Talon Announces Closing Of Private Placement

Oct 21, 2010

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Road Town, Tortola, British Virgin Islands (Oct 21, 2010) - Talon Metals Corp., (“Talon” or the “Company”) (TSX: TLO) is pleased to announce that it has completed the first part of a non-brokered private placement with a strategic investor for a total of 4,681,448 units (each, a “Unit”) at a price of CDN$0.45 per Unit for gross proceeds of CDN$2,106,652.

Each Unit is comprised of one common share of Talon (each, a “Common Share”) and one-half of one Common Share purchase warrant. Each whole such purchase warrant, entitling the holder thereof to purchase one Common Share at an exercise price of CDN$0.60 per Common Share. The warrant expiry date is October 21, 2012.

The price of the Units reflects the five-day volume weighted average trading price of the Common Shares on the TSX calculated as at September 16, 2010, the date on which the notice of private placement was filed with the TSX. Under the policies of the TSX, Talon had up to 45 days to close the private placement.

A second and final closing with additional strategic investors to complete this private placement is anticipated next week. The balance of this private placement is for a further 5,964,877 Units for gross proceeds of CDN$2,684,195.

The proceeds from this private placement will be used for the exploration program at Talon's Trairão Iron Ore Project.

“With this addition to our treasury we intend to complete our aggressive Phase 1 exploration program at the Trairão Iron Ore Project and fund operations through the medium term,” said Mr. Stuart Comline, President and CEO of Talon.

About Talon

Talon is a TSX-listed company focused on the acquisition, exploration and development of iron ore and other mineral resource projects. The Company has a well-qualified exploration and management team with extensive experience in exploration and project management.

Talon has a treasury of approximately CDN$7 million and holds 985,830 common shares in Brazilian Gold Corporation (TSXV:BGC). Talon has 68,559,398 common shares outstanding and 76,729,122 shares on a fully diluted basis taking into account this private placement.

For additional information on Talon please visit the Company's website at www.talonmetals.com or contact:

Erica Belling, CFA
VP Investor Relations
Tau Capital Corp.
Tel: Tel: (416) 361-9636 x 243
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Forward-Looking Statements

This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company's anticipated use of proceeds, the second closing of the private placement and the Company's intention to complete the Phase 1 exploration program at the Trairão Iron Ore Project. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, general business and economic uncertainties, exploration costs varying significantly from estimates, volatility in the prices of publicly traded securities, future mineral prices and adverse market conditions, as well as those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.