TALISMAN MINING LIMITED — Interim / Quarterly Report 2019

Jan 30, 2019

31 January 2019

December 2018 Quarterly Activities Report

Corporate

• Fully franked special dividend of 6.375 cents per share paid to all shareholders in December 2018.

• Advancement of plans for further cash distribution with estimated timing of a proposed capital return during the first quarter of the 2019 calendar year.

• Debt free as at 31 December with cash of $43.6 million (post dividend payment).

Lachlan Cu-Au Project

• Follow-up RC drilling at Blind Calf Prospect intersected multiple zones of strong quartz veining, with logged copper sulphide mineralisation (chalcopyrite). Assay results included:

• BCRC0008: 5m @ 3.10% Cu from 199m ( Inc. 1m @ 7.55%Cu from 201m); and

• o BCRC0010: 21m @ 2.67% Cu from 117m (Inc. 4m @ 6.85%Cu from 132m)

• First pass RC drilling at Cumbine Prospect confirmed presence of gold bearing mineralised system. Assay results included:

• CURC0003: 7m @ 1.95g/t Au from 109m ( Inc. 1m @ 5.83 g/t Au from 109m)

• Broad zones of zinc lead and copper mineralisation from first pass RC drilling at Noisy Ned Prospect .

• DHEM surveys at all three prospects completed early January 2019. Interpretation and analysis expected to be completed shortly.

• Geological and targeting review undertaken with multiple priority targets identified for testing in 2019.

• Submission of Programs of Work for drilling expected shortly once DHEM survey analysis completed.

Sinclair Nickel Project

• Air-core drilling to test interpreted prospective ultramafic basal contact at Antioch trend completed in December 2018. Analysis and interpretation of assay results underway.

• 2 RC drill holes and DHEM survey at Skye East completed to provide further geological information where drilling in the September 2018 quarter intersected: o SNRC045[1] 4m @ 1.28% Ni from 16m; and o SNRC048[1] 7m @ 3.54% Ni from 51m ( Inc. 2m @ 7.47% Ni from 55m )

• Results from DEHM survey showed a strong conductor associated with the sedimentary unit, and two separate, smaller conductive off-hole anomalies.

1 Refer to TLM ASX announcement dated 7 September 2018 “Sinclair Exploration Update: RC drilling identifies new mineralised position” for full details.

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- Sale of Springfield Copper Gold Project

On 12 October 2018 Talisman Mining Ltd (ASX: TLM, Talisman or the Company ) completed the sale of its 30% interest in the Springfield Exploration and Monty Mining Joint Ventures ( Springfield Project ) to Sandfire Resources NL (ASX: SFR, Sandfire ) for $72.3 million in cash on a debt-free and cash-free basis.

As a result of transaction completion, Talisman received $58.15 million in cash proceeds after the repayment of the Loan Facility and Working Capital Facility provided by Talisman’s financier, Taurus Mining Finance Fund.

In addition, Talisman retains an ongoing 1% Net Smelter Return royalty payable on 100% of any copper and gold extracted from the Springfield Project above the Monty mine plan (based on the Monty Feasibility Study released in April 2017).

During the quarter Talisman paid a fully franked special dividend of 6.375 cents per share (total of $11.8 million) to all shareholders and continued to advance a proposed further cash distribution to shareholders. Talisman expects to announce the relevant details for the proposed further cash distribution in the coming weeks.

Shareholders should note that the proposed further cash distribution may change depending on a number of factors, such as the outcome of operating and development activities, regulatory developments, market and general economic conditions and the Board's discretion. Consequently, the Board reserves the right to alter the way the funds are applied. Investors are cautioned that there can be no guarantee that a further cash distribution will occur, or of its timing, quantum or structure. Talisman makes no comment in relation to the tax circumstances or tax liabilities of Talisman shareholders.

The completion of the Springfield Project transaction puts Talisman in a strong position to fund exploration programs at its Lachlan Copper-Gold Project in New South Wales and Sinclair Nickel Project in Western Australia. Post completion of the proposed further cash distribution, shareholders will retain an investment in a debt-free, well-capitalised company with active exploration planned throughout 2019.

- Lachlan Copper Gold Project

During the quarter Talisman completed reverse circulation ( RC ) drilling programs at its Lachlan Copper Gold Project ( Lachlan Project ) in NSW where a total of 24 holes for 4,824 metres were completed ( Table 1 ) across the following target areas:

• Extensions to high-grade copper mineralisation and DHEM anomalies at Blind Calf;

• Cu-Zn-Pb auger geochemical anomaly at Noisy Ned; and

• Strong (historic) IP geophysical anomaly at Cumbine.

Based on the drill results to date, follow up exploration work is expected at all three target areas with the high-grade Blind Calf Prospect the highest priority for drilling in the March quarter.

Selected drill holes at each prospect were cased for down-hole geophysical surveying with surveys commenced during the quarter and completed in January 2019. Talisman is currently awaiting the final results and interpretation of these surveys which will inform and direct the specific drill targets in the proposed upcoming drill program.

