TALISMAN MINING LIMITED — Interim / Quarterly Report 2016

Oct 30, 2016

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ASX Media Release – 31 October 2016

Quarterly Activities Report September 2016

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- Springfield Cu Au Project - (JV with Sandfire Resources NL)

• Air-core drilling at Monty NE identified an area of anomalous copper mineralisation with shallow oxide copper results including 5m @ 4.11% Cu from 55m (no significant intersections to date from follow up drilling).

• Drilling of deep diamond hole to provide a DHEM platform below Monty commenced in September 2016 (completed October 2016). DHEM survey planned.

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

• $3 million Springfield Joint Venture exploration budget approved for the four-month period to the end of December 2016

• Feasibility Study progressing with completion anticipated in first quarter of 2017 calendar year.

Sinclair Nickel Project

• Reverse Circulation (RC) drilling at Delphi North confirmed zones of massive and stringer nickel sulphide mineralisation including:

• SNRC010: 4m @ 4.79% Ni from 154m down-hole;

• o SNRC012: 5m @ 2.39% Ni from 73m down-hole; and o SNRC019: 9m @ 4.20% Ni from 131m down-hole.

• Follow up diamond drill hole SND009 (down dip from SNRC019), intersected 1.4m of massive nickel sulphides from 175m down-hole and multiple zones of ultramafic mineralisation . (Assays pending)

• Diamond drill hole (SND006) at Delphi North targeting modelled EM plate, confirmed zones of brecciated to massive nickel sulphide mineralisation. Hole interpreted to intersect top of the modelled EM plate and has not fully tested the target.

Email:

info@talismanmining.com.au

Website: www.talismanmining.com.au

Capital Structure

• Broad zones of prospective high-Mg ultramafic rocks intersected in RC drilling at Schmitz Well South with multiple zones of trace to disseminated sulphides logged in RC chips.

• Follow-up drill programs planned for November 2016 at Delphi North and to test recently identified target horizons at Parnassus, Sinclair North, the Sinclair Eastern basal contact position and the Stirling prospect areas.

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

Options on Issue: 4,650,000 (Unlisted)

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Doolgunna Projects (Joint Venture with Sandfire Resources NL)

The Doolgunna Projects Joint Venture is between Talisman Mining Ltd (“Talisman” or the “Company” (ASX: TLM)) and Sandfire Resources NL (“Sandfire” (ASX: SFR)) (the “Joint Venture”) with Sandfire acting as Joint Venture Manager. The Joint Venture encompasses the Springfield Project (30%:70%, TLM:SFR) and the Halloween West Project (19%:81%, TLM:SFR) which are high quality VMS copper-gold exploration projects in the emerging world class Bryah Basin region of Western Australia (see Appendix 1). The discovery of exceptionally high grade copper-gold mineralisation and the maiden high grade Mineral Resource estimate for the Monty Copper-Gold Project (“Monty”) has confirmed the significant exploration potential of the projects.

Springfield Cu-Au Project

Site and Perth-based Joint Venture activities for the Springfield Project ( Appendix 1 ) continued to progress in two separate streams; development studies to advance the high-grade Monty Cu-Au deposit and exploration focused on enhancing geological and structural knowledge to unlock the regional potential of the broader Joint Venture area.

The current four-month exploration budget (through to 31 December 2016) 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.

In parallel with this work, the Joint Venture Manager continued to work with specialist external consultants to complete a detailed structural evaluation of the Monty diamond drill core and provide geological context to the setting of the Monty deposit. This work is now completed and assisted in locating the planned deeper diamond drill hole to provide an EM platform down dip from the currently modelled mineralisation envelopes at Monty.

The Joint Venture completed 31 holes for 3,580m of diamond drilling; 12 holes for 3,918m of RC drilling; and 209 holes for 19,431m of air-core drilling during the quarter ( Table 1 ).

Exploration

On-ground exploration activity at the Springfield Project was at a reduced level compared to previous quarters as time was taken to compile and consolidate previous work and to complete outstanding interpretative modelling. This is indicative of the measured and staged exploration strategy employed by Sandfire as Joint Venture Manager at the Springfield Project. Drilling productivity during the period was also hampered by unseasonal weather events.

Work completed at the Springfield Project ( Figure 1 & Appendix 2 ) during the quarter included air-core, RC and diamond drilling at selected locations. Diamond drilling activities were predominantly focused on Feasibility Study geotechnical requirements.

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Figure 1: Springfield Project September Quarter drilling locations.

Other exploration activities included the completion of a detailed ground-based SQUID EM survey over and along strike from the Monty deposit, a limited orientation soil sampling program, a trial Induced Polarisation (IP) geophysical survey and ongoing work to finalise a 3D structural geological model of the Monty deposit.

