Ann: Wonmunna Project Scoping Study , page-3

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Talisman Mining Limited (ASX: TLM – “Talisman”), is pleased to advise that it has received from
AMC Consultants Pty Ltd (“AMC”) the Scoping Study for its 100%-owned Wonmunna Iron Ore
Project in the Pilbara region of Western Australia.
The Wonmunna Iron Ore Project is located 70km northwest of Newman, near existing rail and road
infrastructure, and proximal to a number of major iron ore mines including Hope Downs, West
Angelas and Mining Area C.
The Scoping Study considered a substantial number of potential development scenarios for
Wonmunna and concluded that the Project is potentially economic based on production of between
2 Mtpa and 5Mtpa with ore sold to one of the existing nearby mining operations.
Whilst further material evaluations of the Project and a feasibility study are required Talisman is
encouraged by the results of the Scoping Study, which has confirmed and highlighted the potential
strategic value of the Wonmunna Project.
Background
Talisman commissioned AMC Consultants Pty Ltd to undertake the Wonmunna Scoping Study in
late 2008. The Scoping Study considered 54 potential operating scenarios for the Wonmunna
Project, estimating associated mining, processing, transportation and other capital and operating
costs for each scenario to an accuracy of +-30% commensurate with the usual degree of accuracy
for such Studies.
The Scoping Study was based on the previously announced Inferred Mineral Resource estimate for
the Wonmunna Project (at a 50% Fe cut-off grade) of 78.3 million tonnes grading 56.0% Fe, 6.6%
Si2O3, 3.6% Al2O3, 0.08% P and 9.2% LOI (see TLM:ASX Announcement – 21 January 2009 and
Appendix 1).
This Inferred Mineral Resource estimate includes a high-grade Direct Shipping Ore (DSO)
component (using a 60% Fe cut-off grade) of 10.0 million tonnes grading 61.3% Fe, 3.1% Si2O3,
1.7% Al2O3, 0.08% P and 7.3% LOI.
Pit optimisations were conducted by AMC using both the high-grade (60% Fe cut-off grade) and
lower-grade (50% Fe cut-off grade) resource models, enabling both high-grade mining scenarios
with relatively short mine life and lower-grade mining scenarios with a longer mine life to be
assessed.
Mining and processing scenarios considered a suite of operating options based on owner and/or
contract operations. The Scoping Study concluded that the Wonmunna Project is potentially
economic based on high-grade and low-grade options with ore sold to nearby mines at production
rates of 2 Mtpa to 5 Mtpa.
Scoping studies generally are relatively high level technical and economic assessments of various
potential development and operating pathways for mineral resources projects that provide an
opportunity to identify preferable development and operating scenarios for more detailed and
focused assessment in the future.
Conclusions and Forward Program
Talisman believes the results of the AMC Scoping Study on the Wonmunna Project are encouraging
and in light of this, the Company will now continue work to evaluate the project including considering
strategic alternatives related to marketing and sales options for Wonmunna. This may include the
potential for mine gate sales, infrastructure sharing or other arrangements, strategic options for a
joint venture, or other mechanism to realise value from the Wonmunna Project.
Commenting on the announcement, Talisman’s Managing Director, Mr Gary Lethridge, said: “We are
pleased that the AMC Scoping Study shows that Wonmunna is an asset of potential strategic value
to Talisman. We still have a great deal of work to do on Wonmunna and, with the recent
announcement of the proposed Pilbara iron ore operating joint venture between BHP Billiton and Rio
Tinto, no doubt the landscape in the Pilbara for potential junior iron ore miners will continue to
evolve.”
Talisman recently strengthened its Board with the appointment, as executive Directors, of
experienced mining executives Mr Peter Langworthy and Mr Brian Dawes, both former key members
of the successful Jubilee Mines NL management team.
The new appointments mark a significant step towards achieving Talisman’s goal of becoming a
premier Australian resource company through a combination of organic growth opportunities
combined with a disciplined approach to exploration, acquisition and investment opportunities.
Talisman continues to identify and assess exploration opportunities with renewed emphasis on
nickel sulphides.