Talon Metals Reports Outstanding Results From 2011 Drilling Campaign At The Trairão Iron Project, Brazil

Encouraging Intersections from Initial Diamond Drilling of Fresh BIF

Road Town, Tortola, British Virgin Islands (February 17, 2012) – Talon Metals Corp.(“Talon” or the “Company”) (TSX: TLO) is pleased to announce the results of all the outstanding drill holes for the 2011 drilling campaign at its 100% owned Trairão Iron Project, located in ParÁ State, Brazil. These results include 88 diamond drill holes drilled on Target Areas 1,2 and 3 on the main Trairão ridge, as well as 129 infill Reverse Circulation (“RC”) drill holes on the same areas. In addition, results from the 75 initial prospecting RC drill holes on the lower priority Target Areas 7, 9, 10, 11, 12 and 13 are also reported. The results for the diamond drilling drill holes on Target Areas 1, 2 and 3 are appended to this news release. The results of the RC drill holes may be viewed here.

Highlights of the diamond drilling results for the surficial deposits, saprolite and saprock include:

Target Area Drill Hole Apparent Width (m) Grade (Fe%)
Area 1 TDD-0050 89.15 46.20
Area 1 TDD-0029 100.75 41.22
Area 1 TDD-0019 102.20 40.59
Area 2 TDD-0043 72.90 42.57
Area 2 TDD-0046 87.00 40.09
Area 2 TDD-0042 81.33 41.53
Area 3 TDD-0004 104.72 41.13
Area 3 TDD-0062 116.60 38.82
Area 3 TDD-0061 53.00 40.77

Highlights of the diamond drilling results for the fresh banded iron formation (“BIF”) intersections include:

Target Area Drill Hole Apparent Width (m) Grade (Fe%)
Area 1 TDD-0086 101.41(*) 28.72
Area 1 TDD-0077 258.85(*) 21.69
Area 1 TDD-0014 105.15(*) 25.81
Area 2 TDD-0073 141.30(*) 26.03
Area 2 TDD-0082 149.90(*) 24.78
Area 2 TDD-0084 130.47(*) 23.49
Area 3 TDD-0069 78.60(*) 24.97
Area 3 TDD-0004 97.58(*) 22.77
Area 3 TDD-0003 37.25(*) 26.49

(*)Mineralization in hole is open at depth

“These drilling results confirm the potential of the weathered rock on the main Trairão Ridge and we anticipated will add confidence to the mineral resource estimate for Target Areas 1, 2 and 3 on this eighteen kilometre long ridge,” said Mr. Henri Van Rooyen, CEO of Talon. “We are also encouraged by the drill intersections of considerable widths of fresh unweathered BIF in this area.”

The aim of the diamond drilling program, which was undertaken between May 2011 and December 2011, was to provide confirmatory drill core of the weathered mineralization (surficial deposits, saprolite and saprock) previously drilled in the RC holes and to investigate the potential of the fresh rock mineralization in the BIFs at depth. The diamond drilling has increased the drilling density in the mineral resource areas thereby improving the confidence in the mineral resource estimates. In addition, the core from the diamond drill holes has provided material for the metallurgical samples that are currently being processed.

88 diamond drill holes (12,507.65 metres) were drilled at drill spacings varying from 200 metres to 800 metres and the holes were drilled at -60 to -75 degrees and some vertically, to depths of between 49.40 metres and 391.85 metres. 38 holes were drilled on Target Area 1, 25 holes on Target Area 2 and 25 holes were drilled on Target Area 3.

The diamond drilling successfully provided confirmatory drill core of the weathered rock mineralization (saprolite and saprock), which extends from surface to depths varying between 53.88 metres and 199.45 metres and the core samples have reported grades comparable to the samples of the earlier RC drilling, thereby confirming the results of the RC drilling. The diamond drill holes also intersected broad zones of iron mineralization in the underlying fresh rock BIFs with most grades ranging between approximately 20% Fe and 33% Fe. Underlying Target Areas 1 and 2, the unweathered BIF unit is apparently folded and duplicated, whereas on Target Area 3 there are two parallel BIF units underlying the weathered mineralized rocks.

An additional 129 RC holes have been drilled as step out and infill holes on Target Areas 1, 2 and 3 and these drill holes intersected similar rock types, iron grades and widths in the weathered rock mineralization, as reported in the earlier RC drilling results for these areas. The recent infill RC drilling reduced the drill spacing to 200 metres on these grids and the holes were drilled to depths of between 10 metres and 118 metres. In the central parts of both Target Areas 1 and 2 (cumulative strike length of 5,000 metres) the recently drilled RC holes were drilled into fresh rock thereby extending the depth of RC drilling from the 50 metre depth limit of the original RC drilling to approximately 100 metres depth.

Target Areas 7, 9, 10, 11, 12 and 13
75 prospecting RC holes (3,070 metres) have been drilled on the lower priority Target Areas 7, 9, 10, 11, 12 and 13, to determine the potential on these targets. The results of the drilling confirm the results of earlier mapping and surface sampling work that these target areas are of low potential. Although some mineralized intersections extend to approximately 80 metres, the intersected widths tend to be erratic, and seldom exceed 25 metres over extended strike lengths. Similarly, the iron grades intersected also tend to be erratic and generally are lower than on the Trairão ridge, with most grades in intersections reporting between 15% Fe and 25% Fe. Isolated intersections had grades of up to 40% Fe. Management considers it unlikely that any significant mineral resources would be developed in these target areas and therefore no further work is contemplated on these target areas.

Geological and analytical data for Target Areas 1, 2 and 3, as well as for Target Area 8 (as disclosed in the Company’s news release dated January 12, 2012) have been forwarded to Coffey Mining Ltd. (“Coffey”) who has been engaged by Talon, as independent technical consultants, to prepare an updated National Instrument 43-101 (“NI 43-101”) compliant mineral resource estimate on these target areas.

Drilling Update and Outlook
Based on the results of the outstanding drill holes for the 2011 drilling campaign, management anticipates updating the mineral resource estimate for the weathered rock mineralization, and is contemplating an initial estimate of resources in the fresh rock. The initial metallurgical test work is now continuing and the results are expected to be reported by the end of March 2012.

Quality Assurance, Quality Control and Qualified Person
All drilling samples have been prepared and analyzed by SGS-GeosolLaboratÓrios 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, as well as, FeO analysis.

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 NI 43-101 and has reviewed, approved and verified the technical information disclosed in this news release including sampling, analytical and test data underlying the technical information.

Coffey has previously completed 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 effective August 12, 2011 (the “Technical Report”), a copy of which is available under Talon’s SEDAR profile at www.sedar.com.Please refer to the Technical Report for further information on the Trairão Iron Project.

About 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 Talon

Talon is a TSX-listed company focused on the exploration and development of its portfolio of iron projects in 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$21 million and has 92,001,687common shares outstanding and 109,781,189 shares fully diluted.

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

To view the diamond drill results, please click here

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 the anticipated improvement of confidence of the mineral resource on Target Areas 1, 2 and 3, to the potential for increasing the Company’s mineral resource base, the potential for updating and/or upgrading the mineral resource estimates for Target Areas 1, 2 and 3, the preparation of a mineral resource estimate on Target Area 8, as well as the Company’s targets, goals, objectives and plans (including the Company’s drilling-exploration plans and plans regarding metallurgical testing and the 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, 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.