Drilling of a deep diamond drill hole (TLDD0113A) aimed at providing a platform for a DHEM geophysical survey testing for potential down-dip and down-plunge extensions of the Monty deposit, commenced late in the quarter with the DHEM survey anticipated to be undertaken in November 2016

As a result of below budgeted drill metres throughout the period, actual expenditure was below budget, leading to lower than budgeted Joint Venture cash calls. Actual drill metres against budget are shown in Table 1 .

Air-Core Drilling

The Joint Venture continued to use systematic air-core drilling in the first two months of the quarter to assist in delineating the interpreted VMS horizon along the prospective host corridors. The primary focus of the air-core drilling was the Monty NE regional area (Figure 1 ).

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

A series of eight air-core holes (TLAC2783 – 2790), and one RC hole (TLRC0053) to an end of-hole depth of 448 metres were completed around TLAC2694 during the quarter to follow-up this anomaly.

1 Air-core drilling results are based on five-meter composite spear sampling.

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Logging of these holes did not identify any significant visible sulphide mineralisation and assay results from sampling of these drill-holes did not return any significant copper mineralisation. Full details of all significant air-core drilling results received to the end of the September are listed in Table 2 and Table 3 .

A subsequent DHEM survey of TLRC0053 was undertaken during the quarter which did not identify any off-hole conductors.

Interpretation of these results is ongoing and further drilling is planned to continue testing the surrounding area.

Reverse Circulation (RC) and Diamond Drilling

RC drilling undertaken during the quarter included follow-up drill testing of previously identified air-core anomalies, the Monty NE extensions and the interpreted south-west fault area.

Ore diamond drill tail on an RC hole (TLRC0046) was completed at Monty NE during the quarter. This hole intersected the interpreted host sediment package. A DHEM survey is planned.

The majority of diamond drilling undertaken during the quarter was focused on geotechnical drilling of the proposed box cut and decline positions, budgeted as part of the ongoing Feasibility Study (see ‘Monty Development Studies’ for details).

In addition to the geotechnical drill holes, one exploration diamond drill hole (TLDD0112) and three RC drill holes (TLRC0049 – TLRC0051) were completed to test an early interpreted fault-offset position to the south west of Monty. This drilling intersected the interpreted sediment horizon and a detailed review of results in underway. Additional work in this area is planned once results have been analysed.

Diamond drill hole TLDD0113A also commenced during the quarter with the aim of providing a deep DEHM platform in the area down-dip from the know Monty resource ( Figure 1 & Appendix 2 ). This hole was completed subsequent to the end of the quarter, with a final end-of-hole depth of 1,213m. The interpreted prospective sedimentary horizon was seen in the drill core from approximately 987m – 1037m down hole. A DHEM survey of this hole is planned.

The location of diamond and RC drilling undertaken during the quarter is shown in Appendix 2 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 . All significant results from RC and diamond drilling is provided in Table 4 .

Other Exploration 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 the survey was to assess the ability of the technique to detect Monty mineralisation from surface which, if successful, would then be applied to other areas of the Springfield Joint Venture.

Processing and interpretation of the data was completed during the quarter by NEWEXCO and whilst the SQUID EM provided better quality data and could directly detect shallow Monty-style VMS mineralisation, the late-time 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.

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A trial Induced Polarisation (IP) geophysical survey was undertaken over the known Monty mineralisation, with the aim of generating a base response to assess the ability of the technique to detect Monty mineralisation from surface. Results from this initial survey are under review.

Trial soil/auger sampling over the Monty deposit was also completed during the quarter. 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.

Monty Development Studies

Feasibility Study activities progressed during the quarter and remain on schedule to be completed in the March 2017 quarter. Several work streams are currently in progress including:

• a total of 2,536m of geotechnical drilling was completed for the quarter, the results from which have been incorporated into subsequent design studies, for the box cut and decline location;

• hydrogeological studies, following completion of geotechnical and structural geology studies;

• mine planning and schedule optimisation that recognises the inherent value of Monty ore, and includes ventilation design and grade control considerations;

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

• evaluation of a proposed haul road route between Sandfire’s DeGrussa Copper-Gold Mine (“DeGrussa”) and Monty with surface infrastructure layout design.

In parallel with the Feasibility Study activities, Sandfire and Talisman are continuing to progress formal exploration and mining joint venture agreements and are investigating potential ore process routes and terms.

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Sinclair Nickel Projects

Overview

The 100% owned Sinclair Nickel Project is located in the world-class Agnew-Wiluna Greenstone Belt in WA’s North-eastern Goldfields (Appendix 3). 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.

During the September quarter Talisman commenced a cost efficient, staged exploration program at Sinclair focused on exploration targets at the Delphi, Delphi North and Schmitz Well prospects.

Results from RC exploration drilling undertaken during the quarter at Delphi North were received in October 2016 and confirmed relatively shallow zones of massive sulphide mineralisation including 9m @ 4.20% Ni from 131m down-hole (SNRC019) ( refer ASX Announcement – 07 October 2016 ).

