TALISMAN MINING LIMITED — Investor Presentation 2016

Feb 8, 2016

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TLDD00026: Bornite-bearing core from Monty assaying up to 46% Cu
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More exceptional results from Monty Closing in on a maiden Mineral Resource

February 2016 – Investor Update 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 and does not purport be all inclusive or complete. 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 shares in any jurisdiction. 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 professional 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, its officers, employees, agents and advisers 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 or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted. This presentation may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Talisman Mining Ltd. 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 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.

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• Cornerstone asset: Doolgunna Copper-Gold Projects , WA

• Talisman owns 30% interest in joint venture with Sandfire Resources (ASX: SFR)

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

• Resource drill-out underway

• Maiden JORC resource on track for Q1 2016

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

• Exceptional regional exploration upside at Doolgunna:

• VMS geological model supports potential for additional discoveries

• Exploration gathering momentum along 5km Monty corridor

• Emerging VMS corridor at Homer, ~4km along strike from DeGrussa

• Multiple regional exploration targets within emerging VMS province

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

• Surface infrastructure with A$120M replacement value

• Promising near-mine and regional exploration targets

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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 Shares on Issue 148.6M Unlisted Options 6.4M Market Cap (47c) ~$70M Cash (31 Dec 2015) ~$9M Key Shareholders Kerry Harmanis 12.5%

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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Monty Doolgunna Copper-Gold Projects

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 so far is in two connected zones – approximately 400m plunge extent, 320m strike extent

• Upper Zone

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

• Ongoing drilling continues to identify extensions and refine geological understanding

• Resource definition drilling underway targeting maiden Mineral Resource by the end of Q1 2016

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

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NOVEMBER 2015 Upper and Lower Zones with initial drilling into bornite sub-zone (TLDD0026)

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JANUARY 2016 Assays of up to 52% copper expand bornite mineralisation with resource definition drilling well advanced

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

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

• Recent extensions up-dip

and along strike add significantly to potential of bornite zone

• Contains both bornite and chalcopyrite sulphide mineral species

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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 mineralised lenses

• Further drilling undertaken in January 2016 – assays awaited

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• Resource drilling focused on defining edge and continuity of mineralisation

• Recent results continue to

substantiate initial interpretations of orientation, grade and extent of mineralised zone

• Interpretation continuing to evolve with ongoing drilling

MAIDEN RESOURCE On track for Q1 2016

• Maiden Monty Mineral Resource anticipated Q1 2016

• Coverage of Talisman now initiated by multiple stockbrokers

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• Drilling to date has focused on main Lower Zone mineralisation

• Upper Zone mineralisation may now connect to Lower Zone and remains open.

• TLDD0023A - 7.4 metres grading 3.0% Cu and 0.8g/t Au from 232.5m downhole. Further drilling planned

• Potential to extend Lower Zone with further

• drilling

MONTY DEEPS Drilling planned Q1 2016

Monty Deeps

• Very encouraging mineralised intercepts recorded at depth

• TLDD0008 contained ~70m thick exhalite package with intense alteration

• Potential vectors to new VMS lens at depth?

• Monty Deeps drilling planned first quarter 2016

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• Established VMS Model – lenses rarely occur in isolation

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

• Planned RC drilling in first quarter of 2016

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

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• Doolgunna Projects (Springfield, Halloween and Halloween West) have potential to be part of a larger VMS camp

• Considerable work remains to fully assess potential

• Springfield hosts four prospective VMS corridors:

• Monty

• Homer

• Central

• Southern Volcanics

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• Significant exploration activities planned this quarter targeting new discoveries along 5km Monty corridor:

• RC drilling to the north-east of Monty

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

• In-fill aircore drilling at Monty South

Exploration expanding across the Monty corridor

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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, completed recently

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

• DHEM surveys planned

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• Homer corridor contains a thick sequence of the same prospective stratigraphy that hosts Conductor 5

• Very limited and wide-spaced drilling to date

• Further drilling planned along Homer corridor between TLDD0003 and TLD0068 in the first quarter 2016

• Potentially ~2.8km of untested host horizon between TLDD0003 & TLDD0068

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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 in the prolific Agnew - Wiluna Nickel belt.

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Sinclair Nickel Deposit – Mine and Nearby 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 copper-gold discovery due Q1 2016

• Ongoing drilling highlights potential for extensions at Monty

• Ultra-high grade bornite zone identified – potential for DSO to be understood

• Doolgunna Project highly prospective for new discoveries across multiple horizons

• Monty Corridor exploration now gathering momentum

• Homer Corridor drilling to resume in early 2016

• Potential for regional VMS camp clearly demonstrated

• Counter-cyclical growth opportunity at Sinclair Nickel Project

• Diversified asset platform

• Focused on maximising shareholder value

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TLDD00026: Bornite-bearing core from Monty assaying up to 46% Cu

Contact information:

6 Centro Avenue Subiaco, WA 6008 Australia / Phone: +61 8 9380 4230 / Fax: +61 8 9382 8200 www.talismanmining.com.au

Thank you