TALISMAN MINING LIMITED — Interim / Quarterly Report 2012

Jul 26, 2012

June 2012 Quarterly Activities Report

COMPANY SNAPSHOT

Board of Directors

Alan Senior Non-Executive Chairman

Gary Lethridge Managing Director

Graeme Cameron Technical Director

Brian Dawes Non-Executive Director

Springfield - Springfield drilling program expanded after initial results confirm potential for VMS Copper-Gold discoveries.

• Prospective mineralised VMS horizons now confirmed along three volcanic trends: Monty, Homer and Central

• Drilling to date confirms validity of Talisman’s 3D litho-structural geological model for the Bryah Basin

• Initial 73-hole/11,000m targeted RC and Diamond drilling program significantly expanded to 100 holes/15,000m to systematically test along favourable VMS horizons

Karen Gadsby Non-Executive Director

Contact Details

6 Centro Avenue Subiaco, Western Australia, 6008 Australia

Telephone: + 61 8 9380 4230

Facsimile: + 61 8 9382 8200

Email: info@talismanmining.com.au

Web site: www.talismanmining.com.au

• Large copper-gold soil anomaly associated with multiple prospective volcanic horizons identified at the Abraham Prospect by extensive soil sampling program

• Reconnaissance RC drilling program to commence at the Abraham Prospect during the September 2012 Quarter

Halloween - Diamond Drilling Confirms VMS Mineralising System

• High-grade gold, copper and silver results returned in two out of three diamond holes from the Halloween Project, located 11.5km SW of DeGrussa Copper Project, including:

o HWD004 – 4m @ 5.34 g/t Au and 3.12 g/t Ag

(including 1m @ 9.79 g/t Au and 6.54 g/t Ag );

Capital Structure

Shares on Issue: 131,538,627 (TLM)

Options on Issue: 14,800,000 (Unlisted)

o HWD004 – 1m @ 2.04 g/t Au ; and

o HWD002 – 0.15m @ 2.62% Cu , 5.52 g/t Ag and 0.28 g/t Au

• Pathfinder elements returned in copper mineralised intervals are consistent with geochemical signature of the DeGrussa deposit

ASX: TLM

• Follow-up RC drilling to commence by end of July

• Detailed soil program now complete with Fixed Loop Electro-Magnetic survey to commence shortly at the Halloween West Joint Venture Project

**Talisman
Mining
Ltd

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

June
2012
Quarterly
Activities
Report

- Bryah Basin Copper Gold Projects

Springfield (TLM 100%)

The Springfield Project comprises a 303km² ground package located approximately 150km north-east of Meekatharra in the northern Murchison Goldfields region of Western Australia and 4km along strike from Sandfire Resource’s DeGrussa VMS Copper-Gold Project ( Appendix 1 ).

The current drilling program commenced during the Quarter (mid-April) and has been focused on 20 priority areas that had been identified earlier this year as part of a fully integrated and intensive project targeting review by Talisman ( see Figure 1 ).

Drilling has confirmed the presence of multiple prospective VMS horizons (the host for potential VMS deposits) across three trends – Homer , Monty and Central.

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Figure
1
–
Geological
interpretation
showing
tier-­‐one
target
areas
within
the
Springfield
Project
(each
area
contains
one
or
more
targets)

These trends will now become the focus of the next phase of drilling programs targeting DeGrussa-style VMS copper-gold deposits across the Springfield Project. As a result, the initial drill program of 11,000m (73 holes) is being expanded to approximately 15,000m (100 holes).

Results received to date have confirmed the validity and effectiveness of Talisman’s systematic approach to exploration in this region, where it has invested substantially over the past two years in extensive reconnaissance exploration activities.

Talisman has now completed the original planned drill program to test several integrated geological and structural target areas along the Homer, Monty and Central volcanic sedimentary trends.

