TALGA GROUP LTD — Regulatory Filings 2014

Feb 9, 2014

ASX & MEDIA RELEASE ASX: TLG

10 FEBRUARY 2014�

KEY SWEDISH COPPER-GOLD SYSTEM CONFIRMED IN NEW WORK BY TALGA

==> picture [71 x 45] intentionally omitted <==

~~TALGA~~ R E S O U R C E S

Talga Resources Limited (ASX:TLG) (“Talga” or “the Company”) is pleased to announce that a review of historic drill data from one of its Swedish mineral projects has confirmed a significant new copper-gold play in close proximity to Europe’s largest operating copper-gold mine, Aitik (2,760 Mt @ 0.17% Cu, 0.1g/t Au[(1)] ).

The key findings of the new work – which digitised then analysed historic drill records and assay data that was previously only in hard copy – revealed significant copper-gold grades over substantial widths at Talga’s Kiskama project in northern Sweden. This program represents the first substantial review of its 100%owned copper-gold assets in the Kiruna mining district since acquiring the Swedish assets of Teck Resources (“Teck”) 18 months ago.

Highlights include:

• Confirmation of potentially large Iron Oxide Copper-Gold (“IOCG ”) mineralisation system.

• Currently producing mines in the vicinity are profitable at very low grades.

• Historic diamond drilling focused on only 1km of strike; mineralisation is open in all directions.

• A further 7km of strike remains largely untested and forms a high priority target zone.

• Of the 13,836m drilled (101 holes) only 27% was assayed for copper and less than 2% for gold.

• Significant shallow, wide intercepts of copper-gold revealed including:

• Hole 80004: from 20m depth 42m at 0.49% Cu, 0.07g/t Au incl 10m at 1.23% Cu , 0.16g/t Au from 45m

• Hole 77001: from 16m depth 21m at 1.02% Cu , 0.25g/t Au incl 6m at 1.98% Cu , 0.54g/t Au from 16m

• - Hole 77007: from 34m depth 66m at 0.41% Cu incl 7m at 1.24% Cu from 92m

• Hole 72004: from 66m depth 40m at 0.68% Cu incl 5m at 1.07% Cu from 70m & 11m at 1.51% Cu from 94m

• Hole 78016: from 8m depth 16m at 0.36% Cu , 0.45g/t Au incl 6m at 0.75% Cu , 1.14g/t Au from 16m

• Hole 77006: from 31m depth 39m at 0.62% Cu , 0.22g/t Au

Talga Managing Director, Mr Mark Thompson:

“As a Company our primary development focus is our Swedish graphite deposits, however we were aware of the district’s high IOCG prospectivity and are pleased that these new findings confirm a substantial coppergold system at our wholly owned Kiskama project.

Additionally, Talga’s work has revealed high potential for a much larger copper-gold deposit than previously recognised. The proximity of the deposit to road and rail links to nearby mines offers potential synergies for development and we note recent moves by other companies to take land positions adjacent to Talga’s Kiskama tenement. We believe these results will open up myriad potential opportunities to commercialise value from this IOCG deposit and Talga’s entire north Sweden portfolio. Talga is now better informed to accurately pursue divestment or joint venture opportunities for the Kiskama project.”

Talga Resources Ltd

1st Floor, 2 Richardson St West Perth, Western Australia 6005 PO Box 720 West Perth Western Australia 6872

Directors:

Keith Coughlan, Non-Executive Chairman Mark Thompson, Managing Director Piers Lewis, Non-Executive Director

ASX Symbol: TLG

Telephone: +61 8 9481 6667 Email: admin@talgaresources.com ABN 32 138 405 419 www.talgaresources.com

ASX: TLG

10 FEBRUARY 2014�

Introduction and Background

Talga’s Kiskama copper-gold project is located in Sweden within the Fennoscandian Shield, a geological province that covers much of northern Scandinavia and western Russia. Kiskama is situated in the Kiruna mining district which hosts multiple large mining operations, including Boliden’s giant Aitik copper-gold mine (currently milling 36Mt ore per annum[(2)] ) located approximately 80km south from Kiskama (Fig 1).

Mineral deposits in this region can be highly profitable at what are considered very low grades elsewhere in the world. This is due to low power costs (hydro and nuclear) and favourable fiscal regimes combined with high quality established infrastructure. For example, the nearby Aitik open cut copper-gold mine, the largest in Europe, hosts resources of 2,760 Mt @ 0.17% Cu, 0.1g/t Au[(1)] . First Quantum’s Kevitsa mine (Finland) is another large open cut operation in the Fennoscandian Shield which currently mines a resource of 238Mt @ 0.41% Cu, 0.30% Ni and 0.12g/t Au[(3)] .

