 7,250,000 448,631 8,750,000 1,746,400 - 76,976 3,000,000 193,982 Employees' remuneration 150,000 89,998 1,000,000 50,249 Unlisted Options Lapsing (1,000,000) (168,250) (5,500,000) (1,542,000) Closing balance 6,400,000 447,355 7,250,000 448,631 Movements in options over ordinary shares on issue Opening balance Directors' remuneration Share options are exercisable on a 1:1 basis at various exercise prices. The options expire between 31 October 2016 and 1 March 2018. Page 11 of 18 Talisman Mining Limited Half-Year Report 31 December 2015 6. SHARE BASED PAYMENTS On 11 August 2015, 150,000 share options were granted to an employee under the terms of the Company’s Employee Share Option Plan (ESOP). The fair value of options granted was determined using a Black Scholes pricing model. The following table lists the inputs to the model for options granted during the half-year ended 31 December 2015: Inputs into model Option series 1 Dividend yield (%) Nil Expected volatility (%) 150% Risk-free interst rate (%) 1.945% Expected life of option (years) 1.9 Exercise price $ 0.90 Grant date share price $ 0.59 Fair value $ 0.37 7. FINANCIAL INSTRUMENTS This note provides information about how the Group determines fair values of various financial assets and liabilities. Fair values The carrying value of the financial assets and financial liabilities are considered to approximate their fair values. In particular, the fair value of cash, trade and other receivables and payments is considered to approximate their carrying amount due to their short term maturity. Fair value hierarchy All financial instruments for which fair value is recognised or disclosed are categorised within the following fair value measurement hierarchy:    Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1); Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (level 2); and Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3). The following table presents the Group’s assets and liabilities measured and recognised at fair value at 31 December 2015 and 30 June 2015. Level 1 $ Level 2 $ Level 3 $ Total $ 31 December 2015 Assets Available-for-sale financial assets 120,700 - - 120,700 130,700 - - 130,700 30 June 2015 Assets Available-for-sale financial assets 8. SEGMENT REPORTING (i) Description AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance. The function of the chief operating decision maker is performed by the Board of Talisman Mining collectively, Information reported to the Board for the purposes of resource allocation and assessment of performance is focused broadly on the Group’s diversified activities across different sectors. Page 12 of 18 Talisman Mining Limited Half-Year Report 31 December 2015 The Group’s reportable segments under AASB 8 are therefore as follows:    Mineral Exploration - Sinclair Nickel Project Mineral Exploration - Doolgunna Copper-Gold Projects (Farm-in JV with Sandfire Resources) Other ‘Other’ is the aggregation of the Group’s other operating segments that are not separately reportable including mineral exploration at sites other than at the Sinclair Nickel and Doolgunna Copper-Gold Projects. Information regarding these segments is presented below. The accounting policies of the reportable segments are the same as the Group’s accounting policies. (ii) Segment revenues and results Revenue Segment profit Half-year ended Year ended 31 Dec 15 31 Dec 14 31 Dec 15 31 Dec 14 $ $ $ $ Continuing operations Mineral Exploration: Sinclair Nickel Project - - (120,688) Doolgunna Copper-Gold Projects - - (3,248,716) - Other - - (146,613) (4,684,951) - - (3,516,017) (4,684,951) 143,087 264,355 143,087 264,355 Share based payment expense - - (166,974) (49,478) Central administration and directors' salaries - - (749,534) (1,133,380) Other - - - - (4,289,438) (5,603,454) Investment revenue Loss before tax (continuing operations) (iii) Segment assets The following is an analysis of the Group’s assets by reportable operating segment: Half-year ended Year ended 31 Dec 15 30 Jun 15 $ $ Continuing operations Mineral Exploration: Sinclair Nickel Project 19,615,262 17,827,633 Doolgunna Copper-Gold Projects 23,256,542 24,995,426 - 1 Total segment assets 42,871,804 42,823,061 Unallocated assets 9,559,431 5,329,615 Total assets 52,431,235 48,152,676 Other 9. JOINT OPERATION In December 2013, the Group entered into a Farm-In Letter Agreement with Sandfire Resources NL for Sandfire to farm-in to the Doolgunna Copper-Gold Projects. Under the terms of the agreement, Sandfire had the right to earn up to 70% of Talisman’s interest in the Doolgunna Copper-Gold Projects through total expenditure of $15,000,000 over a 5 1/2 year term. Sandfire was also appointed as manager of the Doolgunna Copper-Gold Project tenements. Page 13 of 18 Talisman Mining Limited Half-Year Report 31 December 2015 In December 2015, Sandfire formally notified the Group that it had sole-funded $15,000,000 of farm-in expenditure on the Doolgunna Projects and accordingly a Joint Venture was formed. As such as at 31 December 2015, the Group’s share in the joint operation is 30% with Sandfire holding the remaining 70%. The joint operation accounts, which are proportionately consolidated based on the above equity percentage in the consolidated financial statements, are disclosed as follows: 31 Dec 15 30 Jun 15 $ $ Assets Cash and cash equivalents 2,413,527 - 184,965 - Deferred exploration and evaluation expenditure 2,034,611 - Total assets 4,633,103 - Other payables 2,219,576 - Total liabilities 2,219,576 - Net assets 2,413,527 - Receivables Liabilities Groups ownership share of net assets 30.00% Carrying amount of interest in joint venture 724,058 - The joint venture has no contingent liabilities and capital commitments with the exception that in order to maintain current rights of tenure to exploration tenements, the joint venture is required to perform exploration work to meet the minimum expenditure requirements specified by various State governments. These obligations are not provided for in the financial report and are payable as follows: 31 Dec 15 30 Jun 15 $ $ Exploration expenditure Within one year 235,683 - After one year but not more than five years 656,874 - - - Greater than five years 892,557 Group's share of commitments - 30.00% 267,767 - In addition to the minimum expenditure commitments noted above, the Joint Venture had a $7.5 million exploration budget for the three months commencing 1 December 2015 (on a 100% basis). The Group’s share of this budget is approximately $2.25 million of which an initial cash call of $724,063 was paid at 31 December 2015. 10. CONTINGENT LIABILITIES Consideration for the acquisition of the Sinclair Nickel Project includes a deferred payment of $2 million triggered by production recommencing within 6 years of transaction completion. In the opinion of the Directors there are no other contingent liabilities or assets as at 31 December 2015 and no other contingent liabilities or assets were incurred in the interval between the period end and the date of this report. Page 14 of 18 Talisman Mining Limited Half-Year Report 31 December 2015 11. EVENTS SUBSEQUENT TO REPORTING DATE Formal transfer of Sandfire’s final 19% interest in Talisman’s interest in the tenements subject to the Doolgunna Projects Joint Venture was completed on 9 February 2016 following the satisfactory audit of the final $5 million tranche of the total $15 million sole funded exploration exp