Talisman Mining Ltd. has expanded its tenure position in the Southern Cobar Superbasin by acquiring Exploration Licence EL8907 (the Tenement) from Rio Tinto Exploration Pty Ltd. (Rio Tinto Exploration) through the execution of a binding sale and purchase agreement (SPA) (the Transaction). The key terms of the Transaction are: $10,000 cash payable by Talisman to Rio Tinto Exploration at or before completion of the Transaction; Rio Tinto Exploration retain an option to buy-back a 30% legal and beneficial interest in the Tenement in the event that, and within 90 days after, a JORC Resource in the Measured and Indicated categories is defined within the Tenement with an in-situ value greater than AUD 1B (Buy-Back Option), for a payment equivalent to 100% of the exploration costs incurred by Talisman up to the point of defining the JORC Measured and Indicated Resource; Should Rio Tinto Exploration exercise the Buy-Back Option, Talisman and Rio Tinto Exploration are deemed to have entered into an unincorporated Joint Venture with participating interests of 70% and 30% respectively with Talisman appointed first manager of the joint venture; and Should Rio Tinto Exploration not exercise the Buy-Back Option, Rio Tinto Exploration will be entitled to a 1% Net Smelter Return (NSR) royalty for any future metal production from the Tenement. Completion of the Transaction remains subject to the NSW Department of Planning, Industry and Environment approving the transfer of the Tenement from Tinto Exploration to Talisman and subsequently registering Tailsman interest.

Completion is expected to occur prior to the end of June 2022 June 2022. EL8907, which covers an area of 1,043km2, is considered highly prospective for copper-gold mineralization and encompasses the intersection of several regional-scale structural lineaments. The western areas of the Tenement host historic workings and prospects that have seen little to no modern exploration but have been worked previously for quartz-vein hosted gold, possibly indicative of the surficial expression of a concealed epithermal gold system.

Further, the central areas of the tenement ghost a significant bull eye magnetic anomaly which cannot be explained by the regional geology and is offset oblique to the mapped strike of geological units in the area, making it likely that this anomaly is associated with a fault or shear not previously identified. The occurrence of this anomaly in an otherwise benign sandstone body and associated with a structural feature is suggestive of a deeper intrusive source, potentially the magnetic pyrrhotite halo on a mineralised intrusive body or epithermal system Following acquisition of the Tenement, Talisman plans to commence negotiations with land-holders for access for exploration and commence initial low-impact mapping and geophysical surveys before drill testing any high-priority targets defined from this process.