TALGA GROUP LTD — Regulatory Filings 2013

Mar 27, 2013

28 MARCH 2013

ASX: TLG

==> picture [76 x 74] intentionally omitted <==

Talga Resources Ltd ABN 32 138 405 419

1st Floor, 2 Richardson St, West Perth, WA 6005 T: +61 8 9481 6667 F: +61 8 9322 1935 www.talgaresources.com

GRAPHITE DRILLING UPDATE AND NEW JUMBO FLAKE PROJECT

• Diamond core drilling program at the Raitajärvi coarse flake graphite project progressing well, with all 15 drill holes completed to date intercepting coarse flake graphite in widths exceeding expectations.

• The first 12 holes of drill core have been processed and consigned to assay laboratory with results expected in four to six weeks time.

• New project ‘Piteå’ granted.

• Historic drill samples from Piteå report 70-90% of graphite exceeds 0.3mm flake size (+50 mesh, also known as extra-large or ‘jumbo’ size).

Corporate Information ASX Code TLG Shares on issue 54.40m Options (unlisted) 3.75m 52 week high A$0.77 52 week low A$0.20

Company Directors

Sean Neary Non-Executive Chairman

Mark Thompson Managing Director

Piers Lewis

Non-Executive Director

• Located just 50km from port the early stage Piteå project offers significant potential to expand Talga’s graphite inventory to suit wider market segments.

• Nunasvaara scoping study commenced.

Talga Resources Limited (ASX: TLG; “Talga” or “the Company”) is pleased to report progress on its 100% owned graphite projects in in northern Sweden . This includes an update on drilling progress at Raitajärvi, details of the recently granted Piteå project and commencement of the Nunasvaara scoping study.

RAITAJÄRVI DRILLING PROGRESS

The diamond core drilling program at Raitajärvi is proceeding (see ASX:TLG releases 4[th] Feb and 1[st] March 2013) with 15 of the planned 31 holes completed . The size of the flake graphite zones intercepted to date is exceeding expectations, with much wider zones being intercepted along strike and at depth than reported by the historic drilling (see Fig 1).

Photo 1. Coarse flake graphite in Hole RAI13002, 14m depth, Raitajärvi Project.

==> picture [12 x 12] intentionally omitted <==

ASX Code: TLG

==> picture [354 x 240] intentionally omitted <==

TALGA RESOURCES LTD ASX AND MEDIA RELEASE

PAGE 1

28 MARCH 2013

ASX: TLG

Fig 1. Schematic section showing logged graphite mineralisation in Talga’s drilling (red) compared to historic graphite intercepts (grey). Raitajärvi deposit; for location of section see Fig 2.

==> picture [411 x 354] intentionally omitted <==

This drilling, the first at Raitajärvi since 1992, targets 600m of strike of a graphite mineralised horizon that occurs within a 3,000m graphite anomaly in a package of gneissic and metasedimentary rocks .

In the 15 holes completed to date, multiple zones of graphite have been intersected, with downhole widths of up to 105m of graphite logged (RAI13011) . These holes are located in extension and down-dip positions from the JORC inferred resource of 0.5Mt at 10.8% Cg confirming the potential for a significantly larger resource to be present (see Fig 3). The zones of graphite mineralisation logged in the current holes are much wider and more disseminated than those reported in historic drilling (see Fig 1 and historic drillhole data in Appendix 3), which were only selectively sampled at the time by the Geological Survey of Sweden (“SGU”).

Given this exciting progress, Talga’s Raitajärvi drilling program will be completed early by deferring some of the exploration holes planned for the parallel eastern zone to focus more on the resource definition holes with a view to fast-tracking a new resource estimate. Given the enhanced prospectivity of the Raitajärvi project since commencing drilling, a new exploration licence of approximately 14km[2] has been applied over the current licence to cover potential strike extensions of the deposit. During the process it was noted that Raitajärvi and Nunasvaara are designated an Area of National Interest for minerals by the SGU. The designation legislates that these graphite deposits are afforded state protection against competing land use to the benefit of potential mineral extraction and development.

The first twelve drill holes have been processed and transported to the laboratory where assay results are expected within four to six weeks and will be released when received.

