TALISMAN MINING LIMITED — Interim / Quarterly Report 2015

Apr 29, 2015

Appendix 5B Mining exploration entity quarterly report

Rule 5.5

Appendix 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

TALISMAN MINING LIMITED

ABN 71 079 536 495 Consolidated statement of cash flows	Quarter ended (“current quarter”)	Quarter ended (“current quarter”)
	31 March 2015
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) NetOperating Cash Flows	Current quarter $A’000	Year to date $A’000
	- (630) - - (367) - 67 - - -	- (1,471) - - (1,024) - 397 - - -
	(930)	(2,098)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects -Sinclair Nickel Project (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	(7,950) - - - - - - - -	(8,000) - (21) - - 2 - - -
	(7,950)	(8,019)
	(8,880)	(10,117)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(8,880)	(10,117)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows	- - - - - -	- - - - - -
	-	-
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(8,880) 14,815 -	(10,117) 16,052 -
	5,935	5,935

Payments to directors of the entity and associates of the directors, related entities of the entity and associates of the related entities

associates of the	related entities
1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		267
		-
1.25	Explanation necessary for an understanding of the transactions
	Remuneration to Directors including payments relating to resignation of G. Cameron.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

N/A

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

N/A

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	750*
	-
	-
	750**
Total	1,500

*Includes ~$0.4 million payment of rent and rates which also includes reimbursement of rent and rates paid by Xstrata Nickel operations for the period 4 February 2015 to 30 June 2015.

**Includes $0.5million payment for Stamp Duty associated with acquisition of the Sinclair Nickel Project.

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	855	8,335
	5,080	6,480
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	5,935	14,815

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
	-	-	-	-
	Sinclair E36/650 E37/538 E37/903 E37/1012 L36/198 L37/175 M36/444 M36/445 M36/446 M37/362 M37/383 M37/384 M37/385 M37/386 M37/424 M37/426 M37/427 M37/590 M37/692 M37/735 M37/816 M37/818 M37/819 M37/1063 M37/1089 M37/1090 M37/1126 M37/1127 M37/1136 M37/1137 M37/1148 M37/1168 M37/1223 M37/1275 P37/7228 P37/7233	Talisman entered into a binding agreement to acquire the Sinclair Nickel Project and associated tenements from Xstrata Nickel Australasia Operations on 21 October 2014 The transaction completed on 4 February 2015 Talisman paid assessable stamp duty on the tenements and registered the transfer of title with the WA DMP on 10 April 2015 As at the end of April 2015 transfer of title of the majority of tenements had completed	0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
	7.1 Preference ~~+~~securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs,redemptions
	7.3 ~~+~~Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	131,538,627	131,538,627
	7.5 ~~+~~Convertible debt securities (description)
	7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7	Options (description and conversion factor)	250,000 250,000 250,000 250,000 150,000 175,000 175,000 562,500 562,500 562,500 562,500 750,000 750,000 750,000 750,000 125,000 125,000 125,000 125,000	- - - - - - - - - - - - - - - - - - -	Exercise price $1.02 $1.13 $1.41 $1.53 $0.40 $0.50 $0.60 $0.43 $0.51 $0.60 $0.69 $0.41 $0.49 $0.56 $0.64 $0.40 $0.50 $0.60 $0.70	Expiry date 31/07/2015 31/07/2015 31/07/2015 31/07/2015 30/09/2016 30/09/2016 30/09/2016 31/10/2016 31/10/2016 31/10/2016 31/10/2016 31/10/2017 31/10/2017 31/10/2017 31/10/2017 01/03/2018 01/03/2018 01/03/2018 01/03/2018

• See chapter 19 for defined terms. Appendix 5B Page 5

Appendix 5B Mining exploration entity quarterly report

7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	150,000 175,000 175,000 125,000 125,000 125,000 125,000	- - - - - - -	$0.40 $0.50 $0.60 $0.40 $0.50 $0.60 $0.70	30/09/2016 30/09/2016 30/09/2016 01/03/2018 01/03/2018 01/03/2018 01/03/2018
	-	-	-	-
7.11 Debentures (totals only)	-	-
7.12 Unsecured notes(totals only)	-	-

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: Daniel Madden Company Secretary

Date: 30 April 2015

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Print name: Daniel Madden

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

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