Talisman to Grant Option to Sell WA Iron Ore Projects for $41.35 Million

Talisman Mining is pleased to announce that it has reachedcement clinker grinding equipment read more at http www clinkergrindingunit com cement clinker grinding unit copyright binq agreement to sell its Wonmunna and Uaroo iron ore projects in Western Australia in a deal which, if completed, will realise $34.25 million in cash and a substantial shareholding in a new Australian iron ore company.

Option Agreement

Talisman has entered into an Option Agreement with E-Com Multi Limited to grant it a three-month option to purchase the Wonmunna and Uaroo iron ore projects for a consideration of $41.35 million, comprising cash of $34.25 million and shares in E-Com Multi Limited to the value of $7.1 million.

Under the terms of the Option Agreement the option term will commence upon payment by E-Com Multi Limited of a $2 million non-refundable option fee. E-Com Multi Limited has paid $0.5 million of this Option fee to Talisman at this time.

The payment of the remaining $1.5 million option fee to Talisman by E-Com Multi Limited is subject to approval by E-Com Multi Limited shareholders which is planned to be sought by 11 November 2010. This condition precedent must be satisfied on or before 30 November 2010.

The total $2 million option fee will be included in the overall cash consideration if the option is exercised by E-Com Multi Limited.

The exercise of the option by E-Com Multi Limited is conditional on:

Completion of due diligence on the Wonmunna and Uaroo Projects by E-Com Multi Limited to its satisfaction; Shareholder approval for the exercise of the option by both companies (if required by the ASX); Any other statutory approvals which may be required by either party; and E-Com Multi Limited completing a capital consolidation and capital raising of up to a total of $45 million.

The option, if granted will expire on 12 February 2011 or as otherwise agreed.

If the option is exercised by E-Com Multi Limited, it will result in a major boost to Talisman’s cash resources underpinning its ongoing copper-gold exploration activities in the highly prospective Bryah Basin and significantly enhancing its ability to target additional new growth opportunities in the Australian resource sector.

Talisman will also retain a holding in E-Com Multi Limited of between 8.7% and 9.6% on an undiluted basis post that company’s recapitalisation and capital consolidation, giving Talisman exposure to the future upside from the successful execution of E-Com Multi Limited’s Australian iron ore strategy.