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June
2012
Quarterly
Activities
Report

In addition, a further six diamond holes ( SPD036-041 ; see Appendix 2 ) have been drilled for a total of 1,667 metres to test several discrete magnetic geophysical targets for massive copper-gold sulphides along the interpreted Red Bore volcanic horizon which is located in the southern portion of the Homer Trend.

So far results have been received and assessed for the first 39 RC drill holes and all six diamond drill holes (see ASX release 18/07/2012 for significant assay results so far). Further assay results are awaited. The results received and assessed are discussed in more detail below.

Homer Trend

RC drilling along the Homer Trend has consistently intersected disseminated copper-sulphide mineralisation associated with a well-defined volcani-clastic sedimentary horizon at the contact between sediments of the Karalundi Formation and the overlying Narracoota Mafic Volcanics (see Figure 2 ).

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Figure
2
–
Homer
Trend
geological
interpretation
showing
significant
copper
intercepts
and
proposed
follow
up
drilling

The mineralised sediments show strong silica and jasperoidal chert development together with manganese and magnetite enrichment which are interpreted to be indicative of exhalative processes that might host a VMS CuAu deposit along strike or at depth.

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June
2012
Quarterly
Activities
Report

Further RC drilling has now been planned to systematically drill prospective volcanic sediment horizons over the eastern extension of the Homer Trend where a major NW-trending transfer fault cuts the sequence and may have focussed significant VMS activity (see Figure 2 ). Strong demagnetisation of the mafic volcanic sequence is interpreted to be associated with pervasive hydrothermal alteration similar to that noted at Sandfire’s DeGrussa deposit and may be indicative of a large mineralised system.

Diamond drilling along the Homer Trend also included three diamond drill holes (SPD037-039) to test an interpreted volcano-sedimentary horizon thought to host the Red Bore massive copper sulphide occurrence, located west of and along strike of the Springfield Project.

Drilling encountered quartzites and shales overlying fine-grained volcanic sediments, basalts and dolerites with pervasive epidote-carbonate-pyrrhotite alteration. Weak copper sulphide mineralisation was intersected in SPD038 (see Table 1 ) in fine grained volcanic siltstone and altered basalt lithologies.

Anomalous gold mineralisation was noted in SPD038 and SPD041 and in both holes appears associated with brecciated sediments at the faulted unconformity between the Narracoota Volcanics and overlying quartzites.

Two diamond holes (SPD040 and SPD041) were drilled to test a strong ENE-trending electro-magnetic conductive zone identified by previous Moving Loop Electromagnetic (MLEM) and Fixed Loop Electromagnetic (FLEM) surveys. Both holes intersected a thick sequence of black sulphidic shales overlying unconsolidated sandstone/quartzite.

Although the underlying Red Bore position was not intersected, the down-hole electro-magnetic (DHEM) survey indicated that the probable source of the strong conductor was the black sulphidic shale unit. Further work is warranted to better define the prospective Red Bore volcano-sedimentary horizon and to identify targets for follow up RC drilling. Better copper-gold results from the recent RC and Diamond drilling along the Homer Trend are listed in Table 1 below.

	FROM	TO	DOWNHOLE
HOLE	(Metres)	(Metres)	WIDTH(M)	GRADE	INTERCEPT
SPRC165	100	102	2	0.16% Cu	2m@ 0.16% Cu
SPRC167	118	120	2	0.10g/tAu	2m@ 0.10g/tAu
SPRC171	0	2	2	0.18g/tAu	2m@ 0.18g/tAu
SPRC173	34	38	4	0.18g/tAu	4m@ 0.18g/tAu
SPRC173	42	46	4	0.25g/tAu	4m@ 0.25g/tAu
SPRC174	138	140	2	0.10g/tAu	2m@ 0.10g/tAu
SPRC184	32	34	2	0.12% Cu	2m@0.12% Cu
SPRC184	120	122	2	0.13% Cu	2m@0.13% Cu
SPRC185	218	220	2	0.15% Cu	2m@0.15% Cu
SPD038	124	126	2	0.16g/tAu	2m@ 0.16g/tAu
SPD038	148	156	8	0.28g/tAu	8m@ 0.28g/tAu
SPD038	340	346	6	0.09% Cu	6m@ 0.09% Cu
SPD041	103	108	5	0.44g/tAu	5m@ 0.44g/tAu
SPD041	186.16	187	0.84	0.22g/t Au	0.84m@0.22g/t Au