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During the quarter, Talisman commenced a comprehensive geological and exploration review of the Lachlan Project which examined the potential mineralising systems that have created the extensive gold and base metal occurrences within the Lachlan Project area. The review was completed in January 2019 and encompassed the datasets generated by Talisman from its first year of work programs, additional geological information obtained from external sources, other historical exploration data and mineral deposit models applicable to the Lachlan Fold Belt.

Large-scale structures in the area such as the Rookery Fault and the Gilmore Suture have played an important role in the development of the Cobar super basin, as well as providing pathways for mineralising fluids and the formation of mineral deposits. Typically, the large-scale deposits and numerous mineral occurrences within the region have a strong spatial correlation with these large-scale structures.

The Lachlan Project area covers an extensive strike extent along the Gilmore suture, and it is considered that this area has the potential to host a variety of deposit types including low sulphation epithermal gold and base metal deposits (similar to the Mineral Hill deposit), structurally controlled gold deposits (similar to the Mt Boppy deposit), structurally controlled copper deposits (similar to the Blind Calf deposit), Cobar style gold and base metal deposits, as well as Skarn deposits.

The exploration review delineated 44 exploration targets that are considered to have the potential to host significant gold or base metal mineralisation and warrant further exploration activities. Targets are classified depending on corroborating geological information and classified in 5 stages:

• Stage 1: Conceptual Targets

• Stage 2: Prospect areas with anomalies defined from surface sampling programs.

• Stage 3: Prospect areas with known gold or base metal mineralisation intersected in bedrock drilling in addition to anomalies defined from surface sampling programs.

• Stage 4: Prospect areas with economic grade mineralisation and/or economic width intersection

• Stage 5: Prospect areas with economic grade and width mineralisation that are subject to targeted resource drilling

Of the 44 exploration targets, to date, 25 have been classified as Stage 2 targets, 13 as Stage 3 targets and 1 as a Stage 4 target (Blind Calf Prospect).

These targets are in the process of being ranked to prioritise the submission of work programs to the NSW Department of Planning and Environment and enable the first stage of 2019 calendar year drilling to commence in the first quarter of 2019.

It is envisaged that on ground exploration activities for the remainder of the 2019 calendar year will incorporate:

• further regional geochemical sampling (auger/ soils);

• potential infill and extension sampling;

• regional airborne and ground based geophysical surveys;

• first pass RC drill testing of new targets; and

• follow up RC and diamond drill testing of existing targets.

In addition to this ongoing work, Talisman continues to evaluate additional opportunities that provide synergies to the existing Lachlan Project.

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Blind Calf Prospect

The Blind Calf Prospect area remains a high priority advanced stage drill target with high grade Cu mineralisation intersected in both drilling programs carried out by Talisman in 2018.

A total of eight RC holes for 1,709 metres were completed at the Blind Calf Prospect during the December quarter ( Table 1 ). Drilling was aimed at testing further down dip from previously reported high-grade copper mineralisation and intersected strongly altered volcanic lithologies, with quartz veining and logged copper sulphide mineralisation (chalcopyrite). Best assay results ( Table 2 and Figure 1 ), include:

• BCRC0008: 5m @ 3.10% Cu from 199m ( Inc. 1m @ 7.55% Cu from 201m);

• • BCRC0010: 21m @ 2.67% Cu from 117m ( Inc. 4m @ 6.85% Cu from 132m); • BCRC0011: 3m @ 3.63% Cu from 188m ( Inc. 1m @ 6.25% Cu from 190m); and • BCRC0012: 5m @ 2.36% Cu from 74m[2]

==> picture [490 x 419] intentionally omitted <==

Figure 1: Blind Calf Prospect - long section showing Blind Calf-Dunbars lode recent and selected historical drilling results[2] .

2 Refer to TLM ASX announcement dated 30 November “Lachlan Project Update: More High-Grade Copper at Blind Calf” for full details.

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Drill results confirmed the continuation of the Blind Calf lode at depth with a consistent thickness. Importantly, the high-grade core encountered in previous drilling was again intersected in BCRC0010 and remains open down plunge to the north.

Results from the latest drilling campaign has provided Talisman with the confidence to start planning a campaign of follow up drilling at Blind Calf to further unlock what is shaping up to be a significant highgrade copper system. Drilling will once again look to extend the known high-grade copper mineralisation at depth where it remains open in all directions.

Five of the recently completed drill holes were cased for proposed down-hole electromagnetic ( DHEM ) surveys, which has been interpreted to be mapping the high-grade core of the system. Surveys of all holes were completed in January 2019 and analysis and interpretation of the geophysical data is underway. Data from this survey will aid in the planning of the proposed diamond drilling to be scheduled for the March quarter 2019.

Boona – Murray’s Prospect Area

Recent auger drilling and soil sampling (undertaken in September 2018) to the northwest and southeast of the Blind Calf Prospect and the interpreted Mineral Hill corridor identified multiple anomalies at a number of distinct target areas. These anomalies are along interpreted regional scale NW-SE trending structures which are known to be a major controlling feature in the region, as seen at the high-grade Blind Calf Prospect and the Mineral Hill mine (Figure 2) .

