TALISMAN MINING LIMITED — Capital/Financing Update 2012

Feb 28, 2012

V

Talisman Identifies 18 Tier-One Targets at Springfield Cu-Au Project

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Marks transition from reconnaissance to targeted exploration

Highlights:

• $13M invested over two years allowing detailed project datasets to be assembled

• A systematic and fully integrated exploration targeting approach has defined key controls on potential VMS mineralisation

• 3D litho-structural geological model developed

• 10,000 metre targeted RC and Diamond drilling program planned to commence in second half of March

Talisman Mining Limited (ASX: TLM) is pleased to announce that it is set to embark on a targeted drilling program at its flagship Springfield Copper-Gold Project in Western Australia ( Appendix 1 ), which is located 4km from Sandfire Resource’s DeGrussa Copper-Gold Project.

The drill program is scheduled to commence in the second half of March and has been designed to test 18 newly identified Tier-One copper-gold exploration targets.

The program will comprise approximately 10,000 metres of combined diamond and RC drilling, with scope to extend this further dependent upon geological information obtained in the field and ongoing assay results.

Targeting Process

Talisman has adopted a systematic approach to exploration at Springfield which has involved an investment of $13 million over the past two years in extensive reconnaissance exploration activities, resulting in the compilation of a comprehensive and regionally unique project database.

Over the past three months, Talisman has undertaken a detailed and integrated review of the data to identify key stratigraphic horizons, primary structural controls and geochemical vectors to mineralisation.

This work has included:

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• geological re-interpretation through re-logging of all drill holes, plus geochemical and geophysical characterisation of key host rock units;

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

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• structural edge detection and the use of geophysical complexity filters identify primary structural controls on mineralisation (pathway / focus) ; and

• identification of alteration indices and metal distribution, plus re-processing of electromagnetics to identify likely traps for accumulations of sulphide mineralisation.

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Figure 1 – Geological interpretation showing 18 tier-one targets within the Springfield Project

This fully integrated methodology has led to the development of a 3D geological model ( Figure 2 ) for the Springfield Project from which 18 Tier-One target areas ( Figure 1 ) containing all of the four key elements required for the potential formation of a VMS copper gold deposit have been identified.

These 18 target areas will be systematically drill tested over the coming months. The Company also plans to undertake down-hole electromagnetic surveys at all holes.

Abraham Trend

This structural and geological interpretation work has also led to an enhanced understanding of the southern portion of the Springfield Project, particularly the Abraham Trend.

The development of the 3D geological model has resulted in Talisman undertaking an extensive soil sampling program (~5,000 samples) during February across the Abraham Trend in order to identify and refine areas of anomalous copper and gold soil geochemistry with a view to defining future drill targets.

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Central Trend
Homer Trend
Monty Trend
Abraham Trend
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Figure 2 – 3D model looking East showing areas within the Springfield Project with a geological and structural setting similar to the DeGrussa Cu-Au mine

Comment

Talisman Managing Director, Gary Lethridge, said the Company had identified these initial 18 targets at Springfield as a result of its commitment to investing heavily in reconnaissance exploration activities to assemble a series of extensive key datasets.

“By utilising state-of-the-art geo-scientific techniques, these extensive datasets have enabled us to develop a comprehensive 3D geological model for Springfield.

“This interpretative model is, we believe, the key to giving Talisman the best possible chance of making a new copper-gold discovery at Springfield. We have always been clear that this is our primary objective and this recent work takes us a step closer to achieving that objective.”

Ends

For further information, please contact: Gary Lethridge – Managing Director on +61 8 9380 4230

For media inquiries, please contact: Nicholas Read – Read Corporate on +61 419 929 046

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Competent Persons’ Statement

Information in this ASX release that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Graeme Cameron, who is a member of the Australasian Institute of Mining and Metallurgy. Mr Graeme Cameron 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 Graeme Cameron consents to the inclusion in this report of the matters based on information in the form and context in which it appear.

Appendix 1 - Talisman Mining Ltd Project locations

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