Despite this, Sweden remains relatively immature in terms of modern mineral exploration, in part due to private mineral ownership only being permitted since 1992. Exploration post-1992 was generally restricted to targeting and minor ground work, with little follow up drilling, due to the changing circumstances of the major companies involved (e.g. Phelps Fig 1 Kiskama project geology map showing Talga tenements (blue), transport Dodge was taken over by Freeport, infrastructure and selected mines, mills and deposits. Teck scaled back exploration in Europe due to the global financial crisis and Equinox changed focus to Africa). An exception was Anglo American whose persistence led to discovery of the giant Sakatti coppernickel deposit over the border in Finland in 2011.

Talga took 100% ownership of the Kiskama project in June 2012 as a result of the acquisition of a Teck subsidiary, leaving a sole 1% net smelter royalty due on future production.

While Talga has since focussed its efforts on drilling and developing the nearby graphite deposits, the Company has always considered the high potential of commercialising the copper-gold assets. This prompted the decision to digitise then fully analyse the copper-gold data.

Geology and Mineralisation

The Kiskama project is located in the Karesuando-Arjeplog deformation zone (“KADZ”), a giant structural feature that strikes through the Kiruna mining district and forms a major terrane and metamorphic gradient boundary which hosts s e v e r a l s i g n i fi c a n t m i n e r a l occurrences.

PAGE 2

ASX: TLG

10 FEBRUARY 2014�

Mineralisation at Kiskama comprises chalcopyrite-pyrite-magnetite-hematite as breccia infill in association with strong K-feldspar alteration, within an extensive zone of hydrothermally brecciated felsic to intermediate volcanics of the Porphyrite Group (~1.86Ga)[(4)] .

The mineralisation has been described as a shear-hosted iron-oxide copper-gold “IOCG” style deposit[(5)] . Iron oxide copper-gold deposits are highly prized as mineral deposits due to their often sizeable dimensions and shapes being conducive to large scale bulk mining. Nisbet et al.[(6)] noted that the extensive alteration systems at Svappavaara near Kiskama are comparable to the Cloncurry district (Australia) which hosts the Ernest Henry Cu-Au deposit (Fig 2). They considered that a major Cu-Au-Ag-U deposit remains to be discovered in the Kiskama-Kiruna region.

Fig 2 Comparison of Aitik , Ernest Henry and Kiskama mineralisation styles; source Teck internal report and Martinsson[(5)] .

==> picture [400 x 309] intentionally omitted <==

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

A B
C D
----- End of picture text -----

• A. Shear-hosted magnetite-chalcopyrite (pyrite) mineralisation from the Aitik deposit.

• B. Breccia-hosted magnetite-chalcopyrite-(pyrite) mineralisation from the Ernest Henry deposit.

• C. Breccia-hosted magnetite-hematite-sulphide mineralisation from the Kiskama deposit (view 4cm)[(5)] .

• D. Breccia-hosted magnetite-hematite-sulphide mineralisation from the Kiskama deposit (view 10cm)[(5)] .

Drilling

Talga has located and reviewed results from 101 historic drill holes (13,836m) at Kiskama. Diamond drilling was primarily carried out by the Swedish Geological Survey (“SGU”) episodically in the period 1972-80. Drilling focussed on a one kilometre long zone in the north of the tenement which defined three sulphidic lenses up to 40m wide and up to 180m vertical depth, that remain open in all directions. Sampling of the core was selective and only 27% was assayed for copper and less than 2% for gold . See Table 1 for a summary of significant copper-gold intercepts and see Fig 3-5 for plan map and sections.

Talga has procured and analysed modern geophysical data and identified a 10km long magnetic high associated with mineralisation. It is of note that one hole (78016), located 5.5km to the south of the main drilled area along this trend intercepted 16m @ 0.36% Cu and 0.45g/t Au including 6m @ 0.75% Cu , 1.14g/t Au , highlighting the prospectivity of this largely untested priority target.

PAGE 3

ASX: TLG

10 FEBRUARY 2014�

Fig 3 Kiskama drillhole location map with selected significant intercepts over greyscale aeromagnetic (TMI) image.

