TALONX RESOURCES LIMITED — Capital/Financing Update 2007

Nov 7, 2007

ACN: 009 067 476

ASX RELEASE 8 November 2007

Kihabe Zinc Project, Botswana Mount Burgess Mining N.L. 100%

DRILLING CONFIRMS POTENTIAL FOR SIGNIFICANT EXTENSIONS TO RESOURCES

KIHABE ZINC RESOURCE

Mineralisation intersected in RC Drill Hole KRC157 has confirmed that the entire strike length of the Kihabe fold structure in Botswana, of 8.5km, has the potential to be mineralised, which provides scope for additional resources to be delineated from ongoing exploration efforts.

The Kihabe Extension RC Drill programme is being conducted to test interpreted stratigraphic repetitions 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 south limb of an isoclinal syncline fold, and as such has potential to continue along strike and/or be repeated across the fold closure at approximately 14,000m E on the local grid.

A line of reverse circulation drill holes (KRC154 to KRC157) is currently being completed on the northern limb of the interpreted fold at Kihabe (See Figure 1, attached) to locate the prospective contact in an area where calcrete does not conceal and suppress soil geochemistry. This target is approximately 800m north of Kihabe, and around 4 kilometres along strike from the known mineralization at Kihabe.

KRC154 and KRC155 intersected dolomite and KRC156 intersected quartzite from 20-24m and terminated in cherty sediment at 30m which may represent the contact. KRC157 intersected sulphidic dark grey quartzite from 19m to 63m which is of similar visual character to that drilled on the Kihabe Resource. This has been logged as containing massive galena (lead sulphide) with malachite (copper carbonate). The hole is still underway and is planned to be completed to test the dolomite contact. Drill hole coordinates are shown below (Table 1). Samples will be logged and dispatched for assay and results will be reported as they become available.

Two more lines of reverse circulation drilling are planned within the coming week at 13,350E, to locate the prospective contact zone. Successful results will lead to an aggressive drill-out of the entire prospective contact.

Table 1	Local Drill Hole Coordinates
Hole	Easting	Northing	Depth	Dip	Aziumuth
KRC154	11,900	11,250	16	60	339
KRC155	11,900	11,200	15	60	339
KRC156	11,900	11,150	30	60	339
KRC157	11,900	11,100	63*	60	339

* Drilling is continuing in this hole.

THE GOSSAN ANOMALY

Ten kilometres south of the Kihabe resource, the Company has completed four RC drill holes to test the outcropping base metal gossan. Rock samples taken from this gossan generated assay values ranging from 7.89% to 21.95% zinc, 3.93% to 7.63% lead and 2.35oz/t to 20.58oz/t silver. Please refer to previous ASX announcements.

These four RC drill holes targeted underneath the mapped gossans (see coordinates in Table 2). GRC004 did not encounter clearly identifiable base metal sulphide or oxide mineralisation. GRC001, GRC002 and GRC003 returned various widths of oxidized (carbonate) mineralisation within quartzite, and successfully tested through to the dolomite contact. Minor amounts of sulphides were intersected and have been interpreted as supergene sulphides. It is inappropriate, at this stage, for determinations as to the nature of this mineralisation. Samples have been sent for assay and results will be reported as soon as they become available.

Table 2	UTM Drill Hole Coordinates
Hole	UTM East	UTM North	Depth	Dip	Aziumuth
GRC001	503,041	7,812,948	80	-60	60
GRC002	503,023	7,812,964	76	-55	60
GRC003	503,071	7,812,917	80	-55	60
GRC004	502,715	7,812,807	80	-60	185

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

Mount Burgess Mining N.L T: ++ 61 89 322 6311 F: ++ 61 89 322 4607 W: www.mountburgess.com

CEO Technical Director - Geology