TALISMAN MINING LIMITED — Interim / Quarterly Report 2016

Jan 28, 2016

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 Dec 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
	- (1,900) - - (353) - 78 - - -	- (2,683) - - (630) - 117 - - -
	(2,175)	(3,196)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (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)	- - (15) - - - - - -	- - (26) - - - - - -
	(15)	(26)
	(2,190)	(3,222)

• 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)	(2,190)	(3,222)
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 (share issue costs) Net financing cash flows	- - - - - -	8,000 - - - - (400)
	-	7,600
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	(2,190) 11,272 -	4,378 4,704 -
	9,082	9,082

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
		122
		-
1.25	Explanation necessary for an understanding of the transactions
	Remuneration to Directors

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

See commentary in section 6.1

• 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
	2,500
	-
	-
	400
Total	2,900

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)	585	510
	8,497	10,762
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	9,082	11,272

• 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
	Doolgunna Projects E52/2282 E52/2313 E52/2466 E52/2275 P52/1241	Farm-In Joint Venture Farm-In Joint Venture Farm-In Joint Venture Farm-In Joint Venture Farm-In Joint Venture	100% 100% 100% 63% 100%	49% 49% 49% 31% 49%*

* Exploration farm-in terms for Sandfire’s Farm-in to Talisman’s Doolgunna Projects were disclosed in Talisman’s announcement on 20 December 2013 titled “Talisman Secures $15M Joint Venture Farm-in Agreement with Sandfire”.

As noted in the September 2015 quarterly activities report Sandfire provided formal Notice to Talisman that as of 30 September 2015 it had sole funded exploration expenditure at Talisman’s Doolgunna Projects of $10 million. Following the satisfactory audit of this expenditure a formal transfer of 51% of Talisman’s interest in the Doolgunna Projects from Talisman to Sandfire was registered with the Department of Mines and Petroleum on the 17[th] December 2015.

During the December 2015 quarter, Sandfire subsequently provided a further formal Notice to Talisman stating it had solefunded a further $5 million of exploration expenditure in order to earn an additional 19% interest in Talisman’s interest in the Doolgunna Projects. Talisman is currently auditing this claimed expenditure before formally transferring an additional 19% in Talisman’s interest in the Doolgunna Projects to Sandfire. The transfer is subject to satisfactory audit of the claim.

• 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	148,559,904	148,559,904
		- -	- -
	7.5 ~~+~~Convertible debt securities (description)
	7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	- -	- -
7.7 7.8 7.9 7.10	Options (description and conversion factor) Issued during quarter Exercised during quarter Expired during quarter	150,000 175,000 175,000 562,500 562,500 562,500 562,500 150,000 750,000 750,000 750,000 750,000 125,000 125,000 125,000 125,000	- - - - - - - - - - - - - - - -	Exercise price $0.40 $0.50 $0.60 $0.43 $0.51 $0.60 $0.69 $0.90 $0.41 $0.49 $0.56 $0.64 $0.40 $0.50 $0.60 $0.70	Expiry date 30/09/2016 30/09/2016 30/09/2016 31/10/2016 31/10/2016 31/10/2016 31/10/2016 30/06/2017 31/10/2017 31/10/2017 31/10/2017 31/10/2017 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 Date: 29 Jan 2016 Company Secretary 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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