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TAMARACK Nickel-Copper-PGE March 2018 TSX: TLO www.talonmetals.com Tamarack Project
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Page 1: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK

Nickel-Copper-PGEMarch 2018

TSX: TLO

www.talonmetals.com

Tamarack Project

Page 2: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK

Conditions of Presentation

• This presentation has been prepared by Talon Metals Corp. (“Talon” or the “Company”) and is being delivered for informational

purposes only. The information contained herein may be subject to updating, completion, revision, verification and further

amendment. Except as may be required by applicable securities laws, Talon disclaims any intent or obligation to update any

information herein, whether as a result of new information, future events or results or otherwise. Neither Talon nor any of its

shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether

direct or indirect, express or implied, contractual, tortuous, statutory or otherwise, in respect of the accuracy or completeness of

the information or for any errors, omissions or misstatements or for any loss, howsoever arising from the use of this

presentation.

• This presentation should not be considered as the giving of investment advice by Talon or any of its shareholders, directors,

officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own

independent assessment of Talon after making such investigations and taking such advice as may be deemed necessary. In

particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective

judgment, analysis and assumption and each recipient should satisfy itself in relation to such matters. Neither the issue of this

presentation nor any part of its contents is to be taken as any form of commitment on the part of Talon to proceed with any

transaction and Talon reserves the right to terminate any discussions or negotiations with prospective investors. In no

circumstances will Talon be responsible for any costs, losses or expenses incurred in connection with any appraisal or

investigation of Talon.

• This presentation does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any

offer to subscribe for or purchase any securities in Talon, nor shall it, or the fact of its distribution, form the basis of,

or be relied upon in connection with, or act as any inducement to enter into, any contract or commitment whatsoever

with respect to such securities.

2

Page 3: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK

Forward Looking Information

• This presentation contains certain “forward-looking statements”. All statements, other than statements of historical fact that address

activities, events or developments that Talon believes, expects or anticipates will or may occur in the future are forward looking

statements. These forward-looking statements reflect the current expectations or beliefs of Talon based on information currently available

to Talon. Such forward-looking statements include, among other things, statements relating to future exploration potential, expansion and

continuity of mineralization, drilling and the timing thereof at the Tamarack Project, the amount of dilution of the Company’s interest in the

Tamarack Project as a result of not funding its proportionate share of the first work program under the Mining Venture Agreement, the

Company’s expectations with respect to its financial resources, royalties, and targets, opex, capex, goals, objectives and plans and the

timing associated therewith.

• Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause the actual results to differ

materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized,

there can be no assurance that they will have the expected consequences to, or effects on Talon. Factors that could cause actual results

or events to differ materially from current expectations include, but are not limited to: changes in commodity prices, including nickel;

changes in interest rates; risks inherent in exploration results, timing and success, including changes in the exploration program by

Kennecott and the failure to identify mineral resources or mineral reserves; the uncertainties involved in interpreting DHEM surveys, drilling

results and other geological data; inaccurate geological and metallurgical assumptions (including with respect to the size, grade and

recoverability of mineral reserves and resources); uncertainties relating to the financing needed to further explore and develop the

properties or to put a mine into production; the costs of commencing production varying significantly from estimates; unexpected

geological conditions; changes in power prices; unanticipated operational difficulties (including failure of plant, equipment or processes to

operate in accordance with specifications, cost escalation, unavailability of materials, equipment and third-party contractors, inability to

obtain or delays in receiving government or regulatory approvals, industrial disturbances or other job action, and unanticipated events

related to health, safety and environmental matters); political risk, social unrest, and changes in general economic conditions or conditions

in the financial markets.

• Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities

laws, Talon disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future

events or results or otherwise. Although Talon believes that the assumptions inherent in the forward-looking statements are reasonable,

forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such

statements due to the inherent uncertainty therein.

3

Page 4: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK

Technical Reference

• The mineral resource figures disclosed in this presentation are estimates and no assurances can be given that the indicated levels of

nickel, copper, cobalt, platinum, palladium and gold will be produced. Such estimates are expressions of judgment based on knowledge,

mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when

new information becomes available. While the Company believes that the resource estimates disclosed in this news release are well

established, by their nature resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may

ultimately prove unreliable. If such estimates are inaccurate or are reduced in the future, this could have a material adverse impact on the

Company.

