Talon Metals Announces A 48% Increase In Mineral Resources At The Trairão Iron Project, Brazil

Talon also reports additional drilling results on Target Area 2, Trairão

Road Town, Tortola, British Virgin Islands (Jun 29, 2011) – Talon Metals Corp. (“Talon” or the “Company”) (TSX: TLO) is pleased to announce an increase of 48% in the inferred mineral resource estimate at its 100% owned Trairão Iron Project (the “Trairão Project”), located in ParÁ State, Brazil. This increase is based on the results from the drilling of an additional 26 reverse circulation (“RC”) drill holes over 5,000 metres of strike on the north western extension of Target Area 2 (see Figure 1).

Talon’s independent technical consultants, Coffey Mining Ltd. (“Coffey”), have reported a National Instrument 43-101 (“NI 43-101”) compliant total inferred mineral resource estimate for the Trairão Project of approximately 688 million tonnes (“Mt”) at an average grade of approximately 37% Fe (at a 25% Fe cut-off). This mineral resource estimate is within an area with a cumulative strike length of 10,400 metres over Target Areas 1 and 2. The iron mineralization within this resource includes surficial deposits, saprolite and saprock, which overlie the Archean age banded iron formations (“BIFs”) on the Trairão ridge.

This updated inferred mineral resource estimate for Target Area 2 represents an increase of approximately 223 Mt, at an average grade of approximately 32% Fe (at a 25% Fe cut-off). Effectively, this doubles the tonnage of the mineral resource estimate which was first reported for only the eastern part of Target Area 2 on March 22, 2011 (and is described in the technical report referred to below). The total mineral resource estimate for all of Target Area 2, including both the north western and eastern parts, is now approximately 450 Mt at an average grade of approximately 36% Fe (at a 25% Fe cut-off). The effective date of this updated estimate is June 28, 2011.

“We are aggressively advancing the Trairão Iron Project, as illustrated by today’s announcement of our third NI 43-101 compliant mineral resource estimate in just nine months,” said Eddie Scholtz, President and CEO of Talon. “We see great potential for this iron deposit, in part, as it has the advantage of relatively easy mining options as a surface deposit. Other important components of the work program are also being progressed including beneficiation, infrastructure, marketing and logistics studies as well as a conceptual mining study.”

The updated mineral resource estimate for Target Area 2 is based on the results of an additional 26 RC holes (2,368 metres of drilling), drilled between February and April 2011. These holes were drilled to a depth of between 60 and 130 metres metres over a strike length of 5,000 metres, in an area that is between 200 metres and 550 metres wide. The drilling was conducted on a grid where lines were spaced between 200 and 400 metres apart and the holes were drilled 200 metres apart along the grid lines. All the drill holes intersected iron mineralization in saprolite and saprock, as well as the high-grade surficial deposits (eluvium and colluvium deposits) capping the the Trairão ridge.

The updated approximate cumulative inferred mineral resource estimate for Target Areas 1 and 2 of the Trairão Project is as follows:

25% Fe cut-off 35% Fe cut-off
Strike (metres) Million Tonnes Grade % Fe Million Tonnes Grade % Fe
Target Area 1 2,400 238 39 168 42
Target Area 2 8,000 450 36 219 43
Total 10,400 688 37 387 43

The mineral resource estimate for the north western extension of Target Area 2 is in line with expectations and makes a significant contribution to the mineral resource of the large iron deposit on the Trairão ridge. Although this area has an extensive strike of 5 kilometres along the Trairão ridge, it is narrower and the surficial and saprolite deposits are less well developed than on the eastern part of Target Area 2. Hence, this area was expected to have less high grade mineralization, in comparison with Target Area 1 and the eastern part of Target Area 2.

Additional drilling results on Target Area 2
The results of the last 7 RC holes drilled as part of the 26 hole drilling program in the north western part of Target Area 2 have been received. These holes were drilled on the grid configuration as set out above, and the results from these 7 holes have been incorporated into the mineral resource estimate reported here.

