TALISMAN MINING LIMITED — Capital/Financing Update 2010

Apr 22, 2010

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Talisman Mining - Drilling Update: Springfield Project
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Media / ASX Release

23 April 2010

DRILLING UPDATE – SPRINGFIELD PROJECT

Initial Reconnaissance Drilling at Homer Confirms Presence of Multiple Stratigraphic Horizons with Strong VMS Potential

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Key Points:

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• 33 Reverse Circulation (RC) drill holes for 3,178 metres completed to date at the priority Homer Prospect

• Wide-spaced reconnaissance drilling in two drill traverses spaced 1.1km apart

• Drilling has identified extensive multiple stratigraphic horizons within the prospective Narracoota Volcanics with the potential to host volcanogenic massive sulphide (VMS) deposits

• Several holes selected to undertake down-hole electromagnetic (DHEM) surveys

• Third traverse of drilling now underway at Homer ahead of first-pass reconnaissance drill testing at the Abraham , Skinner and Monty geochemical anomalies

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Talisman Mining Ltd (ASX: TLM ) is pleased to provide an update on the recently commenced reconnaissance drilling program at its 100%-owned Springfield Copper-Gold Project , located 150km north-east of Meekatharra in Western Australia ( see Figure 1 ).

The Springfield Project contains approximately a 25km strike length of the prospective Narracoota Volcanic Formation that hosts the DeGrussa VMS Copper-Gold Project (Sandfire Resources), where a maiden JORC compliant Indicated and Inferred Resource of 7.13Mt @ 5.2% copper and 1.9g/t gold has been announced.

Homer Prospect – Reconnaissance Drilling

Talisman has advanced its initial reconnaissance drilling program at the priority Homer Prospect which lies 5 km east, directly along strike from the DeGrussa VMS Copper-Gold Project. The geology of the Homer Prospect is interpreted to contain the same volcanic formation that hosts the three existing lenses of copper-gold mineralization at DeGrussa.

The aim of this drilling is to test for VMS-related base metal mineralization, provide important bedrock information, test a number of electromagnetic targets, and provide a platform in selected holes to conduct down-hole electromagnetic surveys (DHEM).

Talisman Mining Ltd ABN 71 079 536 495 6 Centro Avenue, Subiaco Western Australia 6008 www.talismanmining.com.au

Talisman Mining - Drilling Update: Springfield Project

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The reconnaissance drill program at the Homer Prospect has advanced with the completion of two wide spaced Reverse Circulation (RC) drill traverses. To date 33 holes for 3,178 metres have been completed on two sections spaced 1.1 km apart ( see Figure 2 ).

Samples from these first two drill traverses have been dispatched for analysis and assay results are awaited. Although no obvious copper-gold mineralization has been intersected in the drilling to date, the information derived from this drilling is considered highly encouraging and has provided critical geological information that will assist with the ongoing targeting of Talisman’s active exploration program across the whole Springfield Project.

In summary, drilling to date has:

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• successfully identified extensive, multiple stratigraphic horizons within the prospective Narracoota Volcanics with the potential to host VMS deposits. The multiple contacts increase the amount of prospective stratigraphy to be explored within this area of the Homer Prospect (see Figure 2);

• established that the volcanic rock succession is relatively flat lying indicating that substantial areas of the prospective contacts are relatively close to surface in this position (see Figure 3);

• encouragingly, identified some evidence of fragmental volcanic rocks, interflow cherts and some alteration (including minor disseminated sulphides) that may provide vectors towards identifying a VMS mineralized position;

• provided a series of platforms for down-hole electromagnetic (“DHEM”) surveys to be undertaken. These surveys are planned to be carried out over the next month to potentially assist in follow up drill targeting; and

• generated bedrock samples for geochemical analysis (with results awaited).

These initial results provide a greatly enhanced understanding of the prospective geology within the Homer Prospect and the distribution of the prospective volcanic contact over a strike length of more than 1km.

On the basis of these results, a third traverse of drilling has been planned to immediately test the Narracoota volcanic sequence a further 800 metres to the east of the recently completed drilling ( see Figure 2 ). It is important to note that following the completion of this additional drill traverse, only the first 2km of the broader Homer Prospect geochemical anomaly will have been tested by reconnaissance drilling.

The results to date support the geological concepts developed by Talisman for the Springfield Project and provide a strong base to continue drill testing at the Homer Prospect and the other high priority geochemical targets already identified.

Springfield Project Forward Program

In addition to the current program of reconnaissance drilling at the Homer Prospect the following exploration activities have commenced or are planned:

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• first-pass drilling of the Abraham, Skinner and Monty geochemical anomalies is scheduled to commence immediately following completion of the third traverse of reconnaissance drilling at the Homer Prospect ;

• the program of geochemical soil sampling across the Springfield project, aimed at upgrading and/or identifying new geochemical anomalies is nearing completion. Processing of this information and assessment of results is likely to result in the identification of new drill targets;

Talisman Mining Ltd ABN 71 079 536 495 6 Centro Avenue, Subiaco Western Australia 6008 www.talismanmining.com.au

Talisman Mining - Drilling Update: Springfield Project

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• additional ground based EM surveys are planned to extend the coverage further to the north at the Homer Prospect and to undertake first pass assessments at a number of other targets across the Springfield Project; and

• initiation of an ultra-detailed airborne magnetic survey across the entire Springfield Project.

Combined with the reconnaissance RC drilling program currently underway at the Homer Prospect, these exploration activities are establishing the foundations for a quality, comprehensive and ongoing exploration assessment of the entire Springfield Project for high grade copper-gold VMS deposits.

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.

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For further information, please contact: For media inquiries, please contact: Gary Lethridge – Managing Director Nicholas Read – Read Corporate or On +61 419 929 046 Peter Langworthy – Technical Director on +61 8 9380 4230

Talisman Mining Ltd ABN 71 079 536 495 6 Centro Avenue, Subiaco Western Australia 6008 www.talismanmining.com.au

Talisman Mining - Drilling Update: Springfield Project

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Figure 1: Springfield Location Plan

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Figure 1: Location plan of Talisman’s Springfield Copper/Gold Proje
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Talisman Mining Ltd ABN 71 079 536 495 6 Centro Avenue, Subiaco Western Australia 6008 www.talismanmining.com.au

Talisman Mining - Drilling Update: Springfield Project

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Figure 2: Springfield Drilling Collar Map – Homer Prospect – First two Drill Traverses

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Talisman Mining Ltd ABN 71 079 536 495 6 Centro Avenue, Subiaco Western Australia 6008 www.talismanmining.com.au

Talisman Mining - Drilling Update: Springfield Project

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Figure 3: Homer Prospect – Cross Sections of the Two Reconnaissance Drill Traverses

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Talisman Mining Ltd ABN 71 079 536 495

6 Centro Avenue, Subiaco Western Australia 6008 www.talismanmining.com.au