• Mineral resources are not mineral reserves and do not have demonstrated economic viability. Inferred mineral resources are

estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic

parameters to be applied. Inferred mineral resources are too speculative geologically to have economic considerations applied

to them to enable them to be categorized as mineral reserves. There is no certainty that mineral resources can be upgraded to

mineral reserves through continued exploration.

• The “Qualified Person”, as such term is defined in NI 43-101, who prepared the mineral resource estimate in this presentation is Mr. Brian

Thomas (P.Geo.), who is a geologist independent of Talon and an employee of Golder Associates (“Golder”). Mr. Thomas has reviewed

and approved the technical information in this presentation relating to the mineral resource estimate, including sampling, analytical and

test data underlying such information. For further information, please refer to the technical report entitled “Second Independent Technical

Report on the Tamarack North Project - Tamarack, Minnesota” dated March 26, 2018 (“Tamarack Technical Report”) prepared by

independent “Qualified Persons” Brian Thomas (P. Geo) of Golder, Mr. Tim Fletcher (P. Eng) of DRA Americas Inc. and Mr. Oliver Peters

(P. Eng) of Metpro Management Inc. Copies are available on www.talonmetals.com or on SEDAR at www.sedar.com.

• James McDonald, Vice President, Resource Geology of Talon is a “Qualified Person” within the meaning of NI 43-101. Mr. McDonald is

satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies,

and they have reviewed, approved and verified the technical information disclosed in this presentation (other than the mineral resource

estimate), including sampling, analytical and test data underlying such technical information.

• Where “NiEq” is used in this presentation it was calculated based on the following formula using Talon’s long term metal price

assumptions: NiEq% = Ni%+ Cu% x $3.00/$8.00 + Co% x $12.00/$8.00 + Pt [g/t]/31.103 x $1,300/$8.00/22.04 + Pd [g/t]/31.103 x

$700/$8.00/22.04 + Au [g/t]/31.103 x $1,200/$8.00/22.04

4

Page 5: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK5

Platexco Talon Metals

Experienced Management Teamwith a Track Record Of Project Delivery

5

Warren Newfield

(Executive Chairman)

• Founded Platexco (platinum exploration) in 1997, sold to Impala in 2000 for C$191MM

• Founded AfriOre Ltd. (platinum exploration) in 2001, sold to Lonmin in 2007 for C$496MM

• Founded CIC Energy Corp. (coal exploration) in 2005, sold to Jindal Group in 2012 for C$116MM

• Named as one of the most influential people in South Africa's mining industry in 2008

Henri van Rooyen

(CEO)

• Manages exploration project evaluation, integration and development, 15 years in mining industry

• Founded largest silica mine in South Africa, sold to South African mining group

• Created one of South Africa's largest offshore diamond exploration projects, sold to a private Swiss group

• Developed nickel, coal, CBM, gold, potash & iron ore exploration projects from inception to exit in Botswana, Ivory Coast, South Africa & Brazil

• Chartered Accountant

Sean Werger

(President)

• Manages commercial negotiations, M&A activity, legal and investor relations matters

• Ten years in mining industry

• Managed M &A activity of nickel, coal, CBM, gold, potash & iron ore exploration projects from inception to exit in Botswana, Ivory Coast,

South Africa & Brazil

• Previously a litigator with Lax, O’Sullivan Scott

• LL.B/MBA

Vince Conte

(CFO)

• Ten years of mining industry experience

• Previously a Senior Manager with Deloitte & Touche, LLP, practicing in the financial advisory group with a focus on mining

• Holds CA, CFA and CBV designations

James McDonald

(VP Resource Geology)

• Resource Geologist with more than 20 years mining industry experience

• One of Talon’s “Qualified Person’s” in accordance with National Instrument 43-101

• Previously a Senior Resource Geologist with Golder Associates, and held positions with Barrick Gold and Inco/Vale

Dr. Etienne Dinel

(VP Geology)

• Geologist with more than 10 years mining experience

• Geoscientist specializing in Structural Geology, Petrology and Geochemistry of ore deposits

