Talon Metals Announces Reverse Circulation Drilling Complete At Trairão Iron Project In Brazil

Oct 24, 2011

Drilling commenced at InajÁ South Iron Project

Road Town, Tortola, British Virgin Islands (Oct 24, 2011) – Talon Metals Corp. (“Talon” or the “Company”) (TSX: TLO) is pleased to announce that the first phase of reverse circulation (“RC”) drilling of 444 holes and 24,200 meters is now complete at its 100% owned Trairão Iron Project in ParÁ State, Brazil (“Trairão Project”). This drilling program was completed ahead of schedule.

Of the 13 Target Areas drilled at the Trairão Project, assay results have been reported for Target Areas 1-6, and assays are pending for Target Areas 7-13. A highlight of the RC drilling program was the delineation of a cumulative inferred mineral resource estimate on Target Areas 1, 2 and 3, of approximately 1.1 billion tonnes at an average grade of approximately 36% Fe, at a 25% Fe cut-off (National Instrument 43-101 compliant). Target Areas 4, 5, 6, 8 and 9 are expected to increase this mineral resource estimate, while on the other target areas the drilling results are anticipated to be less significant. The next mineral resource estimate update announcement is planned for early November on Target Areas 4, 5 and 6.

“With the RC drilling completed at Trairão and the diamond drilling expected to be finished in the second quarter of next year, our focus has moved from RC drilling to completing the follow-up assaying, metallurgy and beneficiation, as well as a preliminary economic assessment,” said Mr. Eddie Scholtz, President and CEO of Talon. “Our treasury is strong and we have ample funds to progress with our plans for Trairão and our other projects through 2012.”

Talon has commissioned a number of studies for the Trairão Project, including metallurgical studies. The preliminary metallurgical studies, which have been underway for a few months, are currently not progressing at the rate that Talon had anticipated. Samples of the four rock types at Trairão have been provided to a number of laboratories in Brazil and one laboratory in the USA. To date, the laboratory studies have taken longer than expected, in part due to backlogs at the laboratories. Based on the initial indications of these studies, the underlying Banded Iron Formation (“BIF”) at Trairão appears to be an ore that can be beneficiated using traditional techniques; whereas the near surface weathered iron mineralization appears to require an alternate beneficiation process. The optimal beneficiation process is yet to be determined and will ultimately depend on the final metallurgical test results. Metallurgical studies are continuing and Talon expects to announce preliminary metallurgical results in December 2011.

Talon has also initiated several other studies for the Trairão Project, including environmental, conceptual mining, and logistics studies. Work on these studies is ongoing and expected to be completed next year. In addition, Talon expects to complete a preliminary economic assessment in the second quarter of next year. This assessment had previously been planned for completion in the fourth quarter of this year. As a result, a prefeasibility study on the Trairão Project that had previously been targeted for completion in the third quarter of 2012 is now expected to be completed in the fourth quarter of next year.

InajÁ South Iron Project
Talon is also pleased to announce that drilling has now begun at its 100% owned InajÁ South Iron Project in ParÁ State, Brazil. Six RC holes have been completed of a planned 16 hole 1,250 metre program. These drill holes were located on a drill section immediately adjacent to Trench 2, which previously reported an intersection of approximately 252 metres at an average grade of 39.2% Fe (refer to Talon’s news release of October 6, 2011). All of these drill holes intersected the BIF and a preliminary geological interpretation based on the borehole logs suggests that this BIF unit may have a cumulative apparent thickness in the order of 150 to 200 metres. Within the BIF unit, two of the drill holes intersected two individual highly magnetic zones composed of massive magnetite mineralization with minor hematite, which may represent higher grade zones. On both drill holes, these zones of massive magnetite remain open to depth and represent drill targets for a future deep diamond drilling program.

New Exploration Licences Secured
In addition, Talon is pleased to announce that it has secured two additional iron exploration properties in Brazil, and applied for exploration licences for a further three properties. The new exploration properties are located in Mato Grosso State and Piaui State. Preliminary investigations are also being undertaken on a number of other iron ore projects, including some that recently have been submitted to the Company by third parties.

Quality Assurance, Quality Control and Qualified Person
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.

Talon’s exploration programs are being managed by Talon’s Mining Engineer, Mr. Ricardo Álvares de Campos Cordeiro (MAIG) and Talon’s VP Exploration, Mr. Paulo Ilidio de Brito. Mr. Cordeiro is a “qualified person” within the meaning of National Instrument 43-101 (“NI 43-101”) and he has reviewed, approved and verified the technical information disclosed in this news release (other than the mineral resource estimate disclosed herein) including sampling, analytical and test data underlying the technical information.

The qualified person who prepared the mineral resource estimate mentioned in this news release is Mr. Bernardo Horta de Cerqueira Viana who is a geologist, independent of Talon and an employee of Coffey Mining Ltd. (“Coffey”). Please refer to Talon’s news release of August 4, 2011 entitled “Talon Metals’ Inferred Mineral Resource Estimate Exceeds 1 Billion Tonnes at the Trairão Iron Project, Brazil” for additional information on this mineral resource estimate. Coffey compiled a NI 43-101 compliant technical report on Target Areas 1, 2 and 3 of the Trairão Iron Project entitled “Third Independent Technical Report on Mineral Resources” dated August 12, 2011, a copy of which is available under Talon’s SEDAR profile at www.sedar.com.

About the Trairão Iron 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 Iron Project comprises eight exploration licences and four applications for exploration licences, for a total area of 76,523 hectares (189,092 acres).

About the InajÁ South Iron Project

The InajÁ South Iron Project is located in ParÁ State, Brazil, 120 kilometres south of Talon’s Trairão Iron Project. This project covers an area of 6,577 hectares on the InajÁ greenstone belt. Within Talon’s licence area in the InajÁ greenstone belt, an Archean age BIF is developed along a prominent ridge over a strike length of nine kilometres. The principal target is the BIF, which is similar to the targets currently being explored by other companies on adjacent licence areas.

About Talon

Talon is a TSX-listed company focused on the exploration and development of its portfolio of iron projects in Brazil. At the Trairão Iron Project, drilling for mineral resources, as well as metallurgical studies and various mining, environmental and logistics studies are ongoing. 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$26 million 91.8 million common shares outstanding and 107.9 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: (416) 361-9636 x 243

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 Iron Project with respect to estimates in respect of mineral resource quantities, mineral resource qualities, the potential for increasing the Company’s mineral resources, the preparation of a mineral resource estimate on Target Areas 4, 5 and 6 and the timing thereof, the Company’s expectations regarding the completion of a preliminary economic assessment and prefeasibility study and the respective timing thereof, as well as the Company’s targets, goals, objectives and plans (including the Company’s drilling-exploration plans and plans regarding assaying, metallurgical testing, beneficiation, conceptual mining and environmental and logistical studies, and the respective timing thereof). 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 mineralization), changes in the Company’s capital and cost estimates, 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.