TALISMAN MINING LIMITED — Capital/Financing Update 2016

Sep 12, 2016

ASX Media Release – 13 September 2016

Springfield Copper Project Exploration Update

Highlights

• Springfield Joint Venture exploration budget approved for the fourmonth period to the end of December. Work planned to include:

• Diamond Drilling targeting the potential down dip extensions to the Monty Deposit

• RC drilling to follow-up air-core anomalies at Monty NE and Southern Volcanics

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

• Infill air-core drilling at Homer East Regional, Monty NE and Southern Volcanic Trend

• Systematic air-core drilling over the western portion of the Southern Volcanics

• Orientation Induced Polarisation (IP) geophysical survey over the Monty Deposit

• Shallow oxide copper results (5m @ 4.11% Cu from 55m) from air-core drilling at Monty NE provides encouragement with further drilling planned

• Feasibility Study Progressing, completion still expected in Q1 CY2017

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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)

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Figure 1: Springfield Project and prospective VMS corridors

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

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Talisman Mining Limited (ASX: TLM “ Talisman ”) advises that the Springfield Project Joint Venture, managed by Sandfire Resources NL (ASX: SFR " Sandfire "), has approved a $3.07 million budget (100% basis) for the four-month period to the end of December 2016 with work now underway. This budget is separate to expenditure on the ongoing Monty Deposit Feasibility Study (“ Feasibility Study ”).

The current four-month exploration budget focuses exploration efforts predominantly on the identification and further definition of the prospective exhalative horizons across the Springfield Project. This continues from the previous budget period where Joint Venture exploration moved to a more systematic strategy stepping outside of the known Monty Deposit following an inward looking resource definition focus.

Consistent with this strategy, a key aspect of the forthcoming budget is a planned 30,100 metres of aircore drilling to better define interpreted exhalative horizons within the prospective Homer, Monty and Southern Volcanic VMS corridors.

In addition to the planned air-core drilling, the Joint Venture plans to undertake reverse circulation (RC) drilling to follow up shallow copper anomalism encountered in previous air-core drilling at both Monty North East and Monty South.

The first diamond drill hole to test the potential down dip extensions to the Monty Deposit is budgeted to be undertaken in October 2016.

Talisman believes that this budgeted work will assist in understanding the deposit and regional scale geology and structure in the Doolgunna region. This work is crucial to unlocking the location of potential new lenses or fault displaced extensions to known mineralisation, as well as uncovering new stand-alone deposits.

Springfield Exploration During Budget Period 1 June to 30 August 2016

Work completed by the Joint Venture at the Springfield Project ( Appendix 1 ) over the three-month budget period ending 31 August 2016 included air-core, RC and diamond drilling across the Springfield Project area. Drilling has encompassed both exploration and Feasibility Study activities.

In addition to the recent drilling, exploration activities were also focused on the completion of a detailed ground-based SQUID EM survey over and along strike from the Monty Deposit and the compilation of a 3D structural geological model of the Monty Deposit.

RC and air-core productivity during the period was hampered by severe weather events. Budgeted exploration diamond drilling aimed at testing for potential down-dip and down-plunge extensions of the Monty Deposit was not undertaken during the period. The below budgeted drill metres resulted in budget undercalls throughout the period with actual expenditure being below budget. Actual drill metres against budget are shown below in Table 1 .

Air-Core Drilling

The Joint Venture undertook systematic air-core drilling to delineate the interpreted VMS horizon along the prospective host horizons during the budget period focused on the Monty NE and Homer East Regional areas ( Figure 1 and Figure 2 ).

TALISMAN MINING LIMITED ABN 7109 536 495

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

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Results from this recent drilling has led to the identification of an area of anomalous copper mineralisation in the Monty NE area, where air-core drill hole TLAC2694 (Figure 3) has returned an intersection of 5m @ 4.11%Cu[1] from 55m down hole ( Table 4 ).

