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Turning Resources into Results: Talon's 2024 Achievements Set to Redefine U.S. Critical Minerals Supply Chains in 2025 and Beyond Progress in Minnesota's environmental review process and exploration successes have enabled Talon to establish a

Shareholder Letters & Outlook

Turning Resources into Results: Talon's 2024

Achievements Set to Redefine U.S. Critical

Minerals Supply Chains in 2025 and Beyond

Progress in Minnesota's environmental review process and

exploration successes have enabled Talon to establish a

Feasibility Design Basis for a Tamarack mine and the North

Dakota Minerals Processing Facility backed by the Department

of Energy. In 2024, Talon also made the first high-grade

nickel-copper discovery in Michigan since 2016, just 8 miles

from the Eagle Mine.

Tamarack, Minnesota and L'Anse, Michigan--(Newsfile Corp. - February 3, 2025) - Talon Metals Corp.

(TSX: TLO) (OTC Pink: TLOFF) (together with its subsidiaries,

"Talon"

or the

"Company"

), the

majority owner and operator of the Tamarack Nickel-Copper-Cobalt Project ("

Tamarack Nickel

Copper Project

") in central Minnesota and the operator of the Boulderdash nickel copper discovery and

numerous high-grade nickel-copper prospects in the Upper Peninsula of Michigan (

"Michigan UP

Projects"

), is pleased to share a review of the team's 2024 achievements that have successfully laid the

foundation for completing major project milestones in 2025.

Highlights:

Tamarack Proposed Underground Mine Design: Integrating the environmental review

process, exploration, and a feasibility study for strategic project alignment

Designed and engineered numerous iterations of key conceptual aspects of the proposed

small-footprint, high-grade nickel and copper underground mine (the "

Tamarack Mine

Project

") within the Tamarack Nickel Copper Project in response to comments from the

Minnesota Department of Natural Resources (the "

Responsible Government Unit

" or

"

RGU

") and proximate Tribal sovereign governments during the Minnesota environmental

review process.

Drilled 33 holes into the inferred resource that forms part of the Tamarack Resource Area,

27 holes (assays pending) intersected massive sulphide mineralization resulting in a hit rate

of 82%.

Drilled 5 holes outside of the Tamarack Resource Area, 4 holes (assays pending) hit

massive sulphides, resulting in a hit rate of 80%.

Judiciously working towards completing a feasibility study in 2025 based on comments

received from the RGU and proximate Tribal sovereign governments, as well as the

successful exploration results delivered from the Tamarack Resource Area.

Progress on North Dakota Battery Minerals Processing Facility ("BMPF"): Working to

reduce (or eliminate) tailings and increase value-added products

Completed a mini-pilot program to produce nickel concentrates, copper concentrates, bulk

scavenger tailings (desulphurized, containing primarily micas, clays, olivines and quartz) and

bulk first cleaner scavenger tailings (containing primarily iron sulphides and magnesium

hydroxides as well as pentlandite, a nickel mineral).

The mini-pilot results were in line with the metallurgical test program results as documented

in the November 2022 Technical Report (defined below).

Based on the successful production of Supplementary Cementitious Materials (

"SCM"

) from

Talon's bulk scavenger tailings (see the

Company's press release dated March 28, 2023

),

the successful bio-leaching of nickel and copper from Talon's bulk first cleaner scavenger

tailings, and the production of iron for Lithium Iron Phosphate (

"LFP"

) batteries by Argonne

National Laboratory (

"Argonne"

), Talon secured US$2.47 million in funding from the

Defense Logistics Agency (

"DLA"

) (see the

Company's press release dated December 11,

2024

) to study the efficacy and economics of novel sulphuric acid and sodium hydroxide

recycling technologies utilizing the Bipolar Membrane Electrodialysis process, and the

selective precipitation of by-products by neutralization. If these tests are successful, the

technologies could improve the project's economics.

