TALONX RESOURCES LIMITED — Capital/Financing Update 2011

Mar 2, 2011

ACN 009 067 476

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ASX RELEASE 3 March 2011

PROJECTS UPDATE

HIGHLIGHTS

Kihabe/Nxuu Base Metals Project – Botswana

Potential for discovering further resources

XRF in-field analysis has confirmed two significant soil geochemical anomalies for Zn/PB at Wanchu Prospect and Target 52.

Assays received for Gallium (Ga) and Germanium (Ge), the significance of which has yet to be determined.

Tsumkwe Rare Earths – Namibia

Mineralogical testwork has identified REE minerals in all holes previously drilled into the Tsumkwe REE targets.

Further SEM and SRD studies being conducted.

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KIHABE/NXUU BASE METALS PROJECT - BOTSWANA

Potential for Discovering Further Resources - Geochemical Sampling Assay Results

During 2010, the Company collected around 5,000 close-spaced soil geochemical samples over four separate areas that had previously yielded elevated Zn/Pb/Cu values from wide spaced regional geochemical sampling programmes.

The four areas are:

The Copper Anomaly 3.60 sq. km The Tswee Tswee Anomaly (a Cu anomaly) 9.90 sq. km The Wanchu Anomaly (a Zn/Pb anomaly) 1.50 sq. km The Target 52 Anomaly (a Zn/Pb anomaly) 3.64 sq. km

Recent regional single drill holes at Target 52, the Tswee Tswee anomaly and the Copper anomaly have confirmed that these three targets are in quartz wackes. Zn/Pb/Cu mineralisation in this neo-Proterozoic belt is hosted within quartz wackes at or close to the contact with the regional dolomite

With the recent purchase of a Niton XRF in-field analyser, the Company is currently conducting geochemical assaying on site.

Wanchu Zinc/Lead Anomaly

Assaying samples from the Wanchu anomaly, has yielded significantly higher geochemical values, ranging from around 150 ppm Zn up to 390 ppm Zn in an area that has a normal background value of less than 20ppm Zn. The Kalahari sand cover in this area is estimated to be between 5m and 15m deep. Two discrete E/W zones of elevated Zn/Pb assay values, in parts up to 100m wide, are coincident with a discrete line of trees (Terminalia) and a “dark brown” soil anomaly, bounded by normal white to yellow Kalahari sands, similar to the surface features around the Kihabe deposit. There is a western zone with an E/W strike length of 500m. Some 300m to the east, another zone of geochemical anomalies with a strike length of 200m is open to the east. (Refer to Google Earth imagery below).

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The Wanchu anomaly 4km SE of and parallel with the Kihabe Zn/Pb deposit, is along strike and 4km west of the Nxuu Zn/Pb deposit.

Target 52 Zinc/Lead Anomaly

Assaying samples from the Target 52 anomaly has also yielded higher geochemical values, ranging from 30 ppm Zn to 120 ppm Zn, in an area that has a normal background value of around 10 ppm. The Kalahari sand cover in this area is estimated to be around 20m deep. A discrete zone of elevated Zn/Pb values is coincident with a discrete line of trees (Terminalia) that occur on the axial trend line of a fold closure striking in a NE direction, running parallel with the Kihabe deposit . This is probably the contact zone of the quartz wacke and the regional dolomite. The overall length of the zones of elevated assay values is over 4km. (See Google Earth imagery below). Target 52 is 3 km to the SE of the Nxuu Zn/Pb deposit.

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The delineation of the above two anomalies is seen by the Company as encouraging. Drilling will be required to determine their resource potential.

The Copper Anomaly and Tswee Tswee Anomaly

Analysis will commence today on soil geochemical samples taken from the Copper anomaly and Tswee Tswee anomaly (Copper) and will be reported on once completed.

Sampling and Assaying Methodology

All soil samples were collected from 10cm below surface every 50m N/S along sample lines spaced 100m E/W. Each sample was sieve sized down to – 0.4mm, packaged into standard soil sample envelopes containing around 60gms and stored at the Company’s Camp. The Niton XRF Analyser has been set up for the analysis to be conducted in camp under supervised and controlled conditions.

The sample envelopes are placed in the Niton XRF analyser stand and the XRF assaying process allowed to run for one minute for each sample. All samples yielding over 50ppm Zn/Pb/Cu are then re-checked and a third check is then run with the soil samples repackaged in plastic bags.

The XRF analyser is calibrated every 25 samples via an in-built calibrator and known value standards are used to check the accuracy of the calibration process.

All sample locations yielding over 100ppm Zn/Pb/Cu are then re-visited and closer spaced samples are taken every 10m for 30m north and 30m south of the initial sample location. These in-fill samples are then subjected to the same sampling procedures as those outlined above.