==> picture [500 x 555] intentionally omitted <==

Review and Next Steps

The intercepts to date are highly encouraging in the context of nearby mines, proximity to established transport solutions and geology/mineralisation styles. There is clear potential for other metals in the system to add economic credits e.g. iron in hematite/magnetite. Additionally the scope for defining new and higher grade copper-gold zones is considered high, both adjacent to the known deposit and within the 7km strike magnetic target zone.

Talga has confirmed drillcores from 95 of the 101 holes drilled are stored at the SGU’s facility in Malå. Further work on the historic drillcore should include systematic resampling for gold and copper as a cost effective way of advancing the deposit before considering new drilling to infill and extend mineralisation and test for

PAGE 4

ASX: TLG

10 FEBRUARY 2014�

resource potential. Considering Talga’s graphite focus, joint venture and divestment opportunities will be sought before dedicating further resources and funds towards Kiskama.

For further information, contact:

Mark Thompson

Managing Director Talga Resources Ltd

Tel +61 (08) 9481 6667 Email admin@talgaresources.com

References

1 Boliden Annual Report 2012 resource statement as of Dec 31st 2012

2 Boliden corporate website

3 First Quantum corporate website

4 Edfelt, Å., Eilu, P., Martinsson, O., Niiranen, T., Weihed, P., 2004 – The northern Fennoscandia IOCG-province, SGA News

5 Martinsson, O., 2011 – Kiskamavaara a shear hosted IOCG-style of Cu-Co-Au deposit in Northern Norrbotten, Sweden, 11th Biennial SGA meeting, Antofagasta, Chile

6 Nisbet, B., Cooke, J, Richards, M and Williams, C., 2000 – Exploration for Iron Oxide Copper Gold deposits in Zambia and Sweden: Comparison with the Australian Experience; in Porter, T.M. (Ed.), Hydrothermal Iron Oxide Copper-Gold & Related Deposits: A Global Perspective, Volume 1; PGC Publishing, Adelaide.

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 which is being undertaken to qualify as a "Competent Person" as defined in the 2012 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.

ABOUT TALGA RESOURCES LTD

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

Graphite

Talga wholly owns multiple advanced and high grade graphite projects in 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 Nunasvaara and Raitajärvi graphite deposits.

Iron

Talga owns multiple magnetite iron deposits located in the Kiruna mineral district of northern Sweden. The iron 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, which the Company is divesting to focus on the Swedish assets. Additionally the Company owns several copper-gold projects within its Sweden portfolio.

PAGE 5

ASX: TLG

10 FEBRUARY 2014�

Fig 4 Kiskama cross section 1

==> picture [500 x 622] intentionally omitted <==

PAGE 6

ASX: TLG

10 FEBRUARY 2014�

Fig 5 Kiskama cross section 2

==> picture [500 x 665] intentionally omitted <==

PAGE 7

ASX: TLG

10 FEBRUARY 2014�

Table 1 Kiskama historical drilling significant intercepts calculated where downhole length >10m and copper grade >0.3% Cu.