Securing the Mercer County, North Dakota industrial site, which includes existing rail

facilities for transporting ore "door-to-door" from the Tamarack Mine Project, is expected to

be completed in Q1, 2025.

Discovering More Nickel and Copper in Minnesota and Michigan for USA domestic

supply chains

Drill results from the Raptor Zone and the Deep MT Anomaly at the Tamarack Nickel Copper

Project demonstrates a trend of massive sulphides stretching over 4 kilometers that lies

parallel to the Tamarack Resource Area, thereby confirming the district-scale exploration

potential of the Tamarack Intrusive Complex (

"TIC"

)

.

High-grade nickel-copper discovery, the first since 2016 in Michigan, and 8 miles from the

Eagle Mine, sets the stage for expansion and exploration of 3 other targets where massive

suphides have previously been intercepted.

"

The Tamarack Intrusive Complex is shaping up to become the world's next Norilsk, Russia's prolific

nickel producer since the 1930's. Talon's nickel-copper discovery at Boulderdash in Michigan,

together with 4 additional targets where high-grade nickel-copper sulphides have historically been

intercepted, have the potential to become one or more of the next Michigan nickel/copper mines. Both

project areas are well positioned to minimize mine tailings and produce revenue-generating by-

products instead. Talon has secured grants of: (i) US$114.85m from the Department of Energy for the

North Dakota BMPF, (ii) US$20.61m from the Department of Defense for exploration to secure more

nickel in America, and (iii) US$2.47m from the Defense Logistics Agency to turn processing plant

waste into products, totaling US$137.92m (approximately C$185m). Talon and its Minnesota and

Michigan projects can be the West's answer to China, Russia and Indonesia's grip on the nickel

market",

said Henri van Rooyen, CEO of Talon.

2024: A Transformational Year for the Proposed Tamarack Mine Project in Minnesota

A Symphony at Talon, Not Just Another "Off-the-Shelf" Plan

The Talon team's achievements during 2024, and the preceding years, have been carefully coordinated

to deliver the US its next high-grade nickel-copper mine, while meeting or exceeding rigorous

environmental standards. To achieve this goal, Talon has integrated the Minnesota environmental review

and mine design processes, and its exploration efforts to, in tandem,(i) develop a feasibility study, and

(ii) define a Proposed Action (a highly detailed project description) in the Environmental Assessment

Worksheet (

"EAW"

) for purposes of the Environmental Impact Statement (

"EIS"

) .

Since the Company's EAW submission on June 21, 2023, the Company has received two rounds of

coordinated comments from the RGU, including input from proximate Tribal sovereign governments.

These comments have resulted in numerous trade-off studies and associated design improvements that

have reduced the Tamarack Mine Project's overall environmental impact. The iterative nature of the

EAW process and the nature of the feedback received has allowed the Company to streamline

engineering activities and respond with factual answers, data, or project changes that avoid, further

reduce, or mitigate impacts on the environment.

By individually reviewing these comments and then grouping all of this feedback into categories for our

highly skilled and integrated engineering and environmental teams, Talon has proposed solutions to

mitigate or eliminate multiple areas of concern. The engineering teams then undertook a large number of

trade-off studies (including pre-feasibility level trade-off studies) to optimize the Tamarack Mine Project

(see the

Company's press release dated December 19, 2024

). All of these proposed design changes

were accomplished while maintaining an overall surface footprint that is similar in size to a large grocery

store and its parking lot.

Progressing Towards a Feasibility Study: Infilling and 'Outfilling' the Tamarack Resource Area

The 2024 infill drilling program was an important part of the Company's commitment to completing a

feasibility study in 2025, with a focus on converting inferred resources to the indicated category, primarily

in the CGO East Zone and CGO West Zone of the Tamarack Resource Area. The Company also drilled

new mineralized intercepts adjacent to or on the edges of the Tamarack Resource Area, effectively

"outfilling" the Tamarack Resource Area (see Figure 1).

