TALISMAN MINING LIMITED — AGM Information 2016

Nov 9, 2016

F o c u s e d A u s t r a l i a n m i n e r a l r e s o u r c e s c o m p a n y

Discovering & Developing Opportunities in Copper‐Gold and Nickel Annual General Meeting ‐ Presentation November 2016 ‐ Dan Madden, Managing Director

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Disclaimer and Competent Person’s Statements

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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.

This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of securities in any jurisdiction. This document is not a prospectus and does not contain all of the information which would be required to be disclosed in a prospectus. This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction.

This presentation does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek their own professional, legal, tax, business and/or financial advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. To the fullest extent permitted by law, Talisman Mining Ltd and its related bodies corporate, its directors, officers, employees and representatives (including its agents and advisers), disclaim all liability and take no responsibility for any part of this presentation, or for any errors in or omissions from this presentation arising out of negligence or otherwise and do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts, conclusions or other representations contained in this presentation. This presentation may include forward‐looking statements. These forward‐looking statements are not historical facts but rather are based on Talisman Mining Ltd.'s current expectations, estimates and assumptions about the industry in which Talisman Mining Ltd operates, and beliefs and assumptions regarding Talisman Mining Ltd.'s future performance. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “potential” and similar expressions are intended to identify forward‐looking statements. Forward‐looking statements are only predictions and are not guaranteed, and they are subject to known and unknown risks, uncertainties and assumptions, some of which are outside the control of Talisman Mining Ltd. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward‐looking statements or other forecast. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Talisman Mining Ltd does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.

Competent Person’s Statement

Information in this presentation that relates to Exploration Results and Exploration Targets as defined under the 2012 Edition of the “Australian Code for Reporting of Mineral Resources and Ore Reserves”, is based on information compiled by Mr Anthony Greenaway, who is a member of the Australasian Institute of Mining and Metallurgy. Mr Greenaway is a full‐time employee of Talisman Mining Ltd and has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Greenaway consents to the inclusion in this report of the matters based on information in the form and context in which it appears. (Please also see Appendix 1).

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Corporate Overview

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Capital Structure	Capital Structure
Shares on Issue 185.7M Unlisted Options 2.4M Market Capitalisation (38c) ~$70M Cash (30 Sept 2016) $17.9M
SubstantialShareholders
Kerry Harmanis 16.0% Hunter Hall 13.3%
Board
Jeremy Kirkwood(Non‐Exec. Chair) Daniel Madden(MD) Karen Gadsby(NED) Brian Dawes(NED) Alan Senior(NED)	Investment Banking, Corporate Strategy Financial and Resources background Finance, Commercial & Board Experience Operational Executive Resources Project Development

“Maximise value to shareholders through exploration, discovery and development of

complementary opportunities in base & precious metals”.

Experienced and diverse Executive Team and Board

Dan Madden ‐ Managing Director

• +15 years’ experience across base & precious metals from exploration to operations.

Tony Greenaway ‐ General Manager Geology

• +25 years' base & precious metal exploration experience from grass roots evaluation to advanced feasibility studies

Shaun Vokes – Chief Financial Officer & Company Secretary

• +25 years’ experience in senior commercial and financial roles from project evaluation to financing and metals marketing

Ben Wilson ‐ General Manager Project Development

• +20 years’ experience across multiple commodities from project evaluation to management of mining operations.

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Talisman Overview

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Advanced Opportunities in WA

30 % interest in Springfield Cu‐Au Joint Venture

• High grade Monty Deposit located 10km DeGrussa

• Monty Feasibility Study well advanced with potential decision to mine in first half of 2017

• Located in proven world‐class VMS province with multiple prospective corridors and active exploration activities

100% owned Sinclair Nickel Project

• Fertile mineralised environment with potential to host significant nickel deposits

• Recent results at Delphi North including 9m @ 4.2% Ni

• Extensive infrastructure including processing plant with potential fast‐track to production

• Multiple near‐mine & regional exploration opportunities

Philosophy and core beliefs

OWNERSHIP

• Behave and act as business owners

• Be accountable for our decisions and actions

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• What we say is what we do

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ENGAGEMENT

RELATIONSHIPS

• Develop mutually beneficial partnerships and opportunities

• Engage with stakeholders in meaningful and clear way

• Build strong commitment across our team and with stakeholders

• Cultivate beneficial two‐way communication

• Share our journey to create value for all stakeholders

• Collaborative approach to build solid relationships

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Springfield Copper‐Gold Project Growth through discovery and development in a proven world‐class VMS province

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Springfield Copper‐Gold Joint Venture

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Monty discovery provides tremendous confidence in exceptional exploration potential of Springfield Joint Venture ground

• 30% interest in joint venture with Sandfire Resources NL

• Located in eastern part of Bryah Basin

• High‐grade Monty Resource ‐ Feasibility Study on track for completion in Q1 2017 calendar year

