TALISMAN MINING LIMITED — Investor Presentation 2016

Jul 25, 2016

F o c u s e d A u s t r a l i a n m i n e r a l r e s o u r c e s c o m p a n y

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Discovering & Developing Opportunities in Copper-Gold and Nickel Investor Presentation July 2016 - Dan Madden, Managing Director

F o c u s e d A u s t r a l i a n m i n e r a l r e s o u r c e s c o m p a n y

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Disclaimer and Competent Person’s Statements

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Disclaimer

This presentation has been prepared by Talisman Mining Ltd.

This document contains background information about Talisman Mining Ltd current at the date of this presentation. The presentation is in summary form, has not been independently verified and does not purport be all inclusive or complete nor does it contain all the information that a prospective investor may require in evaluating a possible investment in Talisman Mining Ltd or its assets.

Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation.

This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of securities in any jurisdiction. This document is not a prospectus and does not contain all of the information which would be required to be disclosed in a prospectus. This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction.

This presentation does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek their own professional, legal, tax, business and/or financial advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. To the fullest extent permitted by law, Talisman Mining Ltd and its related bodies corporate, its directors, officers, employees and representatives (including its agents and advisers), disclaim all liability and take no responsibility for any part of this presentation, or for any errors in or omissions from this presentation arising out of negligence or otherwise and do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts, conclusions or other representations contained in this presentation. This presentation 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 presentation speak only at the date of issue of this presentation. 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 presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.

Competent Person’s Statement

Information in this presentation that relates to Exploration Results and Exploration Targets as defined under the 2012 Edition of the “Australian Code for Reporting of Mineral Resources and Ore Reserves”, is based on information compiled 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 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 Greenaway consents to the inclusion in this report of the matters based on information in the form and context in which it appears. (Please also see Appendix 1).

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Corporate Overview

Dan Madden - Managing Director

• Previous CFO and Co Sec of Talisman 2009-April 2016.

• +15 years’ experience in the resources sector across base & precious metals from exploration to operations.

Tony Greenaway - General Manager Geology

• +25 years' experience conducting and managing exploration from grass roots evaluation to advanced feasibility studies.

• Base & precious metals across a broad range of mineralisation styles.

Shaun Vokes – Chief Financial Officer & Company Secretary

• +25 years’ experience in senior operational and management roles.

• Project evaluation, financing, business development, contract negotiation and metals marketing.

Ben Wilson - General Manager Project Development

• +20 years’ experience in the mining industry across multiple commodities.

• Project evaluations, feasibility study management, project development and management of mining operations.

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Capital Structure	Capital Structure
Shares on Issue 185.7M
Unlisted Options 5.6M
Market Capitalisation (42c) ~$78M
Cash (30 June 2016) $20.2M
SubstantialShareholders
Kerry Harmanis 16.0%
Hunter Hall 10.6%
Board
Jeremy Kirkwood(Non-Exec. Chair)	Investment Banking, Corporate Strategy (Credit Suisse, Morgan Stanley)
Daniel Madden(MD)	Financial and Resources background (Jubilee Mines, Perilya)
Alan Senior(NED)	Resources Project Development (Jubilee Mines, Tanami Gold)
Brian Dawes(NED)	Operational Executive (Jubilee, Western Areas & LionOre)
Karen Gadsby(NED)	Finance, Commercial & Board Experience (North Ltd)

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Talisman Strategy and Philosophy

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OWNERSHIP

“Maximise value to shareholders through exploration, discovery and development of opportunities in base & precious metals”.

• Behave and act as business owners

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• Be accountable for our decisions and actions

• What we say is what we do

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• We are custodians of our shareholders’ capital

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• We seek to maximise the value of our significant assets in highly prospective mineral provinces

ENGAGEMENT

RELATIONSHIPS

• We pursue opportunities to create value which are complementary to our assets, experience and expertise

• Develop mutually beneficial partnerships and opportunities

• Engage with stakeholders in meaningful and clear way

• Build strong commitment across our team and with stakeholders

• Cultivate beneficial two-way communication

• Collaborative approach to build solid relationships

• Share our journey to create value for all stakeholders

Underpinned by a responsible approach to Health & Safety, Environment and Community

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Talisman Overview - Advanced Opportunities in WA

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30% interest in Springfield Cu-Au Joint Venture

• High grade Monty Deposit located 10km DeGrussa

• Proven world-class VMS province

• Monty Feasibility Study commenced, MLA submitted

• Contains multiple prospective VMS corridors

• Exploration focus on wider Monty & Homer trends

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100% owned Sinclair Nickel Project

