TALISMAN MINING LIMITED — Interim / Quarterly Report 2018

Oct 30, 2017

ASX Media Release – 31 October 2017

Quarterly Activities Report Se tember 2017 p

Highlights

Springfield Cu-Au Project - (30% Talisman)

Monty Mine Development

• Site works continue on schedule and within budget.

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

Email: info@talismanmining.com.au

Website: www.talismanmining.com.au

Capital Structure

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

Options on Issue: 9,675,000 (Unlisted)

• Monty portal and decline now commenced with first production forecast for December quarter 2018.

• Project debt finance facility of up to US$20 million entered into, post the end of the quarter, with Taurus Mining Finance Fund.

• Key terms of project debt Facility Agreement provide Talisman with competitively priced cost of funding for 100% of pre-production capital.

Exploration Activities

• Springfield Joint Venture exploration budget approved for the threemonth period to the end of December 2017.

• Budgeted exploration to include:

• Reverse circulation (RC) drilling to further test Monty North East (Monty NE) air-core anomaly of 5.0m at 4.11% Cu[1] (including test of recently identified IP anomaly);

• RC drilling to test Monty East interpreted host position;

• RC drilling of selected geochemical anomalies in the Southern Volcanics ; and

• Air-core drilling to test Homer South host position.

Sinclair Nickel Project - (100% Talisman)

• 117 air-core drill holes completed for 7,071 metres across four early stage exploration targets at Delphi, Mt Clifford, Schmitz Well South and Sturt Meadows.

• Anomalous nickel intersections returned from assays at Schmitz Well South prospect including:

• SNAC0096 – 5m @ 0.50% Ni from 50m; and

• 4m @ 1.30% Ni from 57m.

• 5 RC drill holes for 1,123 meters at Schmitz Well South and Delphi Prospects. Assay results pending.

1 See ASX announcement “Springfield Copper Project Exploration Update” dated 13 September 2016 for details

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- Springfield Copper Gold Project (Joint Venture with Sandfire Resources NL)

During the September quarter, the focus of joint venture activities at the Springfield Cu-Au Project ( Springfield ) was on the commencement of development at the Monty Copper-Gold Project ( Monty ) and ongoing exploration within the Monty region and the wider Springfield project. During the quarter, Talisman also progressed formal documentation with the mandated debt financier for Talisman’s forecast share of Monty pre-production development costs, Taurus Mining Finance Fund ( Taurus ).

Monty Development

On 4 July 2017, Talisman received advice that the Western Australian Department of Mines, Industry Regulation and Safety ( DMIRS ) (formerly Department of Mines and Petroleum) had approved the Mining Proposal and Mine Closure Plan for Monty facilitating the commencement of on-ground earthworks.

Site works have continued steadily throughout the quarter and included:

• Bulk Earthworks and Civils:

• Boxcut - completed on 22 September ahead of schedule and handed over to the mining contractor;

• Monty Haul Road – clearing, basecourse placement and floodway stabilisation;

• Waterline to Monty Site – completed;

• Site Infrastructure – common fill placement for access roads and ponds; and

• Infrastructure – central facilities completed and handed over for building installation.

• Underground Mine Development:

• Portal – commencement of mine portal ahead of schedule (in early October) (Figure 1);

• Ventilation Shaft – DMIRS approval received, contractor selected and agreement executed and development commenced;

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Figure 1: Monty Project – Bogged out first portal cut

Other preliminary operation phase works continue to be advanced on schedule including, power generation contracts, haulage contracts, electrical systems and infrastructure, and communications.

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Monty Project Financing Facility (PFF)

Following a competitive process involving major Australian banks and other typical resource project lenders, Taurus was mandated by Talisman in May 2017 to provide a project debt finance facility of approximately A$23 million for Monty (see Talisman ASX release 5 May 2017).

Subsequent to the end of the quarter, Talisman finalised a debt Facility Agreement which is in line with mandated terms. The execution of the Facility Agreement has followed an extensive assessment of available funding options for Talisman’s share of Monty pre-production capital. The Company also engaged Fivemark Partners and Sternship Advisers to assist in its review of final potential funding options. The Talisman Board views the PFF as the optimum available finance package for Talisman’s 30% share of Monty pre-production capital.

A funding notice for the first drawdown payment of approximately A$8 million under the PFF has been submitted to Taurus with receipt of funding subject to satisfaction of conditions precedent under the Facility Agreement.

Key terms of the PFF are contained in Talisman’s ASX release of 30 October 2017 and include:

• Facility amount of US$20 million.

• Interest rate of 6.75% per annum payable quarterly in arrears.

• Facility repayable by 30 September 2020.

• A royalty of 2.25% of Talisman's gross payable copper and gold metal-in-ore sales receipts from Monty. The obligation to pay the royalty ceases once Talisman has received revenue from Monty sales containing 29,700 tonnes of copper and 16,500 ounces of gold[2] .

• No mandatory copper or gold hedging requirements.

Whilst the PFF does not require any forecast production volumes to be hedged by Talisman, the Company will continue to regularly assess the appropriateness of undertaking commodity price hedging over select forecast production volumes.

Additionally, as the PFF is in United Sates dollars, the Company is currently giving consideration to the appropriateness of undertaking currency hedging for selected portions of forecast Monty preproduction cash calls and subsequent interest and principal repayments under the Facility Agreement.

Exploration

Work completed at Springfield over the three-month period ending 30 September 2017 was primarily focused on an internal data review, and evaluation of the geological interpretations provided by Talisman to the Joint Venture late in the June 2017 quarter. On-ground exploration was limited to the completion of five RC drill holes for a total of 2,096 metres (Table 1) as depicted in Figure 2.