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Figure 2: Springfield Project June-August budget period completed air-core drilling locations

A series of holes have been recently completed around TLAC2694, including eight additional air-core holes (TLAC2783 – 2790), and one RC drill hole (TLRC0053), drilled beneath hole TLAC2694 to an end-of-hole depth of 448 metres to follow-up this anomaly ( Figure 3 ).

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Figure 3: Monty NE air-core Anomaly Collar Location Plan

1 a ir-core results are based on five-meter composite spear samples.

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This work was recently completed and results from sampling of these holes are yet to be received. However, no visible sulphide mineralisation was logged in the RC hole and a subsequent DHEM survey of this RC drill hole did not identify any off-hole conductors.

Further drilling is required to follow up this recent work and understand what is a geologically complex area. This additional drilling is included in the approved budget for the period to the end of December 2016.

Reverse Circulation and Diamond Drilling

RC drilling completed during the budget period ending 31 August 2016 was primarily focused on the interpreted VMS horizon along strike from Monty to inform the interpretation of the host stratigraphy. This work included the targeting of the interpreted Monty southwest fault off-set position, the Monty north east extensions and the follow-up of discrete geochemical anomalies identified from previous air-core drilling.

The majority of diamond drilling undertaken during the budgeted period was focused on geotechnical drilling of the proposed box cut and decline positions, budgeted as part of the ongoing Feasibility Study.

The location of diamond and RC drilling undertaken during the budget period is shown in Figure 4 and a full list of the completed RC and diamond drill collars (including geotechnical diamond drilling completed under the separate Feasibility Study budget) is provided in Table 2 .

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Figure 4: Springfield Project RC and Diamond Drilling locations

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Interpreted Monty Fault Offset and 3D Geological Modelling

Joint Venture activities during the budget period focused on further understanding the structure and mineralising controls within the near Monty environment with the aim of unlocking potential additional mineralisation at Monty.

As previously announced exploration diamond drill-hole TLDD0111 was drilled early in the budget period as an initial test of an interpreted off-set position some 70 metres to the south west of the interpreted fault structure truncating the current Monty Resource envelope. The hole encountered a stratigraphic package that was not the targeted host horizon highlighting the complexity of the host sequence geology.

Subsequent to the drilling of TLDD0111 the Joint Venture undertook a further three RC holes (TLRC0049 – TLRC0051) and one diamond hole (TLDD0112) to test a new interpreted off-set position ( Figure 4 ). The three RC holes encountered favourable stratigraphy including chlorite altered sediments, with minor disseminated sulphides logged in drill cuttings. Diamond drill hole TLDD0112 encountered a similar package of altered sediments toward the bottom of the hole after drilling though a fault structure.

Results from sampling in all four drill holes however did not return any significant results and a subsequent DHEM of these holes did not show any off-hole conductors.

In conjunction with the drilling during the budget period the Joint Venture continued with the development of a 3D structural geological model to provide additional context regarding the location and geological setting of the Monty deposit.

Monty North East and other RC Drilling

Four RC drill holes were completed at the north eastern end of the Monty Trend ( Figure 4 ), following a reinterpretation of the basement geology, and interpreted host stratigraphy position (TLRC0046 – TLTC0048, TLRC0054). While these four holes did encounter altered sedimentary rocks, similar to the Monty Deposit host stratigraphy, they did not return any significant mineralisation.

A full list of RC drilling results, including those holes with samples outstanding is listed in Table 3 .

Other Activities

A detailed surface EM survey using SQUID technology was undertaken over the Monty Deposit and surrounding area, along strike to the north east and south west.

The aim of this survey was to assess the ability of this technique to detect Monty mineralisation from surface which, if successful, could then be applied to other areas of the Springfield Joint Venture.

Processing and interpretation of the new data has now been completed by NEWEXCO. Whilst the SQUID EM provided better quality data and could directly detect shallow Monty-style VMS mineralisation, the latetime response from the deeper mineralisation (>5000S in DHEM) was not robust and poorly discriminated. As such it was concluded that the deeper Monty mineralisation was at the limit of detection for the currently available technology.