Anomalism varies from isolated gold and isolated copper to copper-gold anomalism and zinc-lead and copper anomalism with coincident gold. These areas of anomalism have been identified across five broad prospective corridors, all of which contain known historic mineralisation ( Figure 2 ).

Anomalous targets ( Figure 2 ) are currently in the process of being ranked with other project wide targets and it is anticipated that RC drilling will be undertaken in this region in the first half of the 2019 calendar year.

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==> picture [399 x 573] intentionally omitted <==

Figure 2: Lachlan Project southern region area [3] showing geochemical anomalies identified from auger sampling.

3 Map shows the outline of the project tenements only, refer to Appendix 1 for detailed tenement boundaries.

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Cumbine Prospect

First pass RC drilling was completed at the Cumbine Prospect during the quarter to test an historic IP geophysical anomaly associated with historic anomalous gold-in soils and rock chip samples on the flanks of an outcropping felsic volcanic sequence. A total of four holes for 757 metres were completed ( Table 1 and Figure 3 ).

Drilling encountered a contiguous sequence of altered felsic rocks, with broad zones of elevated gold results throughout all four of the completed holes.

==> picture [342 x 513] intentionally omitted <==

A number of zones of brecciation and quartz veining were logged and have been interpreted to represented fault zones. These zones have higher elevations of gold (>0.5g/t Au), with one zone in CURC0003 returning 7m @ 1.95g/t Au from 109m including 1m @ 5.83g/t Au ( Table 3 ). Results returned are highly encouraging, with DHEM surveying critical to understanding the nature of this sulphide rich system.

Two holes had DHEM surveys completed in January 2019. Follow-up drilling and/or surface geophysical surveys are anticipated to be planned following assessment of results from the DHEM surveys.

Figure 3: Cumbine Prospect – Drill collar location plan.

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Noisy Ned Prospect

12 RC drill holes were completed during the quarter at the Noisy Ned Prospect for a total of 2,358 metres ( Table 1 and Figure 4 ). Drilling was designed to provide a first pass test of a strong multielement base metal anomaly (Zn/Pb/Cu), identified by previous shallow auger geochemical sampling that extends for a strike length of more than 1 kilometre along the regionally significant Gilmore Suture fault zone[4] .

RC drilling returned broad zones of zinc, lead and copper mineralisation encountered on all drill sections, the mineralisation is interpreted to be trending NNW with a shallow dip to the east.

==> picture [435 x 490] intentionally omitted <==

Figure 4: Noisy Ned - Drill collar locations over simplified solid geology.

4 Refer Talisman ASX announcement “Lachlan Cu-Au Project Update - Cu-Zn-Pb Anomaly identified” dated 17 May 2018.

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RC drilling encountered flat to shallow easterly dipping, highly altered felsic volcanic rocks (rhyolites/ dacites), overlying a broader highly brecciated rhyolite unit with an intercalated tuffaceous unit; with strong to moderate siliceous alteration and pyrite sulphide mineralisation pervasive throughout all of the rocks encountered.

Results from sampling has shown wide zones of anomalous Zn and Pb mineralisation within the upper felsic units ( Table 4 and Figure 5 ), with narrow zones of higher grade (+0.5%), Zn, Pb and Cu throughout the sequence, with logging of drill cuttings noting fresh base metal sulphides (sphalerite, galena, chalcopyrite).

==> picture [483 x 325] intentionally omitted <==

Figure 5: Noisy Ned - Drill collar locations over simplified solid geology.

Further field work is anticipated following the completion of the DHEM survey to better define the stratigraphy, prior to planning the next phase of drill testing which will be undertaken in the new year.

Additional auger drilling is also planned to extend the previous sampling program to the east and along strike of the known mineralisation and also along the interpreted Gilmore Suture corridor.

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Sinclair Nickel Project

Skye-East RC Drilling

Shallow reverse circulation ( RC ) drilling at the Sky East Prospect completed in August 2018 identified high-grade massive nickel sulphide mineralisation close to surface in an untested area approximately 1 kilometre to the south of the existing Sinclair open pit. Results included;

• SNRC045[1] 4m @ 1.28% Ni from 16m; and

• SNRC048[1] 7m @ 3.54% Ni from 51m ( Inc. 2m @ 7.47% Ni from 55m ).

Talisman completed two RC drill holes (SNRC055 and SNRC056) during the December quarter[5] ( Table 5 ) to provide a platform for a DHEM survey to investigate the potential for down-plunge extensions of the near surface mineralisation in SNRC045 and SNRC048 ( Figures 6 and 7 ).

==> picture [479 x 352] intentionally omitted <==

Figure 6: Sinclair Nickel Project – Skye East long section.

The two completed holes (SNRC055 and SNRC056) both encountered the interpreted ultramafic contact at the interpreted depths with trace disseminated nickel sulphides, as well as a significant sulphide rich sedimentary unit in the immediate handing wall. Results from analysis did not return any significant nickel mineralisation ( Table 6 ).