Table
1
–
Significant
Intercepts
from
RC
and
Diamond
Drilling
at
the
Homer
Trend
(see
Appendix
2
for
drill
co-­‐ordinates)

Monty Trend

Three RC holes (SPRC180-182) were drilled to test a discrete magnetic anomaly associated with the eastern extension of the prospective Monty sedimentary horizon and a coincident cross-cutting NW fault transfer zone (see Figure 3 ). Drilling intersected the Monty sequence with strong copper anomalism at the contact between the Monty granodiorite intrusive and a pyroxenitic dolerite with better results tabulated in Table 2 below.

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June
2012
Quarterly
Activities
Report

Previous drilling along the Monty Trend has intersected 0.3m @ 7.6% Cu (SPD020), plus additional lower order anomalous results in a similar geological setting, supporting the prospectivity of the Monty trend.

The target sedimentary horizon was intersected in the recent drilling but without any noted anomalism. It is interpreted that these intrusive rocks have scavenged and remobilised significant copper, probably derived from the Monty Horizon and as such may act as a vector towards the centre of a possible VMS system.

	FROM	TO	DOWNHOLE
HOLE	(Metres)	(Metres)	WIDTH(M)	GRADE	INTERCEPT
SPRC182	86	88	2	0.12g/tAu	2m@ 0.12g/tAu
SPRC182	190	192	2	0.28% Cu	2m@ 0.28% Cu
SPRC182	200	202	2	0.19% Cu	2m@ 0.19% Cu
SPRC182	208	210	2	0.18% Cu	2m@ 0.18% Cu
SPRC182	214	216	2	0.13% Cu	2m @ 0.13% Cu
SPRC182	224	226	2	0.15% Cu	2m@ 0.15% Cu

Table
2
–
Significant
Intercepts
from
RC
Drilling
at
the
Monty
Trend
(see
Appendix
2
for
drill
co-­‐ordinates)

The Monty target horizon is currently undergoing review and re-assaying with low-level analytical techniques to help better define follow-up drill targets and to vector towards a potential mineralized VMS position. It is likely that further in-fill drilling will be conducted in the coming months.

Three holes (SPRC177-179) were drilled as part of the program to test for mineralized volcanics associated with an offset block of the Monty Trend (see Figure 3 ). Drilling encountered purple shales, jasperoidal chert and medium grained dolerites. An unexpected change in dip direction of the target horizon led to the planned drilling being postponed until the necessary earthworks were completed to allow for drilling at a revised orientation.

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Figure
3
–
Monty
Trend
geological
interpretation
showing
significant
copper
intercepts
and
proposed
follow
up
drilling

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June
2012
Quarterly
Activities
Report

Central Trend

Three RC drill traverses (SPRC187-194) have been completed as part of the recent drilling campaign to test a prospective mafic-sediment contact at the southern margin of the Central Trend (see Figure 4 ). It is interpreted that this horizon represents a stratigraphically equivalent position to the DeGrussa sequence on the southern limb of a major syncline and, therefore, has the potential to host VMS-style copper-gold mineralisation.

Previous drilling has also returned elevated copper-sulphide occurrences along this position.

Assay results have been received and assessed for drill holes SPRC187-191 and report anomalous copper sulphide, gold and malachite (secondary copper oxide) development associated with strongly altered and sheared mafic volcanic sediments and basalts, with coincident jasperoidal chert and magnetite development along the prospective horizon. Better copper-gold results from these holes are listed in Table 3 below.