Trial soil/auger sampling programme over Monty has been completed. Initial results from this work indicate that soil geochemistry is not a definitive sampling technique over the current Monty Deposit, however it is envisaged that the Joint Venture will continue to trial and revisit all avenues and sampling techniques as new discoveries are made.

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

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Budgeted Exploration for Period Ending 31 December 2016

Exploration within the wider Springfield Project remains very much of a greenfield nature with five exploration diamond drill holes and minimal RC drilling undertaken by the Joint Venture outside of the defined Monty Deposit.

The current four-month exploration budget focuses exploration efforts predominantly on the identification and further definition of the prospective exhalative horizons across the Springfield Project and follows a staged and systematic process aimed at building geological, geochemical and structural understanding.

This process involves air-core RC and diamond drilling to better define and test interpreted exhalative horizons within the prospective Homer, Monty and Southern Volcanic VMS corridors.

Air-Core Drilling

Planned air-core work for the four-month budget period will focus predominantly on the identification of the prospective exhalative horizon along the western portion of the Southern Volcanics. The Southern Volcanics are yet to be systematically tested by the Joint Venture and Talisman believes that the Southern Volcanic trend represents a prospective target area for Monty and DeGrussa style copper-gold VMS mineralisation.

Systematic, pattern air-core drilling is proposed in the west and south, with some sporadic in-fill across other areas of the Southern Volcanics, Homer East and Monty NE ( Figure 5 ).

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Figure 5: Springfield Project proposed air-core drilling locations

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Monty North East RC Drilling

Additional work is required to fully understand the significance of the copper mineralisation encountered in TLAC2694. Further RC drilling is planned for the area, and will be finalised once results for TLRC0053 and TLAC2783 – 2790 have been received. It is evident from logging of these holes that the geology in this area is complex, and Talisman believes that it may be interpreted that this area has been subject to multiple phases of deformation.

A complete review of geological, geochemical and geophysical data in this area is underway to assist in the planning of addition drill collar locations and drilling orientation. Follow-up RC drilling is included in the September- December 2016 budget and anticipated to occur in September-October 2016.

Monty Deeps Diamond Drilling

An exploration diamond hole is currently planned for the budget period, aimed at providing a deep DHEM platform to test for potential down-dip extensions to the Monty Deposit.

The 3D structural geological model is now nearing completion and will provide additional context regarding the location and geological setting of Monty. This will assist with the planning of the forthcoming diamond drilling to test the areas down-dip and down-plunge of the Monty deposit.

Additional holes at Monty Deeps are not in the current budget but budget approval is expected to be sought should the results of the initial hole require immediate follow-up. Talisman is committed to supporting active exploration to fully understand the potential of this area and is supportive of any additional drilling that may be requested by the Joint Venture manager in or around the near vicinity of the Monty Resource.

In addition to the Monty Deeps drill hole, an allowance has been made in the budget for some minor follow-up diamond core drilling, the location and depth of which will based on RC drilling results.

Future Potential

The discovery of Monty when combined with the DeGrussa complex of deposits, (more than 660,000 tonnes of contained copper and 790,000oz of contained gold as at 31 December 2013, (see SFR ASX announcement 16 May 2013)), provides proof of concept for the potential of the region to host multiple clusters or “camps” of high-grade VMS mineralisation.

Talisman believes that understanding deposit scale, geology and structure in the Doolgunna region is crucial to unlocking the location of potential new lenses or fault-displaced extensions to mineralisation.

Figure 6 shows the outline of the Monty resource with an interpreted fault to the south west, and all diamond and RC holes that have intersected the interpreted host horizon along a 1.5km strike section.

Importantly many areas in the vicinity along strike from the defined resource, or at depth, remain untested.