2 Royalty cap equates to Talisman 30% share of contained copper and gold metal in the current Monty Mineral Resource.

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Monty
Cu-Au Deposit
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Figure 2: Springfield drill collar location plan for the three-month period ending 30 September 2017.

Reverse Circulation Drilling

Drilling completed at Monty NE, Monty South and within the Southern Volcanics trend targeted bottom-of-hole lithogeochemical anomalies identified in previous air-core drilling. The three holes completed at these targets (TLRC0070, TLRC0071 and TLRC0073) did not return any significant copper mineralisation (Table 2).

The two RC drill holes completed at Monty West (TLRC0069 and TLRC0072) were designed to confirm the position of the Monty host stratigraphy to the west of the Mataro Fault which is interpreted to truncate the Monty mineralisation. The host horizon was successfully intersected in both holes, confirming the interpreted position of host stratigraphy to the north of previous interpretations (Figure 3).

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Figure 3: Monty offset geological interpretation showing updated geological interpretation tested during the reporting period.

With the addition of this new geological information, Sandfire completed a reinterpretation of this area including a review of the orientation of the Mataro Fault structure. This work included detailed relogging of RC and diamond drill core in the area, including TLDD0114 which was drilled to provide a deep down-hole electromagnetic ( DHEM ) survey platform below the existing Monty mineralisation.

The review resulted in a significant steepening of the interpreted dip of the Mataro Fault as illustrated in Figure 4. As a consequence, the deep diamond drill hole TLDD0114 is now interpreted to intersect the host stratigraphy to the west of the Mataro Fault structure. The DHEM survey of TLDD0114 is now interpreted to have provided geophysical coverage off-hole of TLDD0114 and immediately to the west of the Mataro Fault. There were no geochemical or geophysical indicators observed in the existing RC or deep diamond drilling completed to date.

Given that the purpose of the proposed third deep diamond hole in this area was designed to test the western side of the Mataro Fault, and this outcome is interpreted to have been achieved by TLDD0114 (Figure 4), the third proposed deep diamond hole is suspended at this time.

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Figure 4: Monty deposit projected long section with diamond holes, interpreted DHEM coverage and new interpreted orientation of the Mataro Fault, showing TLDD0114 pierce point to the west of the Mataro Fault.

Other Activities

In addition to the recent drilling activities, other exploration was focused on the completion of a detailed review of the ground-based Induced Polarisation ( IP ) orientation survey over the Monty deposit and Monty NE air-core anomaly. The survey consisted of a limited orientation survey, comprising two lines across Monty NE for 1.8km of data, and four lines across the Monty deposit for 7.8km of data.

The trial IP survey over the Monty deposit confirmed that massive sulphides at Monty are sufficiently polarisable to produce a measurable signal from surface. However, from a targeting perspective, the presence of secondary anomalies significantly reduces the reliability of subsequent targets and therefore any targets from an IP survey are likely to require additional justification for follow-up drilling.

The survey of the Monty NE air-core anomaly (5m interval at 4.11% Cu in hole TLAC2694[3] ), returned a clear, although weak anomalous chargeable response with a corroborating low resistivity (Figure 5). The limited amount of data (two survey lines), along with the limited deeper drilling in the area makes interpretation of the geometry of the response difficult.

Previous DHEM surveys in adjacent RC drill traverses approximately 200-300m away from the IP anomaly have not identified any off-hole responses in this area.

In the absence of additional information, Sandfire currently interpret this anomaly to be potentially associated with an interpreted east-west striking fault structure. Importantly, the budgeted RC drill hole for the forthcoming quarter is expected to provide an appropriate test of the identified anomaly.

3 See ASX announcement “Springfield Copper Project Exploration Update” dated 13 September 2016 for full details

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IP/ Resistivity TLAC26
Anomaly
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Figure 5: Monty NE geochemical anomaly IP survey, isometric projection of 2d inverted sections with TLAC2694 (circled).

Budgeted exploration for quarter ending 31 December 2017

As noted earlier, budgeted exploration for the forthcoming quarter will predominantly focus on testing newly interpreted target horizons at Monty NE, Monty East, Homer South (Figure 6 and Figure 7), and geochemical anomalies identified within the Southern Volcanics trend.

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Figure 6: Springfield Project simplified geology plan, showing prospect locations, and the Month East & Monty NE areas recently reinterpreted by Talisman (area indicated by the white box).

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These recent interpretations, are based on Talisman’s assessment of geological, geochemical and geophysical data collected both recently by the Joint Venture and previously by Talisman prior to the discovery of the Monty deposit and the formation of the Springfield Joint Venture.

Talisman incorporated all the relevant datasets, and generated first principles geological interpretations for areas showing quantitative geochemical anomalism. Based on this, a detailed review of all surrounding drilling data was completed to highlight subtle alteration and/or litho-facies changes that may indicate potential prospective host stratigraphic sequences. A review of the effectiveness of the existing drill testing in these areas was the final stage of the Talisman review. These new interpretations were presented to the Joint Venture late in the June 2017 quarter.

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Figure 7: Monty East & Monty NE – Talisman interpretation showing new geological interpretation of the prospective host horizon.

Sandfire completed a detailed review of these new proposed exploration opportunities during the September 2017 quarter. RC drill testing of Monty NE, Monty East and the Southern Volcanics, and an infill air-core program over Homer South, are planned as part of the forthcoming December 2017 quarter budget activities.

Drilling at Homer South is aimed at infilling in an area with only wide spaced historical vertical RAB drill coverage (Figure 8). A complete geological review and reinterpretation based on detailed gravity data is currently underway, with air-core drilling information to be integrated into this new geological interpretation as it becomes available. A target generation process will follow once the air-core drilling is complete.