Figure 1: Plan view map of the CGO East Zone and CGO West Zone with the November 2022

Technical Report resource block model in background, showing the location of infill and outfill

drilling. For reference, the inset figure shows the entire Tamarack Resource Area.

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/2443/239326_5ec43c3ed417cb02_001full.jpg

Of the 33 holes drilled into the inferred resource, a total of 27 holes (assays pending) intersected

massive sulphide mineralization resulting in a hit rate of 82%. An additional 5 holes were drilled outside

of the Tamarack Resource Area and 4 holes (assays pending) hit massive sulphides, resulting in a hit

rate of 80%. Some notable intercepts in the CGO East Zone include:

24TK0512 drilled in the inferred portion of the resource intersected a cumulative 5.07 meters of

mixed and massive sulphides starting at 126.8 meters depth.

24TK0517 drilled 10 meters

outside of the Tamarack Resource

Area

intersected 1.64 meters

of mixed and massive sulphides starting at 113.91 meters depth.

24TK0536 drilled 65 meters

outside of the Tamarack Resource

Area

intersected a cumulative

2.87 meters of mixed and massive sulphides starting at 343.35 meters depth.

24TK0539 drilled 25 meters

outside of the Tamarack Resource

Area

intersected 1.87 meters

of mixed and massive sulphides starting at 307.32 meters depth.

24TK0546 drilled 15 meters

outside of the Tamarack Resource

Area

intersected 4.27 meters

of mixed and massive sulphides starting at 322.48 meters depth.

The extensive list of intercepts is shown in Table 6 and Table 7 below. Opportunity remains to increase

the size of the Tamarack Resource Area with additional drilling focused on the SW extension of the CGO

East Zone and the western extension of the CGO West Zone.

Another exploration target currently being tested in the Tamarack Resource Area is the 138 Zone where

two drill rigs are currently drilling the inferred resource with the objective of upgrading it from the inferred

to indicated category. An additional objective for this target is to determine if the high-grade massive

sulphide below the 138 Zone extends to the east (see Figure 2). The last hole on the edge of the MSU in

the Tamarack Resource Area is 13TK0171, which intersected 7.74m of massive sulphide assaying

8.01% Ni, 2.87% Cu, 1.16 ppm Pd+Pt+Au or 9.51% NiEq (see the November 2022 Technical Report).

In 2014, one step-out hole was drilled 60 meters to the east in an effort to find more mineralization but

was unsuccessful and no further drilling was done in this area. A 3-hole drilling campaign is planned for

Q1 of 2025 with the goal of locating the massive sulphide extension using Talon's advanced geophysical

data collection and modeling tools.

Brian Goldner, Talon's Chief Exploration Officer commented

"One thing we have learned is that

massive sulphides can abruptly change directions and historic Borehole Electromagnetic (BHEM)

tools could only see this type of mineralization about 25m away. We think there is a lot of exploration

potential here for the MSU to have continued its curved path and been out of reach from the historic

BHEM survey. At grades of 9.5% NiEq, you don't need much of an extension for this to be exciting."

Figure 2: Plan view of a portion of the Tamarack Resource Area highlighting the exploration

target that has never been tested.

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/2443/239326_5ec43c3ed417cb02_002full.jpg

Drilling in the 138 Zone will continue throughout the 2025 winter program, which typically ends in early

March.

Environmental Data Collection, Modelling, and Reporting

Since taking over the Tamarack Nickel Copper Project in 2019, Talon has expanded on foundational

environmental studies initiated over 15 years ago. The Company has conducted extensive baseline

studies across a wide range of environmental resources, including hydrology, geology, wetlands,

biological resources, and historic sites. These efforts help ensure that all facets of the project are

developed with a fundamental understanding of the local ecosystem.

Protecting Water Resources

Talon places significant emphasis on water resource protection, building on a robust network of surface

and groundwater monitoring stations. From detailed hydrological studies to advanced mathematical

modeling, Talon employs cutting-edge methodologies such as vibrating wire piezometers and

geotechnical modeling to enhance the ability to predict surface flows, water levels and water quality.