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Figure 6: Stylised vertical longitudinal projection by Talisman showing Monty Resource outline and all RC and diamond holes intersecting the interpreted host horizon

Talisman is encouraged by the potential to delineate high-grade mineralisation in these areas and is supportive of any additional drilling that may be requested by the Joint Venture manager in or around the near vicinity of the Monty Resource.

Talisman is also committed to ongoing and further exploration at the other high-priority regional prospects within the Joint Venture ground, such as the 5km long Monty corridor, Homer and the Southern Volcanics and is supportive of active exploration in these areas.

Feasibility Study Progress

The Monty Feasibility Study has progressed, with work completed to date by the Joint Venture Manager including:

• Structural geological modelling

• Geotechnical drilling for the preferred box cut location

• Mining Lease application submission

• Preliminary batch flotation test work, with copper recoveries in line with expectations

Several work streams are currently in progress, including:

• Metallurgical test work with a specific focus on comminution and flotation;

• Ore sorting test work;

• Mine design engineering including stoping, ore access and ventilation design;

• Miscellaneous Licence Application submission;

• Haul road route evaluation - between DeGrussa and the Monty Project – surface infrastructure design work to follow.

TALISMAN MINING LIMITED ABN 7109 536 495

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

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ENDS

For further information, please contact: For media inquiries, please contact: Dan Madden – Managing Director Michael Vaughan – Fivemark Partners on +61 8 9380 4230 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 forwardlooking 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 – Budget Vs Actual Drilling details for June-August budget period

	June	June	July	July	August	August		Total
	Budget meters	Actual meters	Budget meters	Actual meters	Budget meters	Actual meters	Budget meters	Actual meters	% Completed
Diamond Drilling	945	240	980	-	980	-	2,905	240	8%
RC Drilling	1,200	2,033	2,400	1,250	2,400	1,336	6,000	4,619	77%
AC Drilling	12,300	-	12,300	10,616	16,400	8,815	41,000	19,431	47%
Total:	14,445	2,273	15,680	12,338	19,780	10,151	49,905	24,290	49%

Table 2 – Drill-hole Information Summary, Springfield Project

Details and co-ordinates of drill-hole collars for diamond and RC, and selected air-core drilling completed during the June – August budget period:

Hole ID	Hole **Type **	Depth	Dip	Azimuth	Grid ID	East	North	RL	Lease
TLAC2694	AC	122.0	-60	90	MGA94_50	745400	7174100	611	E52/2282
TLDD0111	DD	453.8	-64	297	MGA94_50	743398	7170846	598	E52/2282
TLDD0112	DD	432.9	-64	176	MGA94_50	742800	7170850	595	E52/2282
TLRC0043	RC	448.0	-62	85	MGA94_50	743002	7169598	595	E52/2282
TLRC0044A	RC	436.0	-62	83	MGA94_50	743106	7169999	597	E52/2282
TLRC0045	RC	346.0	-62	84	MGA94_50	743152	7170399	597	E52/2282
TLRC0046	RC	334.0	-63	144	MGA94_50	745895	7172744	610	E52/2282
TLRC0047	RC	406.0	-61	121	MGA94_50	746148	7172972	610	E52/2282
TLRC0048	RC	394.0	-63	123	MGA94_50	746353	7173273	613	E52/2282
TLRC0049	RC	408.0	-62	148	MGA94_50	742077	7171025	589	E52/2282
TLRC0050	RC	448.0	-63	151	MGA94_50	742357	7171154	591	E52/2282
TLRC0051	RC	448.0	-60	150	MGA94_50	741720	7170873	589	E52/2282
TLRC0052	RC	250.0	-60	90	MGA94_50	741775	7169197	595	E52/2282
TLRC0053	RC	448.0	-62	85	MGA94_50	745300	7174100	613	E52/2282
TLRC0054	RC	190.0	-62	90	MGA94_50	746300	7173700	609	E52/2282
TLGT0011	DD	30.7	-60	343	MGA94_50	744249	7171712	602	E52/2282
TLGT0012	DD	30.7	-60	253	MGA94_50	744251	7171714	601	E52/2282
TLGT0013	DD	33.4	-60	163	MGA94_50	744250	7171714	601	E52/2282
TLGT0014	DD	33.0	-60	73	MGA94_50	744250	7171712	601	E52/2282
TLGT0015	DD	35.0	-60	343	MGA94_50	744200	7171699	600	E52/2282
TLGT0016	DD	36.8	-60	73	MGA94_50	744201	7171700	600	E52/2282
TLGT0017	DD	36.7	-60	163	MGA94_50	744202	7171702	600	E52/2282
TLGT0018	DD	36.0	-60	253	MGA94_50	744202	7171702	600	E52/2282
TLGT0019	DD	99.8	-60	243	MGA94_50	744164	7171684	598	E52/2282
TLGT0020	DD	99.7	-60	243	MGA94_50	744118	7171663	598	E52/2282
TLGT0021	DD	99.8	-60	243	MGA94_50	744073	7171643	597	E52/2282
TLGT0022	DD	106.0	-60	243	MGA94_50	744027	7171622	598	E52/2282
TLGT0023	DD	100.0	-60	243	MGA94_50	743936	7171581	599	E52/2282
TLGT0024	DD	110.0	-60	240	MGA94_50	743846	7171538	601	E52/2282
TLGT0025	DD	125.0	-60	240	MGA94_50	743757	7171494	601	E52/2282
TLGT0026	DD	141.9	-60	240	MGA94_50	743667	7171448	598	E52/2282
TLGT0027	DD	159.9	-60	240	MGA94_50	743578	7171403	599	E52/2282
TLGT0028	DD	171.8	-60	240	MGA94_50	743533	7171381	599	E52/2282