RC drilling at Schmitz Well South (Figure 4) was also completed, with wide zones of prospective high-Mg ultramafic rock intersected in drilling.

Talisman also undertook a program of three diamond drill holes at Delphi North and the wider Delphi Prospect which completed in October 2016.

The results from this recent program of on-ground exploration at the Sinclair Nickel Project provide further evidence of the considerable prospectivity of the Sinclair ultramafic belt to host additional massive sulphide nickel deposits.

Talisman is highly encouraged by these recent results and will continue with a cost efficient, staged and focused exploration program at Sinclair during the forthcoming quarter focused on high priority targets in the near mine Sinclair Trend, including the Delphi North Prospect.

Delphi North

Delphi North is a high priority target corridor (Figure 2 ) displaying a strong correlation with the Sinclair mine geological environment. It has confirmed historic nickel sulphide mineralisation over a strike length of 700m and is interpreted to represent a fertile mineralised environment with potential to host significant mineralisation.

Two fences of RC drill holes at Delphi North were drilled during the quarter designed to test a shallower area up dip of the previously reported massive sulphide mineralisation intersected in hole DED009 ( Figure 2 ). Results from this drilling confirmed near surface high-tenor nickel sulphide mineralisation in multiple zones of massive and stringer nickel sulphide mineralisation with significant intersections[2] including:

• SNRC010: 4m @ 4.79% Ni from 154m down-hole;

• SNRC012: 5m @ 2.39% Ni from 73m down-hole, and • SNRC019: 9m @ 4.20% Ni from 131m down-hole.

A complete list of all drilling results is provided in Table 6 .

• 2 Significant intersections are calculated on the basis of a >0.5% Ni and may include up to 1m of internal dilution, with a minimum composite grade of 1% Ni

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Figure 2: Delphi North long projection showing new and existing Ni massive sulphide intersections, newly modelled and historic DHEM conductors and an interpreted target corridor.

The zones of massive and stringer nickel sulphide mineralisation intersected in these RC drill holes are of a higher tenor and greater thickness compared to previous results. Talisman is highly encouraged by these results and will be undertaking additional drilling during the forthcoming quarter to further delineate this emerging and exciting target area.

As a result of the mineralisation identified in SNRC019 and to provide a suitable platform for downhole electromagnetic (DHEM) surveying, Talisman drilled diamond drill hole SND009 subsequent to the end of the quarter. SND009 was drilled below SNRC019 and intersected 1.4m of massive nickel sulphides in a basal position approximately 33m down dip from SNRC019. In addition to the massive sulphide intersection the hole also intersected a broad zone (~30 metres) of high-MgO ultramafic rocks containing stringer, disseminated and minor matrix-style nickel sulphide mineralisation containing visual pyrrhotite and pentlandite nickel bearing sulphide minerals. Assay results are pending.

A DHEM survey of SND009 was completed subsequent to the end of the quarter, which delivered a number of modelled conductors (refer Figure 2 ) that align closely with the massive sulphide intersections from recent RC and diamond drilling at Delphi North. A high conductance modelled anomaly of 15,000

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siemens centred above and to the south of the hole is interpreted to represent the thickest part of the massive nickel sulphides intersected to date. A moderate conductance plate (3000 siemens) measuring approximately 140m x 50m intersects the recent sulphide intersections extending both to the north and south from existing drilling. Talisman considers that these modelled conductors highlight the potential for Delphi north to host significant nickel sulphide mineralisation.

In addition to the fences of shallower RC and diamond drilling Talisman undertook diamond drill hole SND006 during the quarter. SND006 was drilled to test a conductor identified in the previously completed DHEM survey of SND001, some 50 metres to the south of SND001 ( Figure 2 ). The hole was interpreted by Talisman to intersect the target toward the top of the modelled EM plate and as such has not fully tested the targeted plate. Multiple zones of brecciated to massive sulphides (pyrrhotite, chalcopyrite & minor pentlandite) were intersected in SND006 including 3.5m @ 1.01% Ni from 403.2m down-hole.

Multiple ultramafic and sedimentary lithologies were intersected below the basal contact position and the geology is interpreted to be tightly folded hanging wall stratigraphy within a synclinal structure. It is also interpreted that the basal contact has been folded in a similar manner below the hole in a structural position similar to the Sinclair Mine geology. The brecciated to massive nature of the sulphide intersection in SND006 is consistent with Talisman’s geological interpretation of this position and validates the current exploration strategy to target massive sulphide mineralisation at Delphi North.

The nickel sulphide intersections logged in SND006 are encouraging and further work to confirm Talisman’s interpretation of the stratigraphy and mineralised environment is underway.

