TALISMAN MINING LIMITED — Investor Presentation 2016

Mar 15, 2016

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TLDD00026: Bornite-bearing core from Monty assaying up to 46% Cu
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Closing in on a maiden Mineral Resource District-wide VMS potential emerging

Euroz Securities – Institutional Conference - March 2016 Gary Lethridge, Managing Director

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.

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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 forwardlooking 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 is based on and fairly represents information and supporting documentation 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.

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• Cornerstone asset: 30% interest in Springfield Copper-Gold Project , in joint venture with Sandfire Resources NL (ASX: SFR)

• One of Australia’s most significant new high-grade copper discoveries at Monty, ~10km from DeGrussa copper-gold mine:

• Initial Mineral Resource drill-out essentially complete

• Maiden JORC Mineral Resource on track for late March / early April 2016

• • Outstanding results with individual assays up to 52% copper

• Exceptional regional exploration opportunity at Springfield:

• VMS geological model supports potential for additional discoveries

• Multiple prospective corridors within emerging VMS province

• Monty & Homer corridors are key areas of exploration focus

• Counter-cyclical growth opportunity at 100% owned Sinclair Nickel Project , WA:

• Promising near-mine and regional exploration targets within a proven Ni sulphide province

• Existing surface infrastructure with A$120M replacement value

• Recent capital raising strengthens financial position

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*TLDD0061 – 0.7m grading 52.1% Cu, 0.7g/t Au from 318.1 – 318.8m downhole

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• Strong culture & corporate philosophy underpinned by previous management experience at highly successful mid-tier resource companies

• Key focus is always on developing and executing strategies to build shareholder value

• Growth strategy built on a diversified platform

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Capital Structure	Capital Structure
Shares on Issue# 185.7M
Unlisted Options 6.4M
Market Capitalisation (49c)# ~$91.0M
Cash (16 March 2016)# #Post recent share placement completion ~$22.9M
SubstantialShareholders
Kerry Harmanis# New Institutional Investor#	16.0% 6.0%
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

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Springfield Copper-Gold Project

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The next chapter of copper-gold discoveries in a world-class VMS province

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• First regional discovery outside of

Sandfire’s DeGrussa VMS copper-gold mine

• Exceptionally high-grade, high-tenor

massive sulphides in multiple intersections

• Mineralisation intersected is in two

– potentially connected zones approximately 420m plunge extent, 320m strike extent

• Upper Zone

• Lower Zone including an ultra-high grade bornite sub-zone

• Targeting maiden Mineral Resource by the

end of March / early April 2016

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SEPTEMBER 2015 Initial discovery hole and first phase of step out drilling

Refer to Appendix 1 for Vertical Long Projection Explanatory Note

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NOVEMBER 2015 Upper and Lower Zones with initial drilling into bornite subzone (TLDD0026)

Refer to Appendix 1 for Vertical Long Projection Explanatory Note

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~320m
FEBRUARY 2016
Assays of up to 52%
copper expand
bornite
mineralisation
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Refer to Appendix 1 for Vertical Long Projection Explanatory Note

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• Lower Zone is the primary mineralisation at Monty

• Consistent high-grade and high-tenor copper mineralisation throughout

• Copper occurs as predominantly chalcopyrite (high-grade mineralisation)

• Mineralisation contained in multiple massive sulphide lenses

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• Interpreted bornite rich zone intersected in three drill holes (Jan 2016)

• Interpreted as a sub-zone of the Monty Lower Zone mineralisation

• Contains both bornite and chalcopyrite sulphide mineral species

• Individual assays up to 52% Cu

• TLDD0061 – 0.7m @ 52.1% Cu, 0.7g/t Au from 318.1 – 318.8m downhole

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• Resource drilling now essentially complete

• It was focused on defining edge and continuity of mineralisation at Monty

• Geological interpretation continuing to evolve

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MAIDEN RESOURCE
On track
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• Maiden Monty Mineral Resource anticipated for release late March / early April 2016

Refer to Appendix 1 for Vertical Long Projection Explanatory Note

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Upper Zone

• Mineralisation potentially extended to north east

• TLDD0057 - 7.6m @ 3.3% Cu & 1.5g/t Au from 152m downhole.

• Mineralisation may now connect to Lower Zone

• TLDD0023A - 7.4m @ 3.0% Cu & 0.8g/t Au from 232.5m downhole.