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Figure
4
–
Central
Trend
geological
interpretation
showing
significant
copper
intercepts
and
proposed
follow
up
drilling

Recently completed DHEM surveys of drill holes SPRC190-192 also detected a late-time off-hole conductor which appears to be located to the east of the drill traverse along the prospective host horizon (see Figure 4 ).

Further drilling is currently being planned to test this position and to systematically drill test the Central Trend in areas of structural complexity coincident with cross-cutting NW faulting and associated strong demagnetisation (see Figure 4 ).

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June
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	FROM	TO	DOWNHOLE
HOLE	(Metres)	(Metres)	WIDTH(M)	GRADE	INTERCEPT
SPRC188	116	118	2	0.17g/tAu	2m@ 0.17g/tAu
SPRC189	72	76	4	0.35 g/tAu	4m@ 0.35 g/tAu
SPRC189	136	138	2	0.24% Cu	2m@ 0.24% Cu
SPRC191	134	136	2	0.12% Cu	2m@ 0.12% Cu

Table
3
–
Significant
Intercepts
from
RC
Drilling
at
the
Central
Trend
(see
Appendix
2
for
drill
co-­‐ordinates)

Abraham Trend

A detailed structural and 3D geological interpretation undertaken at the start of 2012 has led to an enhanced understanding of the southern portion of the Springfield Project, particularly the Abraham Trend .

The Abraham volcanics are now interpreted to comprise prospective basalts, volcanic sediments and dolerites in close proximity to the Goodin Fault Zone – a major basin boundary structure and possible focus for VMS mineralisation (see Figure 5 ).

In order to define drill targets, an extensive detailed 100m x 25m soil sampling program of approximately 5,000 samples has been completed across much of the western Abraham Trend with the aim of identifying and delineating co-incident areas of anomalous copper and gold soil geochemistry.

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Figure
5
–
Abraham
Trend
geological
interpretation
showing
significant
copper
intercepts,
soil
geochemistry
and
proposed
RC
drilling

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June
2012
Quarterly
Activities
Report

The results of the soil sampling have generated a significant copper-gold anomaly over the central portion of the Abraham Trend with a maximum copper value of 189.4ppm and gold values up to 61.5ppb against a very low geochemical background.

Detailed geological mapping has been conducted over the anomalous area and has clearly identified multiple anomalous volcanic sedimentary horizons for drill testing. It is envisaged that an initial reconnaissance 3,000m RC drilling program will commence during the September Quarter as an initial test of these encouraging new target areas.

Aircore Drilling Program

Additional upcoming exploration activities at Springfield include an extensive reconnaissance geochemical aircore drilling program.

This drill program will be conducted over the eastern extension of the Abraham volcanics, which are located under alluvial cover, and will test a major cross-cutting NW transfer fault zone that is interpreted to traverse the Springfield Project and link-up with the DeGrussa copper-gold deposit. Approximately 290 holes are planned for a total of 12,000m on a 400m x 160m grid pattern and are scheduled to commence in late August once statutory approvals have been received.

If successful, follow up RC drilling will be undertaken at prospective areas delineated by the aircore drilling program later this year or early next year.

Halloween Copper-Gold Project (TLM 100%)

The Halloween Project is located 11.5km south-west of the DeGrussa VMS Copper-Gold Project in Western Australia and 16.5km west of Talisman’s Springfield VMS Copper-Gold Project ( see Appendix 1 ).

First-pass RC drilling undertaken at Halloween during the March Quarter comprised 16 holes on four broadlyspaced traverses. These holes were drilled to test several copper-gold soil anomalies along an interpreted basaltic volcano-sedimentary sequence.

Significant gold assay results were returned in four holes (HRC001, HRC002, HRC006 and HRC015 – refer ASX announcement 13/04/2012) along three out of the four wide-spaced drill traverses (see Figure 6 ).