• Previously spent 7 years in academia as a Term Lecturer in Structural Geology at the University of Toronto

• PH.D in Economic Geology

Dr. Tony J. Naldrett

(Director)

• One of the leading experts in the world on magmatic (nickel, copper and platinum-group element) sulphide mineralization

• Previously consulted for Chevron Corporation, Falconbridge Ltd., Western Mining Corporation, BHP Billiton, Rio Tinto Group and Voisey's Bay

• Professor Emeritus at the University of Toronto

Page 6: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK 6

EXECUTIVE SUMMARY

Page 7: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK

Executive Summary

7

• In January 2018, Talon and Kennecott, entered into the Mining Venture Agreement which

governs the joint venture relationship between the parties in respect of the Tamarack

Project.

• As of March 2018, Talon owns an 18.45% interest in the Tamarack Ni-Cu-PGE Project

(includes the Tamarack North Project and the Tamarack South Project), located in

Minnesota, USA.

• The remaining 81.55% interest is owned by Talon’s joint venture partner, Kennecott

Exploration Company, a subsidiary of the Rio Tinto Group.

• Each proposed program and budget under the Mining Venture Agreement must provide for

an annual expenditure of at least US$6.15 million until the completion of a Feasibility Study

(as defined under the Mining Venture Agreement). The failure of either party to fund its

share of each proposed program and budget will result in dilution (and in certain

circumstances accelerated dilution).

o The first work program and budget was agreed to in January 2018 and Talon elected

not to fund its proportionate share. As such, Talon’s interest will be diluted by

approximately 1.48%, from 18.45% to 16.97% (the dilution may be less if Kennecott

elects to spend less money during the 2018 winter exploration program).

Page 8: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK

Executive Summary - Continued

8

• In March 2018, Talon Metals announced an updated mineral resource estimate on the Tamarack North

Project (all within an area called the Tamarack Zone), with:

• 3.639 million tonnes in the indicated category at 2.45% Ni Eq; and

• An additional 4.382 million tonnes in the inferred category at 2.11% NiEq

• The inferred resource includes a high grade Massive Sulphide Unit (MSU) of 570,000 tonnes @ 7.2%

NiEq

• Drilling success in 2016 continued to show continuity with the expansion of the MSU in the Tamarack

Zone to the north and bridge the gap between the Main Zone MSU and 138 Zone MSU.

• The Tamarack Zone comprises less than 10% of the total strike of the TIC

• There remains significant growth potential at Tamarack:

• Through resource expansion within the Tamarack Zone; and

• Talon and Kennecott have already identified new mineralized zones kilometers away from the

known mineralized zone (see discoveries made in the 480 Zone, 221 Zone, CGO Bend, 164

Zone) and Neck Zone

• 2017 drilling focused on testing new geological models. The results were inconclusive, however

sulphide rich anomalous intrusive similar to FGO of the Tamarack Zone were discovered in the 480

Zone.

• 2018 drilling focused on testing the extent of mineralization in the 221 Zone. Results are pending.

Page 9: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK 9

JOINT VENTURE WITH

KENNECOTT EXPLORTION

COMPANY

Page 10: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK

Talon Owns an 18.45% Interest in the Tamarack Project

• Talon has spent a total of US$25.5 million to earn an 18.45% interest in the

Tamarack Project. All of the funds advanced are being used to fund

exploration expenditures, a one-time US$1 million upfront payment to

Kennecott and certain land acquisitions.

• In January 2018, Talon and Kennecott Exploration Company, a subsidiary of

the Rio Tinto Group, entered into the Mining Venture Agreement which

governs the joint venture relationship between the parties with respect to the

Tamarack Project.

• Kennecott is the Manager of the Tamarack Project. A management

committee will be established to provide general oversight of the Manager

with two committee members from both Talon and Kennecott.

10

Page 11: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK

Mining Venture Agreement

• Beginning with the first program and budget under the Mining Venture Agreement, each

proposed program and budget must provide for an annual expenditure of at least

US$6.15 million until the completion of a Feasibility Study (as defined under the Mining

Venture Agreement). The failure of either party to fund its share of each proposed

program and budget will result in dilution (and in certain circumstances accelerated

dilution).

