TALONX RESOURCES LIMITED — Capital/Financing Update 2011

Aug 14, 2011

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ACN: 009 067 476

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15 August 2011

TSUMKWE RARE EARTH ELEMENT (REE) PROJECT NAMIBIA (85%)

Drilling/Assaying

Five vertical open-hole percussion drill holes have recently been drilled into the Company’s REE target at Tsumkwe in NE Namibia.

Only portions from three of these holes have so far been submitted for assaying. All portions submitted returned elevated total rare earth oxide (TREO) grades as shown below.

HOLE DEPTH m	RARE EARTHOXIDESg/t (ppm)	TREO g/t
	Ce02 Nd2O3 La2O3 Dy2O3 Pr6O11 Sm2O3 Gd2O3 Er2O3 Tb4O7 Eu2O3 Ho2O3 Lu2O3 Tm2O3 Yb2O3
NAM908 40-50	339.42 131.07 160.59 13.28 38.82 20.97 16.27 6.91 2.38 3.44 2.58 1.02 1.05 7.19	744.98
31-32 35-36 41-42 45-46 51-62 65-66 71-72 75-76 81-82 85-86 91-92 NAM909 95-96	1231.96 392.49 661.34 16.76 123.20 43.60 27.78 8.00 3.52 2.43 2.98 1.50 1.11 9.27 981.12 317.26 510.52 15.72 97.88 38.61 24.20 7.32 3.18 2.32 2.86 1.40 1.19 8.64 1099.91 366.25 586.99 17.56 111.77 44.18 26.63 7.66 3.31 2.32 3.09 1.33 1.15 9.14 975.84 336.86 512.87 16.87 102.32 43.25 28.24 8.12 3.41 2.08 3.21 1.48 1.23 10.03 870.96 290.45 454.34 17.10 88.50 36.55 23.88 8.77 3.27 2.41 3.23 1.57 1.33 10.24 843.67 284.95 441.68 17.10 86.52 35.25 24.20 8.69 3.18 2.20 3.32 1.44 1.23 9.91 888.75 292.53 458.10 15.03 90.64 35.72 23.74 7.09 3.26 3.13 2.75 1.21 1.05 7.75 847.96 276.09 442.85 14.58 84.91 34.09 21.44 7.43 2.86 2.43 2.75 1.40 1.18 8.89 559.66 187.91 264.58 18.25 56.07 26.21 19.36 10.75 2.93 2.43 3.78 1.66 1.67 11.94 423.68 155.48 210.05 13.20 47.07 22.61 16.94 6.98 2.25 2.89 2.41 1.14 1.07 8.38 340.51 122.71 162.90 11.36 36.33 17.63 13.14 6.86 1.94 2.08 2.29 1.26 1.08 8.76 536.20 188.37 251.33 13.31 55.83 26.21 19.02 6.63 2.53 3.13 2.52 1.13 1.03 8.13	2525.94 2012.22 2281.28 2045.81 1812.62 1763.34 1830.74 1748.86 1167.20 914.14 728.86 1115.36
35-38 NAM910 47-50	428.71 160.26 191.48 15.95 47.02 25.43 20.32 8.04 2.87 3.71 3.05 1.07 1.10 8.34 361.27 146.46 163.06 16.11 41.80 24.24 20.02 8.39 2.97 3.86 3.13 1.11 1.27 8.04	917.36 801.71

The above samples were assayed using sodium peroxide fusion – OE/MS.

Individual meters from the entire depths of all five holes are being prepared for laboratory submission. These assay results, which will include the additional elements Yttrium and Scandium will be reported on when available.

Drillhole	Northing	Easting	Dipo	**Azo **	Comments
NAM908	7804500	462900	90	0	Drilled to 50m -Only portions above assayed sofar
NAM909	7804638	462898	90	0	Drilled to100m –Only portions above assayed sofar
NAM910	7804638	463000	90	0	Drilled to 50m – Only portions above assayed so far
NAM911	7804497	462802	90	0	Drilled to 50m –to be submitted tolaboratory
NAM912	7804382	462898	90	0	Drilled to 50m –to be submitted tolaboratory

Petrographic Analysis

SEM analysis of thin sections from drill chips from NAM909 has confirmed results from previous drill holes. The main host mineral of the REEs is synchysite . The synchysite particles on average are over 100 microns which should allow for easy extraction. Additionally, synchysite is low in both thorium and uranium , thereby reducing complications during the process of extraction of the REEs through concentration and separation. Thorium grades from the above assays averaged 29.4ppm and uranium grades averaged 4.8ppm.

RARE EARTH PRICE MOVEMENTS

Element	January 2011 US$/kg	Current US$/kg	Current US$/g
Cerium (Ce)	$60	$155	$0.15
Neodymium (Nd)	$115	$490	$0.49
Lanthanum (La)	$60	$140	$0.14
Dysprosium(Dy)	$380	$3,000	$3.00
Praseodymium (Pr)	$120	$280	$0.28
Samarium (Sm)	$70	$200	$0.20
Gadolinium (Gd)	$20	$290	$0.29
Erbium (Er)	$110	$300	$0.30
Terbium (Tb)	$785	$4,750	$4.75
Europium (Eu)	$720	$6,300	$6.30
Holmium (Ho)	$70	$925	$0.92
Lutetium (Lu)	$450	$1600	$1.60
Thulium (Tm)	unknown	$50,000	$50.00
Ytterbium (Yb)	$45	$150	$0.15

Because of variances in prices quoted from different sources, the above prices are a guide only.

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The information in this release that relates to exploration results, together with any related assessments and interpretations, is based on information approved for release by Mr. Giles Rodney Dale of GR Dale and Associates. Mr. Dale is a Fellow of the Australian 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 has undertaken 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 this release of matters based on this information in the form and context to which it appears.