Announcement PDF TLDD00026: Bornite-bearing core from Monty assaying up to 46% Cu Closing in on a maiden Mineral Resource District-wide VMS potential emerging Euroz Securities – Institutional Conference - March 2016 Gary Lethridge, Managing Director Disclaimer and Competent Person’s Statements Disclaimer This presentation has been prepared by Talisman Mining Ltd. This document contains background information about Talisman Mining Ltd current at the date of this presentation. The presentation is in summary form, has not been independently verified and does not purport be all inclusive or complete nor does it contain all the information that a prospective investor may require in evaluating a possible investment in Talisman Mining Ltd or its assets. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation. 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Mr Leaver consents to the inclusion in this presentation of the matters based on information in the form and context in which it appears. 2 Introduction – Talisman Overview • Cornerstone asset: 30% interest in Springfield Copper-Gold Project, in joint venture with Sandfire Resources NL (ASX: SFR) • One of Australia’s most significant new high-grade copper discoveries at Monty, ~10km from DeGrussa copper-gold mine: • Initial Mineral Resource drill-out essentially complete • Maiden JORC Mineral Resource on track for late March / early April 2016 • Outstanding results with individual assays up to 52%* copper • Exceptional regional exploration opportunity at Springfield: • VMS geological model supports potential for additional discoveries • Multiple prospective corridors within emerging VMS province • Monty & Homer corridors are key areas of exploration focus • Counter-cyclical growth opportunity at 100% owned Sinclair Nickel Project, WA: • Promising near-mine and regional exploration targets within a proven Ni sulphide province • Existing surface infrastructure with A$120M replacement value • Recent capital raising strengthens financial position *TLDD0061 – 0.7m grading 52.1% Cu, 0.7g/t Au from 318.1 – 318.8m downhole 3 Corporate Background & Overview • Strong culture & corporate philosophy underpinned by previous management experience at highly successful mid-tier resource companies Capital Structure Shares on Issue # 185.7M Unlisted Options 6.4M • Key focus is always on developing and executing strategies to build shareholder value Market Capitalisation (49c) # ~$91.0M Cash (16 March 2016) # ~$22.9M • Growth strategy built on a diversified platform # Post recent share placement completion Substantial Shareholders Kerry Harmanis # New Institutional Investor # 16.0% 6.0% Board Alan Senior (Chairman) – ex-Jubilee Mines Gary Lethridge (Managing Director) – ex-Jubilee Mines & LionOre Brian Dawes (Non-Executive Director) – ex-Jubilee Mines & LionOre Karen Gadsby (Non-Executive Director) – ex-North Ltd 4 Springfield Copper-Gold Project The next chapter of copper-gold discoveries in a world-class VMS province 5 Monty – A Significant New High-Grade Discovery • First regional discovery outside of Sandfire’s DeGrussa VMS copper-gold mine • Exceptionally high-grade, high-tenor massive sulphides in multiple intersections • Mineralisation intersected is in two potentially connected zones – approximately 420m plunge extent, 320m strike extent • Upper Zone • Lower Zone including an ultra-high grade bornite sub-zone • Targeting maiden Mineral Resource by the end of March / early April 2016 6 Monty – The Story So Far – Initial Geological Interpretation SEPTEMBER 2015 Initial discovery hole and first phase of step out drilling Refer to Appendix 1 for Vertical Long Projection Explanatory Note 7 Monty – The Story So Far – November 2015 NOVEMBER 2015 Upper and Lower Zones with initial drilling into bornite subzone (TLDD0026) Refer to Appendix 1 for Vertical Long Projection Explanatory Note 8 Monty – The Story So Far - February 2016 ~320m FEBRUARY 2016 Assays of up to 52% copper expand bornite mineralisation Refer to Appendix 1 for Vertical Long Projection Explanatory Note 9 Monty – Lower Zone • Lower Zone is the primary mineralisation at Monty • Consistent high-grade and high-tenor copper mineralisation throughout • Copper occurs as predominantly chalcopyrite (high-grade mineralisation) • Mineralisation contained in multiple massive sulphide lenses 10 Monty – High Grade Bornite Zone • Interpreted bornite rich zone intersected in three drill holes (Jan 2016) • Interpreted as a sub-zone of the Monty Lower Zone mineralisation • Contains both bornite and chalcopyrite sulphide mineral species • Individual assays up to 52% Cu • TLDD0061 – 0.7m @ 52.1% Cu, 0.7g/t Au from 318.1 – 318.8m downhole 11 Monty – Maiden Resource On Track • Resource drilling now essentially complete • It was focused on defining edge and continuity of mineralisation at Monty • Geological interpretation continuing to evolve MAIDEN RESOURCE On track • Maiden Monty Mineral