Table 1 – 7 Drill Hole Intersections from the NW part of Target Area 2, Trairão

Hole ID E.O.H.* (m) From (m) To (m) Interval** (m) Grade*** (% Fe)
TRC-0113> 85.00 0.00 85.00 85.00# 35.75
(including) 0.00 36.00 36.00 48.05
TRC-0114> 101.00 0.00 101.00 101.00# 32.06
(including) 0.00 36.00 36.00 49.12
TRC-0115> 115.00 0.00 115.00 115.00# 25.09
(including) 0.00 14.00 14.00 43.09
TRC-0116> 87.00 0.00 87.00 87.00# 34.66
(including) 0.00 9.00 9.00 50.18
TRC-0119> 106.00 0.00 106.00 106.00# 30.27
(including) 0.00 22.00 22.00 49.46
TRC-0120> 118.00 0.00 118.00 118.00# 29.55
(including) 0.00 24.00 24.00 42.38
TRC-0121> 73.00 0.00 56.00 56.00 39.56
(including) 0.00 18.00 18.00 48.42
(*) E.O.H. means “End of the hole”
(**) intervals do not represent the true widths
(***) Fe grade are uncut
(#) Mineralization open at depth
(>) Inclined drill hole (60 degrees dip)
The prefix TRC on the Hole_ID column indicates RC drill holes. All drill holes reported in this release were drilled towards AZ220° at 60°.

Trairão Drilling Update and Outlook
Currently Talon has two RC rigs and three diamond drill rigs on site at the Trairão Project, and a further five diamond drill rigs are due to begin drilling in July 2011. The RC rigs have completed the drilling of the 7,800 metre long Target Area 3 and complete results are pending. It is anticipated that an inferred mineral resource estimate for Target Area 3 will be undertaken during July, which will complete the initial cumulative inferred resource estimate for the entire priority area on the Trairão ridge, which includes Target Areas 1, 2 and 3 (see Figure 1).

In addition, RC drilling has been completed and assay results are pending on Target Areas 4, 5 and 6 which have a cumulative mapped strike length on three parallel BIF units of 6,200 metres. The RC rigs are currently drilling on the less topographically prominent northern target areas (7-13) which have a cumulative strike length of some 23 kilometres, as delineated by recent geological mapping.

The diamond drill rigs are currently drilling on Target Area 1. The diamond drilling program is intended to upgrade the mineral resource estimates from the inferred category to the indicated category on the priority areas of Target Areas 1 and 2. An initial “indicated” mineral resource estimate for Target Area 1 is expected to be completed during the fourth quarter of this year.

Work on logistics, infrastructure, marketing and environmental aspects of a scoping study is underway. Sampling is being undertaken for preliminary metallurgical testwork following completion of the mineral characterisation study, and preliminary beneficiation tests to produce a marketable concentrate grade are also in progress. In addition, a conceptual mining study has been started.

Conference Call
Talon will host a conference call with Eddie Scholtz, President and CEO, to discuss this news release on Wednesday June 29, 2011 at 1:00p.m. Eastern Time.

To participate in the conference call, investors and media from the US and Canada should dial 1-888-231-8191 prior to the scheduled start time. International callers should dial +1 (647) 427-7450.

To hear a replay of the conference call dial 1-800-642-1687 (toll free in Canada and the US) and +1-416-849-0833 (international callers), and input password 79934903. The replay will be available approximately two hours after the conference call ends.

Talon will offer an archived webcast of the conference call, accessible from the Company’s web site at www.talonmetals.com.

Qualified Persons, Quality Assurance, Quality Control and Methodology
Talon’s exploration programs are being managed by Talon’s VP Exploration, Mr. Paulo Ilidio de Brito (Member: AusIMM) and Talon’s Mining Engineer, Mr. Ricardo Álvares de Campos Cordeiro (MAIG), both of whom are “Qualified Persons” within the meaning of NI 43-101.

The “Qualified Person”, as such term is defined in NI 43-101, who prepared the mineral resource estimates and other technical information presented in this news release is Mr. Bernardo Horta de Cerqueira Viana, who is a geologist, independent of Talon and an employee of Coffey. Mr. Viana is a member of the Australian Institute of Geoscientists (“AIG”). Mr. Viana is responsible for the technical information in this news release and has verified the data disclosed in this news release (including sampling, analytical and test data underlying the technical information, and the inferred mineral resource estimates disclosed herein). In Coffey’s opinion the updated mineral resource estimate disclosed herein is compliant with NI 43-101.

