Announcement PDF Appendix 5B Mining exploration entity quarterly report Rule 5.5 Appendix 5B Mining exploration entity quarterly report Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013 Name of entity TALISMAN MINING LIMITED Quarter ended (“current quarter”) ABN 71 079 536 495 31 Dec 2015 Consolidated statement of cash flows Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 Current quarter $A’000 Year to date $A’000 - - (a) exploration & evaluation (b) development (c) production (d) administration Dividends received Interest and other items of a similar nature received Interest and other costs of finance paid Income taxes paid Other (provide details if material) (1,900) (353) - (2,683) (630) - 78 - 117 - Net Operating Cash Flows (2,175) (3,196) (15) (26) - - (15) (26) (2,190) (3,222) Cash flows related to investing activities Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets Loans to other entities Loans repaid by other entities Other (provide details if material) Net investing cash flows Total operating and investing cash flows (carried forward) + See chapter 19 for defined terms. Appendix 5B Page 1 Appendix 5B Mining exploration entity quarterly report 1.13 (2,190) (3,222) Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other (share issue costs) - 8,000 (400) Net financing cash flows - 7,600 Net increase (decrease) in cash held (2,190) 4,378 1.20 1.21 Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20 11,272 - 4,704 - 1.22 Cash at end of quarter 9,082 9,082 1.14 1.15 1.16 1.17 1.18 1.19 Total operating and investing cash flows (brought forward) Payments to directors of the entity and associates of the directors, related entities of the entity and associates of the related entities Current quarter $A'000 1.23 Aggregate amount of payments to the parties included in item 1.2 122 1.24 Aggregate amount of loans to the parties included in item 1.10 - 1.25 Explanation necessary for an understanding of the transactions Remuneration to Directors Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows N/A 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest See commentary in section 6.1 + See chapter 19 for defined terms. Appendix 5B Page 2 Appendix 5B Mining exploration entity quarterly report Financing facilities available Add notes as necessary for an understanding of the position. 3.1 Loan facilities 3.2 Credit standby arrangements Amount available $A’000 Amount used $A’000 - - - - Estimated cash outflows for next quarter $A’000 4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration 2,500 400 Total 2,900 Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current quarter $A’000 Previous quarter $A’000 5.1 Cash on hand and at bank 585 510 5.2 Deposits at call 8,497 10,762 5.3 Bank overdraft - - 5.4 Other (provide details) - - 9,082 11,272 Total: cash at end of quarter (item 1.22) + See chapter 19 for defined terms. Appendix 5B Page 3 Appendix 5B Mining exploration entity quarterly report Changes in interests in mining tenements Tenement reference 6.1 Interests in mining tenements relinquished, reduced or lapsed Interest at beginning of quarter Interest at end of quarter 100% 100% 100% 63% 100% 49%* 49%* 49%* 31%* 49%* Doolgunna Projects E52/2282 E52/2313 E52/2466 E52/2275 P52/1241 6.2 Nature of interest (note (2)) Farm-In Joint Venture Farm-In Joint Venture Farm-In Joint Venture Farm-In Joint Venture Farm-In Joint Venture Interests in mining tenements acquired or increased *Exploration farm-in terms for Sandfire’s Farm-in to Talisman’s Doolgunna Projects were disclosed in Talisman’s announcement on 20 December 2013 titled “Talisman Secures $15M Joint Venture Farm-in Agreement with Sandfire”. As noted in the September 2015 quarterly activities report Sandfire provided formal Notice to Talisman that as of 30 September 2015 it had sole funded exploration expenditure at Talisman’s Doolgunna Projects of $10 million. Following the satisfactory audit of this expenditure a formal transfer of 51% of Talisman’s interest in the Doolgunna Projects from Talisman to Sandfire was registered with the Department of Mines and Petroleum on the 17 th December 2015. During the December 2015 quarter, Sandfire subsequently provided a further formal Notice to Talisman stating it had solefunded a further $5 million of exploration expenditure in order to earn an additional 19% interest in Talisman’s interest in the Doolgunna Projects. Talisman is currently auditing this claimed expenditure before formally transferring an additional 19% in Talisman’s interest in the Doolgunna Projects to Sandfire. The transfer is subject to satisfactory audit of the claim. + See chapter 19 for defined terms. Appendix 5B Page 4 Appendix 5B Mining exploration entity quarterly report Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 Preference +securities (description) Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions +Ordinary securities Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks +Convertible debt securities (description) Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted Options (description and conversion factor) Issued during quarter Exercised during quarter Expired during quarter Debentures (totals only) Unsecured notes (totals only) + See chapter 19 for defined terms. Appendix 5B Page 5 Total number Number quoted 148,559,904 148,559,904 - - - - - - - - 150,000 175,000 175,000 562,500 562,500 562,500 562,500 150,000 750,000 750,000 750,000 750,000 125,000 125,000 125,000 125,000 - - - - - Issue price per security (see note 3) (cents) Amount paid up per security (see note 3) (cents) Exercise price Expiry date $0.40 $0.50 $0.60 $0.43 $0.51 $0.60 $0.69 $0.90 $0.41 $0.49 $0.56 $0.64 $0.40 $0.50 $0.60 $0.70 - 30/09/2016 30/09/2016 30/09/2016 31/10/2016 31/10/2016 31/10/2016 31/10/2016 30/06/2017 31/10/2017 31/10/2017 31/10/2017 31/10/2017 01/03/2018 01/03/2018 01/03/2018 01/03/2018 - Appendix 5B Mining exploration entity quarterly report Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5). 2 This statement does give a true and fair view of the matters disclosed. Sign here: Daniel Madden Company Secretary Print name: Daniel Madden Date: 29 Jan 2016 Notes 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. == == == == == + See chapter 19 for defined terms. Appendix 5B Page 6