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Figure 8: Homer Prospect, showing updated Sandfire geological interpretation, previously completed RC and diamond drilling with the new target horizon and proposed area of air-core drilling.

Talisman is encouraged by the proposed on-ground exploration activities for the December 2017 quarter, and will continue to work together with Sandfire to ensure that maximum value is extracted from the available data. Talisman expects more work to follow-on as the Joint Venture continues to build its geological understanding of this highly prospective, complex project area.

Sinclair Nickel Project Exploration

Air-core Drilling

A program of air-core drilling totalling 117 drill holes for 7,071 metres (Table 3) across four early stage exploration targets at Delphi, Mt Clifford, Schmitz Well South and Sturt Meadows was completed during July and early August. Drilling was aimed at provided geological and geochemical information in areas with little to no historic exploration.

Delphi Prospect

The Delphi prospect is located on the Sinclair ultramafic trend approximately 8km south of Sinclair, and 2.5km south of Delphi North (where drilling in late 2016 returned massive sulphide intersections of 9m @ 4.20% Ni in hole SNRC019[4] ).

Four air-core traverses were drilled (totalling 32 holes for 2,099m) (Table 3) across an area covering approximately 500m of prospective ultramafic stratigraphy that had not been previously drilled. No significant assay results were returned from this drilling. Talisman will complete detailed interpretation

4 Refer to ASX announcement dated 27 October 2016 for full details and JORC tables.

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of the results from this program to understand the geological context and potential to host massive nickel sulphide mineralisation.

Mt Clifford Prospect

The Mt Clifford prospect was granted to Talisman in August 2016. It covers a very sparsely explored sequence of ultramafic rocks that Talisman interprets to have the potential to host massive nickel sulphides. The area has the potential to host a significant strike length of ultramafic as well as potential extensions to the Marriotts nickel deposit.

As part of early evaluation of the prospect, Talisman completed a single traverse of air-core drilling (a total of 12 holes for 364m) (Table 3) across the interpreted ultramafic sequence to provide geological information and assess the potential fertility of the ultramafic sequence.

Although no significant assay results were returned from this drill traverse, Talisman has identified areas of high-magnesian ultramafic rocks that will be subject to additional interpretation and potential exploration in the future.

Sturt Meadows (Au)

Talisman’s 2017 targeting review highlighted a gold anomaly from historic RAB drilling. Interpretations from geophysical magnetic data show this anomaly is in an area of structural complexity possibly along strike from the Bannockburn gold mine.

Talisman completed an air-core drilling program to test the validity of the historic results drilling 38 holes for 2,998m on three traverses (Table 3) covering the most significant parts of the historic anomaly.

No significant assay results were returned from the drilling program and no further exploration work is currently planned.

Schmitz Well South Prospect

A traverse of three RC drill holes was completed by Talisman at Schmitz Well South in 2016 under the West Australian Government’s co-funded Exploration Incentive Scheme. This drilling intersected broad zones of prospective high-MgO ultramafic rocks containing multiple zones of trace to disseminated (cloud) nickel sulphides (assay results returned anomalous nickel including 1m @ 0.97% Ni from 193m down-hole in SNRC015[5] ).

To follow-up from this previous drilling, three air-core drill traverses were completed in July 2017 in close proximity to the previous nickel sulphide intersections. In addition, three broadly spaced air-core drill traverses (Table 3) were completed to the north to provide confirmation of the continuation of the fertile ultramafic trend where no previous drilling has been completed.

Moderate to high magnesian ultramafic rocks were successfully intersected in all six drill traverses completed, confirming the continuity of the fertile Sinclair ultramafic trend.

Oxide material after disseminated and stringer nickel sulphides was logged within the ultramafic rock sequence in two holes to the north along strike from the previously intersected cloud sulphides (Figure 10). The anomalous results intersected in hole SNAC0096 included very high copper values (up to 1,910 ppm) (Table 4) and elevated platinum & palladium values which are indicative of komatiite hosted, magmatic nickel sulphide mineralisation. The nickel sulphide interval is located internal to the host ultramafic unit and the basal contact position. The basal contact position is interpreted to be the

5 Refer Talisman ASX release. 27 October 2016. Sinclair Nickel Project Drilling Results and Exploration Update.

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most favourable host site for massive nickel sulphide accumulations and remains untested. All assays have been returned (Table 4) with nickel intercepts including:

• SNAC0083 – 1m @ 0.68% Ni from 27m.

• SNAC0096 – 5m @ 0.50% Ni from 50m; and

• 4m @ 1.30% Ni from 57m.

RC Drilling

Subsequent to the end of the quarter Talisman completed an RC drill program at the Schmitz Well South and Delphi prospect areas to follow up the encouraging results from previous drilling programs (refer Talisman ASX release 02 October 2017).

A series of four RC holes for 880m (Table 5) were drilled beneath, and along strike from encouraging results in air-core drilling at Schmitz Well South including SNAC0096: 4m @ 1.3% Ni (refer Talisman ASX release 23 August 2017) (Figure 9). The drill holes intersected a thick sequence of highmagnesian ultramafic rocks including localised visible disseminated sulphide mineralisation that Talisman interprets to represent a fertile sequence with the potential to host nickel sulphide mineralisation. Assay results from this drilling are pending. Geophysical DHEM surveys have been completed in three of the RC holes drilled at Schmitz Well South with detailed interpretation in progress and reports pending.

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Figure 9: Plan map showing Schmitz Well South interpreted geology, drilling to date and planned follow-up drilling.