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Hole ID	Hole **Type **	Depth	Dip	Azimuth	Grid ID	East	North	RL	Lease
TLGT0029	DD	99.9	-60	243	MGA94_50	743982	7171602	599	E52/2282
TLGT0030	DD	99.4	-60	243	MGA94_50	743891	7171561	600	E52/2282
TLGT0031	DD	114.8	-60	240	MGA94_50	743801	7171516	601	E52/2282
TLGT0032	DD	129.7	-60	240	MGA94_50	743712	7171471	600	E52/2282
TLGT0033	DD	150.5	-60	240	MGA94_50	743623	7171426	599	E52/2282

Table 3: RC and Diamond Drill-hole Assay Intersections >1% Copper for the Springfield JV Project

Details of relevant intersections received during the June-August 2016 budget period at the Springfield JV Project received by Talisman are provided below. Estimated true widths have been calculated using estimated dip and dip-direction of modelled mineralisation surfaces at the drill-hole intersection and azimuth and dip of the drill hole.

Calculation of relevance for inclusion into this table is based on a 0.5% Cu cut-off, no more than 3m of internal dilution and a minimum composite grade of 1%Cu. Intersection length, Cu (%), Au (ppm), Ag (ppm) and Zn (%) are rounded to 1 decimal point.

						Intersection	Intersection	Intersection
Hole ID	Interval	From (m)	To (m)	Downhole Width (m)	Estimated True Width (m)	Cu (%)	Au (g/t)	Zn (%)
TLDD00111	No Significant Results
TLDD00112	No Significant Results
TLRC0043	No Significant Results
TLRC0044A	No Significant Results
TLRC0045	No Significant Results
TLRC0046	No Significant Results
TLRC0047	No Significant Results
TLRC0048	No Significant Results
TLRC0049	No Significant Results
TLRC0050	No Significant Results
TLRC0051	No Significant Results
TLRC0052	No Significant Results
TLRC0053	Assay Results Pending
TLRC0054	Assay Results Pending

Table 4: air-core Assay Intersections for the Springfield JV Project

Details of relevant air-core drilling intersections received during the June-August 2016 budget period at the Springfield JV Project received by Talisman are provided below.

Assay results are based on 5-meter composite sampling of air-core drill cuttings.