==> picture [502 x 579] intentionally omitted <==

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

EOH
Easting Northing From Cu Au
Hole ID RL Azi Dip Depth To (m) Interval (m) Significant Intercept
(RT90) (RT90) (m) (%) (g/t)
(m)
72001 1725290 7534040 357 292 -60 159.1 18.5 72.0 53.5 0.51 na 54m @ 0.51% Cu
including 20.6 28.8 8.1 1.24 na 8m @ 1.24% Cu
72004 1725216 7534070 361 112 -60 146.6 66.0 106.2 40.2 0.68 na 40m @ 0.68% Cu
including 69.8 75.1 5.3 1.07 na 5m @ 1.07% Cu
including 94.4 105.1 10.7 1.51 na 11m @ 1.51% Cu
72005 1725231 7534107 359 112 -60 146.0 62.5 87.5 25.0 0.56 na 25m @ 0.56% Cu
including 74.7 83.5 8.8 1.01 na 9m @ 1.01% Cu
72005 1725231 7534107 359 112 -60 146.0 102.3 113.7 11.4 0.90 na 11m @ 0.90% Cu
including 105.4 109.5 4.1 1.81 na 4m @ 1.81% Cu
72006 1725247 7534144 358 112 -60 157.0 28.7 46.0 17.4 0.33 na 17m @ 0.33% Cu
72006 1725247 7534144 358 112 -60 157.0 87.0 98.9 11.9 0.35 na 12m @ 0.35% Cu
72008 1725201 7534033 363 112 -60 208.0 87.2 113.3 26.1 0.47 na 26m @ 0.47% Cu
72009 1725309 7534335 359 112 -60 146.8 111.0 133.8 22.8 0.35 na 23m @ 0.35% Cu
72010 1725347 7534362 359 112 -60 140.7 86.4 99.1 12.7 0.58 na 13m @ 0.58% Cu
73002 1725292 7534255 358 112 -60 160.0 103.8 119.1 15.4 0.41 na 15m @ 0.41% Cu
73004 1725186 7533996 366 112 -60 156.0 81.6 109.2 27.6 0.31 na 28m @ 0.31% Cu
73005 1725179 7534085 362 112 -60 200.8 29.8 47.9 18.0 0.38 na 18m @ 0.38% Cu
73005 1725179 7534085 362 112 -60 200.8 132.4 150.3 17.9 0.60 na 18m @ 0.60% Cu
73006 1725194 7534122 361 112 -60 181.2 104.9 122.3 17.4 0.31 na 17m @ 0.31% Cu
74003 1725334 7534411 361 112 -60 188.2 113.3 126.4 13.1 0.45 na 13m @ 0.45% Cu
75001 1725377 7534436 361 112 -55 172.4 60.4 83.0 22.6 0.52 na 23m @ 0.52% Cu
including 60.4 63.2 2.8 1.77 na 3m @ 1.77% Cu
75002 1725408 7534510 366 112 -55 145.8 56.7 77.3 20.6 0.44 na 21m @ 0.44% Cu
75003 1725415 7534594 373 112 -55 223.5 98.6 163.3 64.7 0.33 na 65m @ 0.33% Cu
75005 1725975 7534840 426 112 -60 199.8 57.9 81.3 23.4 0.32 na 23m @ 0.32% Cu
including 67.6 70.5 2.9 1.14 na 3m @ 1.14% Cu
76007 1725272 7534350 361 112 -60 194.7 164.7 179.4 14.8 0.50 na 15m @ 0.50% Cu
including 170.5 173.9 3.3 1.00 na 3m @ 1.00% Cu
76008 1725336 7534453 363 112 -60 222.1 119.3 141.6 22.3 0.32 na 22m @ 0.32% Cu
76008 1725336 7534453 363 112 -60 222.1 174.6 198.2 23.5 0.43 na 24m @ 0.43% Cu
77001 1725445 7534495 364 112 -55 124.0 16.2 37.3 21.1 1.02 0.25 21m @ 1.02% Cu, 0.25g/t Au
including 16.2 22.6 6.5 1.98 0.54 6m @ 1.98% Cu, 0.54g/t Au
77001 1725445 7534495 364 112 -55 124.0 81.5 104.3 22.8 0.33 na 23m @ 0.33% Cu
including 96.8 99.7 2.9 1.01 na 3m @ 1.01% Cu
77006 1725482 7534480 364 112 -55 105.5 31.3 70.7 39.4 0.62 0.22 39m @ 0.62% Cu, 0.22g/t Au
77007 1725414 7534421 360 112 -55 127.1 34.4 100.0 65.7 0.41 na 66m @ 0.41% Cu
including 92.0 99.0 7.0 1.24 na 7m @ 1.24% Cu
----- End of picture text -----

*Incomplete and non-systematic assaying for gold for this interval. Where no gold assay was made a value of zero was assigned for grade compositing purposes. Inconsistencies in interval length may result from rounding. na = not assayed

PAGE 8

ASX: TLG

10 FEBRUARY 2014�

Table 1 (cont.) Kiskama historical drilling significant intercepts calculated where downhole length >10m and copper grade >0.3% Cu.

