Talisman Mining : Commences Drilling at Priority Copper- Gold Targets

For personal use only

8 February 2022

Talisman Commences Drilling at Priority Copper- Gold Targets as Exploration Ramps Up in NSW

Drilling now underway at the first of four highly prospective copper-gold targets,

testing extensive gold-in-soil and conceptual structural targets.

Highlights:

• Reverse Circulation (RC) drilling has commenced at the Kaolin Shaft prospect, testing an extensive gold-in-soil and zinc-in-soil target.
• Three other drill programs have received regulatory approval and planning for drill pad construction is underway with local earthworks contractors.
• Regional VTEM™ Max AEM and FALCON® AGG surveys are underway across 3,150km2 of Talisman's Lachlan Copper-Gold Project tenure.

For personal use only

Further to its announcement of 17 January 20221, Talisman Mining Ltd (ASX: TLM, Talisman) is pleased to advise that it has commenced drilling at the Kaolin Shaft Gold Prospect (Figure 1) as part of an extensive, multi-pronged exploration program underway across its Lachlan Copper-Gold Project (Lachlan Project) in NSW (Appendix 1).

Following completion of drilling at this prospect, drilling will continue to test highly prospective anomalies across the Murray's Mine gold, Carpina North gold and Babinda copper prospects1.

Talisman has received the required approvals for all four prospect areas from the relevant NSW Government regulatory authorities and drilling will be able to move sequentially across all four prospects.

This first phase of drilling for 2022 complements Talisman's recently commenced large-scale regional geophysical surveys across the Lachlan Project1 as the beginning of a transformational phase in fast-tracking Talisman's next mineral discovery.

Management Comment

Talisman's CEO, Shaun Vokes, said: "Our busy 2022 schedule across our extensive NSW exploration portfolio is now in full swing. Drilling of these first four priority gold and copper targets is just the beginning of what will be a full exploration program for the year, and we anticipate some exciting results. We are also looking forward to the ongoing flow of data from our geophysics programs with subsequent analysis expected to provide us with additional drill targets."

Regional Geophysical Surveys

Talisman is also pleased to advise that both regional geophysical surveys targeted at the prospectivity vectors of recent discoveries in the Cobar Superbasin have now commenced and are being managed on Talisman's behalf by experienced geophysical consultants, Southern Geoscience Consultants.

Preliminary data from the surveys is expected to be received on a progressive basis over the coming weeks, with interpretation and analysis ongoing throughout the first half of 2022.

As previously announced1, as a result of an extensive targeting review of prospectivity vectors associated with known mineralisation across Talisman's tenure portfolio, XCalibur Aviation (Australia) Pty Ltd and UTS Geophysics Pty Ltd have been contracted by Talisman to conduct a FALCON® Airborne Gravity Gradiometry (AGG) survey and a VTEM™ Max Airborne ElectroMagnetic (AEM) survey (Figure 2) respectively across a combined 3,150km2 of Talisman's 4,338km2 Lachlan Project area.

For personal use only

These large-scale surveys represent a significant investment in Talisman's highly prospective tenement portfolio. The geophysical surveys have the potential to shorten the discovery timeline on Talisman's tenure by several years by focusing exploration effort in areas most likely to return an economic discovery, including by potentially indicating the presence of blind mineralisation concealed below cover. The surveys will also greatly enhance Talisman's understanding of sub- surface geology and structure in the area and provide further data for interpretation of regional and prospect-scale structures hosting mineralisation.

COVID-19 Management

All exploration activities are being conducted under, and closely managed in accordance with, Talisman's COVID-19 policies and procedures and NSW COVID-19 regulatory requirements, to ensure the safety of Talisman employees, contractors and local communities. Talisman's COVID-19 procedures include regular COVID-19 rapid antigen testing prior to and during field work in project areas, the availability and use of appropriate COVID-19 personal protective equipment and maintaining social distancing protocols wherever practical.

Ends

For personal use only

About Talisman Mining

Talisman Mining Limited (ASX:TLM) is an Australian mineral development and exploration company. The Company's aim is to maximise shareholder value through exploration, discovery and development of complementary opportunities in base and precious metals.

Talisman has secured tenements in the Cobar/Mineral Hill region in Central NSW through the grant of its own Exploration Licenses and through a joint venture agreement. The Cobar/Mineral Hill region is a richly mineralised district that hosts several base and precious metal mines including the CSA, Tritton, and Hera/ Nymagee mines. This region contains highly prospective geology that has produced many long-life,high-grade mineral discoveries. Talisman has identified a number of areas within its Lachlan Cu-Au Project tenements that show evidence of base and precious metals endowment which have had very little modern systematic exploration completed to date. Talisman believes there is significant potential for the discovery of substantial base metals and gold mineralisation within this land package and is undertaking active exploration to test a number of these targets.

Talisman also has a majority participating interest in a joint venture with privately-owned Lucknow Gold Limited in relation to the Lucknow Gold Project (EL6455) in New South Wales. The Lucknow Goldfield was discovered in 1851 and was one of the earliest goldfields to be mined commercially in Australia. Historic production records at the Project are incomplete, however in excess of 400,000 ounces of gold has reportedly been produced at grades of 100 to 200 g/t gold2.Very little modern exploration has been completed outside of the existing mine workings and Talisman intends to undertake a program of geochemical surface sampling and mapping at the Project ahead of a drilling program to test for potential down plunge extensions of the high-grade gold ore shoots and repeat structures throughout the Project area.

Competent Person's Statement

Information in this announcement that relates to Exploration Results and Exploration Targets is based on, and fairly represents information and supporting documentation complied by Mr Russ Gregory, who is a member of the Australasian Institute of Geoscientists. Mr Gregory is a full-time employee of Talisman Mining Ltd and has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Gregory has reviewed the contents of this announcement and consents to the inclusion in this announcement of all technical statements based on his information in the form and context in which they appear.

Forward-Looking Statements

This ASX release may include forward-looking statements. These forward-looking statements are not historical facts but rather are based on Talisman Mining Ltd.'s current expectations, estimates and assumptions about the industry in which Talisman Mining Ltd operates, and beliefs and assumptions regarding Talisman Mining Ltd.'s future performance. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", "potential" and similar expressions are intended to identify forward- looking statements. Forward-looking statements are only predictions and are not guaranteed, and they are subject to known and unknown risks, uncertainties and assumptions, some of which are outside the control of Talisman Mining Ltd. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Talisman Mining Ltd does not undertake any obligation to update or revise any information or any of the forward looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward looking statement is based.

• NSW DIGS report, First Annual Exploration Report EL5770, 2001 -R00030162