Hl ID	Il	F	T	Down-hole	Intersection	Intersection
oe	nterva (m)	rom (m)	o (m)	Width(m)	Cu (%)	Au (ppm)
TLAC2694	5	55	60	5	4.11	0.029

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Appendix 1: Springfield Project Location and Simplified Geology

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Appendix 2: JORC Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down-hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.  Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.  Aspects of the determination of mineralisation that are Material to the Public Report. In cases 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.	 Sampling techniques employed by Sandfire on the Doolgunna Project include half core sampling of NQ2 Diamond Drill (DD) core, Reverse Circulation (RC) drilling samples collected by a cone splitter for single metre samples or sampling spear for composite samples, and air-core (AC) sample collected using spear techniques for both composite and single metre samples.  Sampling is guided by Sandfire DeGrussa protocols and QAQC procedures as per industry standard.  RC and AC sample size reduction is completed through a Boyd crusher to -4mm and pulverised via LM5 to nominal -75µm. Pulp size checks are completed.  Diamond core size reduction is through a Jaques jaw crusher to -10mm and all samples Boyd crushed to - 4mm and pulverised via LM5 to nominal 90% passing - 75µm using wet sieving technique.  Samples are assayed using Mixed 4 Acid Digest (MAD) 0.3g charge and MAD Hotbox 0.15g charge methods with ICPOES or ICPMS.  Fire Assay is completed by firing 40g portion of the sample with ICPMS finish.
Drilling techniques	 Drill type (e.g. core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	 Sandfire drilling is completed using industry standard practices. RC drilling is completed with a face sampling hammer of nominal 140mm size, AC drilling is with a blade bit and diamond drilling is completed using NQ2 size coring equipment.  All drill collars are surveyed using RTK GPS.  All core, where possible is oriented using a Reflex ACT II RD orientation tool.  Downhole surveying is undertaken using a gyroscopic survey instrument.
Drill sample recovery	 Method of recording and assessing core and chip sample recoveries and results assessed.  Measures taken to maximise sample recovery and ensure representative nature of the samples.  Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	 Sandfire core is meter marked and orientated to check against the driller’s blocks, ensuring that all core loss is taken into account. Diamond core recovery is logged and captured into the database with weighted average core recoveries of approximately 98%.  Surface RC sampling is good with almost no wet sampling in the project area. AC drilling recovery is good with sample quality captured in the database.  Samples are routinely weighed and captured into a central secured database.  No indication of sample bias with respect to recovery has been established.
Logging	 Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.  Whether logging is qualitative or quantitative	 Sandfire geological logging is completed for all holes and is representative across the ore body. The lithology, alteration, and structural characteristics of drill samples are logged directly to a digital format following standard procedures and using Sandfire DeGrussa geological