5 Refer Talisman ASX announcement “Sinclair Exploration Update” dated 29 November 2018.

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While both RC drill holes were cased for geophysical surveys, the thickness of the intersected sedimentary unit, the abundance of sulphides, and proximity of this unit to the target basal contact in drill hole SNRC055, led to the decision to complete the DEHM survey only in hole SNRC056.

Results from the DHEM survey of SNRC056 showed a strong EM conductor associated with the sulphide rich sedentary unit, as well as two smaller off-hole conductive anomalies that have been interpreted to represent sulphide occurrences within the target ultramafic unit down plunge from the nickel sulphide mineralisation encountered in SNRC045 ( Figure 6 and Figure 7 ).

These results strengthen the interpreted prospectively of this newly identified fertile basal contact, which is in close proximity to the existing Sinclair Nickel Mine. A detailed review and interpretation of these new results in conjunction with historic drilling and other data is underway. The review will direct the next phase of exploration in this area.

Figure 7: Sinclair Nickel Project – Skye East contact position showing previously completed shallow RC drilling

Antioch AC Drilling

A 4,500-metre air-core ( AC ) drilling campaign was undertaken during the quarter to test for interpreted extensions of the prospective ultramafic basal contact along the Antioch Trend to the east of the Sinclair Nickel Mine ( Appendix 2 ).

The Antioch tenement package covers an extensive, 35 kilometres of strike of the main prospective ultramafic rocks which host significant nickel mineralisation in the region. The majority of the Antioch trend is overlain by shallow transported cover, which deepens to the south along the Bannockburn

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Sheer (host to the historic Bannockburn Gold Mine). The AC drilling was intended to drill through the transported overburden and sample the residual ultramafic rock sequences.

Drilling was completed late in December 2018 and analysis and interpretation of assay results is expected to be completed in the current quarter.

Ends

For further information, please contact:

Dan Madden – Managing Director on +61 8 9380 4230

Michael Vaughan (Media inquiries) on +61 422 602 720

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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 100% of the Sinclair Nickel Project located in the world-class Agnew-Wiluna greenstone belt in WA’s north-eastern 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.

Talisman has also secured tenements in the Cobar/Mineral Hill region in Central NSW through the grant of its own Exploration Licenses and through separate farm-in agreements. The Cobar/Mineral Hill region is a richly mineralised district that hosts several base and precious metal mines including the CSA, Tritton, and Hera/ Nymagee mines. This region contains highly prospective geology that has produced many long-life, high-grade mineral discoveries. Talisman has identified a number of areas within its Lachlan Cu-Au Project tenements that show evidence of base and precious metals endowment which have had very little modern systematic exploration completed to date. Talisman believes there is significant potential for the discovery of substantial base metals and gold mineralisation within this land package.

Competent Person’s Statement

Information in this announcement that relates to Exploration Results and Exploration Targets is based on, and fairly represents information and supporting documentation complied by Mr Don Huntly, who is a member of the Australasian Institute of Geoscientists. Mr Huntly 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 Huntly has reviewed the contents of this announcement and consents to the inclusion in this announcement of all technical statements based on his information in the form and context in which they appear.

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.

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Table 1: Drill-hole information summary, Lachlan Cu-Au Project

Details and co-ordinates of drill-hole collars for RC drilling completed during the December 2018 quarter:

Hole ID	Grid ID	Dip	Azimuth	East (m)	North (m)	RL (m)	Hole Type	Max Depth	Prospect	Comment
NNRC0001	MGA94_Z55	-600	900	458,544	6,452,217	291	RC	199	Noisy Ned	Complete
NNRC0002	MGA94_Z55	-600	900	458,442	6,452,204	284	RC	145	Noisy Ned	Complete
NNRC0003	MGA94_Z55	-600	2700	458,655	6,452,206	301	RC	217	Noisy Ned	Complete
NNRC0004	MGA94_Z55	-600	900	458,655	6,452,206	301	RC	205	Noisy Ned	Complete
NNRC0005	MGA94_Z55	-600	900	458,545	6,452,300	296	RC	199	Noisy Ned	Complete
NNRC0006	MGA94_Z55	-600	2700	458,640	6,452,300	298	RC	223	Noisy Ned	Complete
NNRC0007	MGA94_Z55	-600	2700	458,640	6,452,300	298	RC	211	Noisy Ned	Complete
NNRC0008	MGA94_Z55	-600	900	458,399	6,452,305	299	RC	205	Noisy Ned	Complete
NNRC0009	MGA94_Z55	-600	900	458,340	6,452,400	283	RC	199	Noisy Ned	Complete
NNRC0010	MGA94_Z55	-600	900	458,582	6,452,087	289	RC	201	Noisy Ned	Complete
NNRC0011	MGA94_Z55	-600	900	458,467	6,452,100	281	RC	198	Noisy Ned	Complete
NNRC0012	MGA94_Z55	-600	2700	458,800	6,451,750	281	RC	156	Noisy Ned	Complete
CURC0001	MGA94_Z55	-600	2200	458,994	6,444,453	261	RC	196	Cumbine	Complete
CURC0002	MGA94_Z55	-600	2200	459,050	6,444,500	281	RC	193	Cumbine	Complete
CURC0003	MGA94_Z55	-600	2200	459,000	6,444,600	288	RC	199	Cumbine	Complete
CURC0004	MGA94_Z55	-600	2200	458,948	6,444,556	282	RC	1696	Cumbine	Complete
BCRC0008	MGA94_Z55	-600	2200	494,879	6,393,281	366	RC	243	Blind Calf	Complete
BCRC0009	MGA94_Z55	-600	2200	494,883	6,393,286	364	RC	206	Blind Calf	Complete
BCRC0010	MGA94_Z55	-600	2200	494,876	6,393,346	368	RC	230	Blind Calf	Complete
BCRC0011	MGA94_Z55	-600	2200	494,884	6,393,320	367	RC	242	Blind Calf	Complete
BCRC0012	MGA94_Z55	-600	2200	494,884	6,393,277	364	RC	242	Blind Calf	Complete
BCRC0013	MGA94_Z55	-600	2200	494,669	6,393,154	394	RC	146~~7~~	Blind Calf	Complete
BCRC0014	MGA94_Z55	-600	2200	494,710	6,393,201	379	RC	194	Blind Calf	Complete
BCRC0015	MGA94_Z55	-600	2200	494,691	6,393,197	380	RC	206	Blind Calf	Complete