==> picture [502 x 459] intentionally omitted <==

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

EOH
Easting Northing From Cu Au
Hole ID RL Azi Dip Depth To (m) Interval (m) Significant Intercept
(RT90) (RT90) (m) (%) (g/t)
(m)
77013 1725548 7534799 403 112 -60 208.7 111.3 122.5 11.2 0.48 na 11m @ 0.48% Cu
77013 1725548 7534799 403 112 -60 208.7 142.7 156.8 14.2 0.33 na 14m @ 0.33% Cu
78004 1725548 7534669 386 112 -55 121.6 39.0 52.0 13.0 0.46 na 13m @ 0.46% Cu
78006 1725546 7534584 375 112 -55 121.6 11.5 22.0 10.5 0.37 na 11m @ 0.37% Cu
78016 1722807 7529092 382 112 -55 121.0 8.3 24.2 15.9 0.36 0.45 16m @ 0.36% Cu, 0.45g/t Au
including 15.8 22.0 6.2 0.75 1.14 6m @ 0.75% Cu, 1.14g/t Au
80004 1725239 7534061 360 112 -55 90.1 20.0 62.3 42.3 0.49 0.07 42m @ 0.49% Cu, 0.07g/t Au
including 45.0 55.3 10.3 1.23 0.16 10m @ 1.23% Cu, 0.16g/t Au
80005 1725258 7534053 359 112 -55 60.8 23.0 40.6 17.6 0.70 0.04 18m @ 0.70% Cu, 0.04g/t Au
including 23.0 27.0 4.0 1.45 0.10 4m @ 1.45% Cu, 0.10g/t Au
including 34.0 36.6 2.6 1.10 na 3m @ 1.10% Cu
80006 1725246 7534101 358 112 -55 102.5 37.4 51.3 14.0 1.11 na 14m @ 1.11% Cu
80006 1725246 7534101 358 112 -55 102.5 75.5 93.0 17.5 0.75 na 18m @ 0.75% Cu
including 77.8 84.5 6.7 1.21 na 7m @ 1.21% Cu
80007 1725274 7534133 357 112 -55 93.6 35.1 51.0 16.0 0.35 na 16m @ 0.35% Cu
80008 1725302 7534121 354 112 -55 56.0 9.6 32.0 22.4 0.76 na 22m @ 0.76% Cu
including 18.8 25.5 6.7 1.43 na 7m @ 1.43% Cu
80012 1725340 7534279 357 112 -55 90.4 54.3 67.0 12.7 0.38 na 13m @ 0.38% Cu
including 54.3 56.5 2.2 1.33 na 2m @ 1.33% Cu
80015 1725371 7534396 359 112 -55 98.5 60.5 86.5 26.0 0.58 na 26m @ 0.58% Cu
including 60.5 67.5 7.0 1.22 na 7m @ 1.22% Cu
80016 1725404 7534382 358 112 -55 70.5 29.8 51.5 21.7 0.51 na 22m @ 0.51% Cu
80017 1725451 7534406 358 112 -55 76.5 37.2 62.6 25.5 0.67 na 25m @ 0.67% Cu
including 55.0 61.0 6.0 1.80 na 6m @ 1.8% Cu
80018 1725466 7534443 361 112 -55 74.1 37.0 50.8 13.8 0.60 na 14m @ 0.60% Cu
80021 1725500 7534472 362 112 -55 50.1 14.2 46.7 32.5 0.47 na 33m @ 0.47% Cu
including 36.0 41.3 5.3 1.26 na 5m @ 1.26% Cu
80022 1725474 7534527 367 112 -55 120.7 74.0 88.5 14.5 0.33 na 15m @ 0.33% Cu
----- End of picture text -----

*Incomplete and non-systematic assaying for gold for this interval. Where no gold assay was made a value of zero was assigned for grade compositing purposes. Inconsistencies in interval length may result from rounding. na = not assayed