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A single RC hole for 243m was also drilled at the Delphi prospect (Figure10) where previous drilling has shown encouraging results over a strike length of approximately 300m (refer Talisman ASX releases 07 October 2016 and 9 January 2017). This hole, targeting a high conductance EM plate, intersected the interpreted basal contact position of a fertile high-magnesian ultramafic sequence. Results from assays and a DHEM survey are pending.

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Figure 10: Delphi North Prospect long section showing RC and diamond drilling, with modelled DHEM plates.

New Project Generation

Talisman continues to evaluate and review potential new project opportunities that are complementary to existing projects and skill sets.

As part of these activities, Talisman continues to grow its on-ground footprint in NSW through the submission of a third exploration licence application adjacent to and north of its existing tenement EL8615 (Figure 11).

The Cobar/Mineral Hill region is a richly mineralised district that hosts a number of base and precious metal mines including the CSA mine, Tritton, and Hera/Nymagee. This region contains highly prospective geology that has produced many long-life, high-grade mineral discoveries.

Talisman has completed a review of the historical exploration undertaken within the tenements and has identified a number of areas that show evidence of base and precious metals endowment. These areas have had very little modern exploration completed to date and it is considered that there is significant potential for the discovery of substantial base metals and gold mineralisation.

Initial work by Talisman will include the validation of earlier exploration activities as part of a preliminary phase of work, prior to the commencement of on-ground exploration. It is anticipated that on-ground field work will commence in the coming months following the finalisation of land access and other statutory agreements.

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Figure 11: NSW Cobar regional geological plan, showing new TLM tenements and application locations

ENDS

For further information, please contact: Dan Madden – Managing Director on +61 8 9380 4230

For media inquiries, please contact: Michael Vaughan – Fivemark Partners on +61 422 602 720

About Talisman Mining:

Talisman Mining Limited (ASX:TLM) is an Australian mineral development and exploration company. The Company’s aim is to maximise shareholder value through exploration, discovery and development of complementary opportunities in base and precious metals.

Talisman holds a 30% interest in the Springfield Joint Venture (Springfield) with Sandfire Resources NL (70% and JV Manager). Springfield is located in a proven VMS province in Western Australia’s Bryah Basin and contains multiple prospective corridors and active exploration

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activities. Springfield hosts the high-grade Monty Copper-Gold deposit (Monty) which is located 10 kilometres from Sandfire’s DeGrussa operations. Monty is one of the highest-grade copper-gold discoveries made globally in recent decades and a Feasibility Study on its development was completed in March 2017. The Feasibility Study highlighted the strong technical and financial viability of Monty.

Talisman also holds 100% of the Sinclair Nickel Project (Sinclair) located in the world-class Agnew-Wiluna greenstone belt in WA’s northeastern Goldfields. 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% nickel. Sinclair has extensive infrastructure and includes a substantial 290km[2] tenement package covering more than 80km of strike in prospective ultramafic contact within a 35km radius of existing processing plant and infrastructure.

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 forecast. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward-looking statements. Any forward-looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Talisman Mining Ltd does not undertake any obligation to update or revise any information or any of the forward-looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward-looking statement is based.

Competent Person’s Statements

Information in this ASX release that relates to Exploration Results and Exploration Targets is based on information completed by Mr Anthony Greenaway, who is a member of the Australasian Institute of Mining and Metallurgy. Mr Greenaway is a full-time employee of Talisman Mining Ltd and has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Greenaway consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

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Table 1 – Drill-hole Information Summary, Springfield Cu-Au Project

Details and co-ordinates of drill-hole collars for RC and diamond drilling completed during the September 2017 quarter:

Hole ID	Grid ID	Dip	Azimuth	East	North	RL	Hole Type	Max Depth	Hole Status
				(m)	(m)	(m)
TLRC0069	MGA94_Z50	-600	125	741,920	7,170,842	591	RC	448	Complete6
TLRC0070	MGA94_Z50	-600	85	742,700	7,170,300	595	RC	448	Complete
TLRC0071	MGA94_Z50	-600	124	745,628	7,173,975	612	RC	436	Complete
TLRC0072	MGA94_Z50	-600	153	742,826	7,171,082	593	RC	316	Complete
TLRC0073	MGA94_Z50	-600	152	733,948	7,164,000	580	RC	448	Complete

Table 2 : Drill-hole Assay Intersections for the Springfield Cu-Au Project

Details of relevant intersections received by Talisman during the September 2017 quarter are provided below.

Calculation of RC intersections for inclusion into this table are 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)	(%)
TLRC0069	No Significant Results
TLRC0070	No Significant Results
TLRC0071	No Significant Results
TLRC0072	No Significant Results
TLRC0073	No Significant Results

6 Drill hole TLRC0069 commenced drilling late in the June 2017 quarter and was completed in the September 2017. A total of 292m were drilled in the June quarter.

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Table 3 – Air-core Drill-hole Information Summary, Sinclair Nickel Project

Details and co-ordinates of drill-hole collars for air-core drilling completed:

