TALISMAN MINING LIMITED - Capital/Financing Update 2009

Talisman Mining Ltd � ABN 71 079 536 495 6 Centro Avenue, Subiaco, WA 6008, Australia PO Box 1262, Subiaco, WA 6904, Australia Tel 618 9380 4230 � Fax 618 9382 8200

www.talismanmining.com.au

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TALISMAN MINING

Media / ASX Release 8 October 2009

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SPRINGFIELD COPPER-GOLD PROJECT – EXPLORATION UPDATE

SOIL SAMPLING CONFIRMS LARGE COPPER ANOMALY

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Talisman Mining Ltd (ASX: TLM ) is pleased to announce that initial results from the recently completed staged geochemical exploration program at its 100%-owned Springfield CopperGold Project in Western Australia have both confirmed and enhanced the previously reported historical copper geochemical results.

The program of detailed multi-element geochemical soil sampling was completed over a 3.5 kilometre strike length of the prospective Upper Narracoota Volcanic Formation, approximately 5 kilometres immediately along strike from the recently discovered DeGrussa and Conductor 1 Deposits, located on Sandfire Resources Ltd’s Doolgunna Project ( see Figure 2 ).

The results from the geochemical sampling program have:

Confirmed the geochemical anomalism identified in the historical (i.e. non-Talisman) datasets. Gold assays and a suite of VMS indicator elements provide strong support to the targeted copper anomalism; and
Defined a series of discrete copper anomalies over a strike length of 2.5 kilometres. The highest priority copper-gold anomaly is approximately 2 kilometres long and ranges from 200 metres to 400 metres in width.

Field checking has shown that this area of anomalism is more than likely terminated to the east by thin, recent alluvial sediments, which may mask the immediate surface expression of this anomalous horizon. The data suggests that the anomalism may ‘daylight’ again to the immediate east of the initial survey area.

A program of regional reconnaissance soil and lag sampling undertaken to provide a first-pass test of a further 10 kilometre strike of the prospective target Upper Narracoota Formation stratigraphy has also been completed ( see ASX Announcement of 31 August 2009 ).

The aim of this work was to quickly identify areas that require more detailed in-fill soil sampling. Results from this sampling are still pending.

The results of this recent preliminary exploration work at Springfield are considered highly encouraging. The results are largely consistent with the historical data and have provided a series of high priority, well-defined targets that will now be the subject of more detailed programs of follow-up exploration.

In addition to the physical exploration programs being undertaken by Talisman, an ongoing review of historical datasets to the immediate west has identified results that clearly indicate the presence of high-grade copper mineralisation as close as 2 kilometres to the Talisman tenement boundary. These historical results include rock chips assaying up to 35.6% Cu and historical drilling results at Red Bore of 7 metres @ 7.25% Cu .

These results support the concept of the Upper Narracoota Formation being a district trend for VMS mineralisation ( see Figure 2 ).

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Immediate work programs at the Springfield Project over the next three months will include, but may not be limited to, the following ( Figure 3 ):

Return and assessment of reconnaissance soil and lag results;
Completion of a surface moving loop electromagnetic survey covering the recently defined copper anomalies; and
Ongoing programs of new and infill geochemical sampling to define new targets for follow-up programs of geophysics and/or drilling.

BACKGROUND

The 100% owned Springfield Project is located approximately 150km north east of Meekatharra in the northern Murchison Goldfields, Western Australia (see Figure 1). The Project covers approximately 300 square kilometres of ground immediately adjacent to Sandfire Resources Limited’s Doolgunna Project, which hosts the recently discovered DeGrussa high-grade copper-gold volcanogenic massive sulphide (VMS) deposit.

Key features of the Springfield Project include:

Initial reconnaissance exploration by Talisman has identified the continuation of the same Upper Narracoota Volcanic Formation that hosts the DeGrussa Deposit for approximately 25 kilometres within the Springfield Project Area.
The Springfield Project tenement boundary is approximately 5 kilometres to the east of Sandfire’s DeGrussa discovery.
The typical nature of VMS Deposits is that they occur in “camps” of multiple deposits. This well understood geological concept opens up the Springfield Project as one of the most prospective exploration properties in Western Australia for the discovery of high grade copper-gold VMS Deposits.
The Springfield Project comprises three Exploration Licence Applications (ELA) pegged by Talisman as part of a strategy targeting prospective formations within the Peak Hill District for gold and copper mineralisation.
Historical open file soil geochemical data has identified a robust, highly anomalous copper response (with some supporting gold) immediately along strike of the DeGrussa discovery. In addition, a series of copper anomalies that require detailed programs of follow-up exploration have been identified throughout the wider Springfield Project area.

Competent Persons’ Statement

Information in this ASX release that relates to Exploration Results is based on information compiled by Mr Harry Cornelius, who is a member of the Australasian Institute of Mining and Metallurgy. Mr Harry Cornelius 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 2004 Edition of the “Australian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Harry Cornelius consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

- ENDS -

For further information, please contact:

Gary Lethridge – Managing Director

or Peter Langworthy – Technical Director on +61 8 9380 4230

For media inquiries, please contact:

Nicholas Read – Read Corporate on +61 419 929 046

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Figure (1) – Springfield Project Location Plan

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Figure (2) – Copper Geochemistry Image

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