TALISMAN MINING LIMITED — Capital/Financing Update 2016

Mar 16, 2016

17 March 2016

COMPANY SNAPSHOT

Board of Directors

Alan Senior Non-Executive Chairman Gary Lethridge Managing Director

Brian Dawes Non-Executive Director

Karen Gadsby Non-Executive Director

ALLOTMENT OF PLACEMENT SHARES AND CLEANSING NOTICE

Talisman Mining Ltd (ASX: TLM – “Talisman” or “Company”) is pleased to announce that it has issued today 37,139,975 fully paid ordinary shares ( Placement Shares ) at $0.45 per share pursuant to the placement to strategic, professional and sophisticated exempt investors announced on 10 March 2016.

The shares above are part of a class of securities quoted on ASX and may be subject to a subsequent offer for sale.

A completed Appendix 3B in respect of the Placement Shares has been lodged together with this announcement and additional information required under Listing Rule 3.10.5A.

Contact Details

6 Centro Avenue Subiaco, Western Australia, 6008

Telephone: +61 8 9380 4230

Facsimile: + 61 8 9382 8200

Email: info@talismanmining.com.au

Website: www.talismanmining.com.au

Capital Structure

Shares on Issue: 185,699,879 (TLM)

Options on Issue: 6,400,000 (Unlisted)

ASX: TLM

The Company therefore gives notice under section 708A(5)(e) of the Corporations Act 2001 (Cth) ( Act ) that:

• a) the Company issued the Placement Shares without disclosure to investors under Part 6D.2 of the Act;

• b) as at the date of this notice the Company has complied with

• i. the provisions of Chapter 2M of the Act as they apply to the Company; and

• ii. section 674 of the Act; and

• c) as at the date of this notice there is no “excluded information” as defined in Section 708A(7) and (8) of the Act in relation to the Company.

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Daniel Madden Company Secretary & CFO Talisman Mining Ltd

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ANNEXURE A - INFORMATION REQUIRED UNDER ASX LISTING RULE 3.10.5A

As detailed in the accompanying Appendix 3B dated 17 March 2016, the Placement Shares were issued partly under the 15% limit available to the Company under Listing Rule 7.1 and partly under the additional 10% approved by Shareholders at the Company’s 2015 Annual General Meeting in accordance with Listing Rule 7.1A. In accordance with the requirements of Listing Rules 7.1A.4(b) and 3.10.5A the following information is provided by the Company in relation to the 14,855,990 Placement Shares issued under Listing Rule 7.1A.

(a) Details of the dilution to existing shareholders as a result of the issue

The Company had 148,559,904 Shares on Issue prior to the Capital Raising announced on 10 March 2016. The Company issued 22,283,985 shares pursuant to Listing Rule 7.1 resulting in a total of 170,843,889 Shares on Issue (pre shares issued under LR 7.1A).

A total of 14,855,990 shares were issued pursuant to Listing Rule 7.1A, representing 8.0% of the post-placement capital. The Company now has 185,699,879 Shares on Issue

The dilutive effect of the shares issued under LR 7.1A on pre-placement security holders who did not participate in the placement is an 8.0% reduction in the percentage shareholding for preplacement security holders who did not participate in the placement under 7.1A.

The dilutive effect of the shares issued under LR 7.1A on those pre-placement security holders who did participate in the placement varies between 0% and 8% dependent on the level of participation in the placement under LR 7.1A.

(b) Reasons why the Company issued the equity securities as a placement under rule 7.1A and not as (or in addition to) a pro-rata issue or other type of issue in which existing ordinary shareholders would have been eligible to participate

The costs, prescribed timing and uncertainty of funding outcome (in the absence of an underwriting arrangement) of a pro-rata issue were considered to be restrictive in the circumstances. Talisman has issued the shares to a small number of Australian professional and sophisticated investors following identification of demand as it was considered to the most costeffective, expedient and certain method for raising the funds required to achieve the stated objectives of the Placement.

(c) Details of any underwriter arrangements including any fees payable to the underwriter

Not Applicable. The Placement was not underwritten.

(d) Any other fees or costs incurred in connection with the issue

A brokerage fee of 5% of the gross proceeds raised under the issue is payable in connection with the issue. The fee will be split amongst Bell Potter Securities Limited, Euroz Securities Limited and Petra Capital Pty Ltd who are the Joint Lead Managers for the Placement. Total other costs including standard ASX listing fees, share registry expenses and legal costs approximate $5,000.

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