TALISMAN MINING LIMITED — Capital/Financing Update 2016

Sep 21, 2016

ASX Media Release – 22 September 2016

Sinclair Nickel Project Drilling Update

Massive sulphides intersected in multiple RC drill holes at Delphi North Prospect

Highlights

• Phase one of Reverse Circulation (RC) drilling completed at Delphi North:

• Zones of massive and stringer nickel sulphide mineralisation ( pyrrhotite & pentlandite ), encountered in four out of seven RC holes

Board of Directors

Jeremy Kirkwood Non-Executive Chairman

Dan Madden Managing Director

Alan Senior Non-Executive Director

Brian Dawes Non-Executive Director

Karen Gadsby Non-Executive Director

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Contact Details

Telephone: +61 8 9380 4230

Email: info@talismanmining.com.au

Website: www.talismanmining.com.au

Capital Structure

Shares on Issue: 185,699,879 (TLM)

Options on Issue: 5,650,000 (Unlisted)

• Program intersected massive sulphide mineralisation in intervals up to 8m (down hole)

• All samples have been sent for immediate analysis – results pending (expected by mid-October 2016)

• First of three planned Diamond holes in progress at Delphi:

• First hole at Delphi North testing two stacked Down-Hole Electromagnetic (DHEM) conductors that are coincident with existing massive nickel sulphide mineralisation

• Hole currently at ~350m[1] depth with estimated target depth of 430m

• RC drilling rig mobilised to Schmitz Well South for maiden drill program

• Diamond and RC drill rigs planned to return to Delphi North immediately after completion of current drill programs to follow up latest massive sulphide intersections

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Figure 1: RC drilling at Delphi North

1 Drilling depth current as at end of drilling day 21 September 2016

TALISMAN MINING LIMITED ABN 7109 536 495

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

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Overview

The 100% owned Sinclair Nickel Project is located in the world-class Agnew-Wiluna Greenstone Belt in WA’s North-eastern Goldfields (Appendix 1). The Sinclair nickel deposit, developed and commissioned in 2008 and operated successfully before being placed on care and maintenance in August 2013, produced approximately 38,500 tonnes of nickel at an average life-of-mine head grade of 2.44% Ni. Sinclair has extensive infrastructure and includes a substantial 290km[2] tenement package covering more than 80km strike of prospective ultramafic contact within a 35km radius of the existing processing plant and infrastructure.

Talisman Mining Limited (ASX: TLM , “ Talisman ”) is pleased to advise that the first phase of the current RC exploration drilling campaign at Delphi North is now complete with zones of massive sulphide mineralisation identified in 4 RC drill holes ( Figures 2 & 3 ). The RC drill rig has now mobilised south to the Schmitz Well Prospect ( Figure 4 ), to commence the first ground disturbing work undertaken in this area. Diamond drilling is also underway at Delphi North.

Delphi Prospect

Delphi North

A total of seven RC drill holes for 1,234 metres of drilling have been undertaken at Delphi North, a targeted corridor located within the Delphi Prospect ( Figure 2 & Table 1) . Both single metre and 3 metre composite samples have been collected for all drilling completed and a total of 427 samples have been dispatched to Perth for analysis.

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Figure 2: Delphi North drill collar location plan.

TALISMAN MINING LIMITED ABN 7109 536 495

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

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The fences of RC drill holes were designed to test a shallower area up dip of the previously reported massive sulphide mineralisation intersected in hole DED009 ( Figure 3 ). Moderate zones of massive and stringer nickel sulphide mineralisation ( pyrrhotite and pentlandite ) have been visually identified by on-site geologists in four of the seven holes completed to date. Pyrrhotite and pentlandite are sulphide minerals associated with komatiite nickel mineralisation which is the style of mineralisation found at the Sinclair Project. Intersections of massive sulphides logged in drill cuttings range from 1m to 8m (down hole). The holes with identified massive sulphide mineralisation are SNRC009, SNRC010, SNRC012 and SNRC019 ( Figures 2 and 3 & Table 1) . Samples have been dispatched for priority analysis.

Talisman is highly encouraged by these intersections which provide proof of concept for the current geological interpretation at Delphi North ( Figure 3 ). Talisman identified Delphi North as having a strong correlation to the Sinclair Mine geological environment based on a number of criteria including the tenor of existing nickel sulphide intersections, ultramafic rock characteristics, structural geology and DHEM conductors.

