TALISMAN MINING LIMITED — Investor Presentation 2015

Feb 24, 2015

Growth and Opportunity in Nickel and Copper Dan Madden, Chief Financial Officer

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 Graham Leaver, who is a member of the Australasian Institute of Geoscientists. Mr Leaver 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 Leaver consents to the inclusion in this presentation of the matters based on information in the form and context in which it appears.

2

• Exceptional record of capital management

• Last capital raising was in February 2010 – 5 years ago

• Four significant enabling transactions completed in past four years:

• Successful divestment of Wonmunna iron ore project for $34M cash in 2011, plus shares and a 1% gross revenue royalty

• Sale of title to non-core Pilbara iron ore tenements to FMG for $0.55M in 2012 – with retention of royalty rights

• Progressed an active VMS exploration program over several years in Bryah Basin before negotiating a $15M JV with Sandfire Resources in late 2013 on Doolgunna Projects

• Recently completed ‘counter-cyclical’ $8M acquisition of Sinclair Nickel Project from Glencore

• Prudent & disciplined approach to managing risk and adding value in tough times

A new focus and outstanding growth potential in nickel

==> picture [196 x 432] intentionally omitted <==

3

Corporate Summary

==> picture [495 x 307] intentionally omitted <==

• Quality projects in world-class mineral provinces • Experienced Board and Management • Positioned to “add value”

Capital Structure Shares on Issue 131.5M Unlisted Options 6.25M Market Cap (at 15c) ~$19M Cash (post Sinclair completion) ~$6M Other Assets Ochre Group Holdings Limited 5.9% Wonmunna Iron Ore Project Royalty 1.0% Board

Alan Senior (Chairman) – ex Jubilee Mines

Gary Lethridge (Managing Director) – ex Jubilee Mines & LionOre Brian Dawes (Non Executive Director) – ex Jubilee Mines & LionOre Karen Gadsby (Non-Executive Director) – ex North Ltd

4

Sinclair Nickel Project

==> picture [350 x 402] intentionally omitted <==

A counter-cyclical opportunity in nickel

5

Sinclair Nickel Project – A Transformational Acquisition

• :

• Sinclair Nickel Project

• An advanced WA nickel sulphide project

• Secured via Sale & Purchase Agreement with Glencore in October 2014

• $8M cash consideration, funded from Talisman cash reserves, plus $2M contingent production payment

• Acquisition completed on 4 February 2015

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

• One of the world’s premier nickel provinces with reported production of over 9Mt of nickel and numerous worldclass deposits

==> picture [329 x 464] intentionally omitted <==

6

Sinclair Nickel Project – Overview

• Highly prospective tenement package extending over 300km²

• Sinclair acquisition includes:

  • Sinclair Nickel Mine (on care & maintenance)

  • Extensive near-new infrastructure (including

  • 300ktpa Concentrator)

  • Existing deposit with drill-defined extensions

  • Outstanding exploration upside

• Main focus along Sinclair ultramafic belt

• Multiple exploration targets within 30km of Sinclair

• (including on parallel ultramafic belts)

==> picture [341 x 457] intentionally omitted <==

7

==> picture [960 x 59] intentionally omitted <==

----- Start of picture text -----

Sinclair Nickel Project – Background
----- End of picture text -----

Project History

• Discovered by Jubilee Mines NL in October 2005

• Developed in 2008 / 2009 by Xstrata

• Historical Sinclair mine production:

• 1.58 Mt @ 2.44% Ni for 38,500t of contained Ni

• Placed on care and maintenance by Glencore in August 2013

Project Knowledge & Capability

• 5 ex-Jubilee Mines NL personnel

• Geology: Exploration Manager was part of Jubilee Mines’ 2005 Sinclair exploration discovery team & then initial Sinclair Mine Geology Manager

• Operations / Studies: General Manager – Sinclair Nickel Project commenced mid-February 2015

==> picture [424 x 463] intentionally omitted <==

8

==> picture [960 x 59] intentionally omitted <==

----- Start of picture text -----

Sinclair Nickel Project – Deposit and Mine Development
----- End of picture text -----

==> picture [868 x 337] intentionally omitted <==

----- Start of picture text -----

~445m
----- End of picture text -----

• 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

9

Sinclair Nickel Deposit Extension

==> picture [868 x 337] intentionally omitted <==

----- Start of picture text -----

200m 200m
----- End of picture text -----

• Wide-spaced drilling of the Sinclair Deposit for 1km beyond current mine development has returned

• Refer Talisman ASX Release 20[th] October 2014

• significant intersections

• Modelling and evaluation work of Sinclair Deposit extension underway Broader exploration plan under development