6 CURC0004 was stopped shallower than the planned target depth of ≈200m due to lost drilling equipment down-hole.

7 BCRC0013 was stopped before reaching the target depth due to hole deviation.

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Table 2: RC drill-hole assay intersections for the Blind Calf Cu-Au Prospect

Details of Lachlan Project, Blind Calf Prospect RC drilling intersections received during the December 2018 quarter by Talisman are provided below.

Calculation of intersections for inclusion into this table are based a nominal 0.5% cut-off for Cu, no more than 3m of internal dilution and a minimum composite grade of 0.5% Cu.

The listed intersections relating to the Lachlan Project are reported as down hole intersections. True widths of the reported mineralisation are not known at this time.

Hole ID	Depth From Depth To	Depth From Depth To	Interval (down-hole)	Cu	Au	Comment
	(m)	(m)	(m)	(%)	(g/t)	(lode)
BCRC008	47	49	2	3.23	0.48	Hanging Wall
BCRC008	59	60	1	1.20	0.40	Hanging Wall
BCRC008	176	177	1	1.11	0.01	Hanging Wall
BCRC008	191	192	1	1.56	0.02	Hanging Wall
BCRC008	199	204	5	3.10	0.04	Blind Calf
Inc.	201	202	1	7.55	0.13	Blind Calf
BCRC0008	215	216	1	0.96	0.04	Foot Wall
BCRC0009	187	188	1	1.24	0.03	Blind Calf
BCRC0010	117	138	21	2.67	0.02	Blind Calf
Inc.	132	136	4	6.85	0.07	Blind Calf
BCRC0011	188	191	3	3.63	0.09	Blind Calf
Inc.	190	191	1	6.25	0.16	Blind Calf
BCRC0012	52	53	1	0.56	0.07	Hanging Wall
BCRC0012	74	79	5	2.36	0.29	Hanging Wall
Inc.	74	75	1	3.49	0.32	Hanging Wall
BCRC0012	191	192	1	0.65	0.01	Blind Calf
BCRC0012	197	198	1	0.85	0.02	Blind Calf
BCRC0013	Hole not sampled8
BCRC0014	35	35	1	0.69	0.15	Foot Wall
BCRC0014	131	132	1	2.46	0.03	Dunbar’s
BCRC0015	97	98	1	0.56	0.05	Foot Wall
BCRC0015	136	137	1	0.51	0.1	Foot Wall
BCRC0015	160	161	1	1.27	0.06	Dunbar’s

8 BCRC0013 experienced excessive deviation in dip and azimuth in the upper part of the hole. As a result, the hole was terminated before reaching target depth and not sampled. BCRC0013 will be re-evaluated as a potential pre-collar for diamond drilling following the completion of DHEM surveys.

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Table 3: RC drill-hole assay intersections for the Cumbine Au Prospect

Details of Lachlan Project, Noisy Ned Prospect RC drilling intersections received during the December 2018 quarter by Talisman are provided below.

Calculation of intersections for inclusion into this table are based a nominal 0.5g/t cut-off for Au, no more than 1m of internal dilution and a minimum composite grade of 0.5g/t Au.

The listed intersections relating to the Lachlan Project are reported as down hole intersections. True widths of the reported mineralisation are not known at this time.

	Depth	Depth	Interval	Au
Hole ID	From	To	(down-
	(m)	(m)	(m)	(g/t)
CURC0003	67	68	1	0.61
CURC0003	91	92	1	0.5
CRUC0003	109	116	7	1.95
Inc.	109	110	1	5.83
CURC0004	93	94	1	0.51

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Table 4: RC drill-hole assay intersections for the Noisy Ned base metal Prospect

Details of Lachlan Project, Noisy Ned Prospect RC drilling intersections received during the December 2018 quarter by Talisman are provided below.

Calculation of intersections for inclusion into this table are based a nominal 0.5% cut-off for Zn, no more than 1m of internal dilution and a minimum composite grade of 0.5% Zn.