The best results from this initial drilling program included:

• HRC002:

• 1m @ 14g/t Au from 86m; and

• 9m @ 3.80g/t Au from 84m (including 4m @ 7.37g/t Au from 84m)

• HRC006:

• 6m @ 1.52g/t Au from 18m

During June, three diamond drill holes (HWD001, HWD002 and HWD004; see Appendix 3 ) were completed in order to:

• test the prospective volcanic horizon for VMS mineralisation associated with the high-grade gold intercepts below HRC002; and

• target a late-time Fixed Loop electromagnetic (FLEM) anomaly located 250 metres along strike and to the west of HRC002 (see Figure 6 ).

Holes HWD001 and HWD004 were drilled to test the prospective mineralised horizon for VMS copper-gold mineralisation immediately down-dip from the peak gold results in HRC002 (see Figure 8 ).

Hole HWD003 was commenced, but halted due to significant lifting of the hole and was replaced by HWD004.

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June
2012
Quarterly
Activities
Report

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Figure
6
–
Simplified
geological
plan
with
drill
hole
locations
showing
significant
mineralised
intercepts

Both drill holes intersected the down-dip extension of the target VMS horizon with intensely deformed volcanicderived sediments showing strong silicification and chlorite-carbonate alteration with abundant disseminations and thin bands of near-massive, bedded exhalative sulphides – principally pyrrhotite and pyrite with lesser chalcopyrite (see Figure 7 ).

The better gold and silver results are associated with these sulphide bands in HWD004 and include:

• 4m @ 5.34 g/t Au , 3.12 g/t Ag from 297m (including 1m @ 9.78 g/t Au , 6.54 g/t Ag from 299m);

• 1m @ 2.04 g/t Au from 288m;

• 1m @ 1.11 g/t Au from 281m; and

• 2m @ 0.99 g/t Au from 253m.

Figure
7
–
HWD004
Target
VMS
horizon
showing
bedded
sulphide
(pyrite-­‐pyrrhotite-­‐chalcopyrite)
in
silicified
cherts
and
shale

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June
2012
Quarterly
Activities
Report

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Figure
8
–
Interpreted
Drill
section
717200E
looking
west
showing
interpreted
geology
and
significant
gold
intercepts

Hole HWD002 was designed to test an electro-magnetic conductor defined in a recently completed FLEM program, which is located along the prospective VMS corridor in the centre of the project (see Figure 6 ). The hole intersected an intensely sheared, sulphide-bearing volcano-sedimentary sequence (similar to that encountered in HWD001 and HWD004) with discrete bands of siliceous chalcopyrite-bearing sediment that are thought to explain the conductor.

Although no massive sulphides were intersected in HWD002, significant disseminated chalcopyrite mineralisation was identified and is associated with an interval of highly sheared, silica-altered volcanic sediments.

Of particular note are the elevated pathfinder elements associated with the copper mineralised intervals in both HWD004 and HWD002.

The best result from this interval was 0.15m @ 2.62% Cu , 5.52 g/t Ag and 0.28 g/t Au from 164.73m (see Figure 9 below).

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June
2012
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In addition to copper, gold and silver, the zinc, selenium, tellurium, molybdenum and bismuth values are consistently elevated and are particularly encouraging as they are consistent with the geochemical signature associated with the nearby DeGrussa VMS high grade coppergold deposit.

A 3,000 metre in-fill RC drilling program has been developed to follow-up these results. This drill program will attempt to better define the mineralised trend at Halloween. Additionally, some of the planned drill holes will establish a platform for deeper diamond drilling beneath, and along strike, from HWD004 (see Figure 6 ) later in the year.

Preparatory site works have commenced and RC drilling at Halloween is scheduled to commence shortly in order to undertake this trend definition drill program.

Figure
9
–
HWD002
Significant
disseminated
chalcopyrite
mineralisation
associated
with
highly-­‐sheared,
silica-­‐altered
volcanic
sediments

Halloween West JV (formerly Doolgunna West)

During the Quarter (ASX release:16 May 2012) Talisman announced that it had further strengthened its exploration portfolio in the Bryah Basin mineral province of Western Australia after reaching agreement with Chrysalis Resources Limited (ASX: CYS) to farm into the Halloween West JV Copper-Gold Project (formerly Doolgunna West Project).

