TALONX RESOURCES LIMITED — Capital/Financing Update 2009

Sep 9, 2009

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ACN: 009 067 476

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ASX RELEASE

10 September 2009

TSUMKWE DIAMOND PROJECT - NAMIBIA

A re-processing of the loam sampling data collected by Mount Burgess Mining and other earlier exploration companies (RTZ and De Beers), within the Tsumkwe Project area has highlighted at least two areas as having a high potential of hosting kimberlites.

The kimberlite indicator minerals (KIM) historically recorded, include a description of the grain size, surface texture and geochemistry (G9 and G10 classifications). The recent contouring of the KIM grain counts has revealed that the grains from one of these two areas are not randomly distributed but that their surface patterns can be related to crustal structures, clearly visible on both aerial photographs and anomalous geophysical patterns. The most clearly defined of these patterns coincides with the contact between the younger Damaran dolomites and the older basement granites and gneisses, believed to be the south eastern margins of the Angolan craton. This target area is defined by an anomalous concentration of KIM grains intermittently aligned for about 25kms along the clearly visible geological lineament trending in a north-easterly direction. These KIM grains include G10 pyrope garnets (indicative of diamond bearing kimberlites) some of which display fresh surface textures (near to source) and are in the upper +0.8mm size range. Significantly, 2 macro diamonds (> 0.4mm) were recovered from surface loam samples within 2km to the north and south of the target zone.

Recently a field mapping/reconnaissance survey was conducted along the linear zone described above (see attached map). This region is covered by a thin Kalahari sand cover with occasional outcrops of dolomites. However, the target area was marked by scattered surface boulders of a silicified breccia. Pitting within this zone revealed the source of these boulders as being a near surface, sub-outcropping, highly silicified brecciated dyke-like body, about a metre wide at the point where it was exposed, trending in a north-easterly direction.

This silicified brecciated dyke, of dolomitic texture, is very similar in appearance to the dolomitic breccia overlaying the Bell’s Bank kimberlite dykes, north of Kimberley in South Africa. The fact that this dyke appears to be associated with KIM grains, is seen as encouraging.

Kimberlite dykes frequently have a brecciated texture and are also often associated with kimberlite pipes as they are the feeders to the pipes. In this regard, the Company has contracted a geophysical team to conduct a gravity survey along this newly discovered target zone, aimed at accurately delineating targets for drilling. A drill rig is on standby to commence drilling on completion of the gravity survey.

The information in this report is based on information approved for release by Mr Manfred Marx of Manfred Marx and Associates Pty Ltd, Bsc., Dip Env. Sc., Aus.I.M M., GSSA.

Mr Manfred Marx is a consulting geologist to the Company. He 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 exploration results, mineral resources and ore reserves. Mr Marx consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

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0 1 2
kilometres
Diamonds Number of Garnets TSUMKWE PROJECT
Diamonds
G10 Garnets 1
2
N A M I B I A
Palaeochannel 3
4
Depth to Basement Contours 5 +
10m interval
Garnet and Diamond Discoveries
TSUMKWE DIAMOND PROJECT
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