Talon Metals Battery Minerals Processing Facility Selected by US Department of Energy for $114 Million in Bipartisan Infrastructure Law Funding Facility will process nickel and other battery minerals in North Dakota, moving processing and tailings
Talon Metals Battery Minerals Processing Facility Selected by US
Department of Energy for $114 Million in Bipartisan Infrastructure
Law Funding
Facility will process nickel and other battery minerals in North Dakota, moving processing and tailings
management away from the Minnesota mine site
Tamarack, Minnesota--(Newsfile Corp. - October 19, 2022) - Talon Metals Corp. (TSX: TLO) (OTC Pink: TLOFF)
("Talon" or the "Company") has been informed that its wholly-owned subsidiary, Talon Nickel (USA) LLC, has been
selected as a recipient of the first set of projects funded by President Biden's Bipartisan Infrastructure Law to expand
domestic manufacturing of batteries for electric vehicles (EVs) and the electrical grid and for materials and components
currently imported from other countries. Responsible and sustainable domestic sourcing and processing of the critical
materials used to make lithium-ion batteries will strengthen American supply chains, accelerate battery production to meet
increased demand, and secure the nation's economic competitiveness, energy independence, and national security.
On July 1, 2022, Talon's wholly owned subsidiary Talon Nickel (USA) LLC submitted an application for US government
funding under "Area of Interest 01: Commercial Scale Production of Plants for Domestic Separation of Critical Cathode
Battery Materials from Domestic Feedstocks." The application proposed an ore processing and tailings management
facility (the "Battery Minerals Processing Facility") located at an existing industrial brownfields site in Mercer County,
North Dakota, receiving feedstock from the Company's underground Tamarack mine in central Minnesota and other
potential sources in North America. The acquisition of the preferred site in North Dakota is active ly under negotiations.
Removing the processing facilities from the Tamarack mine site in Minnesota significantly reduces land disturbance and
the scope of environmental review and permitting. Both facilities will undergo the science based permitting proces s in both
states that include an opportunity for public comment and government-to-government consultations with tribal sovereign
governments.
The proposed separation of mine and processing operations will create a new domestic battery grade nickel and iro n
production capability designed to meet the timelines set in both the Biden Administration's National Blueprint for Lithium
Batteries | Department of Energy1 and the Tesla-Talon agreement entered into on January 7, 2022 ("Tesla-Talon Supply
Agreement"). On a cost-share basis and subject to final negotiations, the US Department of Energy will provide $114
million grant (estimated to be 27% of total project cost) towards project construction and execution costs for the Battery
Minerals Processing Facility in North Dakota.
"Between the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA), the United States has enacted
significant measures in the last year that prioritize and accelerate the development of the domestic battery supply chain
from mining through to recycling," commented Henri van Rooyen, CEO of Talon. "This national urgency and the target
date for nickel and iron production set within our Tesla-Talon Supply Agreement required an innovative approach to bring
a new domestic source of battery minerals into production during a period of global battery -grade nickel deficits. Today's
announcement is a clear recognition that production of domestic nickel and other battery minerals is a national priority."
"We've worked hard in North Dakota to create a stable tax and regulatory environment that attracts capital and talent and
today's announcement that Talon plans to create 150 jobs and invest significant capital in the Battery Minerals Processing
Facility sends a strong signal that North Dakota is open for business," North Dakota Governor Doug Burgum said. "By
increasing domestic production of nickel and other battery minerals and reducing our reliance on foreign sources, we can
strengthen our economy, our communities and our national security while continuing to grow North Dakota's status as a
powerhouse for the nation. We appreciate the US Department of Energy selecting this new facility i n North Dakota for a
$114 million cost-share grant through the Bipartisan Infrastructure Law, as well as Talon's commitment to working with
local communities to ensure the project has broad support."
Talon Chief External Affairs Officer and Head of Climate Strategy Todd Malan commented: "In our community meetings,
participants have said they are proud that Aitkin County, Minnesota can supply vital ingredients for the domestic battery
supply chain and address America's dependency on China and Russia for mine rals like nickel. They also recognize that
the nickel we can mine in Minnesota is infinitely recyclable and will be part of the US battery supply chain for generations ."
Malan continued, "We are committed to producing the metallic minerals needed for domestic battery production while also
protecting the environment and cultural resources wherever we operate. The plan to process minerals at a current
industrial brownfield site in North Dakota is another positive step towards assuring communities and tribal g overnments
that we can meet both goals."