TALGA RESOURCES LTD ASX AND MEDIA RELEASE

PAGE 2

28 MARCH 2013

ASX: TLG

NEW ‘JUMBO FLAKE’ PROJECT-PITEÅ

Talga has received notice of grant for a new exploration licence called Önusträsket, that forms a prospect of the new 100% owned project area called Piteå (see Fig 2). The Company acquired this project on the basis that the remarkably high proportion of ‘jumbo’ flake present offers a very large upside potential in its own right, as well as being complementary to Talga’s other graphite projects in the region. A summary of the Piteå project is provided below:

• The Piteå project is advantageously located 50km by road to the operating port of Piteå, which has 12.6m depth approach and advanced infrastructure, that itself lies 50km south from Luleå where Talga has an MOU for export of graphite (see Fig 2).

• The Piteå project lies between 170-275km from Talga’s other projects in north Sweden, promoting the potential for the development of multiple graphite projects with different flake size and characteristics to supply multiple

segments of the graphite market .

• In historic drilling for base metals two diamond drill holes (total 267.8m) intercepted graphite bearing biotite gneiss within a geophysical anomaly 4km long and 1km wide.

• The Geological Survey of Sweden undertook limited selective sampling of the graphite zones, assaying 13 samples (Leco) and conducting microscopy of five polished thin sections to

Table 1. SGU observed graphite flake size (length) classification in historic drill samples, Piteå Project.

Sample	**0.1-0.3mm **	**0.3mm-0.6mm **	>0.6mm
Drill Hole ÖNU89001
27.2m	10%	50%	40%
44.2m	10%	70%	20%
Drill Hole ÖNU89002
53.6m	20%	70%	10%
103.0m	20%	70%	10%
107.6m	30%	60%	10%

Photo 2. Photomicrograph of polished thin section, 40x magnification, drill hole ÖNU 89001, 44.2m showing coarse flake graphite (light grey blades) with sub parallel orientation in gneissic silicates (dark grey) with pyrrhotite (white blebs).

==> picture [247 x 215] intentionally omitted <==

----- Start of picture text -----

0 1mmScale
----- End of picture text -----

Photo 3. Coarse flake graphite present in historic drill core from the Piteå project stored at the SGU. Hole ÖNU89001, 44.2m depth.

• The historic results revealed coarse flake graphite, with 70-90% of flake size observed larger than 0.3mm (equivalent of +50 mesh, also referred to as extra-large or ‘jumbo’ flake). Flake size assessment is detailed in Table 1, shown in Photo 2 and drillhole location and assay data provided in Appendix 3.

• The historic core has been reviewed by Talga staff (see photo 3), confirming the nature of the graphite flake size and potential of the project when graphite is the targeted commodity instead of base metals.

• Very large average flake size can be used in higher price markets (>US$1800/t at 94-97%C purity; source Industrial Minerals Group, March 2013) and can be strategic for Europe, thus making lower grade deposits potentially economic.

TALGA RESOURCES LTD ASX AND MEDIA RELEASE

PAGE 3

28 MARCH 2013

ASX: TLG

NUNASVAARA SCOPING STUDY

The company is pleased to announce the commencement of a scoping study on the Nunasvaara project, which contains a total JORC graphite resource of 7.6Mt @ 24.4% Cg of predominantly ultra-fine flake, with 5.6Mt @ 24.6% Cg in the Indicated category and 2.0Mt @ 24.0% Cg Inferred. This study is utilising internal staff and external consultants, and will initially evaluate Nunasvaara as a stand-alone project to suit the large and robust industrial natural graphite market. However this may later be integrated into a multi-project scoping study. Whether this course will be followed will depend upon the outcome of the present scoping study, the progress of Talga’s other graphite exploration projects in the region, discussions with potential off take partners and the likely availability of development capital.

SUMMARY AND STRATEGY

Managing Director, Mark Thompson said, “The drilling at Raitajärvi to date confirms our interpretation that the graphite mineralised zones are much larger than previously thought . I thank our staff and contractors for the timely and safe execution of the drilling program to date and ongoing support from local stakeholders in our third drilling program in northern Sweden since July 2012. We are confident that the value of the drilling will be ultimately realised in a revised resource and preliminary economic model in the near term.