10

Near-Mine Exploration Opportunity – Skye & Stirling

==> picture [660 x 357] intentionally omitted <==

• Skye and Stirling – two parallel, mineralised ultra-mafic channels (similar to Sinclair) with greater ultra-mafic volumes

• Numerous significant mineralised intercepts from relatively broad spaced historical drilling

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

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

11

Skye & Stirling – Exploration Targeting Underway

==> picture [659 x 357] intentionally omitted <==

• Talisman, in association with SRK, have built 3D geological models of Skye and Stirling

• Newexco have re-processed and reviewed historical EM data

• Integration of these datasets is underway to identify optimal exploration target positions

12

Sinclair Trend – A Pipeline of Exploration Opportunities

8Km

• Sinclair Trend offers along strike discovery opportunity for at least 8km

• Limited historical drilling outside of immediate near-mine area

• Priority Sinclair Trend exploration prospects are:

• Delphi (North & South);

• Parnassus; and

• Cody Well

==> picture [266 x 349] intentionally omitted <==

----- Start of picture text -----

8Km
----- End of picture text -----

13

==> picture [960 x 59] intentionally omitted <==

----- Start of picture text -----

Summary – Fast-Track Development Potential
----- End of picture text -----

• Sinclair has extensive infrastructure:

• Open pit, decline and underground mine

• 300ktpa concentrate plant

• 200-person accommodation village

• Administration buildings and stores

• Exploration office and core yard

• Mining contractor facilities

• Mobile fleet

• A re-commencement of operations at Sinclair, subject to near-mine exploration success, has the potential for:

• Reduced capital intensity; and

• Fast-tracked transition to production

==> picture [517 x 425] intentionally omitted <==

14

==> picture [960 x 59] intentionally omitted <==

----- Start of picture text -----

Sinclair – The Next Steps
----- End of picture text -----

• Finalise matters relating to transfer of Project ownership:

• Stamp duty assessment

• Tenement transfers

• Key steps to enable commencement of initial drilling program:

• Complete data compilation and assessment (underway)

• Define initial drill targets (underway)

• Submit exploration POW’s

• Commence evaluation of broader strategic development options (underway)

==> picture [386 x 392] intentionally omitted <==

Commence maiden drill program by mid-2015

15

Doolgunna Copper-Gold Projects

==> picture [350 x 402] intentionally omitted <==

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

16

==> picture [590 x 446] intentionally omitted <==

==> picture [322 x 445] intentionally omitted <==

17

• 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

• Sandfire to spend a minimum of $5m in first 2 years

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

• 2014 deep diamond drill hole along strike confirmed presence of DeGrussa stratigraphy at Springfield Project

• Extensive multi-pronged exploration programs continuing to gather data to define robust drill targets

==> picture [347 x 444] intentionally omitted <==

18

Doolgunna JV – Exploration Drilling

• Sandfire continue to conduct

• extensive geochemical aircore drilling programmes across the prospective sequence at Springfield

• Drilling at Springfield in 2014 by Sandfire:

• 285 aircore holes for 20,099 metres; and

• 1 diamond hole (1,099 metres) to test a FLEM / DHEM anomaly

• Aircore drilling recommenced in January 2015 with approximately 500 holes for 30,000m currently planned

==> picture [575 x 418] intentionally omitted <==

19

• In 2014, Sandfire:

• Undertook 24 1km x 1km high-powered FLEM surveys over part of the prospective sequence; and

• Re-surveyed 20 historical Talisman drill

  • holes

• Extensive geophysical programmes continue in 2015:

• 25 1km x 1km high powered FLEM surveys currently underway/planned

• Anomalies identified by larger loops may be followed up by smaller FLEM surveys

Extensive ground-based exploration underway to generate drill targets

==> picture [575 x 418] intentionally omitted <==

20

• Considered growth strategy has now delivered real opportunity for value creation on two fronts:

==> picture [248 x 420] intentionally omitted <==

1. Nickel Sulphides

• Sinclair Nickel Project acquisition provides transformational opportunity

• Significant “walk-up” exploration potential in near-mine environment

• Targeted drilling planned to commence by mid-2015

• Potential for low capital intensity and fast-track transition to production

2. Copper-Gold

• Doolgunna Projects currently free-carried and managed by Sandfire Resources

• Exposure to significant and active exploration programs on Springfield Project adjacent to DeGrussa Copper Mine – drilling and EM ongoing

• Data collection and integration process anticipated to deliver robust drill targets during 2015

21

Growth and Opportunity in Nickel and Copper Dan Madden, Chief Financial Officer