• The first work program and budget was agreed to in January 2018. Talon elected not to fund

its proportionate share. As such, Talon’s interest will be diluted by approximately 1.48%, from

18.45% to 16.97% (the dilution may be less if Kennecott elects to spend less money during

the 2018 winter exploration program).

• In the event either party’s participating interest in the Tamarack Project dilutes below

10%, such party’s interest will be converted into a 1% Net Smelter Returns Royalty.

• In the event of a proposed transfer of either party’s interest in the Tamarack Project to a

third party, the non-transferring party has a right of first refusal. In the event the non-

transferring party elects not to exercise its right of first refusal, the non-transferring

party has a tag-along right, while the transferring party has a drag-along right.

11

Page 12: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK 12

THE TAMARACK PROJECT

Page 13: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK

Tamarack Project: Excellent Infrastructure with Grid

Power and a Railway Line on Site

13

The Tamarack Project is located adjacent to the town of Tamarack in

north-central Minnesota approximately 85 km west of Duluth and 200 km

north of Minneapolis, in Aitkin and Carlton Counties

Tail

Neck

Bowl

Tamarack Igneous

Complex (TIC)

(Magnetic 1VD

Image)

2 km

Power Line

Tamarack Zone

Page 14: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK

The Tamarack Igneous Complex is Extremely Large – 18km of Strike Length

14

The Tamarack Igneous Complex (TIC) is comparable, in footprint size, to

some of the world’s largest and most prolific nickel-copper-platinum

intrusive complexes

Page 15: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK 15

TAMARACK

NORTH

PROJECT

Page 16: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK16

Talon Metals

Tamarack North Project

16

• The Tamarack Zone with an

updated (Feb 15, 2018)

independent mineral resource

estimate (see slides 18-19).

• Recent drilling (2014-2016) has

focused on expanding the MSU in

the Tamarack Zone.

• Numerous exploration holes have

tested zones along strike (142,

164, 221,CGO Bend, 480 Zones)

• 2018 drilling focused on testing

the potential extensions of

mineralization in the 221 Zone.

Page 17: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK 17

The Tamarack Zone: Mineralized units of SMSU, MSU and 138 Zone

SMSU:

Semi Massive Sulphide Unit:

Net textured to disseminated sulphide mineralization, (80-30% sulphide)

within two imbricated tubular bodies: the Upper SMSU body (400 m long,

40 m to 80 m wide and 40 to 70 m vertically) and the Lower SMSU body

(350 m long, 40 m to 65 m wide and 40 to 70 m vertically), hosted within

the CGO intrusion.

MSU:

Massive Sulphide Unit:

Massive (MSU) and mixed massive sulphide (MMS) occurring within an

approximately 10m thick by 10-30m wide, continuous zone for over 550m.

The MSU is hosted within the footwall meta-sediments at the base of FGO

intrusion.

138 Zone:Disseminated Sulphide Unit:

Thick (120-160m) zone of disseminated and net textured sulphides hosted

within the FGO/MZNO intrusion.

SMSU138

Zone

138

Zone

Page 18: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK

NI 43-101 Resource in Tamarack and 138 Zones

18

138

ZoneAll resources reported at a 0.83% NiEq cut-off. No modifying factors have been applied to the estimates. Tonnage

estimates are rounded to the nearest 1,000 tonnes. Metallurgical recovery factored in to the reporting cut-off.

*NiEq was calculated based on the following formula using Talon’s long term metal price assumptions:

NiEq% = Ni%+ Cu% x $3.00/$8.00 + Co% x $12.00/$8.00 + Pt [g/t]/31.103 x $1,300/$8.00/22.04 + Pd [g/t]/31.103

x $700/$8.00/22.04 + Au [g/t]/31.103 x $1,200/$8.00/22.04

For further information, please refer to the Technical Reference slide of this presentation and Talon’s news release

dated March 26, 2018 entitled “Talon Metals Files Updated National Instrument 43-101 Technical Report on the

Tamarack North Project” which is available at www.talonmetals.com or www.sedar.com.

.

Plan view of the 2018 SMSU, MSU

and 138 Mineralized Zones

• Successful drilling in the MSU since 2014, consistent with Talon’s

interpretation, has extended the MSU to the northeast as well as to

the South.