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Criteria	JORC Code explanation	Commentary
	in nature. Core (or costean, channel, etc.) photography.  The total length and percentage of the relevant intersections logged.	codes. Data is imported into the central database after validation in LogChief™.  Logging is both qualitative and quantitative depending on field being logged.  All drill-holes are logged in full.  All cores are digitally photographed and stored.
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.	 Sandfire DD Core orientation is completed where possible and core is marked prior to sampling. Half core samples are produced using Almonte Core Saw. Samples are weighed and recorded.  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.  AC samples consist of 5m composite spear samples produced from 1m. Additional 1m sampling may be completed depending on the results from the 5m composites samples.  All samples are dried at 80° for up to 24 hours and weighed. DD Samples are then crushed through Jaques crusher to nominal -10mm. Second stage crushing uses Boyd crusher to nominal -4mm. Pulverising is completed using LM5 mill to 90% passing 75µm.  RC and AC samples are Boyd crushed to -4mm and pulverised using LM5 mill to 90% passing 75 µm.  Sample splits are weighed at a frequency of 1:20 and entered into the job results file.  1:20 grind quality checks are completed for 90% passing 75µm criteria using wet sieving technique to ensure representativeness of sub-samples.  Sampling is carried out in accordance with Sandfire protocols as per industry best practice.  The sample size is appropriate for the VHMS and Gold mineralisation styles.
	 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.	 Sandfire samples are assayed using Mixed 4 Acid Digest (MAD) 0.3g charge and MAD Hotbox 0.15g charge methods with ICPOES or ICPMS. The samples are digested and refluxed with a mixture of acids including Hydrofluoric, Nitric, Hydrochloric and Perchloric acids and conducted for multi elements including Cu, Pb, Zn, Ag, As, Fe, S, Sb, Bi, Mo, Re, Mn, Co, Cd, Cr, Ni, Se, Te, Ti, Zr, V, Sn, W and Ba. The MAD Hotbox method is an extended digest method that approaches a total digest for many elements however some refractory minerals are not completely attacked. The elements S, Cu, Zn, Co, Fe, Ca, Mg, Mn, Ni, Cr, Ti, K, Na, V are determined by ICPOES, and Ag, Pb, As, Sb, Bi, Cd, Se, Te, Mo, Re, Zr, Ba, Sn, W are determined by ICPMS. Samples are analysed for Au, Pd and Pt by firing a 40g of sample with ICP AES/MS finish. Lower sample weights are employed where samples have very high S contents. This is a classical

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
		FA process and results in total separation of Au, Pt and Pd in the samples.  No geophysical tools are used in the analysis.  Sandfire DeGrussa QAQC protocol is considered industry standard with standard reference material (SRM) submitted on regular basis with routine samples. SRMs and blanks are inserted at a minimum of 5% frequency rate.
Verification of sampling and assaying	 The verification of significant intersections by either independent or alternative company personnel.  The use of twinned holes.  Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.  Discuss any adjustment to assay data.	 Significant intersections have been verified by alternate Talisman personnel.  Sandfire primary data is captured on field tough book laptops using Logchief™ Software. The software has validation routines and data is then imported into a secure central database.  The primary data is always kept and is never replaced by adjusted or interpreted data.
Location of data points	 Accuracy and quality of surveys used to locate drill-holes (collar and down- hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.  Specification of the grid system used.  Quality and adequacy of topographic control.	 Sandfire DeGrussa Survey team undertakes survey works under the guidelines of best industry practice. All surface drilling is accurately located using RTK-GPS.  For the Springfield project MGA94 Zone 50 grid coordinate system is used.  Topography control was established from aerial photography using series of survey control points.
Data spacing and distribution	 Data spacing for reporting of Exploration Results.  Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.  Whether sample compositing has been applied.	 Infill drilling at Monty is based on a nominal 30m x 40m grid.  Resource definition drill spacing and distribution of exploration results is sufficient to support Mineral Resource Estimation procedures. Refer ASX: SFR 13/04/2016 Maiden High Grade Mineral Resource for Monty VMS Deposit  Exploration drill spacing outside of the Monty Mineral Resource is not sufficient to estimate Mineral Resources.  No sample compositing has been applied to the exploration results.
Orientation of data in relation to geological structure	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.  If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	 At Springfield, no significant orientation based sampling bias is known at this time.  The drill holes may not necessarily be perpendicular to the orientation of the intersected mineralisation.
Sample security	 The measures taken to ensure sample security.	 Appropriate security measures are taken to dispatch samples to the laboratory. Chain of custody of samples is being managed by Sandfire Resources NL. Samples are stored onsite and transported to laboratory by a licenced transport company in sealed bulker bags. The laboratory receipts received samples against the sample dispatch documents and issues a reconciliation report for every sample batch.