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Figure 3: Delphi North long projection showing new and existing Ni massive sulphide intersections, newly modelled and historic DHEM conductors and an interpreted target corridor.

Diamond drilling of the first of three planned drill holes at Delphi is currently underway at Delphi North with SND006 ( Figure 3 ) currently at a depth of ~350m. Drill hole SND006 will test two stacked DHEM conductors that are coincident with massive nickel sulphide mineralisation encountered in hole SND001. SND006 is targeting an area approximately 50m from the initial sulphide intersection in SND001 and will be completed to a target depth of 430m.

The EM conductors have been modelled with an in-hole component and extending some distance below SND001. This is consistent with Talisman's current interpretation that the intersection of nickel sulphides in SND001 may represent a proximal stratigraphic position, similar to the Sinclair Mine host position.

TALISMAN MINING LIMITED ABN 7109 536 495

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

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Other Targets at Delphi Prospect

Once hole SND006 is completed, the diamond drill rig will commence the first of two diamond drill tails on historic RC holes SNRC002 and SNRC004 to target untested, previously identified, stratigraphic and Moving Loop Electromagnetic (MLEM) conductors. These holes are located to the south of the main Delphi North Prospect ( Figure 4 ), and are offset from the main ultramafic trend. Geological mapping and previous drilling indicates a thickening of the ultramafic host package in this area, which together with the MLEM anomalies presents a compelling stratigraphic target.

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Historic Drill Collar
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Figure 4: Delphi Prospect Geological Plan showing planned diamond tails and historic drill collars

TALISMAN MINING LIMITED ABN 7109 536 495

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

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Schmitz Well South Prospect

Following completion of the initial planned RC drilling at Delphi North, the RC rig has now moved to Schmitz Well South ( Figure 5 and Appendix 1) to target an untested, interpreted ultramafic unit. This target was identified from recent work undertaken by Talisman involving the review and assessment of the regional targeting work undertaken in late 2015.

Talisman has secured a grant from the Western Australian Department of Mines for the co-funding of this exploration drilling of up to $55,000 ($110,000 total drill cost split 50/50).

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Figure 5: Plan view of Schmitz Well South showing magnetics, interpreted ultramafic unit under cover and planned RC drill holes (SNRC013, SNRC014, SNRC015 and SNRC016).

Additional planned activity

Review and analysis of the recent drilling at Delphi North is being conducted in conjunction with the assaying of samples from all seven RC holes completed in the latest program. It is anticipated this work will lead to a resumption of drilling on the targeted corridor at Delhi North at the earliest opportunity. This anticipated drilling will take place immediately following completion of the planned RC drilling at Schmitz Well South.

TALISMAN MINING LIMITED ABN 7109 536 495

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

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In addition to the three original diamond drill holes planned and noted above, Talisman will complete further diamond tails at Delphi North to deepen RC drill holes drilled in the current campaign that were terminated early due to groundwater inflow affecting drilling conditions before they reached their planned target depths. These holes include SNRC018 and SNRC011.

Future work will be dependent on interpretation and analysis of results for activities completed to date and the results of drilling currently in progress, or to commence shortly, at the Delphi and Schmitz Well South Prospects. This work is likely to include DHEM surveys of selected drill holes as interpretation and analysis of current results is completed.

ENDS

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

For media inquiries, please contact: Michael Vaughan – Fivemark Partners on +61 422 602 720

Competent Person’s Statement

Information in this ASX release that relates to Exploration Results and Exploration Targets is based on information completed by Mr Anthony Greenaway, who is a member of the Australasian Institute of Mining and Metallurgy. Mr Greenaway is a full time employee of Talisman Mining Ltd and has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Greenaway consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

Forward-Looking Statements

This ASX release may include forward-looking statements. These forward-looking statements are not historical facts but rather are based on Talisman Mining Ltd.’s current expectations, estimates and assumptions about the industry in which Talisman Mining Ltd operates, and beliefs and assumptions regarding Talisman Mining Ltd.’s future performance. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “potential” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are only predictions and are not guaranteed, and they are subject to known and unknown risks, uncertainties and assumptions, some of which are outside the control of Talisman Mining Ltd. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward-looking statements. Any forward-looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Talisman Mining Ltd does not undertake any obligation to update or revise any information or any of the forward looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward-looking statement is based.

