Talisman Mining : Quarterly Cashflow Report

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Name of entity:

Talisman Mining Limited

Rule 5.5

ABN Quarter ended ("current quarter")

71 079 536 495 31 December 2016

Consolidated statement of cash flows Currentquarter $A'000

1. Cash flows from operating activities

2. Receipts from customers

3. Payments for

   Year to date (6 months) $A'000

4. exploration & evaluation

   (1,526) (2,779)

5. development (219) (1,175)

6. production - -

7. staff costs (240) (433)

8. administration and corporate costs (512) (655)

9. Dividends received (see note 3) - -

10. Interest received 124 285

11. Interest and other costs of finance paid - -

12. Income taxes paid - -

13. Research and development refunds - -

14. Other (provide details if material) - -

    1.9 Net cash from / (used in) operating

    activities (2,373) (4,757)

15. Cash flows from investing activities

16. Payments to acquire:

17. property, plant and equipment

    (19) (24)

18. tenements (see item 10) - -

19. investments - -

20. other non-current assets - -

21. Proceeds from the disposal of:

22. property, plant and equipment

23. tenements (see item 10) - -

24. investments - -

25. other non-current assets - -

    Consolidated statement of cash flows Currentquarter $A'000 Year to date (6 months) $A'000

26. Cash flows from loans to other entities - -

27. Dividends received (see note 3) - -

28. Other (provide details if material) - -

2.6 Net cash from / (used in) investing activities (19)(24)

3.	Cash flows from financing activities
3.1	Proceeds from issues of shares
3.2	Proceeds from issue of convertible notes	- -
3.3	Proceeds from exercise of share options	- -
3.4	Transaction costs related to issues of shares, convertible notes or options	- -
3.5	Proceeds from borrowings	- -
3.6	Repayment of borrowings	- -
3.7	Transaction costs related to loans and borrowings	- -
3.8	Dividends paid	- -
3.9	Other (provide details if material)	- -

3.10 Net cash from / (used in) financing activities --
1. Net increase / (decrease) in cash and cash equivalents for the period

2. Cash and cash equivalents at beginning of period

3. Net cash from / (used in) operating activities (item 1.9 above)

4. Net cash from / (used in) investing activities (item 2.6 above)

5. Net cash from / (used in) financing activities

   17,854 20,243

   (2,373) (4,757)

   (19) (24)

   -

   (item 3.10 above) -

6. Effect of movement in exchange rates on cash held

   4.6 Cash and cash equivalents at end of period

   - -

   15,462 15,462
7. Reconciliation of cash and cash equivalents

   at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

   Current quarter $A'000 Previous quarter $A'000

8. Bank balances 108 36

9. Call deposits 14,833 17,462

10. Bank overdrafts - -

11. Other (restricted cash in Doolgunna Joint Venture with Sandfire Resources NL)

5.5 Cash and cash equivalents at end of

521 356

quarter (should equal item 4.6 above) 15,46217,854

6.	Payments to directors of the entity and their associates	Current quarter $A'000
6.1	Aggregate amount of payments to these parties included in item 1.2	158

1. Aggregate amount of cash flow from loans to these parties included

   in item 2.3 -

2. Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

Salaries and statutory superannuation paid to Directors.

7.	Payments to related entities of the entity and their associates	Current quarter $A'000
7.1	Aggregate amount of payments to these parties included in item 1.2	-

1. Aggregate amount of cash flow from loans to these parties included

   in item 2.3 -

2. Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

1. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A'000 Amount drawn at quarter end $A'000

2. Loan facilities - -

3. Credit standby arrangements - -

4. Other (please specify) - -

5. Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

9.	Estimated cash outflows for next quarter	$A'000
9.1	Exploration and evaluation	2,000
9.2	Development	250
9.3	Production	-
9.4	Staff costs	190
9.5	Administration and corporate costs	260
9.6	Other (provide details if material)	-
9.7	Total estimated cash outflows	2,700

10.	Changes in	Tenement	Nature of interest	Interest at	Interest
tenements	reference	beginning of	at end of
(items 2.1(b) and	and	quarter	quarter
2.2(b) above)	location

1. Interests in mining

   tenements and petroleum tenements lapsed, relinquished or reduced

2. Interests in mining

tenements and petroleum tenements acquired or increased

- - - -

- - - -