TALISMAN MINING LIMITED — Capital/Financing Update 2007

Nov 6, 2007

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TALISMAN MINING LTD

PO Box 1262, Subiaco WA 6904 Tel: 61 8 9380 4230 / Fax: 61 8 9382 8200 www.talismanmining.com.au

7 November 2007

The Manager Company Announcements Office Australian Stock Exchange

By Electronic Lodgement

WONMUNNA PROJECT - INITIAL DRILLING RESULTS CONFIRM IRON ORE POTENTIAL

HIGHLIGHTS

• 36m @ 58.84% Fe (including 20m @ 61.41% Fe)

• 24m @ 59.73% Fe (including 8m @ 61.28% Fe)

• 40m @ 55.70% Fe

The Company is pleased to announce that results of first pass reconnaissance drilling of the Wonmunna project, Pilbara region, Western Australia, have confirmed the potential of this area to host significant iron ore mineralisation.

Results received to date are for the first 48 drillholes (1,745m) in 4 incomplete drill traverses along existing tracks (Figure 1). As a result of this ‘opportunistic’ siting of drillholes, this initial drilling is arbitrary and very wide spaced, and was intended only to confirm the presence and nature of iron ore mineralisation. An additional 50 drillholes are planned for completion of the program by the end of the calendar year. These initial results therefore represent approximately 50% of the initial reconnaissance drill program.

All available results are from 4 metre composites. Follow up assay at 1 metre intervals of mineralised sections is in progress.

Significant results are detailed in Table 1 below.

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Figure 1

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– Table 1: Wonmunna Project Initial Significant Drill Intercepts

Marra Mamba (>50% Fe)

Table 1: Wonmunna Project– Initial Significant Drill Intercepts	Table 1: Wonmunna Project– Initial Significant Drill Intercepts
Marra Mamba(>50% Fe)
Hole East North From To Intercept Grade (m) (m) (m) Fe %	Grade
	SiO2 % CaO % Mn % Al2O3 % TiO2 % MgO % P % S % K2O % LOI_ %
WNC061 710958 7441662 12 16 4 58.97	4.53 0.05 0.008 1.75 0.07 0.04 0.061 0.056 0.002 9.1 c
WNC062 710898 7441609 8 32 24 59.73 (including 8 16 8 61.28	3.42 0.05 0.010 2.30 0.18 0.06 0.065 0.059 0.002 8.7 c 2.66 0.05 0.015 2.09 0.13 0.07 0.061 0.062 0.002 7.35) c
WNC064 712347 7440703 20 28 8 57.49	6.18 0.16 0.001 3.04 0.09 0.16 0.059 0.066 0.006 8.5 c
WNC066 712325 7440921 12 16 4 51.72	9.23 0.05 0.001 6.51 0.36 0.09 0.026 0.076 0.01 9.8 c
WNC067 712342 7441001 12 48 36 58.84 (including 12 32 20 61.41	5.42 0.07 0.020 3.00 0.18 0.10 0.050 0.059 0.011 7.2 c 4.46 0.08 0.0152 1.87 0.09 0.10 0.0622 0.0608 0.009 5.5) c
WNC096 710165 7441136 44 48 4 58.95	2.67 <0.10 0.023 2.45 0.05 0.02 0.157 0.016 <0.003 9.3 c
WNC098 710116 7441398 8 48 40 55.70	5.46 0.24 0.017 4.14 0.41 0.14 0.06 0.022 0.010 9.0 c

CID (>40% Fe)