Tom Conway, President of the United Steelworkers commented, "We look forward to working with Talon to mine nickel in
Minnesota and process it in North Dakota. It's essential that we have a stable supply chain for th e raw materials we'll need
to power clean energy technology, and USW members have a long, proud history of standing up for safe, family -
sustaining, union jobs in the area. Through workforce training and a strong collaboration, we'll ensure that the jobs
created will put us on strong footing and continue to sustain our communities well into the future."
Additional Background
President Biden's National Blueprint for Lithium Batteries | Department of Energy sets near-term targets for the
development of domestic battery supply chains, which align with the 2026-2027 production target in the Talon-Tesla
Supply Agreement. With these aligned commercial and national timelines, Talon plans to simultaneously seek
environmental review and permits for an underground mine and rail loadout facility in Minnesota, as well as the Battery
Minerals Processing Facility in North Dakota. Talon studied eighteen (18) offsite p rocessing sites and selected Mercer
County, North Dakota prior to the Department of Energy's application deadline in early July 2022. The acquisition of the
preferred site in North Dakota is actively under negotiations. Removing the processing facilities f rom the Tamarack mine
site results in a reduced scope for the Minnesota environmental review and permitting process, while simultaneously
progressing a fulsome permitting process in North Dakota for the Battery Minerals Processing Facility. This approach i s
expected to reduce the critical path to commencement of nickel production to meet both the commercial (Tesla -Talon
Supply Agreement) and national (President Biden's Battery Supply Blueprint) timelines.
The preferred site in North Dakota has significant rail and industrial infrastructure as well as uniquely suitable
characteristics for an environmentally superior tailings management system. Cost -effective transportation of raw ore from
the underground mine in Minnesota to the offsite processing facility in North Dakota would be enabled by an existing
railway, which is located approximately 1.25 miles (2 km) from the Tamarack project site.
Talon is committed to working with unions, the local community, and tribal governments to ensure the Battery Minerals
Processing Facility has broad support, contributes to the local economy and protects the environment. Talon has already
concluded a neutrality and workforce development agreement with the United Steelworkers union which applies nationally
and is negotiating a Project Labor Agreement (PLA) with building trades unions in both Minnesota and North Dakota.
ABOUT TALON
Talon is a TSX-listed base metals company in a joint venture with Rio Tinto on the high-grade Tamarack Nickel-Copper-
Cobalt Project located in central Minnesota. Talon's shares are also traded in the US over the OTC market under the
symbol TLOFF. The Tamarack Nickel Project comprises a large land position (18km of strike length) with high -grade
intercepts outside the current resource area. Talon has an earn-in right to acquire up to 60% of the Tamarack Nickel
Project, and currently owns 51%. Talon is focused on (i) expanding and infilling its current high -grade nickel mineralization
resource and (ii) following up on additional high-grade nickel mineralization in the Tamarack Intrusive Complex. Talon has
an agreement with Tesla Inc. to supply it with 75,000 metric tonnes (165 million lbs) of nickel in concentrate (and certain
by-products, including cobalt and iron) from the Tamarack Nickel Project over an estimated six -year period once
commercial production is achieved. Talon has well-qualified experienced exploration, mine development, external affairs
and mine permitting teams.
For additional information on Talon, please visit the Company's website at www.talonmetals.com or contact:
Media Contact:
Todd Malan
1 (202) 714-8187
Investor Contact:
Sean Werger
1 (416) 361-9636 x102
FORWARD-LOOKING STATEMENTS
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 statements
relating to receipt of all necessary permits; receipt of the Bipartisan Infrastructure Law grant and timing thereof; the
construction of the necessary infrastructure and Battery Minerals Processing F acility in North Dakota and the timing and
costs related thereto; the proposed operations meeting anticipated capacity; the Tesla -Talon Partnership Agreement; the
timing of production at the Tamarack Nickel Project; the timing and results of future explora tion and drilling, including
expansion of the resource; US government support for building a domestic battery supply chain, including the Bipartisan
Infrastructure Act (BIL) and tax credits in the Inflation Reduction Act (IRA); the timing and outcome of the environmental
review process; and the timing completion of negotiations relating the acquisition of a brownfields site in North Dakota.
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 con sequences to, or effects
on the Company which risks include (and are not limited to) the Company's ability to secure the preferred site in North
Dakota and terms relating thereto; the Company's ability to secure all necessary permits relating to the propos ed
operations as well as the Company's ability to design and construct an economically viable Battery Minerals Processing
Facility in North Dakota. Other risks related to the Company and the Tamarack project are set out in the Company's
financial statements and Annual Information Form. 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 new information, future events or results or otherwise.
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.
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1https://www.energy.gov/eere/vehicles/articles/national-blueprint-lithium-batteries