TALISMAN MINING LIMITED — Investor Presentation 2014

Oct 20, 2014

The Sinclair Nickel Project Acquisition: A Transformational Opportunity

Disclaimer

This presentation is not a prospectus nor an offer for securities in any jurisdiction nor a securities recommendation. The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions in connection with any acquisition of securities, investors should rely on their own examination of Talisman Mining Ltd (Talisman Mining or the Company) and consult their own legal, business and/or financial advisers.

The information contained in this presentation has been prepared in good faith by Talisman Mining Ltd, however no representation or warranty expressed or implied is made as to the accuracy, correctness, completeness or adequacy of any statements, estimates, opinions or other information contained in this presentation. To the maximum extent permitted by law, Talisman Mining Ltd, its directors, officers, employees and agents disclaim liability for any loss or damage which may be suffered by any person through the use or reliance on anything contained in or omitted from this presentation.

Certain information in this presentation refers to the intentions of Talisman Mining Ltd , but these are not intended to be forecasts, forward looking statements or statements about future matters for the purposes of the Corporations Act or any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and other factors that may cause Talisman Mining Ltd’s actual results, performance or achievements to differ from those referred to in this presentation. Accordingly, Talisman Mining Ltd, its directors, officers, employees and agents do not give any assurance or guarantee that the occurrence of the events referred to in the presentation will actually occur as contemplated.

Competent Person’s Statement

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

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Alan Senior - Chairman, Talisman Mining Limited

A Transformational Opportunity in a Commodity with Outstanding Fundamentals

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• Sinclair is an advanced, high quality nickel sulphide project located in one of the world’s premier nickel provinces

• Sinclair represents a transformational acquisition for $8M (plus a contingent $2M deferred payment) with off-take optionality

• Sinclair is the perfect fit for Talisman because:

• It has an existing underground and open cut mine, near-new 300ktpa plant and surface infrastructure;

• It has a potential extension of the Sinclair nickel deposit identified by relatively wide spaced drilling along strike over 1km beyond existing mine development;

• It has two emerging, highly promising nickel discoveries adjacent to the existing mine; and

• It has significant regional exploration potential with nickel sulphides intersected along at least 5 ultra-mafic sequences within a 300km[2] tenement holding.

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• Located within the southern portion of the prolific, world-class Agnew-Wiluna Greenstone belt

• One of the world’s premier nickel provinces with reported production of over 9Mt of nickel :

• Hosts the giant Mt Keith (2.77Mt Ni), Perseverance

• (1.05Mt Ni), Cliffs (108Mt Ni) and Yakabindie (1.66Mt Ni) Projects

• Located 100km south of the high-grade Cosmos

• Nickel Project (650kt Ni)

• Other nearby deposits include Waterloo (18.8kt Ni)

• and Weebo Bore (88kt Ni)

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• Sinclair was discovered by Jubilee Mines in 2005

• Constructed in 2008/2009

• Placed on care and maintenance in August 2013

• High quality near-new infrastructure including :

• Open pit, decline and underground mine

• 300ktpa concentrate plant

• 200-person accommodation village

• Administration buildings and stores

• Exploration office and core yard

• Borefield and pipelines

• Mining contractor facilities

• ROM pad and waste dump

• Tailings storage facility

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Sinclair Nickel Project – Sinclair Open Pit

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Sinclair Nickel Project – 300ktpa Crushing and Grinding Circuit

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Sinclair Nickel Project – Flotation Cells and Mill Control Room

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Sinclair Nickel Project – Maintenance, Stores and Laboratory

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Sinclair Nickel Project – Equipped Stores Shed

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Sinclair Nickel Project – Underground Refuge Chambers and Mine Ventilation equipment

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Sinclair Nickel Project – Extensive Site Office with Communication Infrastructure

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Sinclair Nickel Project – Core Yard Facility

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Sinclair Nickel Project – +200-person Accommodation Village

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Sinclair Nickel Project – Accommodation Village Recreational Facilities

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Sinclair Nickel Project – Accommodation Village Dry Mess

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Sinclair Nickel Project – 2km Bitumen Airstrip

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Sinclair Nickel Project has comprehensive modern infrastructure

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~445m
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• Sinclair deposit comprises an elongated body of massive to disseminated sulphide mineralisation with a shallow plunge of around 20 degrees which was mined to ~445m below surface

• Total production from pit and underground operations was 1.58Mt @ 2.44% Ni for 38,500t of contained Ni

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1Km
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• Nickel mineralisation continues down-plunge beyond the current development and has been identified for a further 1km along strike from the current end of mining development

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200m 200m
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• Broad spaced drilling has returned significant intersections* beyond current mine development