Coffey compiled a NI 43-101 compliant technical report on Target Areas 1 and 2 of the Trairão Iron Project entitled “Second Independent Technical Report on Mineral Resources” dated March 29, 2011, a copy of which is available under Talon’s SEDAR profile at www.sedar.com.

All drilling samples have been prepared and analyzed by SGS-Geosol LaboratÓrios Ltda (“SGS”) which is ISO14001:2004 and ISO 9001:2008 accredited and is independent of Talon. Sample preparation was conducted at SGS Parauapebas preparation facility whereas analyses were performed at the SGS laboratory based in Belo Horizonte, Brazil. The samples were analyzed by fusion with lithium tetraborate-XRF for SiO2, Al2O3, CaO, Fe2O3, K2O, MgO, TiO2, P, Mn and Cr2O3 and retained moisture (LOI) by multi-temperature.

QA/QC procedures include the submission by Talon of systematic duplicates, blanks and standard samples within every sample batch submitted to SGS. In addition, SGS inserts its own standards, blanks and duplicate samples. The results from these control samples indicate acceptable consistency of analysis.

About the The Trairão Project
The Trairão Iron Project is situated within the Serra da Seringa Archean age greenstone belt, within the CarajÁs Mineral Province in Brazil, which also hosts numerous other iron ore deposits. The Trairão Project comprises eight exploration licences and four applications for exploration licences, for a total area of 76,523 hectares (189,092 acres). The primary protore iron mineralization in the project area is magnetite-rich BIFs. The BIFs are associated with positive magnetic anomalies and locally are overlain by extensive supergene enriched hematite deposits in surficial and saprolite zones. Thirteen discreet target areas with iron deposits have been delineated within the licence area.

About Talon

Talon is a TSX-listed company focused on the exploration and development of its 100% owned Trairão Iron Project in ParÁ State, Brazil. 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$33 million and holds 500,000 common shares in Lago Dourado Minerals Ltd. (TSXV:LDM). Talon also holds 19 million shares in Tlou Energy Limited and 25.6 million shares in Rio Verde Minerals, both unlisted companies.

Talon has 91.7 million common shares outstanding and 107.6 million shares on a fully diluted basis.

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

Erica Belling
VP Investor Relations
Tau Capital Corp.
Tel: Tel: (416) 361-9636 x 243
Email: ebelling@taucapital.com

Forward-Looking Information

This news release contains certain “forward-looking statements”. All statements, other than statements of historical fact that address activities, events or developments that the Company 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 the Company based on information currently available to the Company. Such forward-looking statements include, among other things, statements relating to the Trairão Project with respect to estimates in respect of mineral resource quantities, mineral resource qualities, the potential scope of the mineralized area, the preparation of a further updated NI 43-101 compliant mineral resource estimate and the timing associated therewith, the potential for upgrading the mineral resource estimate for Target Areas 1 and 2, the Company’s receipt of certain assay and drilling results and the timing associated therewith, targets, goals, objectives and plans (including the Company’s drilling-exploration plans and plans regarding scoping and mining studies). 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 the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to: failure to establish estimated mineral resources, the grade, quality and recovery of mineral resources varying from estimates, risks related to the exploration stage of the Company’s properties, the possibility that future exploration results will not be consistent with the Company’s expectations (including identifying additional and/or deeper mineralization), changes in the price of iron ore, changes in equity markets, political developments in Brazil, uncertainties relating to the availability and costs of financing needed in the future, changes to regulations affecting the Company’s activities, delays in obtaining or failures to obtain required regulatory approvals, the uncertainties involved in interpreting drilling and exploration results and other geological data and other factors (including exploration, development and operating risks). 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, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of buy . Although the Company 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.

The mineral resource figures disclosed in this news release are estimates and no assurances can be given that the indicated levels of iron 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 mineral resource estimates disclosed in this news release are well established, by their nature mineral 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.