Independent Laboratory Assaying For Gallium (Ga) And Germanium (Ge)

Because the Kihabe and Nxuu Zn/Pb deposits are potential hosts to Ga and Ge mineralisation, the Company submitted diamond drill core samples to be assayed for Ga and Ge.

Sections from two holes drilled into the Kihabe deposit (KDD126 and KDD143), one hole drilled into the Nxuu deposit (NXDD005) and one hole drilled into the Gossan anomaly (GDD001A), were submitted for test assaying by way of ICP Mass Spectrometry .

Ga and Ge assays of over 10ppm Ga/Ge combined are as follows:

THE KIHABE DEPOSIT

KDD126 - 500,884E/7,821,667N, Dip -60 Deg, Az 339 Deg.

A 5m intersection from 45m to 50m was assayed.

2m from 45m to 47m yielded 11.25g/t Ga and 1.07g/t Ge.

KDD143 – 502,204E/7,822,383N, Dip -60 Deg, Az 339 Deg.

A 5m intersection from 35m to 40m was assayed.

The whole 5m yielded 8.79g/t Ga and 4.93g/t Ge.

THE NXUU DEPOSIT

NXDD005 – 508,926E/7,821,827N, Dip -90 Deg, Az 0 Deg

A 6m intersection from 19m to 25m was assayed.

The whole 6m yielded 5.27g/t Ga and 4.98g/t Ge

THE GOSSAN PROSPECT

DDGG001A – 503,065E/7,812,885N, Dip -50 Deg, Az 0 Deg

A 6m intersection from 51m to 57m was assayed.

2m from 51m to 53m yielded 8.58g/t Ga and 2.84g/t Ge 2m from 55m to 57m yielded 8.27g/t Ga and 7.55g/t Ge

The significance of these results in regard to the potential to recover Ga and Ge from the Kihabe and Nxuu deposits as a by-product, can only be assessed once the Company has determined their overall net value. The Company’s understanding at this stage is that a possibility does exist to recover Ga and Ge through the process of acid leaching and electro-winning on site.

The determination of the overall size and grade of any Ga/Ge resource at both Kihabe and Nxuu, will require all drill hole samples to be assayed for these two elements. Mineralogical and metallurgical test work will also be required to determine the extent of their recoverability.

USES OF GA AND GE

Both Ga and Ge are mainly used in semi conductors. The prices of both Ga and Ge have risen significantly in recent times.

Ga is currently trading around US$725/kg (US$0.75/g) Ge is currently trading around US$1,450/kg (US$1.45/g)

TSUMKWE RARE EARTHS – NAMIBIA

In the Company’s December 2010 quarterly report, total rare earth (TREE) assays were reported in respect of the Company’s Tsumkwe REE project in Namibia, as follows:

Drill Hole	Northing	Easting	Dip/Azimuth	EoH Interval Assayed (m)	TREE Values ppm
RR13	7804660	462900	-90o/0	38-39	1,709.60
NAM464	7804300	462820	-90o/0	30-31	766.60
NAM465	7804610	463370	-90o/0	18-31	838.20
NAM467	7803840	462780	-90o/0	17-18	866.20
NAM477	7804815	462000	-90o/0	39-40	1,497.00

Drill chips from the above holes, taken from the end of hole intervals (EOH) as shown above, together with drill chips from the EoH of 5 other holes drilled in the area have been submitted for thin section petrographic analysis.

Mineralogical test work currently being conducted has identified rare earth minerals at the EoH in all of the above holes drilled into the Tsumkwe REE targets.

The minerals identified included allanite, monazite and probable rare earth carbonates.

Chemical analyses of the samples support the mineralogy with quantities so far indicated to be under 1% of mineral.

Test work is continuing on samples by concentrating the heavy minerals (SGs >2.95) in drill chips that include the rare earth group. Further SEM and XRD studies of these concentrates will properly identify and elucidate the REE species.

Deeper drilling is planned for these targets once the seasonal rains have abated, as the indications to date are that the REE values are increasing at depth.

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.

About Mount Burgess Mining N.L.

Mount Burgess Mining N.L. is an established and experienced Australian exploration company with interests focused in southern Africa. The Company’s primary asset is the zinc, lead and silver resource currently being developed at Kihabe-Nxuu in North Western Botswana. The Company has tenements covering the entire proterozoic meta-sedimentary belt between Botswana and Namibia. The area has excellent potential for hosting Kimberlites, rare earth elements and base metals, the focus for continuing exploration. Perth based Mount Burgess has been listed on the Australian Stock Exchange since 1985 and has local asset status in Botswana.

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