Monty Exploration at Depth

• Mineralised intercepts recorded at depth may provide potential exploration vectors

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MONTY:
Exploration Potential
Remains
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• Newly reported drill hole adds encouragement – TLDD0051:

• 1.5m @ 4.7% Cu & 1.8g/t Au from 518.6m downhole; and

• 7.6m @ 3.2% Cu & 0.2g/t Au from 547.2m downhole

• Further drilling planned

Refer to Appendix 1 for Vertical Long Projection Explanatory Note

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• Potential for Springfield to be part of a larger VMS camp

• Exploration is at a relatively early stage

• Springfield hosts 4 prospective VMS corridors:

• Monty

• Homer

• Central

• Southern Volcanics

• Significant exploration activities planned along 5km Monty corridor:

• RC drilling to the north-east of Monty

• RC drilling of geochemical anomalies at Monty South and Southern Volcanics

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• In-fill aircore drilling at Monty South

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• Established VMS Model – deposits rarely occur in isolation

• Significant unexplored potential outside of current known mineralised strike length of ~320m

The discovery of Monty opens up a highly prospective +5km VMS corridor

• Further drilling planned

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• A high priority VMS target corridor located ~4km along strike to the east of DeGrussa

• Drilling to date by Sandfire has:

• Confirmed the continuation of Sandfire’s C5 VMS stratigraphic package; and

• TLDD0003 intersected what is interpreted to be C5 host horizon

• Scout hole TLDD0068, located 3.4km ENE of TLDD0001, drilled Dec 2015

• A significant step out with targeted VMS horizon not well constrained

• DHEM survey planned

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• Only 2 deep holes have tested the host stratigraphic package

• Both holes evidenced VMS signatures

• Opportunity exists for a new discovery

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Sinclair Nickel Project

A counter-cyclical option on a turnaround in the nickel price

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Sinclair Nickel Project – Background
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Project highlights

• Discovered late 2005, developed in 2008

• Historical Sinclair mine production:

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

• Care and maintenance since August 2013

• Sinclair has extensive infrastructure:

• Nickel concentrator, operated at 450ktpa

• 200 person village and all-weather airstrip

• Support facilities – admin, workshops, stores

• A$120M replacement value

• Sinclair restart potential enhanced by:

• Reduced capital intensity; and

• Substantial exploration potential

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Sinclair Nickel Project – Advanced Exploration Opportunities
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~445m

200m 200m

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Wide-spaced drilling of the Sinclair Deposit for 1km beyond current
mine development has returned significant intersections
Skye & Stirling – two parallel ultramafic channels with EM targets
Delphi North now has nickel sulphide mineralisation over a strike
length of 600m
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• Maiden Mineral Resource for Monty is due at the end of March -

• early April 2016

• Ultra-high grades identified at Monty ( including bornite )

• Exploration potential remains at Monty

• Springfield Project highly prospective for new discoveries across multiple corridors

• Counter-cyclical growth opportunity at Sinclair Nickel Project

• Diversified asset platform

• Recent capital raising strengthens financial position

• Focused on maximising shareholder value

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TLDD00026: Bornite-bearing core from Monty assaying up to 46% Cu
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Closing in on a maiden Mineral Resource District-wide VMS potential emerging

Euroz Securities – Institutional Conference - March 2016 Gary Lethridge, Managing Director

Vertical Long Projection – Explanatory Note

• Vertical Longitudinal Projection and simplified interpretation, by Talisman, of the Monty discovery with drill-hole pierce points shown at the top of the interpreted primary intercept. All intercepts are shown as down-hole widths.

• A Significant Intersection is defined as any intersection ≥ 3m estimated true width that has a grade of ≥ 2.0 % Cu, inclusive of non-mineralised material. Intersections that are <3m estimated true width are defined as significant if the overall grade remained >2.0% Cu when non-mineralised material has been included at a grade of 0.0% Cu (weighted by width) until a 3m estimated true width is reached.

• For the purposes of “Monty – Growth Potential” on slide 13, Peripheral Mineralisation, is defined as mineralisation that sits outside Talisman’s current interpreted Monty mineralised envelope projection, meets a minimum cut-off grade of 0.5% Cu, with no more than 3m of internal dilution and a minimum composite grade of 1% Cu.

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