The listed intersections relating to the Lachlan Project are reported as down hole intersections. True widths of the reported mineralisation are not known at this time.

	Depth From Depth To Interval (down-hole) Zn Pb Cu	Depth From Depth To Interval (down-hole) Zn Pb Cu	Depth From Depth To Interval (down-hole) Zn Pb Cu	Depth From Depth To Interval (down-hole) Zn Pb Cu	Depth From Depth To Interval (down-hole) Zn Pb Cu	Depth From Depth To Interval (down-hole) Zn Pb Cu
Hole ID
	(m)	(m)	(m)	%	%	%
NNRC0001	33	34	1	0.54	0.26	0.02
NNRC0001	40	41	1	0.52	0.18	0.01
NNRC0001	54	55	1	0.98	0.41	0.03
NNRC0001	59	60	1	0.55	0.24	0.02
NNRC0001	76	77	1	0.64	0.19	0.02
NNRC0002	38	39	1	0.56	0.93	0.02
NNRC0003	51	52	1	0.95	0.08	0.04
NNRC0003	89	91	2	0.54	0.34	0.02
NNRC0003	93	94	1	0.56	0.23	0.02
NNRC0003	106	109	3	1.19	0.21	0.02
NNRC0004	28	29	1	0.54	0.17	0.01
NNRC0004	144	147	3	0.82	0.14	0.03
NNRC0004	153	154	1	1.51	0.36	0.06
NNRC0005	46	49	3	0.52	0.43	0.07
NNRC0005	53	55	2	0.70	0.32	0.04
NNRC0005	65	66	1	1.10	0.81	0.06
NNRC0006	25	26	1	0.58	0.38	0.02
NNRC0006	59	68	9	0.87	0.43	0.07
NNRC0006	74	76	2	0.66	0.31	0.02
NNRC0006	101	102	1	0.57	0.26	0.03
NNRC0006	160	161	1	2.51	0.03	0.05
NNRC0007	20	26	6	0.73	0.34	0.03
NNRC0007	73	74	1	0.79	0.37	0.03
NNRC0007	92	93	1	0.79	0.25	0.11
NNRC0008	1	6	5	0.54	0.23	0.02
NNRC0009	No Significant Intercepts
NNRC0010	12	18	6	0.60	0.23	0.02
NNRC0010	20	22	2	0.86	0.30	0.02
NNRC0010	25	30	5	0.72	0.30	0.01
NNRC0010	55	56	1	2.34	1.00	0.05
NNRC0010	67	71	4	0.56	0.30	0.01
NNRC0010	120	121	1	0.53	0.38	0.01
NNRC0011	No Significant Intercepts
NNRC0012	No SignificantIntercepts

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Table 5: Drill-hole information summary, Sinclair Nickel Project

Details and co-ordinates of drill-hole collars for RC drilling completed during the December 2018 quarter:

				East	North	RL	Hole	Max
Hole ID	Grid ID	Dip	Azimuth	(m)	(m)	(m)	Type	Depth	Comment
SNRC055	MGA94_51	-60°	270°	290763	6859151	480	RC	250	Skye East
SNRC056	MGA94_51	-60°	270°	290735	6859050	480	RC	242	Skye East

Table 6: RC drill-hole assay intersections for the Sinclair Nickel Project

Details of RC drilling intersections received by Talisman during the December 2018 quarter are provided below.

Calculation of intersections for inclusion into this table are based a nominal 0.5% Ni cut-off, no more than 1m of internal dilution and a minimum composite grade of 1% Ni.

The listed intersections are reported as down hole intersections. True widths of the reported mineralisation are not known at this time.

	Depth Depth Interval	Depth Depth Interval	Depth Depth Interval	Depth Depth Interval	Depth Depth Interval	Depth Depth Interval
Hole ID	From To (down- hole) Ni Cu Co
	(m)	(m)	(m)	(%)	(%)	(%)
SNRC05	No Significant Intercepts
SNRC05	No Significant Intercepts

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Appendix 1
Lachlan Copper- Gold Project tenure
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• i. As previously announced to the ASX[9] , Haverford Holdings Ltd ( Haverford ), a 100% owned subsidiary of Talisman, has entered into a Farm-In Agreement ( Farmin ) with Bacchus Resources Pty Ltd ( Bacchus ) over certain Lachlan Cu-Au Project tenements.

In accordance with the terms of the Farm-in:

• Haverford can earn up to a 80% interest in the Bacchus Tenements (EL8547, EL8571, EL8638, EL8657, EL8658 and EL8680) by sole funding $2.3M of onground exploration expenditure over four years; and

• Should Haverford earn an interest in the Bacchus Tenements, Bacchus is entitled to receive a 20% interest in the Haverford Tenements (EL8615, EL8659 and EL8677). Should Haverford not earn an interest in the Bacchus Tenements, Bacchus may elect to take a 20% interest in the Haverford Tenements.