• The recently published 2018 resource update (effective date:

February 15, 2018) represents an approximate 255% increase in

MSU tonnage since Talon joined the project.

Domain ClassificationTonnes

(000)

Ni

(%)

Cu

(%)

Co

(%)

Pt

(g/t)

Pd

(g/t)

Au

(g/t)

Calc

NiEq

(%)

SMSU Indicated 3,639 1.83 0.99 0.05 0.42 0.26 0.2 2.45

Total Indicated 3,639 1.83 0.99 0.05 0.42 0.26 0.2 2.45

SMSU Inferred 1,107 0.9 0.55 0.03 0.22 0.14 0.12 1.25

MSU Inferred 570 5.86 2.46 0.12 0.68 0.51 0.25 7.24

138 Zone Inferred 2,705 0.95 0.74 0.03 0.23 0.13 0.16 1.38

Total Inferred 4,382 1.58 0.92 0.04 0.29 0.18 0.16 2.11

Tamarack North Project Updated Mineral Resource Estimate

(Effective Date: Feb 15, 2018)

Page 19: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK

Mineral Resources and Grades at Various Cut-Off Grades (Effective February 15, 2018)1

19

1Cut-off grades are listed in the left hand column; Mining recovery and dilution factors have not been applied to the estimates; Tonnage estimates are rounded

down to the nearest 1,000 tonnes; Estimates do not include metallurgical recovery; % = percent; g/t – grams per tonne

*NiEq was calculated based on the following formula using Talon’s long term metal price assumptions:NiEq% = Ni%+ Cu% x $3.00/$8.00 + Co% x $12.00/$8.00 + Pt [g/t]/31.103 x $1,300/$8.00/22.04 + Pd [g/t]/31.103 x $700/$8.00/22.04 + Au [g/t]/31.103 x $1,200/$8.00/22.04

For further information, please refer to the Technical Reference slide of this presentation and Talon’s news release dated March 26, 2018 entitled “Talon Metals

Files Updated National Instrument 43-101 Technical Report on the Tamarack North Project“ which is available at www.talonmetals.com or www.sedar.com.

NiEq Cut-Off

(%)Classification

Tonnes

(000)

Ni

(%)

Cu

(%)

Co

(%)

Pt

(g/t)

Pd

(g/t)

Au

(g/t)

NiEq

(%)

0.7 Indicated 3,711 1.81 0.98 0.05 0.42 0.26 0.20 2.43

0.7 Inferred 5,263 1.40 0.82 0.04 0.26 0.17 0.15 1.88

0.83 Indicated 3,639 1.83 0.99 0.05 0.42 0.26 0.20 2.45

0.83 Inferred 4,382 1.58 0.92 0.04 0.29 0.18 0.16 2.11

0.9 Indicated 3,588 1.85 1.00 0.05 0.42 0.26 0.20 2.48

0.9 Inferred 3,914 1.70 0.98 0.04 0.30 0.19 0.17 2.26

1 Indicated 3,470 1.89 1.02 0.05 0.43 0.27 0.21 2.53

1 Inferred 3,336 1.88 1.06 0.05 0.32 0.21 0.18 2.48

Page 20: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK

Exploration Successes based on Geological Model

Tamarack Zone

• Extended MSU on the east Flank, North of hole 211.

• Bridged a previous gap in the MSU.

• Tamarack Zone MSU still remains open to North and

South of current mineralization.

20

Plan view

showing

the 2014

MSU, NI

43-101

resource

Plan view

showing

the 2015

MSU, NI

43-101

resource

Plan view

showing

the 2018

MSU, NI

43-101

resource

Page 21: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK 21

Tamarack Zone – North East extension of the MSU trend (drill results)1

1 See Talon’s Press Releases dated May 11 2015, February 24, June 2, June 28, July 13, Sept 16, Nov 22, Dec 13, 2016

Northeastern MSU extension Drill results (+150m):

• 16TK0243: 10.50 m of MMS at 5.88 % Ni, 2.32% Cu, 0.93 g/t PGE’s, 0.09g/t Au

• 16TK0235: 10.83 m of MMS at 4.90% Ni, 2.47% Cu, 0.76 g/t PGE and 0.14 g/t Au

• 16TK0235A: 11.26 m of MMS at 4.74% Ni, 2.38% Cu 0.60 g/t PGE and 0.10 g/t Au;

• 15TK0220A: 4.05 m of MMS at 2.01% Ni, 1.24% Cu, 1.03 g/t PGE and 1.16 g/t Au,

• 16TK0247: 5.00m of MMS at 3.26% Ni, 2.59% Cu, 0.46g/t PGE’s, 0.28g/t Au.