• Refer Talisman ASX Release 20[th] October 2014

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1Km
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• Strong correlation between EM anomalies and known extensional nickel mineralisation

• Multiple EM plates support the potential for continuity of mineralisation down-plunge and along strike

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Undrilled
Undrilled
Undrilled
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• Two parallel mineralised ultra-mafic channels similar to Sinclair at Stirling and Skye with greater ultra-mafic volumes

• Numerous significant mineralised intercepts from relatively broad spaced drilling

• Late-time EM plates identified directly below the Sinclair Trend

• Outstanding near-mine exploration potential with several highly prospective areas not tested by drilling

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8Km
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• The Sinclair Trend offers at least 8km of discovery opportunity with very little historical drilling

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8Km
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• Target areas include Delphi, Parnassus and Cody Well hosted along strike and within the Sinclair Trend

• Targets contain substantial volumes of prospective ultramafic rocks, surface and down-hole EM plates and historical nickel sulphide intersections

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• Nickel sulphides have been intersected in drilling along at least five ultra-mafic sequences across the Project at:

• Delphi

• Schmitz Well

• Marriotts

• Carthage

• Babylon

• Multiple exploration targets all exist within 30km of the Sinclair Concentrator

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• : The right transaction

• The acquisition is self-funded & follows an extensive Australia-wide search for acquisition opportunities

• The right commodity:

• Nickel has very strong supply/demand fundamentals

• The right project:

• Extensive mine infrastructure

• Sinclair deposit extension potential

• Excellent near-mine exploration potential

• Excellent regional exploration potential

A Transformational Opportunity in a Commodity with Outstanding Fundamentals

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	Capital Structure
	Shares	131.5M
	Unlisted Options	8.25M
	Market Cap-(undiluted @ 13 cents per share)	$17.1M
	Cash # as at 30 June 2014	$16M#
	Listed Investments
	Ochre Group Holdings Limited	35.5m Shares
	Board
	Alan Senior (Chairman) – ex Jubilee Mines
	Gary Lethridge_(Managing Director) -_ex Jubilee Mines
	Brian Dawes (Non Executive Director) – ex Jubilee Mines
	Graeme Cameron_(Technical Director)_
	Karen Gadsby (Non Executive Director)

Talisman Share Price – as at 03 October 2014

Major Shareholders

12.1%

Kerry Harmanis

Strategic investments and royalty

• 35.5M shares (5.9%) – Ochre Group Holdings (ASX: OGH)

• 1% gross revenue royalty – Wonmunna Iron Ore Project

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• Sinclair Nickel Project - A transformational growth opportunity

• Extensive mine infrastructure

• Sinclair deposit extension potential

• Near mine exploration potential

• Considerable regional exploration potential

• Exposure to ongoing copper-gold exploration at Doolgunna Projects

• Located 4km from DeGrussa Copper-Gold Mine

• Funded and managed by Sandfire Resources NL

• Potential future iron-ore royalty stream from Ascot Resources

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The Sinclair Nickel Project Acquisition: A Transformational Opportunity

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Exposure to Major New Copper-Gold Discoveries in a World-Class VMS Province

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• Projects located in an emerging copper province hosting the world-class, high-grade DeGrussa Copper-Gold Mine

• $15 million farm-in joint venture agreed with Sandfire in late December 2013

• Technical data integration and assessment of initial target areas undertaken by Sandfire during first half of 2014

• First phase of ground-based exploration by Sandfire commenced June 2014 delivering significant encouragement

• Extensive multi-pronged exploration programs now underwa y

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• Based on early encouragement Sandfire has advised that the following activities will be undertaken at Springfield this year:

• Preparation of historical deep holes for high-powered DHEM surveys;

• ~200-hole aircore drilling program along the Homer Trend to be followed by:

• Geochemical aircore drilling programmes across the prospective sequence;

• Extensive high-powered FLEM surveys, over the prospective sequence; and

• Detailed litho-chemical re-analysis of historical drill samples.

Extensive ground-based exploration underway to generate drill targets

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• Strategically located Pilbara iron ore asset held by Ascot Resources Limited (ASX – AZQ)

• Ochre Group Holdings recently agreed to sell Wonmunna to Ascot Resources Limited for 50M Ascot shares, tranched payments totalling $21.95M and a 1% Gross Revenue Royalty¹

• Talisman holds 35.5 million Ochre ordinary shares (~ 5.9% of Ochre’s issued capital)

• Ascot is proposing to commence production from Wonmunna during 2015 at 3Mtpa ²

• Talisman holds a 1% gross revenue royalty from all metals mined from Wonmunna

• ¹ OGH & AZQ ASX announcements dated 3 July 2014 and 23 September 2014

• ² AZQ Wonmunna acquisition presentation dated 25 March 2014

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