• Proven world‐class VMS province

• Geological model ‐ deposits occur in clusters

• Multiple VMS horizons are key areas of exploration

• focus

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Monty Deposit – Beyond Discovery

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One of the highest grade copper deposits discovered globally in recent years

► Mineral Resource estimate

• High‐grade – 1.05Mt @ 9.4% Cu & 1.6g/t Au for 99kt Cu & 55kOz Au[1] contained

• Massive Sulphide Component ‐ 763kt @ 12.1% Cu & 2.1g/t Au[1]

• Bornite – ultra‐high grade, DSO potential‐intersections include 21.6m @ 34.4% Cu and 8.5m @ 41.8% Cu

► Feasibility Study underway

• On track for completion in first quarter of 2017

• Mining Lease application submitted to DMP

• Potential for development decision in first half of 2017 calendar year

• 1 Refer to Appendix 1

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Monty Deposit ‐ Upside Potential Remains

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• Limited drilling beyond currently defined resource envelope

• Potential for fault displaced extensions

• Deep diamond drill hole completed in Oct 2016 for DHEM platform to test for extensions of Monty Deposit SOUTH WEST

• ► Potential for resource growth from FAULT OFFSET? future grade control drilling OTHER

• EXTENSIONS?

• ► Bornite to be further understood MONTY DEEPS?

• 2 Refer to Appendix 1

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Springfield Exploration Potential – Multiple Prospective Horizons

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• VMS exploration model –deposits occur in clusters/camps

• Springfield Project hosts multiple prospective VMS corridors

• Monty

• Homer

• Central

• Southern Volcanics

• Staged and systematic exploration process adopted by Joint Venture

• AC drilling to delineate VMS host horizons

• RC drilling and DHEM surveys to target host horizons

• Follow up diamond drilling as required

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Exploration is an Iterative process

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Springfield Exploration Potential – Current and planned activities

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• Multi‐pronged exploration activities continue at Springfield Project

• Exploration primarily focused at Monty Region:

• DHEM surveys planned at Monty NE region and Monty Deeps

• Interpreted sediment horizon intersected at Monty fault offset position ‐further work planned

• Anomalous Cu mineralisation at Monty NE region, 5m @ 4.11% Cu – further work required

• AC and RC drilling at Monty South

• IP geophysical program over Monty deposit

• Activity outside Monty Region:

• First pass drilling at Homer East

• Systematic AC program at Southern Volcanics

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Much work remains to fully assess Springfield and Halloween’s potential

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Sinclair Nickel Project

Advanced opportunity in a proven nickel province

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Sinclair Nickel Project – Counter Cyclical Nickel Sulphide Opportunity

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• Located in world‐class Agnew‐Wiluna Greenstone belt (over

• 9Mt of reported nickel production)

• Historical Sinclair mine production (2008‐2013):

  • 1.58 Mt @ 2.44% Ni for 38,500t of contained Ni

• Sinclair Nickel Mine & infrastructure

  • Potential for low capital, fast track to production

• Multiple exploration opportunities

  • Delphi North Prospect –including 9m @ 4.2% Ni

  • Sinclair Trend – near mine ~8km strike ultramafic/basal contact with multiple target horizons

  • Regional Targets – over 80km strike of prospective ultramafic contact

Potential for discovery of new nickel sulphide mineralisation in close proximity to existing infrastructure

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Sinclair Nickel Project – The Year so Far…

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Pursuit of potential development opportunities based on the current known deposit and remnants in parallel with low‐cost, targeted exploration activities aimed at discovering new nickel sulphide deposits

• Regional targeting exercise completed early in Sept 2015

• Initial TLM exploration drill campaign in Oct 2015 intersected massive nickel sulphides at Delphi North prospect

• Second drill campaign at Delphi, Delphi North and Schmitz Well produces encouraging nickel sulphide intersections including

• 9m at 4.2% Ni and 4m at 4.8% Ni at Delphi North

• Follow up drilling at Delphi North now underway.

• Detailed remodelling of the Sinclair Trend (8km ultramafic basal contact in near mine environment) completed in June 2016.

• Multiple mineralised positions identified at Sinclair Trend with drill testing of selected shallow targets currently underway

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Delphi North

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• Potential Sinclair style target similar lithology, geochemical signature, structure & EM anomalies

• Shallow mineralisation

identified from recent RC drill program (Sept‐Oct) including 9m @ 4.20% Ni

• Deeper mineralisation identified in historic drilling and recent diamond drill hole.

• Nickel sulphide mineralisation over 700m strike

• DHEM surveys provided EM plates that assist with targeting

• Follow up diamond drill program now underway

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Sinclair Trend – Near Mine Opportunities

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• Refinement of the model for “Sinclair style” deposits included reinterpretation of historic drilling, lithology, geochemical signature, structure & supporting geophysical datasets.