PAGE 9

JORC Code 2012 Edition

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

	Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	Sampling	•	Nature and quality of sampling (e.g. cut channels,	•	Historic drill core selectively sampled according to
	techniques		random chips, or specific specialised industry standard		observed mineralisation and alteration, with individual
			measurement tools appropriate to the minerals under		half core sample lengths ranging from 0.12m to 5.9m
			investigation, such as down hole gamma sondes, or		(average 1.5m).
			handheld XRF instruments, etc.). These examples	•	Assaying was conducted by the Swedish Geological
			should not be taken as limiting the broad meaning of		Survey’s (SGU) laboratories in Luleå and Stockholm,
			sampling.		Sweden. Samples were analysed for 21 elements via
		•	Include reference to measures taken to ensure sample		optical spectral analysis. Samples displaying elevated
			representivity and the appropriate calibration of any		concentrations of Cu, Co, Ni or Mo were re-analysed
			measurement tools or systems used.		using atomic absorption spectroscopy. No systematic
		•	Aspects of the determination of mineralisation that are		analysis for Au was undertaken, with <5% of all
			Material to the Public Report.		samples analysed for Au via fire assay.
		•	In cases where ‘industry standard’ work has been	•	Information regarding measures taken to ensure
			done this would be relatively simple (e.g. ‘reverse		sample representivity and the appropriate calibration
			circulation drilling was used to obtain 1 m samples		of any measurement tools or systems used was not
			from which 3 kg was pulverised to produce a 30 g		recorded during the drilling period 1972-1980.
			charge for fire assay’). In other cases more
			explanation may be required, such as where there is
			coarse gold that has inherent sampling problems.
			Unusual commodities or mineralisation types (e.g.
			submarine nodules) may warrant disclosure of detailed
			information.
	Drilling	•	Drill type (e.g. core, reverse circulation, open-hole	•	Historic holes were drilled using standard tube, wire-
	techniques		hammer, rotary air blast, auger, Bangka, sonic, etc.)		line, core drilling techniques, with 47mm diameter drill
			and details (e.g. core diameter, triple or standard tube,		holes producing 29mm drill core.
			depth of diamond tails, face-sampling bit or other type,	•	Drill core was not oriented.
			whether core is oriented and if so, by what method,
			_etc.). _
	Drill sample	•	Method of recording and assessing core and chip	•	No quantitative data on core recovery was recorded
	recovery		sample recoveries and results assessed.		during the drilling period 1972-1980 and thus it cannot
		•	Measures taken to maximise sample recovery and		be determined whether a relationship exists between
			ensure representative nature of the samples.		sample recovery and grade.
		•	Whether a relationship exists between sample
			recovery and grade and whether sample bias may
			have occurred due to preferential loss/gain of
			fine/coarse material.
	Logging	•	Whether core and chip samples have been	•	Qualitative geological logging was undertaken on all
			geologically and geotechnically logged to a level of		drilling, with descriptions of lithology, mineralisation
			detail to support appropriate Mineral Resource		and alteration recorded.
			estimation, mining studies and metallurgical studies.	•	No core photography was undertaken.
		•	Whether logging is qualitative or quantitative in nature.	•	No geotechnical logging was undertaken.
			Core (or costean, channel, etc.) photography.	•	All drill holes were logged from start to end of hole.
		•	The total length and percentage of the relevant
			intersections logged.
	Sub-sampling	•	If core, whether cut or sawn and whether quarter, half	•	Core was cut using a core saw, with half core taken for
	techniques		or all core taken.		assaying.
	and sample	•	If non-core, whether riffled, tube sampled, rotary split,	•	No information on sample preparation, quality control
	preparation		etc. and whether sampled wet or dry.		procedures or sample representivity was reported for
		•	For all sample types, the nature, quality and		the historic drilling period 1972-1980, although the
			appropriateness of the sample preparation technique.		SGU is reported to have practiced industry standard
		•	Quality control procedures adopted for all sub-		techniques.
			sampling stages to maximise representivity of	•	Sample sizes are considered appropriate to the grain
			samples.		size of the material being sampled.
		•	Measures taken to ensure that the sampling is
			representative of the in situ material collected,
			including for instance results for field duplicate/second-
			half sampling.
		•	Whether sample sizes are appropriate to the grain size
			of the material being sampled.
	Quality of	•	The nature, quality and appropriateness of the	•	Historically used methods are considered appropriate
	assay data		assaying and laboratory procedures used and whether		to the style of mineralisation. The techniques are
	and laboratory		the technique is considered partial or total.		considered total.
	tests	•	For geophysical tools, spectrometers, handheld XRF	•	No information is available regarding geophysical
			instruments, etc., the parameters used in determining		instruments used.
			the analysis including instrument make and model,	•	QA/QC procedures employed were not reported for
			reading times, calibrations factors applied and their		the drilling period 1972-1980, thus no comment can be
			derivation, etc.		made on accuracy and precision of historical assays.
		•	_Nature ofquality controlprocedures adopted(e.g. _