These efforts help ensure that water interactions between streams, wetlands, groundwater, and the

Tamarack Nickel Copper Project are carefully understood and managed during environmental review,

permitting and future operations.

Work plans and quality assurance plans have been developed to ensure that environmental data

collection provides spatially and temporally representative, relevant, and high-quality data. Talon (and

Kennecott Exploration Company before Talon) have been collecting water resources data since 2007.

The vast quantity of data is being summarized in reports and will be leveraged during conceptual model

updates to place the data in overall context. In the next phase, work plans will be refined to detail the

proposed mathematical model approach based on the defined objectives and the conceptual models.

The overall objectives of the mathematical models will be to make predictions (e.g., surface flows, water

levels and water quality) and to optimize the understanding of the water resources, including the

interactions between surface water, wetlands, and groundwater. The modelling will follow an industry

standard workflow that includes construction, calibration, predictions, uncertainty analysis, and reporting.

Results from the modeling will inform the decision making during the permitting process.

Biological and Historic Resources

Talon's efforts to build a comprehensive understanding of the environment extend beyond water.

Baseline biological studies, including wildlife and vegetation surveys, have been conducted to identify

and mitigate potential impacts on local ecosystems. These efforts include studies on bats, amphibians,

and other wildlife, as well as wetland delineations to understand the interconnected habitats within the

Tamarack Nickel Copper Project. Additionally, historic preservation initiatives are integrated into the

project, ensuring that the rich historical context of the region is respected and documented throughout the

development process.

Minimizing Land Disturbance

The proposed Tamarack Mine Project's conceptual design prioritizes minimizing surface land

disturbance by employing innovative underground mining methods and avoiding outdoor stockpiles of

waste rock. A comprehensive geochemical materials characterization program will help ensure that all

mining materials, including overburden and waste rock, are managed safely and efficiently.

Commitment to Sustainability

Talon has also adopted best practices to help address air quality and noise impacts, including

proposing to enclose surface facilities and utilize advanced air filtration systems. The proposed

conceptual project design aligns with modern sustainability goals, ensuring efficient operations with

minimized environmental footprints.

"

As a Minnesota-based project, we are committed to advancing rigorous environmental standards

and ensuring sustainable development

," said Christopher Wallace, Vice President of Environmental

and Permitting. "

Our approach reflects our responsibility to protect Minnesota's resources while

delivering critical minerals essential to national security.

"

With an inclusive and science-driven approach, the Tamarack Mine Project aims to set a new

benchmark for responsible mining in Minnesota. Through the integration of advanced technology and

extensive environmental planning, Talon is well-positioned to meet the state's high environmental

permitting standards and deliver long-term benefits for stakeholders.

The objective of this holistic body of work is to finalize the Tamarack Mine Project while receiving and

responding to the third round of comments from the RGU and Tribal sovereign governments. This work

will help to define the Proposed Action in the EAW for purposes of an EIS submittal and also to

complete the Company's feasibility study.

North Dakota BMPF

A draft Environmental Assessment (

"EA"

) for the Company's BMPF has been finalized, aligning with the

US$114.84 million grant awarded by the Department of Energy (

"DOE"

) under the Bipartisan

Infrastructure Law (see the

Company's press release dated November 2, 2023

).

To reduce ore transport cost, processing cost, the cost of procuring and transporting aggregates, energy

consumption, and carbon emissions, the Company has successfully completed its first round of ore sort

testing.

The CGO East Zone, CGO West Zone and Massive Sulphide Unit (

"MSU"

), where the highest value ore

and highest potential for mining dilution occur, showed excellent ore-sorting results. For example, the

MSU results retained 56% of the mass (primary silicates for use as feedstock for Cemented Rock Fill)

while only rejecting 0.03% nickel, which if implemented, would upgrade the rock shipped from the

Tamarack Mine Project to the BMPF in North Dakota.