• Continuity of the trend is also supported by prominent DHEM conductors.

Page 22: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK 22

Tamarack Zone – Extension of the South Eastern MSU trend toward 138 Zone (drill results)1

1 See Talon’s Press Releases dated, June 2, Sep 16, Nov 22, 2016

MSU Gap drill results (~140m) linking the two MSU :

• 16TK0233A: 9.00 m of 4.94% Ni 2.08% Cu, 1.00 g/t PGE’s and 0.24 g/t

Au.

• 16TK0234: 5.05 m of 4.49% Ni, 1.86% Cu, 1.11g/t PGE’s and 0.27g/t Au

• 16TK0246: 4.36 m of 5.13% Ni, 2.12% Cu, 1.17 g/t PGE’s and 0.29 g/t Au

• Continuity of the trend is also supported by prominent DHEM

conductors.

Page 23: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK 23

Tamarack Zone – SMSU intersections (drill results)1

New SMSU intersections support the SMSU mineralization outlined by Talon

1 See Talon’s Press Release dated Nov 22, 2016

Page 24: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK 24

Tamarack Zone – Extension of the 138 Zone (drill results)1

1 See Talon’s Press Releases dated Nov 22 and Dec 13, 2016

138 Zone mineralization extension Drill results:

• 16TK0245; 117 m of 0.63% Ni, 0.46% Cu, 0.37 g/t

PGE’s and 0.12 g/t Au

• 16TK0248; 130 m of 0.87%Ni, 0.60% Cu, 0.35 g/t

PGE’s and 0.15 g/t Au

• 16TK0250; 91 m of 0.62% Ni, 0.42% Cu, 0.25g/t

PGE’s and 0.10g/t Au

Page 25: Tamarack Project - Talon Metals · satisfied that the processes used by Kennecott at the Tamarack Project are standard industry operating procedures and methodologies, and they have

TAMARACK25

221 Zone – New Mineralized Target 1.8km north of Tamarack Zone (2015 drilling)1

25

• Defined by a gravity anomaly that corresponds with the underlying CGO intrusion.

• Discovery hole 15TK0221 intercepted massive nickel-copper-PGE sulphide mineralization with an

associated DHEM off-hole anomaly located approximately 80 to 100 meters to the northwest of the hole.

• 15TK0229; intersected 9.88 m from 693.79m depth at 2.35% Ni, 1.40% Cu, 0.77g/t PGE’s and 0.17g/t Au.

Included high grade zones of:

• 2.84 m from 700.83 m depth of 7.68% Ni, 4.59% Cu, 2.41 g/t PGE’s and 0.53 g/t Au

• 1.63 m from 702.04 m depth of 9.33% Ni, 5.14% Cu, 3.65 g/t PGE’s and 0.71 g/t Au

• 15TK0228; Intersected massive sulphide rip-rip up clasts indicating a proximal source. Mineralized zone

corresponds with DHEM conductor seen in other holes, suggesting there may be continuity along strike

• 2018 drill results are pending.

1 See Talon’s Press Releases dated May 28, July 29, Sept 1, 2015 and June 2 , Dec 13, 2016

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TAMARACK26

221 Zone (cont.) - 2016 Drilling 1

26

Continued success with 2016 drilling

• 16TK0231; 4.74 m at 1.77% Ni, 1.22% Cu, 1.02g/t PGEs and 0.31g/t Au from 684m depth

• Including 1.31m at 3.78% Ni, 1.65% Cu, 1.20 g/t PGE’s and 0.31 g/t Au from 687.43m depth.