Experienced Team

• Located in a proven world class nickel province AgnewWiluna Greenstone Belt

• Extensive infrastructure including processing plant with potential fast-track to production

• Multiple near-mine & regional exploration opportunities

• ~1km Mineralised extension to Sinclair Deposit

• Exploration

• Project development

• Operations

• Commercial

• Base & precious metals in Western Australia

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Springfield Copper-Gold Project

Growth through discovery and development in a proven world-class VMS province

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Springfield Copper-Gold Joint Venture

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• Talisman 30% interest in joint venture with Sandfire Resources

• Located in eastern portion of Bryah Basin

• High-grade Monty Mineral Resource - Feasibility Study underway

• Proven world-class VMS province

• Geological model - deposits occur in clusters

• Multiple VMS horizons

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Monty Deposit – Moving Beyond Discovery

► High-grade & high quality Mineral Resource estimate

• High-grade – 1.05Mt @ 9.4% Cu & 1.6g/t Au for 99kt Cu &

• 55kOz Au[1] contained

• Massive Sulphide Component - 763kt @ 12.1% Cu & 2.1g/t Au[1]

• Feasibility Study commenced -$3.9M budget

• Metallurgical flotation test work

• Geotechnical and structural geology studies

• Mine & infrastructure design

• Preferred boxcut location selected

• Due for completion in Q1 2017

► Mining Lease application submitted to DMP

• 1 Refer to Appendix 1

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Monty Deposit - Significant Upside Potential

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• Limited drilling beyond currently defined Mineral Resource envelope

• Potential for fault displaced extensions

• Bornite – ultra-high grade, DSO potential

• Planned diamond drilling and DHEM to test for additional mineralisation

• Potential for resource growth from future drilling

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SOUTH WEST
FAULT OFFSET?
ADDITIONAL
MINERALISATION?
MONTY DEEPS?
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2 Refer to Appendix 1
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Monty Deposit - Potential for additional VMS lenses?

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Forensic, systematic exploration approach, the pathway to success

DeGrussa:

• 2 years & +200,000m of drilling delineated

DeGrussa & discovered C1, C4 & C5

• “

• ► Mineral resource has been increased by 100% since first discovery in 2009 ” - SFR ASX Release 28/01/15

Monty:

• 9 months & 45,000m of drilling delivered Maiden Mineral Resource.

• Significant growth potential remains

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SOUTH WEST
FAULT OFFSET?
ADDITIONAL
MINERALISATION?
MONTY DEEPS?
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• 2 Refer to Appendix 1

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Springfield Exploration Potential – Multiple Prospective Horizons

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• Exploration over wider Springfield Project at early stages

• Multi-pronged Exploration activities planned in region

• Systematic AC program to delineate interpreted VMS host horizons

• RC drilling and DHEM surveys targeting host horizons with follow up diamond drilling as required

• Structural geological modelling

• SQUID EM & IP geophysical programs

Iterative process

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Sinclair Nickel Project

Advanced Opportunity in a Proven Nickel Province

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Sinclair Nickel Project – Overview

• Located in world-class Agnew-Wiluna Greenstone belt, over 9Mt of reported nickel production

• Historical Sinclair mine production (2008-2013)

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

• Sinclair Nickel Mine & infrastructure

• Potential for low capital, fast track to production

► Multiple exploration opportunities

• Sinclair Trend – near mine ~8km strike ultramafic/basal contact

• Regional Targets – over 80km strike of prospective

• ultramafic contact

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Sinclair Trend – Generating Near Mine Opportunities

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A
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• Recent work undertaken to refine the targeting model for “Sinclair style” deposits

  • Understand controls on mineralisation

  • Reinterpretation of the historic drilling; lithology, geochemical signature, structure & supporting geophysical datasets

• Remodelling of ultramafic/basal contact in near mine environment

• identifies multiple mineralised positions

  • Sinclair deposit remnants & extensions,

  • Newly identified positions parallel to Sinclair

  • Skye and Stirling

  • Delphi North

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B
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Sinclair Trend – Sinclair, Stirling & Skye

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► Sinclair Remnants

► Sinclair deposit mined to ~445m vertical depth at average 2.44% Ni

► Situated along the strike extent of existing mine

• Accessible from

existing underground development

Potential resource targets

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Sinclair Trend – Sinclair, Stirling & Skye

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► Sinclair Extension

• Mineralised along

• 1km strike beyond existing mine

► Wide spaced drilling (50-200m sections)

• Open at depth

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Potential
resource
targets
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5.6m @ 2.64% Ni
9.3m @ 2.31% Ni
6.3m @ 3.32% Ni
9.3m @ 2.77% Ni
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Sinclair Trend – Sinclair, Stirling & Skye