Once the Company confirms that its mine production schedule aligns with the Proposed Action for the

EIS and feasibility study, the final phase of metallurgical testing for the feasibility study will commence.

This phase will include a more extensive ore sorting and variability testing program and is expected to

be completed by Q2 2025.

This final phase of metallurgical testing will produce nickel concentrates, copper concentrates, bulk

scavenger tailings and bulk first cleaner scavenger tailings. The program is sequenced to occur after the

Company's pilot plant program (completed - see below) and the completion of the first phase of work to

produce by-products from material that traditionally becomes tailings (see below).

Finally, to ensure that any residual tailings are stored safely and securely, the Company undertook test

work to determine the blending ratios of certain proximate fly ash, bulk scavenger tailings, and pyrrhotite

tailings, and also began designing a materials handling system that ensures flexibility to accommodate

varying blending ratios that could be deposited in a tailings facility.

Completion of Pilot Plant

With support from the DOE, Talon has completed a mini pilot program that resulted in approximately 2

tonnes of drill core being processed to produce:

Nickel concentrates to develop a flowsheet that could onshore the production of a nickel

intermediate called Mixed Hydroxide Product ("

MHP

"), nickel sulphates and/or battery

Nickel concentrates to develop a flowsheet that would onshore the production of a nickel

intermediate called "Mixed Hydroxide Precipitate" (MHP), nickel sulphates and/or battery

precursor materials using the "Columbia University Electrochemical Energy Center's" (

"CEEC"

)

Electrochemical Reagent Regeneration Technology. The process also generated by-product iron

sulphates (used in the production of LFP batteries), and for further test work by Tesla (see the

Company's press release dated January 10, 2022

) as well as other potential downstream

partners.

Copper concentrates for testing and reaching terms with potential offtakers.

Bulk scavenger tailings for further testing and optimizing conditions to potentially produce SCM for

low carbon cement and concrete.

Bulk first cleaner scavenger tailings for potentially producing iron oxyhydroxide (FeOOH) for LFP

batteries, MHP by recovering nickel lost during the flotation process and magnesium carbonate

(MgCO3) which results in carbon sequestration.

The list of products and mass produced is summarized in Table 1 and Figure 3 below.

Table 1: Mass of metallurgical products produced from Talon pilot plant program.

Metallurgical Product

Produced Mass (kg)

Nickel Concentrate

261.54

Copper Concentrate

33.65

Bulk Scavenger Tailings

929.95

Bulk First Cleaner Scavenger Tailings

239.50

Figure 3: Pie chart illustrating mass of metallurgical products produced from Talon pilot plant

program.

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/2443/239326_5ec43c3ed417cb02_003full.jpg

By-Products from Tailings: Let Nothing go to Waste

On December 11, 2024 Talon announced that it had received US$2.47 million in funding from the DLA

(see the

Company's press release dated December 11, 2024

).

Talon will study the efficacy and economics of novel sulphuric acid and sodium hydroxide recycling

technologies utilizing the Bipolar Membrane Electrodialysis process, and the selective precipitation of

by-products by neutralization.

Talon has already successfully produced leachates with high recovery of nickel and copper using bio-

leaching from (what was previously) tailings to commence selective precipitation of FeOOH, MHP and

MgCO3.

The CEEC will scale-up their Reductive Leach with Electrochemical Reagent Regeneration Technology,

with the goal of transforming a nickel concentrate into a nickel product that would not require smelting or

roasting. If successful, this process would make domestic mine-to-PCAM production possible.

Finally, the bulk scavenger tailings (most of the mass that passes through the concentrator) will be tested

to trade-off leaching versus calcination in the pursuit of producing the most effective SCMs, and in the

case of leaching, FeOOH, MHP and MgCO3, potentially unifying selective precipitation of the leachate

and bio-leachate.

If these tests are successful, the technologies could improve the project's economics.

North Dakota Processing Facility Site Acquisition