TALISMAN MINING LIMITED ABN 7109 536 495

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

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Table 1 – Drill-hole Information Summary, Sinclair Project

Details and co-ordinates of drill-hole collars for diamond and RC/ diamond completed to date at Sinclair Project

Details and co-or Project	Details and co-or Project	dinates	of drill-h	ole collar	s for diamo	nd an	d RC/ dia	mond c	ompleted to	date at Sinclair
Hole ID Grid ID		Dip	Azimuth	East (m)	North (m)	RL (m)	Hole **Type **	Max Depth	Hole Status	Comments
Diamond Drilling
SND006	MGA94_51	-620	2650	290,317	6,856,243	412	RC/DDH	-	In progress	Current Depth ~350m (21/09/2016)
RC Drilling
SNRC009	MGA94_51	-600	2650	290,026	6,855,679	412	RC	136	Complete	Massive Sulphide Mineralisation
SNRC010	MGA94_51	-620	2650	290,056	6,855,684	412	RC	244	Complete	Massive Sulphide Mineralisation
SNRC011	MGA94_51	-620	2610	290,106	6,855,679	412	RC	184	Complete	Hole terminated due to excessive water
SNRC012	MGA94_51	-660	2700	290,031	6,855,719	412	RC	172	Complete	Massive Sulphide Mineralisation
SNRC017	MGA94_51	-630	2650	290,321	6,856,239	412	RC	94	Complete	Hole terminated due to excessive deviation
SNRC018	MGA94_51	-610	2700	290,066	6,855,679	412	RC	122	Complete	Hole terminated due to excessive water
SNRC019	MGA94_51	-620	2680	290,066	6,855,719	412	RC	188	Complete	Massive Sulphide Mineralisation

TALISMAN MINING LIMITED ABN 7109 536 495 6 Centro Avenue, Subiaco, Western Australia 6008 www.talismanmining.com.au

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Appendix 1: Sinclair Project Location and Simplified Geology

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TALISMAN MINING LIMITED ABN 7109 536 495

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

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Appendix 2: JORC Table 1

Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections)

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Criteria JORC Code explanation Commentary
Sampling • Nature and quality of sampling (e.g. cut  Drilling cited in this report by both Talisman Mining Ltd
techniques channels, random chips, or specific specialised
and historically by Xstrata Nickel Australasia Operations
industry standard measurement tools
Pty Ltd (XNAO) between 2007 and 2012.
appropriate to the minerals under investigation,
 Sampling techniques employed at the Sinclair Project
such as down-hole gamma sondes, or
handheld XRF instruments, etc.). These include saw cut diamond drill core (DD) samples in NQ2
examples should not be taken as limiting the size sampled on geological intervals (0.2 m to 2 m), cut
broad meaning of sampling. into half (NQ2) core to give sample weights under 3 kg.
 Include reference to measures taken to Reverse Circulation (RC) drilling samples collected by a
cone splitter for single metre samples or sampling spear
ensure sample representivity and the
for composite samples,
appropriate calibration of any measurement
tools or systems used.  Samples were crushed, dried and pulverised (total prep)
 Aspects of the determination of mineralisation to produce a 1g sub sample for analysis by four acid
that are Material to the Public Report. In cases digest with an ICP/OES or AAS finish.
where ‘industry standard’ work has been done
this would be relatively simple (e.g. ‘reverse
circulation drilling was used to obtain 1 m
samples from which 3kg was pulverised to
produce a 30 g charge for fire assay’). In other
cases more explanation may be required, such
as where there is coarse gold that has inherent
sampling problems. Unusual commodities or
mineralisation types (e.g. submarine nodules)
may warrant disclosure of detailed information.
Drilling  Drill type (e.g. core, reverse circulation, open-  Surface diamond drill-holes at the Sinclair Nickel Project
techniques hole hammer, rotary air blast, auger, Bangka, were completed using wedge drilling techniques with up
sonic, etc) and details (e.g. core diameter, to 4 daughter holes drilled from a single parent drill hole.
triple or standard tube, depth of diamond tails, Both HQ and NQ2 diameter core was collected for
face-sampling bit or other type, whether core is logging and sampling purposes. RC drilling is completed
oriented and if so, by what method, etc). with a face sampling hammer of nominal 140mm size.
 All drill holes were routinely surveyed using downhole
NSG Gyroscope survey tools.
 All drill core was routinely orientated where possible at
nominal 6m intervals using an EzyMark-OriBlock core
orientation system.
Drill sample  Method of recording and assessing core and  Sinclair diamond core recoveries were logged and
recovery chip sample recoveries and results recorded in the Sinclair Datashed database. Historic
assessed. core recoveries exceed 95%. Surface
 Measures taken to maximise sample
recovery and ensure representative nature of  RC sampling is good with almost no wet sampling in the
the samples. project area.
 Whether a relationship exists between
 Diamond core was reconstructed into continuous runs
sample recovery and grade and whether
on an angle iron cradle for orientation marking. Depths
sample bias may have occurred due to
were checked against the depth given on the core
preferential loss/gain of fine/coarse material.
blocks and rod counts were routinely carried out by the
drillers.
 No known relationship exists between sample recovery
and grade and no sample bias is known.
Logging  Whether core and chip samples have been
geologically and geotechnically logged to a  Logging records lithology, mineralogy, mineralisation,
alteration, structure, weathering, colour and other primary
level of detail to support appropriate Mineral
features of the rock samples and is considered to be
Resource estimation, mining studies and
representative across the intercepted geological units.
metallurgical studies.
 Whether logging is qualitative or quantitative  Logging is both qualitative and quantitative depending on
in nature. Core (or costean, channel, etc.)
the field being logged.
photography.
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TALISMAN MINING LIMITED ABN 7109 536 495