Hole ID	Grid ID	Dip	Azimuth	East	North	RL	Hole Type	Max Depth	Prospect
				(m)	(m)	(m)
SNAC0001	MGA94_51	-60°	270°	296105	6843202	420	AC	107	Sturt Meadows
SNAC0002	MGA94_51	-60°	270°	296162	6843201	420	AC	107	Sturt Meadows
SNAC0003	MGA94_51	-60°	270°	296220	6843197	420	AC	99	Sturt Meadows
SNAC0004	MGA94_51	-60°	270°	296280	6843204	420	AC	71	Sturt Meadows
SNAC0005	MGA94_51	-60°	270°	296296	6843209	420	AC	92	Sturt Meadows
SNAC0006	MGA94_51	-60°	270°	296340	6843213	420	AC	85	Sturt Meadows
SNAC0007	MGA94_51	-60°	270°	296400	6843209	420	AC	92	Sturt Meadows
SNAC0008	MGA94_51	-60°	270°	296362	6843215	420	AC	89	Sturt Meadows
SNAC0009	MGA94_51	-60°	270°	296459	6843206	420	AC	78	Sturt Meadows
SNAC0010	MGA94_51	-60°	270°	296490	6843206	420	AC	68	Sturt Meadows
SNAC0011	MGA94_51	-60°	270°	296519	6843203	420	AC	72	Sturt Meadows
SNAC0012	MGA94_51	-60°	270°	296577	6843200	420	AC	71	Sturt Meadows
SNAC0013	MGA94_51	-60°	270°	296644	6843200	420	AC	71	Sturt Meadows
SNAC0014	MGA94_51	-60°	270°	296697	6843203	420	AC	35	Sturt Meadows
SNAC0015	MGA94_51	-60°	270°	296760	6843200	420	AC	30	Sturt Meadows
SNAC0016	MGA94_51	-60°	270°	296820	6843205	420	AC	54	Sturt Meadows
SNAC0017	MGA94_51	-60°	270°	296192	6843497	420	AC	104	Sturt Meadows
SNAC0018	MGA94_51	-60°	270°	296261	6843498	420	AC	101	Sturt Meadows
SNAC0019	MGA94_51	-60°	270°	296313	6843504	420	AC	80	Sturt Meadows
SNAC0020	MGA94_51	-60°	270°	296379	6843501	420	AC	77	Sturt Meadows
SNAC0021	MGA94_51	-60°	270°	296442	6843502	420	AC	78	Sturt Meadows
SNAC0022	MGA94_51	-60°	270°	296499	6843509	420	AC	70	Sturt Meadows
SNAC0023	MGA94_51	-60°	270°	296554	6843500	420	AC	53	Sturt Meadows
SNAC0024	MGA94_51	-60°	270°	296622	6843497	420	AC	51	Sturt Meadows
SNAC0025	MGA94_51	-60°	270°	296339	6842799	420	AC	80	Sturt Meadows
SNAC0026	MGA94_51	-60°	270°	296367	6842797	420	AC	101	Sturt Meadows
SNAC0027	MGA94_51	-60°	270°	296401	6842792	420	AC	92	Sturt Meadows
SNAC0028	MGA94_51	-60°	270°	296461	6842800	420	AC	98	Sturt Meadows
SNAC0029	MGA94_51	-60°	270°	296518	6842798	420	AC	65	Sturt Meadows
SNAC0030	MGA94_51	-60°	270°	296549	6842801	420	AC	65	Sturt Meadows
SNAC0031	MGA94_51	-60°	270°	296584	6842797	420	AC	68	Sturt Meadows
SNAC0032	MGA94_51	-60°	270°	296638	6842801	420	AC	77	Sturt Meadows
SNAC0033	MGA94_51	-60°	270°	296696	6842798	420	AC	62	Sturt Meadows
SNAC0034	MGA94_51	-60°	270°	296757	6842806	420	AC	77	Sturt Meadows
SNAC0035	MGA94_51	-60°	270°	296815	6842803	420	AC	70	Sturt Meadows
SNAC0036	MGA94_51	-60°	270°	296879	6842804	420	AC	67	Sturt Meadows
SNAC0037	MGA94_51	-60°	270°	296961	6842809	420	AC	71	Sturt Meadows
SNAC0038	MGA94_51	-60°	270°	296998	6842807	420	AC	70	Sturt Meadows
SNAC0039	MGA94_51	-60°	270°	289800	6853500	420	AC	61	Delphi
SNAC0040	MGA94_51	-60°	270°	289750	6853500	420	AC	63	Delphi
SNAC0041	MGA94_51	-60°	270°	289700	6853500	420	AC	69	Delphi