A DHEM survey has recently been completed in hole SND006. The survey identified multiple conductors, confirming the presence of nickel sulphide mineralisation in the vicinity of holes SND006 and SND001. The data has been processed and interpreted resulting in modelled plates with dimensions of 250m x 80m located in close proximity to SND006 and extending both north and south at a shallow plunge ( Figure 2).

Drill results confirm that the Delphi North prospect remains one of the highest priority target areas and further drilling is set to commence in November 2016.

Other Targets at Delphi Prospect

Talisman also undertook diamond drill holes SND007 and SND008 at the wider Delphi Prospect during the quarter, which targeted existing separate Moving Loop Electromagnetic (MLEM) conductors ( Figure 3 ).

SND007 intersected a wide zone of ultramafic rocks with minor matrix and stringer nickel sulphides. Below the ultramafic unit, the drill hole encountered pyrite-rich sediments which may explain the existing MLEM anomaly. Assay results for the matrix-style sulphides intersected in this hole include 0.7m @ 0.91% Ni from 181.6m down hole.

Subsequent to the end of the quarter a DHEM survey was completed in SND007. The survey was unable to reach the end of hole due to poor ground conditions. However, the survey identified a growing EM anomaly towards the end of the surveyed interval proximal to the matrix and stringer nickel sulphides and deeper pyrite-rich sediments logged previously. Additional geological and geophysical interpretation will be undertaken to accurately define this EM anomaly.

SND008 intersected a prospective high-MgO ultramafic unit however no discernible sulphide mineralisation was logged in the drill core to explain the existing MLEM anomaly. A DHEM survey completed subsequent to the end of the quarter at SND008 did not return any significant EM anomalism and the original surface EM anomaly remains unexplained. Assay results have been returned with no significant results.

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Figure 3: Delphi Prospect Geological Plan showing diamond drill tails and historic drill collars.

Schmitz Well South Prospect

A fence of RC drill holes at Schmitz Well South to test an interpreted extension of the ultramafic unit under cover identified by Talisman has been completed (Figure 4 ). Talisman secured a grant from the Western Australian Department of Mines of up to $55,000 ($110,000 total drill cost split 50/50) for the co-funding of this exploration drilling.

Drilling intersected broad zones of prospective high-MgO ultramafic rocks, containing multiple zones of trace to disseminated (cloud) sulphides throughout. Assay results returned anomalous nickel grades with the highest grade received to date being 1m @ 0.97% Ni from 193m down-hole in SNRC015.

The presence of fertile, high-MgO ultramafic units at Schmitz Well South is highly encouraging and validates Talisman’s original interpretation that Schmitz Well South represents a continuation of the fertile Schmitz Well and Sinclair ultramafic trend. Detailed interpretation of the results from this drilling will inform Talisman’s interpretation and guide further exploration activities in the area.

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SNRC015
1m @ 0.97% Ni from 193m
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Figure 4: Plan view of Schmitz Well South showing magnetics, interpreted ultramafic unit under cover and completed RC drill holes

Planned activity

As part of Talisman’s cost effective and focused exploration strategy a second phase program of diamond and RC drilling is scheduled to commence in early November 2016 over the wider Sinclair Trend ( refer ASX Announcement – 27 October 2016 ).

Diamond drilling will be conducted at Delphi North along strike and down plunge from recent shallow massive nickel sulphide intersections and at Stirling targeting the interpreted mineralised position as a basis for ongoing work in the future.

Talisman also intends to test new target horizons and prospects at the Sinclair Trend, which represents an 8km strike running from the Parnassus to the Delphi Prospects (refer Appendix 3 ). Within this trend multiple mineralised positions identified from remodelling undertaken by Talisman of the fertile ultramafic basal contact in the near Sinclair mine environment.

This phase of focused work is planned to include RC drilling of shallow targets at Parnassus, Sinclair North and the Sinclair Eastern basal contact position.

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

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Competent Persons’ Statement

Information in this report that relates to Exploration Results and Exploration Targets as defined under the 2012 Edition of the “Australian Code for Reporting of Mineral Resources and Ore Reserves”, is based on information compiled 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 deposit 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 forecasts. Actual values, results or events may be materially different to those expressed or implied in this report. Given these uncertainties, recipients are cautioned not to place reliance on forward-looking statements. Any forward-looking statements in this report speak only at the date of issue of this report. 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 forwardlooking statements in this report or any changes in events, conditions or circumstances on which any such forward-looking statement is based.

