Mr. Henri van Rooyen reports

U.S. DEPARTMENT OF ENERGY AND TALON SIGN AGREEMENT REGARDING $114.8 MILLION IN BIPARTISAN INFRASTRUCTURE LAW FUNDING

Talon Metals Corp., through its wholly owned subsidiary, Talon Nickel (USA) LLC, has signed a definitive agreement with the United States Department of Energy setting the terms, conditions and performance milestones for $114,846,344 (U.S.) in grant funding created by the Bipartisan Infrastructure Law.

"Our team is excited to reach this funding milestone with the Department of Energy to build up America's battery manufacturing capacity from processing through to recycling," commented Henri van Rooyen, chief executive officer of Talon. "The Department of Energy has worked diligently to put this agreement in place, and we are grateful to be entrusted with this funding that reflects a bipartisan, national priority to reduce America's dependence on foreign countries like Russia and China for critical minerals like nickel. This agreement includes our commitments to engage with the local community in North Dakota to ensure community input and benefit sharing, develop a diverse work force with our partners in organized labour, and seek meaningful input from tribal sovereign nations in the region."

Talon's battery minerals processing facility was selected by the Department of Energy on Oct. 19, 2022, as one of the projects that will receive funding to expand and secure the United States domestic manufacturing of electric batteries for electric vehicles (EVs) and grid storage. Congress and President Joe Biden have made responsible and sustainable domestic sourcing and processing of critical minerals like nickel a national priority. The definitive agreement announced today will allow Talon to immediately begin accessing funding under the DOE award and sets specific milestones for the siting, design, permitting, community engagement, construction and commissioning of the battery minerals processing facility in Mercer county, North Dakota. The Talon processing facility will be capable of processing ore from multiple economically viable, operating sources in North America. Talon has an agreement with Tesla Inc., and the North Dakota processing facility will produce nickel in concentrate for Tesla.

Talon's chief external affairs officer and head of climate strategy, Todd Malan, commented: "We are committed to producing the necessary ingredients like nickel for the U.S. battery supply chain while also protecting the environment and cultural resources where we operate. Now we can move forward with our partners to advance the planning and construction of the battery minerals processing facility in North Dakota."

About Talon Metals Corp.

Talon is a base metals company in a joint venture with Rio Tinto on the high-grade Tamarack nickel-copper-cobalt project, located in central Minnesota. 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 mineral 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 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, and the U.S. Department of Defense awarded Talon a grant of $20.6-million (U.S.) to support and accelerate Talon's exploration efforts in both Minnesota and Michigan. Talon has well-qualified, experienced exploration, mine development, external affairs and mine-permitting teams.

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