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Hole ID	Grid ID	Dip	Azimuth	East	North	RL	Hole Type	Max Depth	Prospect
				(m)	(m)	(m)
SNAC0042	MGA94_51	-60°	270°	289650	6853500	420	AC	69	Delphi
SNAC0043	MGA94_51	-60°	270°	289600	6853500	420	AC	86	Delphi
SNAC0044	MGA94_51	-60°	270°	289550	6853500	420	AC	80	Delphi
SNAC0045	MGA94_51	-60°	270°	289500	6853500	420	AC	83	Delphi
SNAC0046	MGA94_51	-60°	270°	289459	6853498	420	AC	83	Delphi
SNAC0047	MGA94_51	-60°	270°	289803	6853402	420	AC	47	Delphi
SNAC0048	MGA94_51	-60°	270°	289755	6853398	420	AC	52	Delphi
SNAC0049	MGA94_51	-60°	270°	289704	6853403	420	AC	59	Delphi
SNAC0050	MGA94_51	-60°	270°	289648	6853403	420	AC	72	Delphi
SNAC0051	MGA94_51	-60°	270°	289592	6853404	420	AC	62	Delphi
SNAC0052	MGA94_51	-60°	270°	289545	6853406	420	AC	80	Delphi
SNAC0053	MGA94_50	-60°	270°	289497	6853406	420	AC	80	Delphi
SNAC0054	MGA94_51	-60°	270°	289447	6853403	420	AC	65	Delphi
SNAC0055	MGA94_51	-60°	270°	289789	6853298	420	AC	45	Delphi
SNAC0056	MGA94_51	-60°	270°	289746	6853302	420	AC	55	Delphi
SNAC0057	MGA94_51	-60°	270°	289705	6853297	420	AC	51	Delphi
SNAC0058	MGA94_51	-60°	270°	289803	6853204	420	AC	42	Delphi
SNAC0059	MGA94_51	-60°	270°	289751	6853195	420	AC	47	Delphi
SNAC0060	MGA94_51	-60°	270°	289704	6853204	420	AC	57	Delphi
SNAC0061	MGA94_51	-60°	270°	289651	6853300	420	AC	78	Delphi
SNAC0062	MGA94_51	-60°	270°	289605	6853303	420	AC	74	Delphi
SNAC0063	MGA94_51	-60°	270°	289553	6853297	420	AC	74	Delphi
SNAC0064	MGA94_51	-60°	270°	289506	6853297	420	AC	77	Delphi
SNAC0065	MGA94_51	-60°	270°	289454	6853301	420	AC	56	Delphi
SNAC0066	MGA94_51	-60°	270°	289649	6853208	420	AC	78	Delphi
SNAC0067	MGA94_51	-60°	270°	289611	6853203	420	AC	72	Delphi
SNAC0068	MGA94_51	-60°	270°	289552	6853198	420	AC	61	Delphi
SNAC0069	MGA94_51	-60°	270°	289502	6853201	420	AC	59	Delphi
SNAC0070	MGA94_51	-60°	270°	289453	6853201	420	AC	62	Delphi
SNAC0071	MGA94_51	-90°	000°	301578	6852211	416	AC	24	Mt Clifford
SNAC0072	MGA94_50	-90°	000°	301647	6852225	417	AC	41	Mt Clifford
SNAC0073	MGA94_51	-90°	000°	301725	6852225	417	AC	48	Mt Clifford
SNAC0074	MGA94_51	-90°	000°	301800	6852228	417	AC	25	Mt Clifford
SNAC0075	MGA94_51	-90°	000°	301875	6852228	417	AC	30	Mt Clifford
SNAC0076	MGA94_51	-90°	000°	301950	6852228	417	AC	24	Mt Clifford
SNAC0077	MGA94_51	-90°	000°	302026	6852230	417	AC	21	Mt Clifford
SNAC0078	MGA94_50	-90°	000°	302102	6852231	417	AC	21	Mt Clifford
SNAC0079	MGA94_51	-90°	000°	302173	6852223	417	AC	39	Mt Clifford
SNAC0080	MGA94_50	-90°	000°	302251	6852228	417	AC	25	Mt Clifford
SNAC0081	MGA94_50	-90°	000°	302321	6852222	417	AC	48	Mt Clifford
SNAC0082	MGA94_51	-90°	000°	301500	6852222	417	AC	18	Mt Clifford
SNAC0083	MGA94_51	-60°	270°	287401	6827606	383	AC	56	Schmitz Well South
SNAC0084	MGA94_50	-60°	270°	287358	6827603	383	AC	65	Schmitz Well South
SNAC0085	MGA94_51	-60°	270°	287320	6827598	383	AC	32	Schmitz Well South

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Hole ID	Grid ID	Dip	Azimuth	East	North	RL	Hole Type	Max Depth	Prospect
				(m)	(m)	(m)
SNAC0086	MGA94_51	-60°	270°	287281	6827596	383	AC	38	Schmitz Well South
SNAC0087	MGA94_51	-60°	270°	287238	6827595	383	AC	34	Schmitz Well South
SNAC0088	MGA94_51	-60°	270°	287402	6827804	383	AC	49	Schmitz Well South
SNAC0089	MGA94_51	-60°	270°	287362	6827799	383	AC	46	Schmitz Well South
SNAC0090	MGA94_51	-60°	270°	287324	6827799	383	AC	45	Schmitz Well South
SNAC0091	MGA94_50	-60°	270°	287279	6827800	383	AC	23	Schmitz Well South
SNAC0092	MGA94_51	-60°	270°	287240	6827804	383	AC	32	Schmitz Well South
SNAC0093	MGA94_50	-60°	270°	287200	6827803	383	AC	21	Schmitz Well South
SNAC0094	MGA94_51	-60°	270°	287378	6828000	383	AC	65.1	Schmitz Well South
SNAC0095	MGA94_51	-60°	270°	287345	6827999	383	AC	73	Schmitz Well South
SNAC0096	MGA94_51	-60°	270°	287299	6828001	383	AC	65	Schmitz Well South
SNAC0097	MGA94_50	-60°	270°	287263	6827998	383	AC	41	Schmitz Well South
SNAC0098	MGA94_51	-60°	270°	287231	6828001	383	AC	43	Schmitz Well South
SNAC0099	MGA94_51	-60°	270°	287180	6827999	383	AC	36	Schmitz Well South
SNAC0100	MGA94_51	-60°	270°	287327	6828952	383	AC	65	Schmitz Well South
SNAC0101	MGA94_51	-60°	270°	287284	6828951	383	AC	67	Schmitz Well South
SNAC0102	MGA94_51	-60°	270°	287246	6828955	383	AC	80	Schmitz Well South
SNAC0103	MGA94_51	-60°	270°	287198	6828948	383	AC	100	Schmitz Well South
SNAC0104	MGA94_51	-60°	270°	287158	6828952	383	AC	74	Schmitz Well South
SNAC0105	MGA94_51	-60°	270°	287117	6828952	383	AC	83	Schmitz Well South
SNAC0106	MGA94_51	-60°	270°	287081	6828946	383	AC	99	Schmitz Well South
SNAC0107	MGA94_51	-60°	270°	287168	6829901	383	AC	31	Schmitz Well South
SNAC0108	MGA94_51	-60°	270°	287118	6829899	383	AC	28	Schmitz Well South
SNAC0109	MGA94_51	-60°	270°	287084	6829897	383	AC	30	Schmitz Well South
SNAC0110	MGA94_51	-60°	270°	287040	6829896	383	AC	22	Schmitz Well South
SNAC0111	MGA94_51	-60°	270°	286999	6829893	384	AC	44	Schmitz Well South
SNAC0112	MGA94_51	-60°	270°	286958	6829910	383	AC	50	Schmitz Well South
SNAC0113	MGA94_51	-60°	270°	287083	6831301	383	AC	29	Schmitz Well South
SNAC0114	MGA94_51	-60°	270°	287040	6831300	383	AC	43	Schmitz Well South
SNAC0115	MGA94_51	-60°	270°	287004	6831303	383	AC	38	Schmitz Well South
SNAC0116	MGA94_51	-60°	270°	286962	6831303	383	AC	19	Schmitz Well South
SNAC0117	MGA94_51	-60°	270°	287119	6831306	383	AC	44	Schmitz Well South

