Mr. Henri van Rooyen reports

DEPARTMENT OF DEFENSE AND TALON SIGN AGREEMENT TO SUPPORT DOMESTIC NICKEL EXPLORATION

Talon Metals Corp., through its wholly owned subsidiary Talon Nickel (USA) LLC, has entered into a definitive agreement with the Department of Defense's Office of Manufacturing Capability Expansion and Investment Prioritization to accelerate and expand the company's efforts to discover and secure additional domestic supply of nickel for the growing U.S. battery manufacturing base and defence-related supply chains. Utilizing Defense Production Act (DPA) Title III authorities and funds appropriated by the Additional Ukraine Supplemental Appropriations Act, the Department of Defense will contribute funding on a cost-share basis to Talon's in-house drilling and geophysics teams to purchase more equipment, hire additional employees, and accelerate the company's efforts to discover and delineate more high-grade nickel deposits within the Midcontinent Rift geology of the United States. As part of the agreement, the Department of Defense will contribute $20,607,146 (U.S.) and Talon will contribute $21,783,150 (U.S.) in matching financing on a cost-share basis (including use of existing equipment and current employee cost) over a period of 39 months.

"This funding makes clear that domestic supply of nickel is a national security priority," said Henri van Rooyen, chief executive officer of Talon. "Congress and the Biden Administration have created powerful new tools to build up domestic supply of critical minerals required for clean energy systems and national defence. With this funding, Talon will be able to accelerate our efforts to discover domestic sources of battery-grade nickel and help ensure that the United States is not dependent on Russia, China or Chinese companies operating in countries like Indonesia for nickel that is needed in both defence platforms and clean energy systems."

Highlights:

• Funding underscores the long-term strategic importance of nickel for defence platforms, electric batteries and other clean energy systems;
• Aligns with Talon and U.S. Geological Survey (USGS) view that the Midcontinent Rift in the Lake Superior region of Minnesota and Michigan is highly prospective for nickel sulphide deposits with potential for district-scale mineralization;
• Deploys DPA Title III funding to build up domestic supply of nickel and secure American independence in the supply of critical minerals;
• Challenges Chinese and Russian dominance in supply of nickel for clean energy systems;
• If successful, would ensure that nickel produced for U.S. defence requirements and battery supply chains is produced at high labour standards, environmental protections and participation of indigenous people;
• Utilizes best-in-class exploration practices to protect the natural environment where Talon's exploration activities occur.

Mr. van Rooyen continued: "With this funding comes a responsibility to demonstrate that we can discover the necessary ingredients like nickel required for national defence systems and clean energy while also making sure we protect the environment, create good jobs, engage and listen to communities, and seek the participation of tribal sovereign governments and their members. Our team is ready to show that we can do things differently and achieve each of these objectives. It does not need to be a choice."

Talon is currently exploring the Tamarack intrusive complex (TIC) in central Minnesota on a 24-hour-a-day basis with significant recent success. Talon also recently acquired the mineral rights contained in the historic Henry Ford land package in the Upper Peninsula of Michigan proximate to the only operating nickel mine in the U.S. Talon is one of the few exploration and mine development companies that has its own in-house teams conducting drilling, geophysical analysis and geologic planning. With Talon's fleet of five drill rigs and in-house geophysicists, Talon is well positioned to use the funding from the Department of Defense to expand and accelerate its exploration activities in Minnesota and Michigan.

About Talon Metals Corp.

Talon is a Toronto Stock Exchange-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 U.S. over the OTC market under the symbol TLOFF. The Tamarack nickel project comprises a large land position (18 kilometres of strike length) with additional high-grade intercepts outside the current resource area. Talon has an earn-in right to acquire up to 60 per cent of the Tamarack nickel project, and currently owns 51 per cent. Talon is focused on (i) expanding and infilling its current high-grade nickel mineralization resource prepared in accordance with National Instrument 43-101 to shape a mine plan for submission to Minnesota regulators, 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 pounds) of nickel in concentrate (and certain byproducts, including cobalt and iron) from the Tamarack nickel project over an estimated six-year period once commercial production is achieved. Talon has a neutrality and work force development agreement in place with the United Steelworkers union. Talon's battery mineral processing facility in Mercer county was selected by the U.S. Department of Energy for a $114-million (U.S.) funding grant from the Bipartisan Infrastructure Law. Talon has well-qualified, experienced exploration, mine development, external affairs and mine permitting teams.

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