TALONX RESOURCES LIMITED — Capital/Financing Update 2007

Nov 25, 2007

ACN: 009 067 476

ASX RELEASE

26 November 2007

DRILLING CONFIRMS SIGNIFICANT EXTENSION TO RESOURCE POTENTIAL Kihabe Zinc Project, Botswana (Mount Burgess Mining N.L. 100%)

HIGHLIGHT

A 71 metre intersection of zinc and lead sulphides in RC Drill Hole KRC174 has extended the known strike of mineralisation 500m along strike to the east of the current resource boundary. Oxide mineralization has also been intersected in the nose of the Kihabe syncline, 1,150m further along strike from the resource boundary,

REPORT

The Kihabe Extension exploration programme is being conducted to test interpreted stratigraphic continuity of the prospective mineralised quartzite-dolomite contact which hosts the Kihabe Zinc-Lead Resource, currently at 11 million tonnes at a grade of 2.55% zinc equivalency, based on RC drill results. Subsequent diamond core drilling results show that there is potential to increase this grade.

Mineralisation at Kihabe occurs in a quartzite proximal to a dolomite contact. The current Kihabe resource is contained within a 2.4km strike length along this contact, from local coordinates of 9,700E to 12,000E. The Company's interpretation is that Kihabe occupies the southern limb of a synclinal fold and as such has potential to continue along strike for a total of 8.5km (Figure 1).

A line of reverse circulation (RC) drill holes (KRC172 to KRC174) has been completed on the southern limb of the fold at Kihabe (See Figure 2, attached) at 12,500E, approximately 500m east from the resource limits.

KRC172 intersected dolomite and KRC173 intersected quartzite from 10m and oxidised mineralization from 21-32m proximal to the dolomite contact. KRC174 intersected strong sphalerite and galena mineralization continuously from 18m to 84m including several one metre intervals of massive sulphide at 50-51m, 76- 77m, and 83-84m, all above the dolomite contact. The pre-collar for KDD175, drilled 50m grid north from KRC174 intersected strong mineralisation from 42m to 50m (Figure 2).

A line of drilling at 13,350E was completed with oxidised and weakly to moderately mineralised quartzite intersected in several holes. Although oxidised, the presence of mineralisation at section 13,350E considerably supports the Company's interpretation that the entire 8.5 kilometres of prospective contact is potentially mineralised (Figure 3).

Drilling on section 11,900E, on the northern limb, has progressed with a further two holes (KRC158 and KRC170) drilled to test the geometry of the massive sulphide zones. A diamond core tail is to be drilled from KRC158 as a priority, to resolve the geology.

The drilling rig at Kihabe has resumed diamond coring, with KDD142 completed and the rig will complete the balance of infill diamond drilling on the Kihabe Resource.

Samples for all of the above drilling have been logged and dispatched for assay. Results will be reported as they become available.

All drill hole co-ordinates are reported in Table 1, below.

Table 1	Local Drill Hole Coordinates
Hole	Easting	Northing	Depth	Dip	Azimuth
KRC158	11,900	11,052	51	-60	339
KRC159	13,350	10,740	15	-60	339
KRC160	13,350	10,690	16	-60	339
KRC161	13,350	10,640	15	-60	339
KRC162	13,350	10,590	20	-60	339
KRC163	13,350	10,100	21	-60	159
KRC164	13,350	10,150	20	-60	159
KRC165	13,350	10,200	35	-60	159
KRC166	13,350	10,250	58	-60	159
KRC167	13,350	10,550	15	-60	339
KRC168	13,350	10,500	24	-60	339
KRC169	13,350	10,450	44	-60	339
KRC170	13,350	10,350	54	-60	159
KRC171	11,900	11,000	60	-60	339
KRC172	12,500	10,000	16	-60	159
KRC173	12,500	10,050	37	-60	159
KRC174	12,500	10,100	90	-60	159
KDD175	12,500	10,150	50	-60	159
KDD142	11,550	10,100	138.1	-60	159

The information in this report that relates to exploration results, together with any related assessments and interpretations, is based on information compiled by Mr Giles Rodney (Rod) Dale of G R Dale & Associates, who is a non-executive Director of the Company. Mr Dale is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Dale has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves". Mr Dale consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

For further information please contact:

Nigel Forrester or Rod Dale

CEO Technical Director - Geology Mount Burgess Mining N.L T: ++ 61 89 322 6311 F: ++ 61 89 322 4607 W: www.mountburgess.com