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► Stirling & Skye

• Parallel mineralised

contacts close to Sinclair

• Limited coverage

of mineralised

position in existing drilling

• Untested DHEM

• conductors

• Interpreted

extension of

mineralisation is untested

Drill ready targets

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Sinclair Trend – Sinclair, Stirling & Skye

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Potential
resource
targets
Drill
ready
targets
Future work
programs
under
development
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Sinclair Trend – Eastern Contact

Fertile basal contact horizons identified parallel to Sinclair

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2.16m @ 2.12% Ni
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► Eastern Contact

• Proximal to decline

• Massive sulphide intersected in CWD536B 2.16m @ 2.12% Ni confirming fertile

• contact

• Limited drilling to date, untested potential

► Next steps

• Relogging existing core, Revisit historic geophysics, new DHEM from existing holes,

• drilling

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2.16m @ 2.12% NI
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Sinclair Trend – Delphi North

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Sinclair Cross Section – 6860250mN
SND001
►
Priority Target - exploration program to commence shortly
►
Lightly drilled, potential Sinclair style target exists
► Similar lithology, geochemical signature, structure & EM anomalies
► Intercepts to date analogous to pre-discovery intercept at Sinclair
► Sinclair CWD001 (1.45m @ 2.25%Ni) comparable to SND001
(2.2M @ 1.9%Ni)
►
Nickel sulphide mineralisation over 600m strike
►
Exploration program includes
► Relogging existing core
► DHEM of 2015 drilling program
► Drilling of existing targets and potential new DHEM targets
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Sinclair Nickel Project – Multiple Exploration Opportunities

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► Greenfield opportunities

• 80 strike km prospective ultramafics

• Within 35km radius of existing infrastructure

• Priorities from 2015 regional targeting exercise

• Schmitz Well South – Mapping, sampling & EIS cofunded RC drilling

• Cody Well Prospect – fertile Sinclair ultramafic identified, DHEM planned

• Multiple other regional targets - subject to further review and prioritisation

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Looking Forward - Multiple Growth Opportunities

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Developing
Q3’16 Q4’16 Q1’17 Q2’17 Q3’17 Q4’17
Opportunities
Sinclair Exploration
Phase 1
Sinclair Exploration
Phase 2
Springfield
Exploration
Monty
Feasibility Study
Monty ?
Development
Assessment of New
Opportunities
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• 17 June 2015 – Massive sulphides intersected at Monty

• 10 July 2015 – Talisman raises $8 million

• 10 March 2016 – Talisman raises $16.7 million

• 31 March 2016 – Maiden Monty Mineral Resource

• 14 July 2016 – MLA submitted & Feasibility Study commenced

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Looking Ahead – Multiple Growth Opportunities

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• Highly leveraged to success from active exploration

• programs

  • Regional exploration activities underway and gathering momentum at Springfield

  • Drilling the first in a series of new nickel targets near established infrastructure at Sinclair in September

• Feasibility Study for the strategically important Monty Copper-Gold Project well advanced

• Clear opportunity to grow the Monty Resource down-dip, down-plunge and from new lenses

• Finalising Springfield Joint Venture Agreement and ore sales agreement for Monty being investigated

• Potential for reduced capital intensity and fast-tracked transition to production for any possible re-start scenario at Sinclair

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F o c u s e d A u s t r a l i a n m i n e r a l r e s o u r c e s c o m p a n y

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Discovering & Developing Opportunities in Copper-Gold and Nickel Investor Presentation July 2016 - Dan Madden , Managing Director

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Appendix 1

► [1] Information in this release that relates to the Monty JORC Mineral Resource estimate is information previously published by Sandfire Resources NL (“Sandfire”) and is available on the Sandfire and ASX websites (see announcement “Maiden HighGrade Mineral Resource for Monty VMS Deposit: 99,000t of Copper and 55,000oz of Gold”, dated 13 April 2016 (Sandfire Announcement)). For full details of the Monty Resource estimate, including the Competent Person’s Statement related to the estimation of the Monty Mineral Resource, please refer to the Sandfire Announcement.

► [2 ] Monty Vertical Long Projection – Explanatory Note. Pierce points depicted on vertical longitudinal projections are shown at what Talisman interprets to be the uppermost point of the drill hole intersection with the interpreted primary mineralisation lens and are projected horizontally onto the vertical plane. Where a drill hole has not intersected mineralisation (i.e. no significant results returned), a pierce point has been derived by Talisman where the hole is interpreted to have intersected the host horizon, and then horizontally onto the vertical plane.

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