• 16TK0239; 2.26 m of 1.28% Ni, 0.80% Cu, 0.31 g/t PGE’s and 0.08 g/t Au from 566.25 m depth

1 See Talon’s Press Releases dated May 28, July 29, Sept 1, 2015 and June 2, Dec 13, 2016

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TAMARACK27

CGO Bend – Shallow target up-dip of Tamarack Zone1

• Massive sulphide mineralization at base of FGO on both east and west flanks of the CGO as

demonstrated by historical drill holes.

• 16TK0238: 2.2 m of 1.75% Ni, 0.89% Cu, 0.32 g/t PGE’s and 0.12 g/t Au from depth 117.72 m

• DHEM conductor2 from 16TK0238 is coincident with mineralization intersected in 13TK0187

(2.83m of 3.82% Ni, 1.62% Cu from 138.94 m depth).

1 See Talon’s Press Release Dec 13, 2016 292 DHEM plates are interpretations of conductors but are not necessarily indicative of

mineralization

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TAMARACK28

CGO Bend – Exploration results (cont.) 1

• Potential continuity of mineralization also

demonstrated by coincident:

• DHEM conductors2

• Time domain electromagnetic

(TDEM) anomaly from survey on

eastern flank

• Shallow and up-dip connection to the

Tamarack Zone make the target

potentially strategic for future development

of the Tamarack project

• Future plans include TDEM survey on

western flank and further drilling

301 See Talon’s Press Release Dec 13, 2016

2 DHEM plates are interpretations of conductors but are not necessarily indicative of

mineralization

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TAMARACK

Platexco Talon Metals

480 Zone

29

• Potentially shallow target 3 to 4.5 km north of the

Tamarack Zone. Previous drilling had intersected

wide zones of disseminated mineralization at depths

40-75m.

• Drill holes 15TK0215 and 15TK02251 were drilled

approximately 3 km north of the Tamarack Zone

targeting prominent magnetic anomalies.

• Drill hole 15TK0225 intersected Ni-Cu-PGE

sulphide mineralization at the base of the

FGO/mixed zone (MZ) type intrusion, including

0.49 meters at 335m depth assaying 1.15%

Ni, 0.55% Cu, 0.15 g/t PGEs and 0.04 g/t Au.

• 2017 drilling (17TK0255/17TK0262) confirmed the

presence of FGO (*with anomalous sulphides)

modelled by Mira Geoscience.

• More work is required to follow up on these

promising results.1For a list of all holes and associated drill and assay data see Talon’s Press

Releases dated July 29, 2015 and September 1, 2015

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TAMARACK30

Platexco Talon Metals

164 Zone

30

• Previous drilling has intersected mixed zones of

disseminated and massive sulphide mineralization at the

base of the FGO and mixed zone (MZ) intrusions.

• The target is an MSU hosted along an axis (keel) at the base

of the FGO.

• Targeting of this keel can be guided through geochemistry

where a ‘Basal FGO’ layer can indicate proximity to the keel.

• Three holes were drilled during the 2015 winter exploration

program: 12LV0143 (deepened), 15TK0227 and 15TK0222

located between 0.4 km and 0.8 km south of the Tamarack

Zone1.

• Drill holes 15TK0222 and 15TK0227 intercepted Mixed

Zone (MZ) with associated sulphides.

• The new modelling of the FGO and the keel from the data

provided by the drilling, combined with wide intercepts of

sulphides, suggests the 164 Zone is highly prospective.

1 For a list of all holes and associated drill and assay data see Talon’s Press

Releases dated July 29, 2015 and September 1, 2015

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TAMARACK31

Platexco Talon Metals

142 Zone

31

• Drill hole 15TK0226 was drilled as part of the

2015 winter exploration program and is located

2km south of the Tamarack Zone1.

• It targeted a DHEM off-hole anomaly,

surveyed previously, from drill hole

12LV0142.

• The FGO-sediment contact was intersected

at a higher than anticipated level after only

intersecting 55 meters of FGO (including a

mineralised zone of 0.7 meters).

• A DHEM survey from drill hole 15TK0226

identified an off-hole anomaly suggesting

highly conductive material to the east of the

hole. This is consistent with new modelling of

the FGO keel and will require further drilling

to test.

1 For a list of all holes and associated drill and assay data see Talon’s Press

Releases dated July 29, 2015 and September 1, 2015

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TAMARACK 32

TAMARACK

SOUTH

PROJECT

Platexco

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TAMARACK33

Platexco

Tamarack South Project

33

Tamarack South Project consists of

two areas:

• The “Neck”

• The “Bowl” - large layered

lopolith to the south.