1

	Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
			standards, blanks, duplicates, external laboratory
			checks) and whether acceptable levels of accuracy
			(i.e. lack of bias) andprecision have been established.
	Verification of	•	The verification of significant intersections by either	•	No verification of significant intersections has been
	sampling and		independent or alternative company personnel.		undertaken.
	assaying	•	The use of twinned holes.	•	No holes have been twinned.
		•	Documentation of primary data, data entry procedures,	•	Historic data provided in comprehensive reports
			data verification, data storage (physical and electronic)		compiled by SGU has been digitised and is stored in a
			protocols.		validated Micromine database. Data has been visually
		•	Discuss any adjustment to assay data.		checked against historic reports for import errors.
				•	No adjustments to assay data have been made.
	Location of	•	Accuracy and quality of surveys used to locate drill	•	Drill hole collar locations were surveyed on local grids
	data points		holes (collar and down-hole surveys), trenches, mine		using industry standard techniques available in the
			workings and other locations used in Mineral Resource		1970s and 80s. The precision of drill hole locations on
			estimation.		the local grid are considered good, although further
		•	Specification of the grid system used.		work is required to confirm the accuracy of the grid
		•	Quality and adequacy of topographic control.		transformation employed to translate collar locations to
					real world coordinates.
				•	Three local grids were employed, with transformation
					to Swedish Grid RT90 (2.5 gon W) using parameters
					provided by SGU.
				•	Topographic data for all drill hole collar locations was
					generated manually using industry standard surveying
					techniques available in the 1970s and 80s and are
					considered accurate.
	Data spacing	•	Data spacing for reporting of Exploration Results.	•	At the Kiskama prospect (where most of the drilling
	and	•	Whether the data spacing and distribution is sufficient		occurred) holes were drilled on 40m and 80m spaced
	distribution		to establish the degree of geological and grade		sections, with 2-5 drill collars, spaced 40m-80m apart,
			continuity appropriate for the Mineral Resource and		on most sections. Spacing of exploration drilling at
			Ore Reserve estimation procedure(s) and		other prospects within the Kiskama nr 1 exploration
			classifications applied.		permit area is variable, with spacing between sections
		•	Whether sample compositing has been applied.		typically between 50-300m.
				•	Mineralisation and geology shows good continuity from
					hole to hole and section to section and it is considered
					that data spacing and distribution is adequate to
					support the estimation of a Mineral Resource at the
					Kiskama prospect. Verification of drill collar locations
					in the field and relogging/reassaying of holes is
					considered necessary to confirm historic results before
					undertaking resource estimation. 95 of the 101
					historical drill holes located on the Kiskama tenement
					are stored at the SGU’s core facility at Malå and are
					available for relogging and resampling.
				•	No sample compositing has occurred.
	Orientation of	•	Whether the orientation of sampling achieves	•	Drill holes were oriented to intersect mineralisation
	data in		unbiased sampling of possible structures and the		perpendicular to strike.
	relation to		extent to which this is known, considering the deposit	•	No sampling bias is believed to have been introduced.
	geological		type.
	structure	•	If the relationship between the drilling orientation and
			the orientation of key mineralised structures is
			considered to have introduced a sampling bias, this
			should be assessed and reported if material.
	Sample	•	The measures taken to ensure sample security.	•	Sample security measures are unknown as they were
	security				not recorded when the drilling took place in the period
					1972 to 1980.
	Audits or	•	The results of any audits or reviews of sampling	•	No review or audit of sampling techniques has been
	reviews		techniques and data.		undertaken.
				•	Data compilation was completed by external
					consultants and reviewed by Talga Resources staff.

Section 2 Reporting of Exploration Results

	Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	Mineral tenement	•	Type, reference name/number, location and	•	The Kiskama nr 1 exploration permit is located in
	and land tenure		ownership including agreements or material issues		Norrbotten County, north Sweden and is 100% owned
	status		with third parties such as joint ventures,		by Talga Resources. The permit is subject to a 1% net
			partnerships, overriding royalties, native title interests, historical sites, wilderness or national		smelter royalty (“NSR”) payable to Teck Resources. This permit is valid until 11 thFebruary 2015, with the
			park and environmental settings.		option to apply for a one, two or three year extension.
		•	The security of the tenure held at the time of	•	No impediments to operating on the permit are known
			reporting along with any known impediments to