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Table 1 – Budget Vs Actual drilling details for quarter ending 30 September 2016, Springfield Cu-Au Project

	July	July	August	August	September	September		Total
	Budget meters	Actual meters	Budget meters	Actual meters	Budget meters	Actual meters	Budget meters	Actual meters	% Completed
Diamond Drilling	980	651	980	1,688	-	1,242	1,960	3,580	183%
RC Drilling	2,400	1,240	2,400	1552	600	1,126	5,400	3,918	73%
AC Drilling	12,300	10,616	16,400	8,815	-	-	28,700	19,431	68%
Total:	15,680	12,507	19,780	12,054	600	2,367	36,060	24,384	68%

Table 2 – Drill-hole Information Summary, Springfield Cu-Au Project

Details and co-ordinates of drill-hole collars for diamond and RC drilling completed during the September 2016 quarter:

Hole ID Grid ID	Hole ID Grid ID	Dip	Azimuth	East North	East North	RL	Hole Type	Max Depth	Hole Status	Comments
				(m) (m)		(m)
Diamond Drilling
TLDD0112	MGA94_50	‐60°	180°	742,800	7,170,850	594.92	RC/DDH	180	Complete
TLDD0113	MGA94_50	‐66°	134°	743,242	7,171,497	595	RC/DDH	100	Abandoned
TLDD0113A	MGA94_50	‐66°	132°	743,242	7,171,497	595	RC/DDH	688	In Progress	Final EOH 1,213m – completed post the end of the reporting period
Geotechnical	Drilling ‐ NB G	eotechnic	al holes wer	e not sampled
TLGT0011	MGA94_50	‐60°	346°	744,249	7,171,712	601.567	DD	30.7	Complete
TLGT0012	MGA94_50	‐60°	256°	744,251	7,171,714	601.372	DD	30.7	Complete
TLGT0013	MGA94_50	‐60°	166°	744,250	7,171,714	601.458	DD	33.4	Complete
TLGT0014	MGA94_50	‐60°	76°	744,250	7,171,712	601.488	DD	33	Complete
TLGT0015	MGA94_50	‐60°	346°	744,200	7,171,700	599.841	DD	35	Complete
TLGT0016	MGA94_50	‐60°	76°	744,201	7,171,700	599.883	DD	36.8	Complete
TLGT0017	MGA94_50	‐60°	166°	744,202	7,171,702	599.987	DD	36.7	Complete
TLGT0018	MGA94_50	‐60°	256°	744,203	7,171,702	600.029	DD	36	Complete
TLGT0019	MGA94_50	‐60°	246°	744,164	7,171,684	597.983	DD	99.8	Complete
TLGT0020	MGA94_50	‐60°	248°	744,118	7,171,663	597.68	DD	99.7	Complete
TLGT0021	MGA94_50	‐60°	246°	744,073	7,171,643	596.879	DD	99.8	Complete
TLGT0022	MGA94_50	‐60°	246°	744,027	7,171,622	597.772	DD	106	Complete
TLGT0023	MGA94_50	‐60°	246°	743,936	7,171,581	599.463	DD	100	Complete
TLGT0024	MGA94_50	‐60°	243°	743,846	7,171,538	601.444	DD	110	Complete
TLGT0025	MGA94_50	‐60°	243°	743,757	7,171,494	601.091	DD	125	Complete
TLGT0026	MGA94_50	‐60°	243°	743,667	7,171,448	598.313	DD	141.9	Complete
TLGT0027	MGA94_50	‐60°	243°	743,578	7,171,403	598.797	DD	159.9	Complete
TLGT0028	MGA94_50	‐60°	243°	743,533	7,171,381	599.195	DD	171.8	Complete
TLGT0029	MGA94_50	‐60°	246°	743,982	7,171,602	598.726	DD	99.9	Complete
TLGT0030	MGA94_50	‐60°	246°	743,891	7,171,561	600.475	DD	99.4	Complete
TLGT0031	MGA94_50	‐60°	243°	743,801	7,171,516	601.494	DD	114.8	Complete
TLGT0032	MGA94_50	‐60°	243°	743,712	7,171,471	599.774	DD	129.7	Complete
TLGT0033	MGA94_50	‐60°	243°	743,623	7,171,426	598.575	DD	150.5	Complete