In 2015, 3 holes were drilled in the

“Neck” and “Bowl”

In 2016, a further 2 holes and 4

deflections were drilled in the Neck,

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TAMARACK

Tamarack South: The Neck: Exploration Potential Confirmed1

• The “Neck” is located approximately 3.5 km south of the Tamarack Zone on a large gravity anomaly.

• It has been interpreted based on similar geochemistry, as a possible entry point to the larger “Bowl” or

lopolithic intrusion to the south, with potential implications for large-scale settling and accumulation of

massive sulphide.

• Drill holes have confirmed the potential for significant mineralization within the “Neck”.

•The FGO has been shown to plunge to the south potentially underlying the bowl as a possible feeder,

supporting the conceptual model

•The FGO shows the same geochemical trends and magmatic layering observed in the Tamarack Zone

demonstrating the large regional scale of the FGO intrusion as a mineralised system

•The persistent development of the potentially fertile basal layer of the FGO that is typically associated

with the keel where sulphides may accumulate has been demonstrated in most of the drill holes.

Importantly, in most holes there is the widespread presence of disseminated sulphides within this basal

layer and in the immediately underlying sediments

.

341 See Talon’s Press Releases dated July 29, 2015 and June 2, 2016

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TAMARACK 35

Tamarack South: The Neck; Results (cont.)1

15TK0218; targeting the gravity high, provided evidence for

sulphide settling at base of FGO and an association with strong

DHEM conductor to the west.

15TK0218A; deflection with 50m step-out targeting DHEM

conductor to west. Intersected a thicker zone of disseminated

sulphides (31.66m) from 1095.34m with 0.46% Ni and 0.19% Cu

at the base of the FGO.

15TK0218C; targeting DHEM anomaly (from 218 and 218A)

intersected over 150m of disseminated sulphides at base of

FGO. including 0.5m MMS of 3.70% Ni, 1.51% Cu, 1.12g/t PGE

and 0.11g/t Au from 1121.25m depth

16TK0236 drilled 300m to north targeting extension of NW

DHEM trend intersected three zones of mineralization

immediately below the FGO and CGO like intrusion. The three

zones included;

-2.78m of 1.04% Ni, 0.8% Cu from 1039.5m depth

-1.10m of 2.55% Ni, 4.32% Cu from 1044.45m depth

-0.88m of 2.47% Ni, 2.19% Cu from 1053.85m depth

16TK0236A; deflection with 72m step-out targeting DHEM

anomaly intersected disseminated mineralisation at base FGO

and mafic dykes below.

16TK0240; targeting gravity features was a 200m step out to

west, intersected 46m disseminated sulphides (>1%) at base

FGO, and 0.3 MMS in mafic intrusion of 2.11% Ni, 0.73% Cu

1 See Talon’s Press Releases dated, May 28, July 29, 2015 and June 28, July 13, 2016

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TAMARACK 36

TALON

CAPITAL STRUCTURE(as of March 2018)

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TAMARACK

Talon Capital Structure

TSX:TLO

Issued Shares: 129.6 million

Total Diluted Shares: 155.9 million 1

37

1 The above does not include any further shares that may be issued to RCF in

the event of an election to convert all or part of the loan and/or interest

Royalty:

• Receive up to 30 million S.A. Rand (~US$2.5 million) from its royalty on the Boikarabelo Coal

Mine in South Africa owned by Resource Generation Ltd (ASX:RES)

RCF Convertible Loan:

• On December 29, 2015, Talon received US$14-million from Resource Capital Fund V.I. LP

(“RCF”) in the form of an unsecured convertible loan

• On December 16, 2016, the loan was increased by US$2-million to US$16-million

• RCF has a right to convert all or part of the loan at a price of C$0.156 per Talon share

• Matures on Nov 25, 2018 and bears interest at 12% p.a.

RCF Non-Convertible Promissory Note:

• On March 29, 2018, Talon received US$1 from RCF in the form of an unsecured non-

convertible promissory note.

• Matures on Nov 25, 2018 and bears interest at 12% p.a.


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