In addition, we look forward to exploring the ‘jumbo flake’ project at Piteå . Such large flake size is a relatively rare commodity in Europe that imports 95% of its natural graphite from distant countries . With the Piteå project we will gain a valuable size component to our graphite inventory thereby maximising our market opportunities, and taking advantage of our Swedish location which was recently voted No.2 in the world by the 2012-13 Fraser Institute study on mining investment jurisdictions.”

For further information, please contact:

Talga Resources Ltd.

Mark Thompson Managing Director +61 (08) 9481 6667 admin@talgaresources.com

Media:

Warrick Hazeldine Cannings Purple +61 (08) 6314 6300 whazeldine@canningspurple.com.au

TALGA RESOURCES LTD ASX AND MEDIA RELEASE

PAGE 4

28 MARCH 2013

ASX: TLG

ABOUT TALGA RESOURCES

Talga Resources ( Talga ) (ASX: “TLG”) is a diversified mineral explorer and developer with a portfolio of 100% owned graphite, iron, copper and gold projects in Sweden and Western Australia.

Graphite

Talga wholly owns multiple advanced and high grade graphite projects in the Kiruna Mineral District of northern Sweden. The immediate focus is to advance these projects towards development, utilising the advantages of established quality infrastructure including power, road, rail and ports. Initially this will entail economic studies on the JORC Indicated and Inferred 7.6Mt @ 24.4% Cg Nunasvaara resource and upgrading of the size and status of the Raitajärvi graphite Inferred resource.

Iron

Talga owns multiple JORC compliant iron resources and exploration targets located in the Kiruna mineral district. The iron ore deposits are of significant scale and strategic importance, with considerable growth upside based on historic drilling. Talga’s strategy is to commercialise these assets to provide funds for the graphite projects.

Gold

Talga owns multiple high grade gold projects located in the Yilgarn and Pilbara regions of Western Australia. Additionally the Company owns several copper-gold projects within its Sweden portfolio.

Fig 2. Talga Resources project locations in north Sweden.

==> picture [347 x 372] intentionally omitted <==

Competent Person’s Statement

The information in this report that relates to Exploration Results is based on information compiled and reviewed by Mr Darren Griggs and Mr Mark Thompson, who are members of the Australian Institute of Geoscientists . Mr Griggs and Mr Thompson are employees of the Company and have sufficient experience which is relevant to the activity to which is being undertaken to qualify as a "Competent Person" as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (“JORC Code”) . Mr Griggs and Mr Thompson consent to the inclusion in the report of the matters based on this information in the form and context in which it appears.

The information in this report that relates to Resource Estimation is based on information compiled and reviewed by Mr Simon Coxhell. Mr Coxhell is a consultant to the Company and a member of the Australian Institute of Mining and Metallurgy. Mr Coxhell has sufficient experience relevant to the styles of mineralisation and types of deposits which are covered in this document and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (“JORC Code”). Mr Coxhell consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

TALGA RESOURCES LTD ASX AND MEDIA RELEASE

PAGE 5

28 MARCH 2013

ASX: TLG

Fig 3. Plan map of central portion of Talga’s Raitajärvi graphite project showing drill holes completed to date in 2013.

==> picture [434 x 610] intentionally omitted <==

TALGA RESOURCES LTD ASX AND MEDIA RELEASE

PAGE 6

28 MARCH 2013

ASX: TLG

Appendix 1. Historic diamond drill sampling results at Raitajärvi, where interval grade >5%Cg and up to 5m internal waste permitted when compositing.