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Hole ID	Grid ID	Dip	Azimuth	East	North	RL	Hole Type	Max Depth	Hole Status	Comments
				(m)	(m)	(m)
TLGT0034	MGA94_50	‐60°	63°	743,757	7,171,494	601.124	DDH	138.4	Complete
TLGT0035	MGA94_50	‐60°	150°	744,200	7,171,791	599.809	DDH	45.1	Complete
TLGT0036	MGA94_50	‐60°	150°	744,176	7,171,833	598.601	DDH	51.8	Complete
TLGT0037	MGA94_50	‐90°	141°	743,514	7,171,334	600.013	DDH	150.6	Complete
TLGT0038	MGA94_50	‐60°	150°	744,215	7,171,764	600.469	DDH	69.8	Complete
RC/DDH Drilling
TLRC0046	MGA94_50	‐63°	142°	745,895	7,172,744	610	RC	562	Complete	RC Precollar Completed in June to 334m
RC Drilling
TLRC0047	MGA94_50	'‐60°	120°	746,148	7,172,972	610	RC	406	Complete
TLRC0048	MGA94_50	‐60°	120°	746,353	7,173,273	613	RC	394	Complete
TLRC0049	MGA94_50	'‐60°	150°	742,077	7,171,029	589	RC	408	Complete
TLRC0050	MGA94_50	‐60°	152°	742,357	7,171,158	590	RC	448	Complete
TLRC0051	MGA94_50	‐60°	150°	741,720	7,170,873	589	RC	448	Complete
TLRC0052	MGA94_50	'‐60°	90°	741,775	7,169,197	595	RC	250	Complete
TLRC0053	MGA94_50	'‐62°	85°	745,303	7,174,099	613	RC	448	Complete
TLRC0054	MGA94_50	'‐61°	90°	746,296	7,173,700	609	RC	190	Complete
TLRC0055	MGA94_50	‐60°	90°	746,398	7,173,694	611	RC	448	Complete
TLRC0056	MGA94_50	‐60°	90°	742,900	7,169,200	593	RC	448	Complete
AC Drilling
TLAC2694	MGA94_50	'‐60°	90°	745,400	7,174,100	611	AC	122	Complete

Table 3: Air-core assay intersections for the Springfield Cu-Au Project

Details of relevant air-core drilling intersections completed during the quarter ending 30 September 2016.

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

				Down-hole	Intersection	Intersection
Hole ID	Interval (m)	From (m)	To (m)	Width (m)	Cu (%)	Au (ppm)
TLAC2694	5	55	60	5	4.11	0.029

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Table 4 : Drill-hole Assay Intersections >1% Copper for the Springfield Cu-Au Project

Details of relevant intersections received by Talisman during the September 2016 quarter at the Springfield Cu-Au Project are provided below.

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.

Hole ID	Depth From Depth To Interval Cu Au Zn
	(m) (m) (m) (%) (ppm) (%)
TLDD0112	No Significant Intercepts
TLDD0113	Assays Pending
TLDD0113A	Assays Pending
TLGT0011	Not Sampled
TLGT0012	Not Sampled
TLGT0013	Not Sampled
TLGT0014	Not Sampled
TLGT0015	Not Sampled
TLGT0016	Not Sampled
TLGT0017	Not Sampled
TLGT0018	Not Sampled
TLGT0019	Not Sampled
TLGT0020	Not Sampled
TLGT0021	Not Sampled
TLGT0022	Not Sampled
TLGT0023	Not Sampled
TLGT0024	Not Sampled
TLGT0025	Not Sampled
TLGT0026	Not Sampled
TLGT0027	Not Sampled
TLGT0028	Not Sampled
TLGT0029	Not Sampled
TLGT0030	Not Sampled
TLGT0031	Not Sampled
TLGT0032	Not Sampled
TLGT0033	Not Sampled
TLGT0034	Not Sampled
TLGT0035	Not Sampled
TLGT0036	Not Sampled
TLGT0037	Not Sampled
TLGT0038	Not Sampled
TLRC0046	DDH Tail not yet sampled
TLRC0047	No Significant Intercepts

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Hole ID	Depth From Depth To Interval Cu Au Zn
	(m) (m) (m) (%) (ppm) (%)
TLRC0048	No Significant Intercepts
TLRC0049	No Significant Intercepts
TLRC0050	No Significant Intercepts
TLRC0051	No Significant Intercepts
TLRC0052	No Significant Intercepts
TLRC0053	Assays Pending
TLRC0054	No Significant Intercepts
TLRC0055	Assays Pending
TLRC0056	Assays Pending

Table 5 – Drill-hole Information Summary, Sinclair Nickel Project

Details and co-ordinates of drill-hole collars for diamond and RC drilling completed during the September 2016 quarter:

September 2016 quarter:	September 2016 quarter:	September 2016 quarter:	September 2016 quarter:
Hole ID Grid ID Dip Azimuth				East North RL Hole Type Max Depth Hole Status (m) (m) (m)
Diamond Drilling – Delphi North
SND006	MGA94_51	‐62°	265°	290,328	6,856,258	412	RC/DDH	486.8	Complete
SND007	MGA94_51	‐62°	90°	289,661	6,853,658	412	RC/DDH	256.9	Complete
SND008	MGA94_51	‐60°	270°	288,848	6,851,860	412	RC/DDH	241.9	Complete
SND009	MGA94_51	‐62°	265°	290,116	6,855,734	412	RC/DDH	252.9	Complete
RC Drilling –	Delphi North
SNRC009	MGA94_51	‐60°	265°	290,037	6,855,694	412	RC	136	Complete
SNRC010	MGA94_51	‐62°	265°	290,067	6,855,699	412	RC	244	Complete
SNRC011	MGA94_51	‐62°	261°	290,117	6,855,694	412	RC	184	Complete
SNRC012	MGA94_51	‐66°	270°	290,041	6,855,734	412	RC	172	Complete
SNRC017	MGA94_51	‐63°	265°	290,332	6,856,254	412	RC	94	Complete
SNRC018	MGA94_51	‐61°	270°	290,077	6,855,694	412	RC	122	Complete
SNRC019	MGA94_51	‐62°	268°	290,078	6,855,734	412	RC	188	Complete
RC Drilling –	Schmitz Well South
SNRC013	MGA94_51	‐61°	100°	287,377	6,827,674	387	RC	196	Complete
SNRC014	MGA94_51	‐61°	100°	287,302	6,827,674	387	RC	208	Complete
SNRC015	MGA94_51	‐62°	96°	287,228	6,827,674	387	RC	250	Complete
SNRC016	Planned hole not drilled