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

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Criteria	JORC Code explanation	Commentary
	 The total length and percentage of the relevant intersections logged.	 All drill-holes are logged in full to end of hole.  DD core is routinely photographed digitally.
Sub-sampling techniques and sample preparation	 If core, whether cut or sawn and whether quarter, half or all core taken.  If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.  For all sample types, the nature, quality and appropriateness of the sample preparation technique.  Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.  Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.  Whether sample sizes are appropriate to the grain size of the material being sampled.	 Sinclair diamond core is HQ and NQ2 size, sampled on geological intervals (0.2 m to 1.2 m), cut into half (NQ2) or quarter (HQ) core to give sample weights under 3kg Samples were selected to weigh less than 3kg to ensure total preparation at the pulverization stage.  RC samples are split using a cone or riffle splitter. A majority of RC samples are dry. On occasions that wet samples are encountered they are dried prior to splitting with a riffle splitter.  Samples were submitted to ALS Chemex Laboratories for preparation. The sample preparation follows industry best practice where all drill samples are crushed and split to 1kg then dried, pulverized and (>85%) sieved through 75 microns to produce a 1g charge for 4-acid digest with an ICP-MS or AAS finish.  QAQC protocols for all diamond drill sampling involved the use of Certified Reference Material (CRM) as assay standards. The insertion ratio of CRM standards was 1 in 25 with a minimum of 2 per batch. OREAS and Geostats standards were selected on their grade range and mineralogical properties.  All QAQC controls and measures were routinely reviewed and reported on a monthly, quarterly and annual basis by XNAO.  Duplicate samples were inserted at a frequency of 1 in 25, with placement determined by Ni grade and homogeneity.  Sample size is considered appropriate for nickel sulphide mineralisation
Quality of assay data and laboratory tests	 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.  For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.  Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	 Sinclair drill samples were submitted to ALS Chemex Laboratories in Perth for multi-element analysis using a 1g charge with a multi-acid digest and ICP-MS or AAS finish (OG62). Analytes include Al, Fe, Mg, Mn, S, Ti, Ag, As, Co, Cr, Cu, Ni, Pb, V, Zn, Zr.  QAQC protocols for all drill sampling involved the use of Certified Reference Material (CRM) as assay standards. The insertion ratio of CRM standards was 1 in 33 with a minimum of two per batch. OREAS and Geostats standards are selected on their grade range and mineralogical properties.  All drill assays are required to conform to the procedural QAQC guidelines as well as routine laboratory QAQC guidelines.  All QAQC controls and measures were routinely reviewed and reported on a monthly, quarterly and annual basis. Historic results for all standards and duplicates indicate most performing well within the two standard deviation limit.  Lab checks (repeats) occurred at a frequency of 1 in 25. These alternate between both the pulp and crush stages.  Portable XRF instruments are used only for qualitative field analysis. No portable XRF results are reported.

