Talisman Mining : Quarterly Activities/Appendix 5B Cash Flow Report

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29 July 2022

June 2022 Quarterly Activities Report

Initial targets confirmed from landmark regional geophysical surveys in

NSW and encouraging results received from first drill campaigns

Highlights:

Lachlan Copper-Gold Project, NSW

• Processing and interpretation of the landmark 15,456-line kilometre FALCON airborne gravity gradiometry (AGG) survey flown this year completed by Talisman's geophysical consultants.
• Processing and interpretation by Talisman's geophysical consultants of the extensive VTEM Max airborne electro-magnetic (AEM) survey flown concurrently with the AGG survey in progress, with preliminary interpretation by Talisman geological staff completed.
• Three high-priority AME targets and 10 high-priority AGG targets identified so far from a first-pass interpretation of the high-quality geophysical datasets. Further processing and interpretation of the AEM dataset is expected to highlight additional conductive anomalies.
• Wide intervals of gold mineralisation identified from assays returned from recent Reverse Circulation (RC) drilling at Carpina North, confirming the gold-in-soils target. Assays include 40m @ 0.51g/t Au from 24m down-hole in hole CNRC00121.
• Assays returned for the RC drill program at Murray's Mine highlight the western depth potential, with hole MMRC0003 returning 20m @ 0.55g/t Au from 148m down-hole including 2m @ 1.52g/t Au1.
• Complete assays returned for the RC drill program at Kaolin Shaft confirming the presence of polymetallic base & precious metal mineralisation across multiple holes, with peak 2m interval grades across different holes of 4.87% Zn, 2.61% Pb, 0.37% Cu, 1.58g/t Au and 60.8g/t Ag1.
• Ground-basedwork underway at multiple targets including preparations for a major new drilling campaign, scheduled to commence in the September 2022 Quarter (weather and access permitting).

Lucknow Gold Project, NSW

• Soil sampling completed across three properties with further land access negotiations in progress to complete the program. Sampling is targeting the near-surface potential along strike from the historical Lucknow Gold mine.

Corporate

• Royalty cash receipts from the Wonmunna Iron Ore Project of $2.33 million received for the quarter with a further $0.74 million received subsequent to quarter-end2.

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COVID-19

All exploration activities continue to be 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.

Target Generation from Regional Geophysical Surveys

During the quarter, Talisman's geophysical consultants, Southern Geoscience Consultants (SGC), delivered processed products and targets generated from the 15,456-line kilometre regional-scale AGG survey flown in the first quarter of 20223 at Talisman's Central Lachlan Project (Appendix 2).

This survey, which was flown by XCalibur Aviation (Australia) Pty Ltd using their proprietary industry- leading FALCON® AGG system, was commissioned on the basis of Talisman's basin-wide targeting review of key characteristics of economic mineral systems common to the Cobar Superbasin.

Gravity anomalies common to this area are likely due to the emplacement of siliceous alteration and associated sulphide ore minerals of these mineral systems into lower density volcanic and volcano- sedimentary host rocks.

Delivery of the processed data to accentuate features of interest has been completed and as a result, over 50 gravity anomalies have been identified where existing geological interpretation cannot account for the gravity response returned from the survey.

Of these anomalies, 10 were identified as being high priority for follow-up due to the significance of the anomalism, coincidence with other prospective features or their location on regional structural lineaments known to host mineralisation.

A parallel AEM survey designed to identify conductive anomalies associated with concealed mineralisation was completed during the quarter by UTS Geophysics Pty Ltd (UTSGeo).

Preliminary data was delivered by UTSGeo during the quarter with initial processing completed by SGC subsequent to quarter-end. While interpretation continues on the complex dataset, three high- priority conductive anomalies in late-time channels have been identified from the preliminary data, interpreted as concealed conductive bodies of significant interest with no previous exploration work.

Both the ten high-priority gravity anomalies and the three high-priority conductivity anomalies are shown in Figure 1. These anomalies are considered to be a high priority for ground-basedfollow-up and Talisman's geological team has commenced access activities on each anomaly to provide for further work in the September Quarter.

Continuing interpretation of the AEM dataset by SGC will lead to the delivery of further targets during the September Quarter.

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Lachlan Copper-Gold Project, NSW

Field activity during the quarter focused on land-holder engagement and reconnaissance mapping programs over a number of newly-identified target areas. Subsequent to quarter-end, complete assays were returned for the Carpina North Gold, Murrays Mine Gold and the Kaolin Shaft Gold Prospects1 and interpretation of results was completed.

Assays remain outstanding for the Babinda Copper Prospect due to ongoing extended turnaround times at commercial laboratories.

Kaolin Shaft Gold Prospect

A total of 10 RC drill-holes for 1,894m were completed in the March 2022 Quarter4 to test a highly prospective gold-in-soil anomaly at the Kaolin Shaft gold prospect (Figure 2). Drill-hole depths ranged from 150m to 242m with the holes intersecting zones hosting disseminated base metal sulphides and zones of silica-sericite ± pyrite alteration within rocks of the Canbelego-Mineral Hill Volcanic Belt. Complete assays were returned late in the June 2022 Quarter.

Several zones of polymetallic mineralisation were intersected, with visual sphalerite, chalcopyrite and galena consistent with intersected lead, zinc and copper mineralisation.

The gold-in-soil anomaly over the area was confirmed by the intersection of multiple near-surface gold intercepts of >1g/t Au.

Down-hole electromagnetic (DHEM) surveys were undertaken on holes KSRC0009 and KSRC0012 by Merlin Geophysics with data interpreted by Talisman's geophysical consultants, SGC1.

While the DHEM survey results were inconclusive in delineating further definitive conductors in the area, they did indicate that the area has a high conductive background. Petrological examination of drill intervals associated with mineralisation suggests the disseminated nature of sulphides present may not return an individual conductive response1.

Highlight results for the recent RC drilling include 32m @ 1.25% Pb, 0.15% Zn, 1.21g/t Ag, 0.37g/t Au and 370ppm Cu from 6m including 6m @ 1.3% Pb, 0.15% Zn, 6.3g/t Ag, 1.45g/t Au and 318ppm Cu from 14m in hole KSRC00081.

Peak grades across all drilling as sampled on 2m intercepts were 4.87% Zn (hole KSRC0009 90- 92m), 2.61% Pb (hole KSRC0008 20-22m), 0.37% Cu (hole KSRC0007 178-180m), 1.58g/t Au (hole KSRC0008 16-18m) and 60.8g/t Ag (hole KSRC0003 6-8m).5

Separate zones of enrichment in base and precious metals suggest multiple phases of enrichment within the same system, increasing the prospectivity for the discovery of further polymetallic mineralisation.

Mineralisation remains open to the south and east under increasing cover presenting a further target area for follow-up with further targeted drilling.

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OPEN

Figure 2 - Kaolin Shaft completed RC drilling over soil Au anomaly.

Early interpretation of the Resistivity Depth Images produced from the AEM survey (Figure 3) suggest that a south-west dipping structure is present to the north-east of the Kaolin Shaft Gold Prospect and may be associated with the mineralising system as a feeder structure. Further work on the prospect will include follow-up drilling to investigate potential extensions of mineralisation to the east of current drilling towards the potential feeder structure.