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Table 6 – Drill-hole Assay Intersections >0.5% Nickel for the Sinclair Nickel Project

Significant intersections reported for the Sinclair Nickel Project are based on greater than 0.5% Ni and may include up to 1m of internal dilution, with a minimum composite grade of 1% Ni

Hole ID	Depth From Depth To Interval Ni Cu Co	Depth From Depth To Interval Ni Cu Co	Depth From Depth To Interval Ni Cu Co	Depth From Depth To Interval Ni Cu Co	Depth From Depth To Interval Ni Cu Co	Depth From Depth To Interval Ni Cu Co
	(m) (m) (m) (%) (ppm) (ppm)
SNRC009	77	78	1	3.59	5,270	1,275
SNRC010	154	158	4	4.79	3,065	1,417
	162	163	1	0.61	400	311
	169	170	1	0.56	108	150
SNRC011	No Significant Intercepts
SNRC012	73	78	5	2.39	1,708	853
SNRC013	Assays Pending
SNRC014	Assays Pending
SNRC015	193	194	1	0.97	409	233
SNRC016	Not yet Drilled
SNRC017	Not Assayed ‐ Hole Abandoned
SNRC018	No Significant Intercepts
SNRC019	131	140	9	4.2	3,643	1,334
SND006	403.2	406.7	3.5	1.01	1,968	329
SND007	181.6	182.3	0.7	0.91	61	685
SND008	No Significant Intersections
SND009	Assays Pending

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Appendix 1: Springfield Project Location and Simplified Geology

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Appendix 2: Springfield Project – September Quarter RC and diamond drilling location plan

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Appendix 3: Talisman’s Tenement Holding at the Sinclair Nickel Project and Simplified Geology

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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 sample size reduction is completed through a Boyd crusher to -10mm 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 cited in this report was completed by both Talisman Mining Ltd and historically by Xstrata Nickel Australasia Operations Pty Ltd (XNAO) between 2007 and 2012. Sampling techniques employed at the Sinclair Project include saw cut diamond drill core (DD) samples in NQ2 size sampled on geological intervals (0.2 m to 2 m), cut into half (NQ2) core to give sample weights under 3 kg. Reverse Circulation (RC) drilling samples collected by a cone splitter for single metre samples or sampling spear for composite samples.  Samples were crushed, dried and pulverised (total prep) to produce a 1g sub sample for analysis by four acid digest with an ICP/OES or AAS 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 with a face sampling hammer of nominal 140mm size 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.  Surface diamond drill-holes at the Sinclair Nickel Project were completed using wedge drilling techniques with up to 4 daughter holes drilled from a single parent drill hole. Both HQ and NQ2 diameter core was collected for logging and sampling purposes. RC drilling is completed with a face sampling hammer of nominal 140mm size.  All historic drill holes completed by Xstrata were routinely surveyed using downhole NSG Gyroscope survey tools. Current drilling byTalisman isroutinely surveyed using

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Criteria	JORC Code explanation			Commentary
				an electronic single shot camera, at a nominal 30 intervals down hole.  All historic drill core completed by Xstrata was routinely orientated where possible at nominal 6m intervals using an EzyMark-OriBlock core orientation system. Talisman routinely orients all drill core where possible at nominal 6m metre intervals using ACE ACTIII core orientation system.
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 99%.  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.  Sinclair diamond core recoveries were logged and recorded in the Sinclair Datashed database. Historic core recoveries exceed 95%.  Diamond core was reconstructed into continuous runs on an angle iron cradle for orientation marking. Depths were checked against the depth given on the core 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 level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.  Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.  The total length and percentage of the relevant intersections logged.			 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 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.  Logging records lithology, mineralogy, mineralisation, alteration, structure, weathering, colour and other primary features of the rock samples and is considered to be representative across the intercepted geological units.  Logging is both qualitative and quantitative depending on the field being logged.  All drill-holes are logged in full to end of hole.  DD core is routinely photographed digitally.
Sub-sampling techniques and sample	 If core, whether cut or sawn and whether quarter, half or all core taken.  If non-core, whether riffled, tube sampled,			 Sandfire DD Core orientation is completed where possible and core is marked prior to sampling. Half core