2

	Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
			obtaining a licence to operate in the area.		to exist.
	Exploration done	•	Acknowledgment and appraisal of exploration by	•	The majority of exploration was conducted by the SGU
	by other parties		other parties.		between 1972 and 1980, including comprehensive
					geophysical ground surveys (magnetics, EM and IP),
					till geochemical surveys and diamond drilling.
				•	Anglo American drilled five diamond holes in the area
					in 1998-99. Assay and lithological data for these holes
					is not available.
	Geology	•	Deposit type, geological setting and style of	•	Kiskama is a shear hosted Cu-Co-Au IOCG deposit,
			mineralisation.		occurring within the Karesuando-Arjeplog deformation
					zone (KADZ), a major structural feature which hosts
					several other epigenetic sulphide occurrences within
					the northern Fennoscandian Shield. Bedrock geology
					of the area is dominated by Palaeoproterozoic
					volcanics of the Porphyrite Group and the Younger
					Svecofennian quartzite.
				•	Chalcopyrite-pyrite-magnetite-hematite mineralisation
					occurs as breccia infill in association with strong K-
					feldspar alteration within an extensive zone of
					hydrothermally brecciated andesitic host rock.
	Drill hole	•	A summary of all information material to the	•	A tabulation of all drill hole locations and assays has
	Information		understanding of the exploration results including a		not been provided due to the large quantity of
			tabulation of the following information for all		historical data. A total of 101 holes for 13836m were
			Material drill holes:		drilled historically with 2572 samples (3761m) taken
			o easting and northing of the drill hole collar		for assay. Material drill hole location data and
			o elevation or RL (Reduced Level – elevation		composited assay information is tabulated for all down
			above sea level in metres) of the drill hole		hole intervals greater than 10m, with a minimum grade
			collar		of 0.3% Cu. This is provided in the main body of the
			o dip and azimuth of the hole		report.
			o down hole length and interception depth
			o hole length.
		•	If the exclusion of this information is justified on the
			basis that the information is not Material and this
			exclusion does not detract from the understanding
			of the report, the Competent Person should clearly
			explain why this is the case.
	Data aggregation	•	In reporting Exploration Results, weighting	•	Reported best intercepts have been length weighted
	methods		averaging techniques, maximum and/or minimum		and represent all intervals greater than 10m down hole
			grade truncations (e.g. cutting of high grades) and		width with a grade greater than 0.3% Cu, with
			cut-off grades are usually Material and should be		maximum consecutive internal waste of 5m. No top
			stated.		cuts have been applied.
		•	Where aggregate intercepts incorporate short	•	“Including” intervals were calculated using a minimum
			lengths of high grade results and longer lengths of		width of 3m, minimum grade of 1% Cu or 1g/t Au with
			low grade results, the procedure used for such		no internal dilution.
			aggregation should be stated and some typical	•	No metal equivalent values have been reported.
			examples of such aggregations should be shown in
			detail.
		•	The assumptions used for any reporting of metal
			equivalent values should be clearly stated.
	Relationship	•	These relationships are particularly important in the	•	Drill holes were drilled with a dip of 55 0or 60 0, and
	between mineralisation widths and	•	reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be		oriented perpendicular to mineralisation strike. Mineralisation dip varies between 45 0to 85 0, but is typically 60 0-80 0.
	intercept lengths		reported.	•	Drill hole 72001 (the first hole to be drilled on the
		•	If it is not known and only the down hole lengths		project), was drilled sub parallel to mineralisation, i.e.
			are reported, there should be a clear statement to		perpendicular to mineralisation strike, but down dip
			this effect (e.g. ‘down hole length, true width not		through mineralisation.
			known’).	•	All assays are reported as down hole length, true width
					is not known. Martinsson (2011) reports mineralisation
					width to range between 15m and 40m.
	Diagrams	•	Appropriate maps and sections (with scales) and	•	Appropriate maps and sections are included in main
			tabulations of intercepts should be included for any		body of report
			significant discovery being reported These should
			include, but not be limited to a plan view of drill hole
			collar locations and appropriate sectional views.
	Balanced	•	Where comprehensive reporting of all Exploration	•	All intervals containing +0.3% Cu, with a minimum
	reporting		Results is not practicable, representative reporting		width of 10m have been reported.
			of both low and high grades and/or widths should
			be practiced to avoid misleading reporting of
			Exploration Results.
	Other substantive	•	Other exploration data, if meaningful and material,	•	Historical geophysical and geochemical surveying by
	exploration data		should be reported including (but not limited to):		the SGU identified a number of prospects within

3

	Criteria		JORC Code explanation	JORC Code explanation	Commentary	Commentary
				geological observations; geophysical survey		Talga’s exploration permit which are defined by IP, EM
				results; geochemical survey results; bulk samples –		and geochemical anomalies. Some drill testing of
				size and method of treatment; metallurgical test		these has occurred.
				results; bulk density, groundwater, geotechnical
				and rock characteristics; potential deleterious or
				contaminating substances.
	Further	work	•	The nature and scale of planned further work (e.g.	•	Future drilling is being considered to test potential
				tests for lateral extensions or depth extensions or		repetitions and strike extensions of the Kiskama
				large-scale step-out drilling).		mineralisation. Refer to maps in main body of report
			•	Diagrams clearly highlighting the areas of possible		for potential target areas.
				extensions, including the main geological
				interpretations and future drilling areas, provided
				this information is not commercially sensitive.

Remaining sections of Table 1 do not apply.

4