• Remodeling of ultramafic/basal contact in near mine environment identified multiple mineralised positions;

  • Sinclair deposit remnants & extensions ,

  • Newly identified positions parallel to Sinclair

  • Skye and Stirling

  • Sinclair North and Parnassus

  • Delphi North and Delphi

• Cost efficient and focused program to test selected shallower targets

• underway F o c u s e d A u s t r a l i a n m i n e r a l r e s o u r c e s c o m p a n y

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A
B
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Sinclair Trend – Stirling

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• Parallel mineralised contacts close to Sinclair

• Limited coverage of mineralised position in existing drilling

• Potential to host significant thickness of massive and disseminated mineralisation in fold hinge structure

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Sinclair Trend – Stirling

• Folding and faulting has resulted in the structural repetition of the prospective basal contact

• Potential to host significant thickness of massive and disseminated mineralisation in fold hinge structure

• Untested DHEM plates in targeted position support interpretations

• Diamond drill hole to test interpreted position and form basis for ongoing future work

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Sinclair Trend – Eastern Contact

Fertile basal contact horizons identified parallel to Sinclair

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Planned Target
Area
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2.16m @ 2.12% Ni
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► Eastern Contact:

• Fertile ultramafic unit to east of Sinclair and proximal to decline

• Historic drilling at depth returned massive sulphide intersection of 2.16m @ 2.12% Ni

• Mineralised position effectively untested, notably in shallow environment

• Traverse of RC holes to test for potential of contact position to extend close to surface

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Planned
Target
Area
2.16m @ 2.12% NI
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Sinclair Trend ‐ Sinclair North and Parnassus

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Sinclair North

• Limited drilling up dip and to the north of the Sinclair deposit

• Historic, shallow RC drill holes (CWWS003) up dip of the main deposit intersected disseminated nickel sulphide mineralisation (2m @ 0.68% Ni).

• Potential for repeats of Sinclair‐style mineralised environments

• Series of RC drill holes planned to test the potential of the Sinclair ultramafic unit in the shallow environment.

Parnassus

• Historical drilling intersected an additional interpreted basal contact position together with narrow intervals of disseminated nickel sulphides.

• Two RC holes planned to test the interpreted basal contact position for the presence of high‐MgO ultramafic rocks and nickel sulphide mineralisation

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The Last Year and Looking Forward to Multiple Growth Opportunities

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► June 2015 – Massive sulphides intersected at Monty ► Mar 2016 – Monty Maiden Mineral Resource, feasibility study commences ► – Sept 2016 Exploration program at Sinclair commences ► Oct 2016 – Nickel mineralisation returned from drilling at Delphi North ► Nov 2016 – Follow up program at Sinclair including Delphi North and Sinclair Trend

Developing Opportunities Q4’16 Q1’17 Q2’17 Q3’17 Q4’17 Sinclair Exploration Phase 2 Sinclair Exploration Phase 3 Springfield Exploration Monty Feasibility Study Monty Development ? Assessment of New Opportunities F o c u s e d A u s t r a l i a n m i n e r a l r e s o u r c e s c o m p a n y 20

Looking Ahead – Building on a diversified Growth Platform

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VMS Copper / Gold (Doolgunna Copper‐Gold Projects)

• Highly leveraged to exploration success from active programs on joint venture ground

• Feasibility Study for the strategically important Monty Copper‐Gold Project well advanced

• Development decision expected in first half of 2017 calendar year

Nickel Sulphides (Sinclair Nickel Project)

• Nickel mineralisation identified at Delphi North 9m @ 4.20% Ni (131m down‐ hole)

• Follow up drilling at Delphi North and new nickel targets across near mine Sinclair Trend

• Potential for reduced capital intensity and fast‐tracked transition to production for any possible re‐start scenario at Sinclair

Other opportunities in base & precious metals under assessment

• Seeking quality opportunities to create value which are complementary to our assets, experience and expertise

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Discovering & Developing Opportunities in Copper‐Gold and Nickel Annual General Meeting ‐Presentation November 2016 ‐ Dan Madden, Managing Director

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Appendix 1

• [1] Information in this release that relates to the Monty JORC Mineral Resource estimate is information previously published by Sandfire Resources NL (“Sandfire”) and is available on the Sandfire and ASX websites (see announcement “Maiden High‐ Grade Mineral Resource for Monty VMS Deposit: 99,000t of Copper and 55,000oz of Gold”, dated 13 April 2016 (Sandfire Announcement)). For full details of the Monty Resource estimate, including the Competent Person’s Statement related to the estimation of the Monty Mineral Resource, please refer to the Sandfire Announcement.

• [2 ] Monty Vertical Long Projection – Explanatory Note. Pierce points depicted on vertical longitudinal projections are shown at what Talisman interprets to be the uppermost point of the drill hole intersection with the interpreted primary mineralisation lens and are projected horizontally onto the vertical plane. Where a drill hole has not intersected mineralisation (i.e. no significant results returned), a pierce point has been derived by Talisman where the hole is interpreted to have intersected the host horizon, and then horizontally onto the vertical plane.

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