• Should Haverford earn into the Bacchus Tenements, a formal joint venture will be entered into which provides that Bacchus will be free carried for 10% of its joint venture interest until a decision to mine. Post a decision to mine, Bacchus can then elect whether to contribute or not, if Bacchus elects not to contribute, Haverford shall acquire Bacchus’ interest in the joint venture for 95% of fair value as agreed by the joint venture participants

• ii. As previously announced to the ASX[10] , Haverford has entered into a Farm-In Agreement ( Farm-in ) with Peel Mining Limited (ASX: PEX ) over PEX’s Mt Walton (EL8414) and Michelago (EL8451) Projects (collectively the Peel Tenements ). In accordance with the terms of the Farm-in, Haverford can earn up to a 75% interest in the Peel Tenements by sole funding $0.7M of on-ground exploration expenditure over five years.

iii. EL8814 joint venture between Haverford (80%) and Bacchus (20%).

• 9 Refer Talisman ASX announcement “Further NSW Gold and Base Metals Tenure Secured” 09 January 2018.

10 Refer Talisman ASX announcement “AGM Presentation” 23 November 2017.

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Appendix 2 Sinclair Nickel Project tenure

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20

APPENDIX 3

Talisman’s Tenement Holdings

Project / Tenement	Location and Blocks (Area)	Interest at Beginning Quarter	Interest at End Quarter	Acquired during Quarter	Surrendered/ Sold during Quarter	Joint Venture Partner / Farm-In Party
HALLOWEEN WEST	Western Australia					JV - Sandfire Resources NL
E52/2275	6	18.8%	-	-	18.8%
HALLOWEEN	Western Australia					JV - Sandfire Resources NL
P52/1528	(200 HA)	30%	-	-	30%
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%

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	Western 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%	-	-

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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
M37/816	(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%	-	-
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
LACHLAN PROJECT	NSW
EL8615	(726km2)	100%	100%	-	-	Bacchus Resources Pty Ltd (right to 20% interest)
EL8659	(373km2)	100%	100%	-	-
EL8677	(193km2)	100%	100%	-
EL8414	(174km2)	0%	0%	-	-	Peel Mining Ltd (TLM earning up to 75%)
EL8547	(205km2)	0%	0%	-	-	Bacchus Resources Pty Ltd (TLM earning up to 80%)
EL8571	(258km2)	0%	0%	-	-
EL8638	(192km2)	0%	0%	-	-
EL8657	(134m2)	0%	0%	-	-
EL8658	(256km2)	0%	0%	-	-
EL8680	(20km2)	0%	0%	-	-
EL8718	(86km2)	100%	100%	-	-	N/A
EL8719	(191km2)	100%	100%	-	-
OTHER	NSW
EL8451	(276km2)	0%	0%	-	-	Peel Mining Ltd (TLM earning up to 75%)
EL8814	(92km2)	0%	80%	80%	-	Bacchus Resources Pty Ltd

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APPENDIX 4

JORC Tables Section 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 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 at the Lachlan Copper-Gold Project (Lachlan Project) cited in this report was completed by Haverford Holdings, a wholly owned subsidiary of Talisman Mining Limited. • Sampling techniques employed at the Lachlan Project include o auger bottom of hole sampling. o Reverse Circulation (RC) drilling samples collected by a cone splitter for single metre samples or sampling scoop for composite samples • Sampling is controlled by Talisman protocols and QAQC procedures as per industry standard • Auger samples were sieved on-site to minus 175µ and analysed for base metals on-site via Portable XRF (“PXRF”). Sieved samples were dispatched for analysis by aqua regia digest digest with an ICP/AES or AAS finish at ALS laboratories. • RC samples were dried, crushed (where required), split and pulverised (total prep) to produce a sub sample for base metal analysis by four acid digest with an ICP/AES and a 50g sub sample for gold analysis by fire assay
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).	• Talisman drilling is completed using industry standard practices. RC drilling with a face sampling blade or hammer at the Sinclair Project. • AC drill collars are located using handheld GPS • Geochemical auger drill holes at the Lachlan Project were completed using auger drilling techniques. • RC drilling is completed with a face sampling hammer of nominal 140mm size

23

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.	• Sinclair RC drilling recovery is good with sample quality captured in the database. • No indication of sample bias with respect to recovery has been established • Lachlan Project auger sample recovery is generally good with no wet sampling in the project area • RC drill sample recovery is generally high with sample recoveries and quality recorded in the database. • No known relationship exists between recovery and grade and no known bias exists
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.	• 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. • Qualitative logging of the bottom-of-hole auger sampling is completed according to the nature, weathering and interpreted protolith of the sample. • RC 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. • RC logging is both qualitative and quantitative depending on the field being logged. • All RC 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.	• 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.

24

Criteria	JORC Code explanation	Commentary
		• Sample size is considered appropriate for nickel sulphide mineralisation • A single bottom of hole auger samples is collected from each location and sieved to minus 175µm on site at the Lachlan project. • Sieved samples are analysed for base metals on-site via PXRF. Sieved samples were dispatched for wet chemical analysis by aqua regia digest with an ICP/AES or AAS finish. • RC samples were dried, crushed (where required), split and pulverised (total prep) to produce a sub sample for base metal analysis by four acid digest with an ICP/AES and a 50g sub sample for gold analysis by fire assay • QAQC protocols for all auger sampling involved the use of Certified Reference Material (CRM) as assay standards. • All QAQC controls and measures were routinely reviewed. • Sample size is considered appropriate for low-level geochemical sample for base-metal and gold 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.	• 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.