TALISMAN MINING LIMITED ABN 7109 536 495

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

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Criteria JORC Code explanation Commentary
Verification of  The verification of significant intersections by  Significant intercepts have been verified by alternate
sampling and either independent or alternative company company personnel
assaying personnel.
 The use of twinned holes.  No twinned holes are being drilled as part of this
 Documentation of primary data, data entry program.
procedures, data verification, data storage
 Logging and sampling data is captured and imported
(physical and electronic) protocols.
 Discuss any adjustment to assay data. using Maxwell LogChief software.
 All drill-hole, sampling and assay data is stored in a
SQL server (Datashed) database. Assay data is
reviewed via DataShed, QAQCR and other customised
software and databases. Datashed software has
numerous validation checks which are completed at
regular time intervals.
 Primary assay data is always kept and is not replaced
by any adjusted or interpreted data.
Location of  Accuracy and quality of surveys used to  Historic drill collars locations were picked up by Sinclair
data points
locate drill-holes (collar and down- hole Mine Surveyors.
surveys), trenches, mine workings and other  Talisman drill collar locations are pegged using a hand
locations used in Mineral Resource
held GPS, and picked up by an independent survey
estimation.
contractor after completion of the drill hole.
 Specification of the grid system used.
 Quality and adequacy of topographic control.  All drill holes were routinely surveyed using downhole
NSG Gyroscope survey tools.
 The coordinate system used is the Geocentric Datum of
Australia (GDA) 1994. Coordinates are in the Map Grid
of Australia zone 51 (MGA).
Data spacing  Data spacing for reporting of Exploration  Drill spacing at Sinclair was nominally 200m x 25m.
and
distribution Results.  No mineral resource is being reported for the Sinclair
 Whether the data spacing and distribution is Nickel Project.
sufficient to establish the degree of  No sample compositing has been applied.
geological and grade continuity appropriate
for the Mineral Resource and Ore Reserve
estimation procedure(s) and classifications
applied.
 Whether sample compositing has been
applied.
Orientation of data in relation  Whether the orientation of sampling achieves  The orientation of drilling is designed to intersect either
unbiased sampling of possible structures and
to geological geophysical targets or geological targets at high angle
the extent to which this is known, considering
structure in order to best represent stratigraphy.
the deposit type.
 If the relationship between the drilling  No significant orientation based sampling bias at
orientation and the orientation of key Sinclair is known at this time. Drill-holes may not
mineralised structures is considered to have necessarily be oriented perpendicular to intersected
stratigraphy or mineralisation. All reported intervals are
introduced a sampling bias, this should be
down-hole intervals, not true widths.
assessed and reported if material.
Sample security  The measures taken to ensure sample  Samples were stored at the Sinclair Nickel Mine Site
security.
prior to submission under the supervision of the Senior
Project Geologist. Samples were transported to ALS
Chemex Laboratories Perth by an accredited courier
service.
Audits or reviews  The results of any audits or reviews of  No external audits or reviews of the sampling
sampling techniques and data.
techniques and data have been completed.
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TALISMAN MINING LIMITED ABN 7109 536 495

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

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section)