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
Audits or reviews	 The results of any audits or reviews of sampling techniques and data.	 No external audits or reviews of the sampling techniques and data have been completed.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.  The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	 Sandfire Resources NL and Talisman Mining Limited have formed a Joint Venture which covers Talisman’s Doolgunna Project tenements (E52/2282, E52/2313, E52/2466, E52/2275).  Sandfire and Talisman hold a 70%:30% interest respectively in the Joint Venture, with the exception of tenement E52/2275 where interests of approximately 81%:19% respectively are held.  Both parties are contributing proportionately to expenditure.  Sandfire Resources NL has been appointed as the Joint Venture Manager.  All tenements are current and in good standing.  The Talisman tenements are currently subject to a Native Title Claim by the Yungunga-Nya People (WAD6132/98). Sandfire currently has a Land Access Agreement in place with the Yungunga-Nya Native Title Claimants and have assumed management of Heritage Agreements which were executed by Talisman. These agreements allow Sandfire to carry out mining and exploration activities on their traditional land.
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	 Exploration work at Springfield completed prior to Talisman’s tenure included geochemical soil and rock chip sampling combined with geological mapping. Some targeted RC drilling was completed over gold and diamond targets.
Geology	 Deposit type, geological setting and style of mineralisation.	 The Doolgunna Project lies within the Proterozoic-aged Bryah rift basin enclosed between the Archaean Marymia Inlier to the north and the Proterozoic Yerrida basin to the south.  The principal exploration targets at the Doolgunna Projects are Volcanogenic Massive Sulphide (VMS) deposits located with the Proterozoic Bryah Basin of Western Australia.
Drill-hole Information	 A summary of all information material to the understanding of the exploration results including a tabulation of the following 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	 Drill hole information relating to the Springfield Project is included in Table 2 Drill-hole Information Summary, Springfield Project.

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
	 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 methods	 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually material and should be stated.  Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.  The assumptions used for any reporting of metal equivalent values should be clearly stated.	 Significant intersections reported from the Springfield Project are based on greater than 0.5% Cu and may include up to a maximum of 3.0m of internal dilution, with a minimum composite grade of 1.0% Cu.  Cu grades used for calculating significant intersections are uncut.  Minimum and maximum DD sample intervals used for intersection calculation are 0.3m and 1.2m respectively.  RC reported intersections are based on regular 1m sample intervals.  No metal equivalents are used in the intersection calculation.  Where core loss occurs; the average length-weighted grade of the two adjacent samples are attributed to the interval for the purpose of calculating the intersection. The maximum interval of missing core which can be incorporated with the reported intersection is 1m.
Relationship between mineralisation widths and intercept lengths	 These relationships are particularly important in the reporting of Exploration Results.  If the geometry of the mineralisation with respect to the drill-hole angle is known, its nature should be reported.  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’).	 Drill-hole intercepts relating to the Doolgunna Project in this release are reported as both down-hole intersection widths and estimated true width intersections (refer Table 4: Drill hole assay intersections >1% for the Monty Prospect).  The geometry of the mineralisation has been interpreted using top of mineralisation surfaces that link mineralised zones, thought to be continuous, between neighbouring drill-holes. Given the variable, and often steeply dipping orientation of the mineralisation, the angle between mineralisation and drill-holes is not consistent. Downhole intercepts for each drill-hole are converted to estimated true widths using a trigonometric function that utilises the dip and dip direction of the interpreted top of mineralisation surface (at the intersection point of that drill-hole) as well as the dip and azimuth of the drill-hole at that position.
Diagrams	 Appropriate maps and sections (with scales) and tabulations of intercepts should be 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.	 Appropriate maps with scale are included within the body of the accompanying document.
Balanced reporting	 Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to _avoid misleading reporting of Exploration _	 The accompanying document is considered to represent a balanced report.

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
	Results.
Other substantive exploration data	 Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	 Other exploration data collected is not considered as material to this document at this stage. Other data collection will be reviewed and reported when considered material.
Further work	 The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out 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.	 Planned exploration across the Springfield Joint Venture Project area includes both surface and down- hole geophysical techniques and reconnaissance and exploration drilling with Diamond, Reverse Circulation and air-core drilling techniques.

TALISMAN MINING LIMITED ABN 7109 536 495

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

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