TALISMAN MINING LIMITED — Capital/Financing Update 2008

Jul 21, 2008

==> picture [68 x 68] intentionally omitted <==

TALISMAN MINING LTD

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

22 July, 2008

The Manager Company Announcements Office Australian Securities Exchange

By Electronic Lodgement

WONMUNNA IRON PROJECT - UPDATE

Highlights

• Final NMM resource drilling assay results received,

• Commencement of JORC resource calculations for NMM prospect,

• Commencement of NMM wide-diameter diamond drilling to obtain samples for ore characterisation,

• CMM prospect drilling continues to produce thick intercepts of iron mineralisation to 24m @ 62.12%Fe,

• Continuation of SMM and CMM drill evaluation.

NMM RESOURCE DRILLING

Assay results have been received for the final 3 reverse circulation drillholes completed as part of the program of gridded resource drilling at the NMM (North Marra Mamba) prospect, Wonmunna Project, East Pilbara Region, Western Australia. Significant (>50% Fe) drill intercepts are listed in Table 1 and drillhole locations are shown on Figure 1.

All of the NMM drilling data is in the process of being compiled and reconciled for use in the JORC-compliant ore resource calculations. This work remains on schedule for announcement of a maiden iron ore resource in late August, 2008.

Six wide-spaced PQ diamond drillholes are being completed at NMM to obtain representative samples for ore characterisation tests. This work will include density measurements (For use in the resource calculations) and tests of the basic metallurgical characteristics of the ore to use as a basis for future work.

080722_SJE_ASX_WonmunnaIronOreUpdate.doc

TALISMAN MINING LTD

PAGE 2

___________

==> picture [28 x 28] intentionally omitted <==

Table 1: Significant (>50% Fe) NMM Resource Drill Intercepts WNC448, 565-567

Hole	East	North	From(m)	To(m)	Width(m)	Fe %	**SiO2 % **	**Al2O3 % **	P %	S %	LOI %
WNC448	710900	7441610	12	44	32	58.02	5.00	2.28	0.09	0.01	9.1
	(including		16	20	4	61.56	2.85	1.71	0.09	0.01	7.3)
WNC565	709497	7441404	30	42	12	51.55	8.86	5.39	0.21	0.02	10.5
			48	52	4	53.27	8.47	3.95	0.12	0.02	10.2
WNC567	709096	7441848			no	significant	results (<50% Fe)

==> picture [496 x 41] intentionally omitted <==

==> picture [496 x 41] intentionally omitted <==

==> picture [496 x 41] intentionally omitted <==

==> picture [496 x 41] intentionally omitted <==

==> picture [496 x 42] intentionally omitted <==

Figure 1

CMM DRILLING

Assay results have been received for a further 5 reverse circulation drillholes completed as part of the program of reconnaissance drilling at the CMM (Central Marra Mamba) prospect, Wonmunna Project, East Pilbara Region, Western Australia. Significant (>50% Fe) drill intercepts are listed in Table 2 and drillhole locations are shown on Figure 2.

Further drilling, for use in subsequent resource calculations, is in the process of being completed on 200m x 50m centres over the entire prospect. It is currently anticipated that a maiden JORC resource for the CMM prospect will be available before the end of the 2008 calendar year.

Table 2: Significant (>50% Fe) CMM Resource Drill Intercepts WNC447, 452-456

Hole	East	North	From(m)	To(m)	Width(m)	Fe %	SiO % 2	Al2O % 3	P %	S %	LOI %
WNC447	704874	7438952	28	30	2	50.00	8.77	7.29	0.17	0.05	11.2
WNC452	705762	7439058	32	48	16	59.92	3.42	1.99	0.12	0.01	8.4
	(including		38	48	10	61.38	2.95	1.54	0.12	0.01	7.7)
WNC453	705846	7439112	38	56	18	59.52	4.46	2.65	0.11	0.02	7.6
	(including		42	44	2	63.14	2.53	2.05	0.08	0.02	5.3)
WNC454	705935	7439078	24	52	28	59.40	3.72	2.51	0.11	0.02	8.6
	(including		28	42	24	62.12	2.24	1.55	0.10	0.02	7.3)
WNC456	706088	7439105	18	34	16	55.09	5.69	4.35	0.08	0.04	10.3

080722_SJE_ASX_WonmunnaIronOreUpdate.doc

TALISMAN MINING LTD

PAGE 3

==> picture [28 x 28] intentionally omitted <==

==> picture [463 x 38] intentionally omitted <==

==> picture [463 x 39] intentionally omitted <==

==> picture [463 x 38] intentionally omitted <==

==> picture [463 x 39] intentionally omitted <==

==> picture [463 x 38] intentionally omitted <==

Figure 2

SMM DRILLING

Drill evaluation of the SMM (South Marra Mamba) prospect on 400m x 100m centres, closing to 200m x 50m centres, is ongoing. This drill data will subsequently be utilised for calculation of a maiden JORC resource, anticipated to be available before the close of the 2008 calendar year.

Yours sincerely

==> picture [145 x 68] intentionally omitted <==

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.

080722_SJE_ASX_WonmunnaIronOreUpdate.doc