Under the terms of the Joint Venture Farm-In Letter Agreement Talisman has the right to earn a 60% interest in the Halloween West JV Copper Gold Project by spending $500,000 on exploration within three years. Talisman must spend a minimum of $150,000 on exploration within the first 12 months and following expenditure of the initial $150,000 Talisman can elect to either:

• i. withdraw from the farm-in arrangement with no further commitment; or

• ii. expend a further $350,000 within the next 2 years in order to earn a 60% interest in the Halloween West JV Copper Gold Project.

Once Talisman has earned a 60% joint venture interest, Chrysalis will have the right to maintain its 40% interest by contributing to exploration expenditure on a pro rata basis or dilute on an industry standard basis. Under the terms of the agreement Talisman will manage all exploration activities during the farm-in period and will also be the Joint Venture Manager as it will be the majority holder of the project.

Halloween West is located immediately to the west of the 100%-owned Halloween Project and is interpreted to host the continuation of the Halloween VMS trend (see Figure 10 below).

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June
2012
Quarterly
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Talisman has recently completed a detailed 100m x 25m soil geochemical program (totalling 1,455 samples) covering the portion of Halloween West located immediately along strike of the Halloween Project VMS horizon (see Figure 10 ). Assay results from this program are pending.

The Company will shortly undertake detailed geological mapping and an extension of the Halloween FLEM survey at Halloween West in order to better define prospective stratigraphic horizons across the project and to assist in targeting future RC drilling later this year.

Figure
10
–
Halloween
West
JV
Project
showing
proposed
soil
and
FLEM
area
of
coverage
over
regional
magnetics

Murchison Gold Projects

Livingstone Gold Project (TLM 80%)

The Livingstone Gold Project is located approximately 130km to the north-west of Meekatharra ( Appendix 1 ) and consists of three Exploration Licences covering an area of 208 km².

The Project straddles the western extension of the highly prospective Bryah Basin at the northern margin of the Yilgarn Craton and a major shear zone traverses the entire project with widespread gold intercepts returned by historic percussion drilling programs over a strike length of more than 31km.

As part of Talisman’s ongoing strategy to develop a series of regionally significant, large-scale stand-alone gold projects, a systematic and fully integrated exploration approach is underway at the Livingstone Project with several targets already identified.

During the June Quarter, Talisman completed detailed mapping, a structural review and an extensive soil sampling program resulting in a revised regional geological interpretation. Over 6,000 soil samples have been collected to date, covering the Stanlee, Fandral, Hilltop, VHF and Kerba Prospects with low-order gold anomalism identified at all prospects.

A detailed review of the geochemical data together with the new geological and structural interpretations will be undertaken with a view to evaluating the potential for drilling in the future.

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June
2012
Quarterly
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Muddawerrie Gold Project (TLM 80%)

The Muddawerrie Project is located approximately 100km north-west of Meekatharra in the Murchison Region of Western Australia ( Appendix 1 ). The granted Exploration Licence covers an area of approximately 52 km² and comprises over 16km of prospective Archaean greenstone belt with significant potential to host high-grade, banded iron formation (BIF) and mafic-hosted shear zone gold deposits, similar to those at Mt Magnet and Meekatharra.

The Muddawerrie Project comprises two mineralised trends, Mt Maitland and Muddawerrie, which extend for 6km along the western and eastern sides of the project area respectively. Both trends are characterised by highly anomalous gold geochemistry associated with highly sheared mafic/ultramafic volcanic rocks and BIF coincident with a number of old gold workings along each trend.

Exploration activities during the Quarter included geological mapping and soil sampling over targeted areas.

Shelby Project (TLM 100%)

The 1,816 km² Shelby Project is located along the northern margin of the Bryah Basin approximately 30km north of the Horseshoe Lights Copper-Gold Mine ( Appendix 1 ).