==> picture [460 x 604] intentionally omitted <==

----- Start of picture text -----

East North Collar RL EOH From To Interval Grade
Hole ID Azi Dip
(RT90) (RT90) (m) (m) (m) (m) (m) %Cg
AI91001 1826154 7392824 110 105 -50 71 46.50 47.70 1.20 8.3
AI91002 1826067 7392848 106 105 -50 81 33.00 34.50 1.50 12.9
69.95 74.60 4.65 8.5
AI91003 1826207 7393209 120 105 -50 69 14.05 15.15 1.10 9.3
22.85 55.80 32.95 10.6
63.55 65.45 1.90 8.9
AI91004 1826188 7393214 117 105 -50 61 25.65 52.95 27.30 10.6
AI91005 1826241 7393298 126 105 -50 93 45.45 48.20 2.75 7.5
59.50 68.00 8.50 8.2
AI91006 1826320 7393360 136 105 -50 84 45.00 46.80 1.80 5.7
54.80 57.40 2.60 6.8
AI91008 1826189 7393105 114 105 -50 77 10.70 12.80 2.10 8.2
13.60 14.95 1.35 5.4
32.60 58.00 25.40 8.2
AI91009 1826196 7393165 117 105 -50 83 8.55 47.35 38.80 8.0
60.80 64.15 3.35 7.3
AI92001 1826189 7393136 115 105 -45 57 10.00 15.35 5.35 7.9
23.00 49.00 26.00 7.3
51.00 52.90 1.90 5.5
55.00 56.85 1.85 6.0
AI92002 1826239 7393247 126 105 -45 55 6.25 9.15 2.90 15.3
15.85 44.70 28.85 14.2
AI92003 1826272 7393290 130 105 -45 45 8.55 10.50 1.95 6.4
12.20 21.30 9.10 5.9
AI92004 1826343 7393353 140 105 -45 45 20.25 21.50 1.25 5.0
AI92005 1826359 7393390 142 105 -45 53 19.40 20.40 1.00 5.6
AI92006 1826421 7393540 146 105 -45 36 14.30 19.15 4.85 9.6
AI92008 1826394 7393589 139 105 -45 53 27.00 30.85 3.85 5.5
AI92009 1826253 7393269 127 105 -45 51 16.65 19.15 2.50 13.5
37.00 42.20 5.20 9.4
AI92010 1826225 7393251 123 105 -45 67 16.75 19.05 2.30 11.3
42.65 44.00 1.35 13.5
50.35 61.80 11.45 14.1
AI92011 1826222 7393226 121 105 -45 52 11.40 45.80 34.40 9.9
47.70 49.20 1.50 5.9
----- End of picture text -----

Note. Historical diamond drill sampling conducted by Geological Survey of Sweden. Graphitic carbon assay by LECO detector.

TALGA RESOURCES LTD ASX AND MEDIA RELEASE

PAGE 7

28 MARCH 2013

ASX: TLG

Appendix 2. Diamond drill holes completed by Talga at Raitajärvi in 2013.

==> picture [425 x 247] intentionally omitted <==

----- Start of picture text -----

East North Azi EOH
Hole ID Collar RL (m) Dip
(RT90) (RT90) (RT90) (m)
RAI13001 1826205 7393000 114 105 -50 121
RAI13002 1826154 7393004 111 105 -50 142
RAI13003 1826199 7393047 115 105 -50 116
RAI13004 1826145 7393066 111 105 -50 163
RAI13005 1826271 7393192 128 105 -50 116
RAI13006 1826140 7393114 112 105 -50 140
RAI13007 1826208 7393208 120 105 -50 131
RAI13008 1826146 7393224 113 105 -50 195
RAI13009 1826198 7393133 115 105 -45 123
RAI13010 1826139 7393150 115 105 -50 157
RAI13011 1826197 7393165 117 105 -50 116
RAI13012 1826149 7393177 117 105 -50 161
RAI13013 1826240 7393248 126 105 -45 122
RAI13014 1826182 7393263 122 105 -45 193
RAI13015 1826258 7393277 130 105 -45 139
----- End of picture text -----

Appendix 3. Historic diamond drill sampling results at Önusträsket prospect, Piteå project.

==> picture [460 x 191] intentionally omitted <==

----- Start of picture text -----

East North EOH From To Interval Grade
Hole ID Azi Dip
(local grid) (local grid) (m) (m) (m) (m) %Cg
ÖNU89001 536 -1015 90 -50 138.3 24.1 26.05 1.95 3.2
27.9 29.20 1.3 8.4
42.35 44.70 2.35 7.1
45.75 47.95 2.20 3.3
48.65 52.80 4.15 2.7
ÖNU89002 207 -1041 90 -45 138.5 102.2 105.55 3.35 7.9
106.90 109.30 2.40 8.9
113.5 115.30 1.80 6.0
116.90 117.90 1.00 8.8
126.9 132.00 5.10 3.3
132.9 135.50 2.60 3.2
----- End of picture text -----

Note. Historical diamond drill sampling conducted by Geological Survey of Sweden. Graphitic carbon assay by LECO detector.

TALGA RESOURCES LTD ASX AND MEDIA RELEASE

PAGE 8