Table 4 : Air-core Drill-hole Assay Intersections for the Sinclair Nickel Project

Significant intercepts for Ni percent are calculated using a 0.5% Ni cut off, where total intercept grade is greater than 0.5% over a minimum interval of 1m.

Hole ID	Depth from (m)	Depth To (m)	Interval(m)	Ni	Cu
				(%)	(%)
SNAC0083	26	27	1	0.68	0.00
SNAC0096	50	55	5	0.50	0.02
	57	61	4	1.30	0.12

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

Details and co-ordinates of drill-hole collars for air-core and RC drilling completed during the June 2017 quarter:

Hole ID	Prospect	Grid ID	Dip	Azimuth	East	North	RL	Hole Type	Max Depth	Hole Status
					(m)	(m)	(m)
SNRC027	Schmitz Well South	MGA94_50	-60	90	287,252	6,828,000		RC	220	Complete
SNRC028	Schmitz Well South	MGA94_50	-60	90	287,252	6,828,050		RC	222	Complete
SNRC029	Schmitz Well South	MGA94_50	-60	90	287,252	6,828,100		RC	207	Complete
SNRC030	Schmitz Well South	MGA94_50	-60	90	287,252	6,279,950		RC	231	Complete
SNRC031	Delphi	MGA94_50	-60	270	290,105	6,855,760		RC	243	Complete

Table 6 : RC Drill-hole Assay Intersections for the Sinclair Nickel Project

Significant intercepts for Ni percent are calculated using a 0.5% Ni cut off, where total intercept grade is greater than 1% over a minimum interval of 1m, including 2m of internal waste.

Hole ID	Depth from (m)	Depth To (m)	Interval (m)	Ni	Cu	Pb	Au (ppm)
				(%)	(%)	(%)
SNRC027	Results Pending
SNRC028	Results Pending
SNRC029	Results Pending
SNRC030	Results Pending
SNRC031	Results Pending

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Appendix 1: Talisman’s Tenement Holding

Project / Tenement	Location and Blocks (Area)	Interest at Beginning Quarter	Interest at End Quarter	Acquired during Quarter	Surrendered during Quarter	Joint Venture Partner / Farm-In Party
HALLOWEEN WEST	W Australia					JV - Sandfire Resources NL
E52/2275	6	18.8%	18.8%	-	-
HALLOWEEN	W Australia					JV - Sandfire Resources NL
P52/1528	(200 HA)	18.8%	18.8%	-
SPRINGFIELD	W Australia					JV - Sandfire Resources NL
E52/2282	42	30%	30%	-	-
E52/2313	8	30%	30%	-	-
E52/2466	14	30%	30%	-	-
E52/3423	1	30%	30%	-	-
E52/3424	1	30%	30%	-	-
E52/3425	6	30%	30%	-	-
E52/3466	12	30%	30%	-	-
E52/3467	20	30%	30%	-	-
L52/170	(246.4HA)	30%	30%	-	-
M52/1071	(1,642HA)	30%	30%	-	-
E51/1767	14	0%	0%	Application	-	N/A
Project / Tenement	Location and Blocks (Area)	Interest at Beginning of Quarter	Interest at End of Quarter	Acquired during Quarter	Surrendered during Quarter	Joint Venture Partner / Farm-In Party
SINCLAIR NICKEL PROJECT	W.Australia					N/A
E36/650	16	100%	100%	-	-
E37/903	13	100%	100%	-	-
E37/1231	3	100%	100%	-
L36/198	(103.1 HA)	100%	100%	-	-
L37/175	(83.9 HA)	100%	100%	-	-
M36/444	(568.0 HA)	100%	100%	-	-
M36/445	(973.0 HA)	100%	100%	-	-
M36/446	(843.0 HA)	100%	100%	-	-
M37/362	(981.5 HA)	100%	100%	-	-
M37/383	(841.7 HA)	100%	100%	-	-
M37/384	(536.7 HA)	100%	100%	-	-
M37/385	(926.8 HA)	100%	100%	-	-
M37/386	(983.8 HA)	100%	100%	-	-
M37/424	(891.0 HA)	100%	100%	-	-
M37/426	(505.0 HA)	100%	100%	-	-
M37/427	(821.0 HA)	100%	100%	-	-
M37/590	(120.0 HA)	100%	100%	-	-
M37/692	(136.1 HA)	100%	100%	-	-
M37/735	(959.0 HA)	100%	100%	-	-
M37/816	(818.4 HA)	100%	100%	-	-
M37/818	(806.5 HA)	100%	100%	-	-
M37/819	(380.2 HA)	100%	100%	-	-
M37/1063	(604.0 HA)	100%	100%	-	-
M37/1089	(574 HA)	100%	100%	-	-