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Criteria	JORC Code explanation		Commentary
preparation	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.		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.  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 75%µm. RC samples are Boyd crushed to -4mm.  Sample splits are weighed at a frequency of 1:20 and entered into the job results file. Pulverising is completed using LM5 mill to 90% passing 75%µm using wet sieving technique.  1:20 grind quality checks are completed for 90% passing 75%µm criteria 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.  Sinclair diamond core is HQ and NQ size, sampled on geological intervals (0.2 m to 1.2 m), cut into half (NQ) 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 are routinely reviewed and reported on a regular basis whilst exploration campaigns are in progress.  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	 The nature, quality and appropriateness of the assaying and laboratory procedures used		 Sandfire samples are assayed using Mixed 4 Acid Digest(MAD)0.3gcharge and MAD Hotbox 0.15g

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Criteria	JORC Code explanation		Commentary
assay data and laboratory tests	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.		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 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.  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.
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.  Significantinterceptshave been verified by alternate

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Criteria	JORC Code explanation		Commentary
			company personnel  No twinned holes are being drilled as part of this program.  Logging and sampling data is captured and imported 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 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 located using RTK-GPS.  All drill collars are accurately surveyed using RTK GPS system within +/-50mm of accuracy (X, Y, Z).  For the Springfield project MGA94 Zone 50 grid coordinate system is used.  Topographic control was established using LiDar laser imagery technology.  Historic drill collars locations were picked up by Sinclair Mine Surveyors.  Talisman drill collar locations are pegged using a hand held GPS, and picked up by an independent survey contractor after completion of the drill hole.  All historic drill holes completed by Xstrata were routinely surveyed using downhole NSG Gyroscope survey tools. Current drilling by Talisman is routinely surveyed using an electronic single shot camera, at a nominal 30 interval down hole.  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 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.  Drill spacing at Sinclair was nominally 200m x 25m.  No mineral resource is being reported for the Sinclair Nickel Project.  No sample compositing has been applied.
Orientation of data in relation	 Whether the orientation of sampling achieves unbiased sampling of possible structures and		 At Monty, no significant orientation based sampling bias is known at this time.

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Criteria	JORC Code explanation		Commentary
to geological structure	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.		 The drill holes may not necessarily be perpendicular to the orientation of the intersected mineralisation.  The orientation of drilling is designed to intersect either geophysical targets or geological targets at high angle in order to best represent stratigraphy.  No significant orientation based sampling bias at Sinclair is known at this time. Drill-holes may not necessarily be oriented perpendicular to intersected stratigraphy or mineralisation. All reported intervals are down-hole intervals, not true widths.
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.  Samples were stored at the Sinclair Nickel Mine Site 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 sampling techniques and data.		 No external audits or reviews of the sampling techniques and data have been completed.

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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.  The Sinclair Nickel Project is held 100% by Talisman Nickel Pty Ltd, a wholly owned subsidiary of Talisman Mining Ltd.  There are no known Native Title Claims over the Sinclair Nickel Project.  All tenements are in good standing and there are no existing known impediments to exploration or mining.
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.  The Sinclair Nickel deposit was discovered in 2005 by Jubilee Mines NL drill testing a ground EM anomaly.  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 downhole EM surveys, soil sampling, geological interpretation and other geophysics (magnetics, gravity).

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Criteria	JORC Code explanation			Commentary
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.  The Sinclair project lies within the Archean aged 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 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  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.			 Drill hole information relating to the Doolgunna Project is included in_Table 2_: Drill-hole Information Summary, Springfield Project.  Drill hole information relating to the Sinclair Nickel Project is included in_Table 5_: Drill-hole Information Summary, Sinclair Nickel Project.
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.  Significant intersections reported from the Sinclair Nickel Project are based on greater than 0.5% Ni and may include up to 1m of internal dilution, with a minimum composite grade of 1% Ni.  Ni grades used for calculating significant intersections are uncut.

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Criteria	JORC Code explanation		Commentary
			 A minimum diamond core sample interval of 0.15m and a maximum interval of 1m is used for intersection calculations subject to the location of geological boundaries.  Length weighted intercepts are reported for mineralised intersections.  No metal equivalents are used in the intersection calculations.
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.  Drill holes relating to the Sinclair Nickel project are reported as down hole intersections. True widths of reported mineralisation are not known at this time.
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 Results.		 The accompanying document is considered to represent a balanced report.
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.

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Criteria	JORC Code explanation		Commentary
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.  Planned future work at the Sinclair Nickel Project includes RC and Diamond Drilling, geophysical surveys and geological mapping.

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