On the basis of its geological setting, the Shelby project has been identified by Talisman as having potential to host large Iron Oxide-Copper-Gold (IOCG) deposits (e.g. Olympic Dam, Prominent Hill) and/or a Voisey’s Baystyle mafic-ultramafic intrusive hosted nickel-copper-PGE sulphide deposit.

In May 2011, Talisman completed an initial 1,452m-deep diamond hole (SHD001A) co-funded as part of the WA State Government Exploration Incentive Scheme (EIS) and designed to test a large magnetic body identified by a detailed airborne magnetic survey ( Figure 11 ).

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Figure
11
–
Shelby
Project
Gravity
Image

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June
2012
Quarterly
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The mafic-ultramafic rocks and strong magnetite-amphibole-chlorite alteration intersected by SHD001A demonstrated encouraging evidence that Shelby could host a large iron oxide-copper-gold mineralising system. Furthermore, metal deposition is evident in SHD001A with chalcopyrite mineralisation (to a maximum of 0.047% Cu) and elevated gold (to 84ppb) in zones of stronger alteration.

During the Quarter processed data was received from a detailed infill gravity survey conducted over the principal Shelby magnetic anomaly and immediate environs. This survey was designed to test for gravity anomalism that may be associated with dense iron oxide-copper-gold mineralisation.

The data highlights several discrete gravity anomalies worthy of follow-up.

3D modelling is planned to determine the attitude, depth and significance of these anomalies.

CORPORATE

Tom Price and Anticline Projects

In 2004, prior to floating, Talisman granted Fortescue Metals Group (FMG) 100% of the iron ore rights associated with its Tom Price and Anticline tenements. As a result of this transaction Talisman retained:

• the ownership of the tenements:

• rights to all other metals; and

• a royalty of $0.30 per tonne of iron ore mined from the tenements capped at $8 million.

Subsequent to the end of the June Quarter the Company agreed to sell the ownership of these non-core tenements to FMG. Under the terms of this recent transaction Talisman received a cash payment of $550,000 from FMG and retained the royalty rights noted above.

Other

During the Quarter, in addition to its operating activities, the Company made a tax payment of approximately $5.1M which was primarily associated with the sale of the Wonmunna and Uaroo tenements during the 2011 financial year.

At the end of the June Quarter, Talisman held approximately $28M in cash.

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.

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Appendix
1
–
Talisman
Mining
Ltd
Project
locations

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2012
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Appendix
2
-­‐
Talisman
Mining
RC
and
Diamond
Drillhole
Locations
for
significant
intercepts,
April-­‐June
2012

Hole ID	Hole Type	Depth(m)	East MGA94	North MGA94
SPD036a	DDH	677.5	741700	7177224
SPD037	DDH	354.4	740499	7173587
SPD038	RR_DDH	366.2	741203	7173858
SPD039	DDH	297.2	742232	7174337
SPD040	DDH	277.8	743003	7174200
SPD041	RC_DDH	252.5	743697	7174592
SPRC165	RC	204	743432	7175035
SPRC167	RC	156	743410	7174882
SPRC171	RC	168	743103	7175099
SPRC173	RC	180	744156	7174900
SPRC174	RC	168	744156	7174810
SPRC182	RC	438	745451	7172450
SPRC184	RC	336	740137	7174792
SPRC185	RC	240	742124	7175290
SPRC188	RC	384	742245	7172304
SPRC189	RC	186	742248	7172181
SPRC191	RC	228	739822	7171103

Appendix
3
-­‐
Halloween
Diamond
Drillhole
Locations

Hole ID	Hole Type	Depth(m)	East MGA94	North MGA94
HWD001	RC_DDH	297.2	717214	7168107
HWD002	DDH	300.4	716945	7167990
HWD003	RC_DDH	162.1	717189	7168009
HWD004	DDH	399.5	717189	7168007

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