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Criteria JORC Code explanation Commentary
Mineral  Type, reference name/number, location and  The Sinclair Nickel Project is held 100% by Talisman
tenement and ownership including agreements or material Nickel Pty Ltd, a wholly owned subsidiary of Talisman
land tenure issues with third parties such as joint ventures, Mining Ltd.
status partnerships, overriding royalties, native title
 There are no known Native Title Claims over the
interests, historical sites, wilderness or
Sinclair Nickel Project.
national park and environmental settings.
 The security of the tenure held at the time of  All tenements are in good standing and there are no
reporting along with any known impediments existing known impediments to exploration or mining.
to obtaining a licence to operate in the area.
Exploration  Acknowledgment and appraisal of exploration  The Sinclair Nickel Deposit was discovered in 2005 by
done by other by other parties. Jubilee Mines NL drill testing a ground EM anomaly.
parties
 M37/1275 hosts the Sinclair Nickel Mine which was
operated by XNAO from 2007-2013 and produced
approximately 38,500 tonnes of contained nickel metal.
 Exploration work on has included diamond, RC and Air
Core drilling, ground and down-hole EM surveys, soil
sampling, geological interpretation and other
geophysics (magnetics, gravity).
Geology  Deposit type, geological setting and style of  The Sinclair project lies within the Archean aged
mineralisation. Norseman-Wiluna Greenstone Belt.
 The Sinclair Nickel Deposit is an example of an
Archaean-aged komatiite-hosted nickel deposit, with
massive nickel-iron sulphides hosted at or near the
basal contact of high-MgO ultramafic lava channels with
footwall basaltic volcanic and sedimentary rocks.
Drill-hole  A summary of all information material to the  Drill hole information relating to the Sinclair Project is
Information understanding of the exploration results included in Table 1 Drill-hole Information Summary,
including a tabulation of the following Sinclair Project.
information for all Material drill-holes:
 easting and northing of the drill-hole collar
 elevation or RL (Reduced Level –
elevation above sea level in metres) of the
drill-hole collar
 dip and azimuth of the hole
 down hole length and interception depth
 hole length.
 If the exclusion of this information is justified
on the basis that the information is not
material and this exclusion does not detract
from the understanding of the report, the
Competent Person should clearly explain why
this is the case.
Data
aggregation  In reporting Exploration Results, weighting  Significant intersections reported from the Sinclair
methods averaging techniques, maximum and/or Nickel Project are based on greater than 0.5% Ni and
minimum grade truncations (e.g. cutting of may include up to 1m of internal dilution, with a
high grades) and cut-off grades are usually minimum composite grade of 1% Ni.
material and should be stated.
 Ni grades used for calculating significant intersections
 Where aggregate intercepts incorporate short are uncut.
lengths of high grade results and longer
lengths of low grade results, the procedure  A minimum diamond core sample interval of 0.15m and
used for such aggregation should be stated a maximum interval of 1m is used for intersection
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TALISMAN MINING LIMITED ABN 7109 536 495

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

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Criteria JORC Code explanation Commentary
and some typical examples of such calculations subject to the location of geological
aggregations should be shown in detail. boundaries.
 The assumptions used for any reporting of  Length weighted intercepts are reported for mineralised
metal equivalent values should be clearly intersections.
stated.
 No metal equivalents are used in the intersection
calculations.
Relationship  These relationships are particularly important  Drill-holes relating to the Sinclair Nickel project are
between in the reporting of Exploration Results. reported as down hole intersections. True widths of
mineralisation  If the geometry of the mineralisation with reported mineralisation are not known at this time.
widths and respect to the drill-hole angle is known, its
intercept nature should be reported.
lengths  If it is not known and only the down hole
lengths are reported, there should be a clear
statement to this effect (e.g. ‘down hole length,
true width not known’).
Diagrams  Appropriate maps and sections (with scales)  Appropriate maps with scale are included within the
and tabulations of intercepts should be body of the accompanying document.
included for any significant discovery being
reported These should include, but not be
limited to a plan view of drill-hole collar
locations and appropriate sectional views.
Balanced  Where comprehensive reporting of all  The accompanying document is considered to represent
reporting Exploration Results is not practicable,
a balanced report.
representative reporting of both low and high
grades and/or widths should be practiced to
avoid misleading reporting of Exploration
Results.
Other  Other exploration data, if meaningful and  This report includes results from both historic and recent
substantive material, should be reported including (but Geophysical Surveys. Results from these surveys are
exploration not limited to): geological observations; included in the body of this report.
data geophysical survey results; geochemical  Parameters for the Delphi Prospect surface
survey results; bulk samples – size and
electromagnetic survey include:
method of treatment; metallurgical test
results; bulk density, groundwater, o Configuration: Moving Loop EM (MLEM)
geotechnical and rock characteristics; o Line and station spacing: 200m x150m,
potential deleterious or contaminating infill 75m
substances.
o TX Loop size: 300x300m double turn
o Receiver: SMARTem
o Sensor: High Temp SQUID
 Parameters for the Delphi North Down Hole
Electromagnetic (DHEM) Survey are provided Appendix
2 of this report
Further work  The nature and scale of planned further work  Planned future work at the Sinclair Nickel Project
(e.g. tests for lateral extensions or depth includes geophysical surveys, re-logging of historic
extensions or large-scale step-out drilling). diamond drill core and RC and Diamond Drilling.
 Diagrams clearly highlighting the areas of
possible extensions, including the main
geological interpretations and future drilling
areas, provided this information is not
commercially sensitive.
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TALISMAN MINING LIMITED ABN 7109 536 495

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

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