Resource anticipated for release late March / early April 2016 Refer to Appendix 1 for Vertical Long Projection Explanatory Note 12 Monty – Growth Potential Upper Zone • Mineralisation potentially extended to north east • TLDD0057 - 7.6m @ 3.3% Cu & 1.5g/t Au from 152m downhole. • Mineralisation may now connect to Lower Zone • TLDD0023A - 7.4m @ 3.0% Cu & 0.8g/t Au from 232.5m downhole. Monty Exploration at Depth • Mineralised intercepts recorded at depth may provide potential exploration vectors • Newly reported drill hole adds encouragement – TLDD0051: MONTY: Exploration Potential Remains • 1.5m @ 4.7% Cu & 1.8g/t Au from 518.6m downhole; and • 7.6m @ 3.2% Cu & 0.2g/t Au from 547.2m downhole • Further drilling planned Refer to Appendix 1 for Vertical Long Projection Explanatory Note 13 Springfield Exploration Potential – Multiple Prospective Corridors • Potential for Springfield to be part of a larger VMS camp • Exploration is at a relatively early stage • Springfield hosts 4 prospective VMS corridors: • Monty • Homer • Central • Southern Volcanics • Significant exploration activities planned along 5km Monty corridor: • RC drilling to the north-east of Monty • RC drilling of geochemical anomalies at Monty South and Southern Volcanics • In-fill aircore drilling at Monty South 14 Monty Corridor – The Unfolding Story • Established VMS Model – deposits rarely occur in isolation The discovery of Monty opens • Significant unexplored potential outside of current known mineralised up a highly prospective +5km strike length of ~320m VMS corridor • Further drilling planned 15 Homer Prospect – The New Horizon? • A high priority VMS target corridor located ~4km along strike to the east of DeGrussa • Drilling to date by Sandfire has: • Confirmed the continuation of Sandfire’s C5 VMS stratigraphic package; and • TLDD0003 intersected what is interpreted to be C5 host horizon • Scout hole TLDD0068, located 3.4km ENE of TLDD0001, drilled Dec 2015 • A significant step out with targeted VMS horizon not well constrained • DHEM survey planned 16 Homer Prospect – The New Horizon? • Only 2 deep holes have tested the host stratigraphic package • Both holes evidenced VMS signatures • Opportunity exists for a new discovery 17 Sinclair Nickel Project A counter-cyclical option on a turnaround in the nickel price 18 Sinclair Nickel Project – Background Project highlights • Discovered late 2005, developed in 2008 • Historical Sinclair mine production: • 1.58 Mt @ 2.44% Ni for 38,500t of contained Ni • Care and maintenance since August 2013 • Sinclair has extensive infrastructure: • Nickel concentrator, operated at 450ktpa • 200 person village and all-weather airstrip • Support facilities – admin, workshops, stores • A$120M replacement value • Sinclair restart potential enhanced by: • Reduced capital intensity; and • Substantial exploration potential 19 Sinclair Nickel Project – Advanced Exploration Opportunities ~445m 200m 200m Wide-spaced drilling of the Sinclair Deposit for 1km beyond current mine development has returned significant intersections Skye & Stirling – two parallel ultramafic channels with EM targets Delphi North now has nickel sulphide mineralisation over a strike length of 600m 20 Summary • Maiden Mineral Resource for Monty is due at the end of March early April 2016 • Ultra-high grades identified at Monty (including bornite) • Exploration potential remains at Monty • Springfield Project highly prospective for new discoveries across multiple corridors • Counter-cyclical growth opportunity at Sinclair Nickel Project • Diversified asset platform • Recent capital raising strengthens financial position • Focused on maximising shareholder value 21 TLDD00026: Bornite-bearing core from Monty assaying up to 46% Cu Closing in on a maiden Mineral Resource District-wide VMS potential emerging Euroz Securities – Institutional Conference - March 2016 Gary Lethridge, Managing Director Appendix 1 Vertical Long Projection – Explanatory Note • Vertical Longitudinal Projection and simplified interpretation, by Talisman, of the Monty discovery with drill-hole pierce points shown at the top of the interpreted primary intercept. All intercepts are shown as down-hole widths. • A Significant Intersection is defined as any intersection ≥ 3m estimated true width that has a grade of ≥ 2.0 % Cu, inclusive of non-mineralised material. Intersections that are <3m estimated true width are defined as significant if the overall grade remained >2.0% Cu when non-mineralised material has been included at a grade of 0.0% Cu (weighted by width) until a 3m estimated true width is reached. • For the purposes of “Monty – Growth Potential” on slide 13, Peripheral Mineralisation, is defined as mineralisation that sits outside Talisman’s current interpreted Monty mineralised envelope projection, meets a minimum cut-off grade of 0.5% Cu, with no more than 3m of internal dilution and a minimum composite grade of 1% Cu. 23