25

Criteria	JORC Code explanation	Commentary
		• Lachlan Project RC drill samples were submitted to ALS Chemex Laboratories in Orange 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 for the Lachlan Project involved the use of CRM as assay standards. • All 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. • Laboratory checks (repeats) occurred at a frequency of 1 in 25. • PXRF instrument Innovex Delta Gold is used for qualitative and semi-quantitative field analysis of base- metals in regolith geochemical samples. • The PXRF instrument is routinely calibrated using a calibration standard. CRM samples are included at a frequency of 1:50 and field duplicate samples are included at a frequency of 1:50. • No PXRF 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.	• 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. • Primary assay data is always kept and is not replaced by any adjusted or interpreted data. • Significant intercepts for the Lachlan Project have been verified by alternate company personnel • Logging and sampling data is captured and imported using Ocris software. • Assay data is downloaded directly from the PXRF machine, or uploaded directly from the CSV filed provided by the laboratory. • Primary laboratory assay data is always kept and is not replaced by any adjusted or interpreted data.

26

Criteria	JORC Code explanation	Commentary
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.	• 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). • Sample locations for the Lachlan Project are collected using a handheld GPS. Saved data is downloaded directly into GIS mapping software • Talisman RC drill collar locations are pegged using a hand-held GPS. • The coordinate system used is the Geocentric Datum of Australia (GDA) 1994. Coordinates are in the Map Grid of Australia zone 55 (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.	• 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. • Auger sample spacing at the Lachlan Project was nominally 300m x 50m. • Drill spacing at the Lachlan Project varies depending on requirements • No mineral resource is being reported for the Lachlan Project. • No sample compositing has been applied.
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.	• 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. • The orientation of drilling at the Lachlan Project 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 the Lachlan Project 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.	• 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 byan accredited courier service.

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• Criteria JORC Code explanation Commentary • Lachlan Project samples are sieved on site and placed in bags in the field.

• • Samples are transported to a field base camp and analyses for base metals via PXRF

• • RC samples were stored on site at the Lachlan Project prior to submission under the supervision of the Senior Project Geologist. Samples were transported to ALS Chemex Laboratories Orange by an accredited courier service.

• Audits or • The results of any audits or reviews of • No external audits or reviews of the sampling reviews sampling techniques and data. 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.		• 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. • The Lachlan Project is held by Haverford Holdings Pty Ltd, a wholly owned subsidiary of Talisman Mining Ltd, and through Farm-in agreements with Peel Mining Ltd and Bacchus Resources Pty Ltd. • There are no known Native Title Claims over the Lachlan 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.		• 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). • The Lachlan Project has been subject to exploration by numerous previous explorers. • Exploration work on has included diamond, RC and Air Core drilling, ground and down-hole EM surveys, soil sampling, geological interpretation and other geophysics (magnetics, gravity).

29

Criteria	JORC Code explanation		Commentary
Geology	• Deposit type, geological setting and style of mineralisation.		• 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. • The Lachlan Project lies within the Central Lachlan Fold belt in NSW. • The Lachlan Project is considered prospective for epithermal style base-metal and precious metal mineralisation, orogenic mineralisation, and Cobar style base-metal mineralisation.
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 Sinclair Project is included In Table 5: Drill-hole Information Summary, Sinclair Ni Project. • Drill hole information relating to the Lachlan Project is included In Table 1: Drill-hole Information Summary, Lachlan 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 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. • 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. • Significant intersections reported from the Lachlan Project are based on greater than 1% Cu and may include up to 3m of internal dilution, with a minimum composite grade of 1% Cu. • Cu grades usedforcalculating significant

30

Criteria	JORC Code explanation		Commentary
			intersections are uncut. • All results reported in this document have been derived from 1m split samples. • Length weighted intercepts are reported for mineralised intersections.
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-holes relating to the Sinclair Ni Project are reported as down hole intersections. True widths of reported mineralisation are not known at this time. (refer Table 6: Drill hole assay intersections for the Sinclair Ni Project). • Drill-holes relating to the Lachlan Project are reported as down hole intersections. True widths of reported mineralisation are not known at this time. (refer Tables 2, 3 and 4: Drill hole assay intersections for the Lachlan Project).
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.		• This report includes results from recent Geophysical Surveys from the Lachlan Project. Results from these surveys are included in the body of this report • Parameters for the Blind Calf Down Hole Electromagnetic (DHEM) Survey are provided below oDigiAtlantis probe and HPTX70 transmitting at 130amps • Figure eight loop (300mx300mx2) with a rapid turn- off time of 0.26ms
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 future work at the Sinclair Nickel Project includes geophysical surveys, re-logging of historic diamond drill core and RC and diamond drilling. • Planned future work at the Lachlan Project includes auger sampling, RC/ diamond drilling and geophysical surveys.

31