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Project / Tenement	Location and Blocks (Area)	Interest at Beginning of Quarter	Interest at End of Quarter	Acquired during Quarter	Surrendered during Quarter	Joint Venture Partner / Farm-In Party
M37/1090	(478 HA)	100%	100%	-	-
M37/1126	(603 HA)	100%	100%	-	-
M37/1127	(603 HA)	100%	100%	-	-
M37/1136	(986 HA)	100%	100%	-	-
M37/1137	(850 HA)	100%	100%	-	-
M37/1148	(44.78 HA)	100%	100%	-	-
M37/1168	(190 HA)	100%	100%	-	-
M37/1223	(675 HA)	100%	100%	-	-
M37/1275	(1,961 HA)	100%	100%	-	-
P37/7228	(61.57 HA)	100%	100%	-	-
P37/7233	(116.01 HA)	100%	100%	-	-

Project / Tenement	Location and Blocks (Area)	Interest at Beginning of Quarter	Interest at End of Quarter	Acquired during Quarter	Surrendered during Quarter	Joint Venture Partner / Farm-In Party
OTHER	NSW					N/A
EL8615	(728km2)	0%	100%	Granted	-
ELA5485	(373km2)	0%	0%	Application	-
ELA5487	(44km2)	0%	0%	Application	-
ELA5556	(193km2)	0%	0%	Application

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Appendix 2: JORC Tables Sections 1 & 2

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 aircore (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. • Sampling techniques employed by Talisman at the Sinclair Nickel 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, and aircore (AC) sample collected using spear techniques for composite samples or collected by a riffle splitter for single metre samples. • Sampling is guided by Talisman protocols and QAQC procedures as per industry standard • Samples were crushed, dried and pulverised (total prep) to produce a 30g sub sample for analysis by four acid digest with an ICP/AES finish for base metals; and a 50g Fire assay with an AAS finish for gold
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. • Talisman drilling is completed using industry standard practices. AC drilling with a face sampling blade or hammer. • AC drill collars are located using handheld GPS

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Criteria	JORC Code explanation			Commentary
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 AC drilling recovery is good with sample quality captured in the database. • No indication of sample bias with respect to recovery has been established
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative 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. • Talisman 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.
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.			• Sandfire DD Core orientation is completed where possible and core is marked prior to sampling. Half core samples are produced using Almonte Core Saw. Samples are weighed and recorded. • RC samples are split using a cone or riffle splitter. A majority of RC samples are dry. On occasions that wet samples are encountered they are dried prior to splitting with a riffle splitter. • 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.

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Criteria	JORC Code explanation		Commentary
			• 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 NQ2 size, sampled on geological intervals (0.2 m to 1.2 m), cut into half (NQ2) or quarter (HQ) core to give sample weights under 3 kg Samples were selected to weigh less than 3kg to ensure total preparation at the pulverization stage. • 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 30g charge for 4-acid digest with an ICP-MS or AAS finish for base metals, and a 50g fire assay with an AAS finish for gold. • 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 were routinely reviewed and reported on a sample submission, and drilling campaign basis. • 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 assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.		• Sandfire samples are assayed using Mixed 4 Acid Digest (MAD) 0.3g charge and MAD Hotbox 0.15g charge methods with ICPOES or ICPMS. The samples are digested and refluxed with a mixture of acids including Hydrofluoric, Nitric, Hydrochloric and Perchloric acids and conducted for multi elements including Cu, Pb, Zn, Ag, As, Fe, S, Sb, Bi, Mo, Re, Mn, Co, Cd, Cr, Ni, Se, Te, Ti, Zr, V, Sn, W and Ba. The MAD Hotbox method is an extended digest method that approaches a total digest for many elements however some refractory minerals are not completely attacked. The elements S, Cu, Zn, Co, Fe, Ca, Mg, Mn, Ni, Cr, Ti, K, Na, V are determined by ICPOES, and Ag, Pb, As, Sb, Bi, Cd, Se, Te, Mo, Re, Zr, Ba, Sn, W are determined by ICPMS. Samples are analysed for Au, Pd and Pt by firing a 40g of sample with ICP AES/MS finish. Lower sample weights are employed where samples have very high S contents. This is a classical FA process and results in total separation of Au, Pt and Pd in the samples.

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Criteria	JORC Code explanation		Commentary
			• 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. • Samples are analysed for Au, by firing a 50g of sample with AAS finish • 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. • Sinclair significant intercepts have been verified by alternate company personnel • No twinned holes are being drilled as part of this program. • Logging and sampling data is captured and imported using Expedio Ocris software. • All Sinclair 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.

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Criteria	JORC Code explanation		Commentary
			• 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, with an independent survey contract group to locate completed DD and RC drill collars, working under the guidelines of best industry practice. • AC drill collars are located using handheld GPS • 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. • AC drill samples are collected in the field as 4 metre composite samples.
Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.		• At Monty, no significant orientation based sampling bias is known at this time. • The drill holes may not necessarily be perpendicular to the orientation of the intersected mineralisation. • The orientation of drilling at Sinclair 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

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Criteria	JORC Code explanation		Commentary
			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 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 aircore 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 1: Drill-hole Information Summary, Springfield Cu-Au Project. • Drill hole information relating to the Sinclair Nickel Project is included in Table 3: 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.

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Criteria	JORC Code explanation		Commentary
			•Ni grades used for calculating significant intersections are uncut. •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 2: Drill hole assay intersections for the Springfield Cu-Au Project). • 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 (refer to Table 4). 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, RC and aircore drilling techniques. • Planned future work at the Sinclair Nickel Project includes geophysical surveys, re-logging of historic diamond drill core and RC and diamond drilling.

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