CID(>40% Fe)	CID(>40% Fe)
Hole East North From To Intercept (m) (m) (m)	Grade
	Fe % SiO2 % CaO % Mn % Al2O3 % TiO2 % MgO % P % S % K2O % LOI_ %
WNC056 707248 7439899 0 4 4	43.10 15.60 0.05 0.039 11.03 1.23 0.06 0.017 0.076 0.040 8.7 c
WNC057 707289 7439802 0 4 4	45.10 13.29 0.12 0.039 9.58 0.64 0.03 0.017 0.080 0.020 10.4 c
WNC058 707334 7439704 0 4 4	42.35 15.93 0.05 0.062 10.71 0.78 0.19 0.017 0.080 0.020 11.0 c
WNC059 707443 7439605 0 4 4	43.78 12.54 0.05 0.031 11.85 0.86 0.13 0.017 0.088 0.010 11.2 c
WNC060 710884 7441768 12 20 8	45.46 13.41 0.35 0.023 7.96 0.33 0.09 0.035 0.088 0.015 11.4 c
WNC061 710958 7441662 0 12 12 (including 8 12 4	50.40 10.91 0.15 0.011 6.33 0.25 0.35 0.042 0.095 0.007 10.4 c 55.95 7.09 0.05 0.008 3.26 0.07 0.21 0.052 0.068 0.002 10.0) c
WNC062 710898 7441609 4 8 4	57.90 5.51 0.05 0.015 3.98 0.16 0.15 0.044 0.072 0.002 7.5 c
WNC063 711043 7441526 0 4 4	42.54 17.56 0.05 0.008 14.64 0.81 0.48 0.017 0.052 0.050 4.4 c
WNC064 712347 7440703 12 20 8	48.04 11.975 0.39 0.001 7.91 0.33 0.27 0.052 0.080 0.006 10.4 c
WNC065 712326 7440803 8 12 4	46.78 11.78 0.05 0.001 9.69 0.47 0.19 0.048 0.088 0.002 10.5 c
WNC066 712325 7440921 0 12 12	45.86 13.59 0.07 0.008 9.73 0.7 0.09 0.020 0.065 0.047 10.5 c
WNC067 712342 7441001 0 12 12 (including 0 4 4	49.01 10.66 0.16 0.008 8.68 0.51 0.06 0.028 0.067 0.021 9.9 c 51.76 8.66 0.14 0.023 6.55 0.49 0.07 0.022 0.068 0.050 9.8) c
WNC069 712449 7441199 0 4 4	42.66 16.56 0.15 0.015 11.76 0.44 0.15 0.013 0.076 0.07 9.7 c
WNC070 712439 7441299 0 4 4	51.38 12.95 0.05 0.008 9.58 0.36 0.08 0.017 0.036 0.04 3.4 c
WNC078 727451 7440599 12 16 4	50.85 11.08 <0.10 0.015 7.07 0.20 0.02 0.052 0.056 0.05 8.9 c

c = 4m composite sample, to be split

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These initial results from the reconnaissance drilling program indicate strong hematite mineralisation in the Marra Mamba Iron Formation, up to 20m @ 61.41% iron, with acceptable levels of impurities including P, Al2O3 and SiO2. These grades are favourably comparable with those from adjacent iron ore mining operations at West Angeles, Area C and Hope Downs.

It is significant to note that the two best Marra Mamba intercepts, drillholes WNC062 and WNC067, are situated approximately 1,500m along strike from each other. The previously reported Poondano drillhole, TRC032 (Figure1) with a intercept of 22m @ 60.8% Fe, is situated a further 1,300m east of drillhole WNC067. Collectively, these three drill intercepts occur over a total strike length of 2,800m, remaining open to both east and west over a total potential strike length in excess of 5,500m.

Infill drilling to test for strike continuity between the mineralised intercepts is to commence immediately.

The southern and eastern Marra Mamba, each of potential strike lengths of 4,000m and 2,500m respectively, remain untested by drilling.

Channel Iron Deposit (CID) mineralisation has also been intersected, from surface, in several drillholes, often directly overlying mineralised Marra Mamba Iron Formation. Whilst generally thin, and of low grade, these initial drillholes appear to be in the less prospective ‘upstream’ portion of the CID.

It is of interest to note that the better CID intercepts directly overly Marra Mamba hematite mineralisation.

The Company remains of the opinion that the CID remains poorly tested by drilling and good potential remains for the identification of significant CID iron ore mineralisation.

In summary, these initial results confirm the strong iron ore potential of the project. The remainder of the reconnaissance drill program results will be released as they become available.

Yours sincerely

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S. J. Elliott Managing Director

Information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Steven Elliott who is a member of the Australasian Institute of Mining and Metallurgy. Mr Steven Elliott is a full time employee of Talisman Mining Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Steven Elliott consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

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