INTRODUCTION:
Talon’s 100%-owned São Jorge Gold Project is an advanced-stage exploration project covering approximately 57,420 hectares in western Pará State, approximately 250 km south of Itaituba and 80 km north of the town of Novo Progreso.

The São Jorge Gold Project is accessible by road or air. Federal highway BR 163 transects the northeastern part of the property, connecting the village of Riozinho with Novo Progreso, wihc has daily air service to Cuiba. In addition, small fixed-wing aircrafts can land on the gravel airstrip in Riozinho. The principal exploration targets on the property are located approximately 13 km south of Riozinho

The São Jorge Gold Project is located within the Tapajós Gold District, which has a history of artisanal ("garimpo") and conventional mining, as well as exploration by international mining companies. It is one of the richest gold camps in Brazil. Since the 1960’s, artisanal miners ("garimpeiros") in the region have extracted an estimated 19 million ounces of gold (Not NI 43-101 compliant, historic significance only). Current annual production of gold by garimpeiros is estimated to be approximately 300,000 ounces.

Exploration at Sao Jorge is being conducted under the supervision of Mr. Paulo Ilidio de Brito, Talon’s VP Exploration, who is a qualified person within the meaning of National Instrument 43-101.

An independent technical report on the project entitled "Resource Estimate and Technical Report for the Sao Jorge Project, Brazil", dated October 12, 2006 is available on the Company’s SEDAR profile at www.sedar.com.

As announced in the March 31, 2008 press release, Talon Metals has hired independant consultants to update the NI 43-101 mineral resource estimate. 

GEOLOGY:
Gold mineralization in the district has been classified as intrusion-related, associated with hydrothermal alteration zones mainly within granitic stocks which are part of the Tapajós portion of the Archaean to Middle Proterozoic aged Brazilian Shield. São Jorge and many other gold deposits in the region are closely associated with the northwest-trending, crustal-scale Tocantinzinho deformation corridor. To the northwest of São Jorge, the Cuiu Cuiu gold deposit and the Tocantinzinho gold deposit share similar geological attributes. On a broader scale, analogous deposits associated with granitic intrusions of Archaean to Proterozoic age include IAMGOLD Corp.’s past producing Omai gold mine in Guyana (3.8 million ounces) and the Charters Towers gold district in Australia where past gold production is estimated in excess of 6 million ounces from 1871 to 1917. The gold was concentrated into high-grade veins, hosted in felsic intrusives.

EXPLORATION HISTORY:
Prior to the 1990’s, what is now the São Jorge Gold Project was explored by garimpeiros.

Between 1993 and 1997, RTDM, a subsidiary of Rio Tinto Mining plc, conducted extensive exploration in the São Jorge area. This work, which focused on the Wilton Zone, included ground and airborne geophysics, mapping, sampling, trenching, 202 auger holes, the drilling of 26 diamond drill holes and the preparation of a non NI 43-101 compliant resource estimate. Limited metallurgical testing on two samples by Metals Especiais Consultoria for RTDM indicated high gold recoveries (approximately 90%) are achievable using conventional flotation and/or cyanide leaching.

PHASE I EXPLORATION:
In 2005 Talon completed a 10,104 metre (48 hole) diamond drilling program as part of a Phase I exploration program on the property.

The drilling was part of an extensive program designed to assess results previously obtained by Rio Tinto plc ("Rio Tinto") during the 1990’s within a 650m x 95m area known as the Wilton Zone. This resource is not compliant with NI43-101 as the Rio Tinto work was performed by in-house professionals prior to the implementation of this policy instrument.

The main Wilton Zone was tested by 42 holes totalling 9,228 metres, increasing the average density of drilling to approximately 40 x 40 metres along 700 metres of strike to a depth of approximately 200 metres below surface. Prior to demobilizing the two remaining drill rigs from the property for the rainy season, an additional 6 holes totalling 876 metres were drilled on three preliminary targets located away from the Wilton Zone, but within the favourable NW-trending structural corridor.

PHASE II EXPLORATION:
From May to September, 2006, Talon conducted a 7,952 metre (34 hole) diamond drilling program as part of a Phase II exploration program at São Jorge. This program focused on the Wilton Zone and several additional target areas within the favourable 20 kilometre structural trend.

The Phase II program included 2,284 line km Magnetometer airborne geophysical survey and 28.55 line km IP and 33.26 line km Magnetometer ground geophysical surveys, as well as geological mapping and trenching. A base-line environmental study was conducted as part of this program.

The Wilton Zone is a northwest trending, steeply southwest-dipping, intrusion-related gold zone within a hydrothermally altered monzogranite. Gold is closely associated with pyrite and pyrite-filled fractures. The zone has been delineated over an area of 700 metres by 60 metres wide and to a depth of 200 metres. Within this zone are a number of narrower discrete zones of higher-grade gold. The Wilton Zone is open along strike and to depth.

Drilling in the Phase II program tested several new target areas, including the Kite, Wilton West, Wilton East and Borboleta Zones. Highlights from these target areas included:

Wilton East Zone
2.19 g/t Au over 3.37 metres in hole SJD-078-06
1.63 g/t Au over 24.77 metres, including 5.17 g/t Au over 4.29 metres in hole SJD-072-06
5.53 g/t Au over 1.12 metres, 5.48 g/t Au over 1.07 metres, and 3.72 g/t Au over 2.24 metres in hole SJD-071-06

Kite Zone
1.93 g/t Au over 1.64 metres, 1.42 g/t Au over 5.66 metres, and 2.56 g/t Au over 3.00 metres in hole SJD-055-06
2.29 g/t Au over 3.18 metres and 1.02 g/t Au over 1.26 metres in hole SJD-056-06
0.96 g/t Au over 5.57 metres and 1.85 g/t Au over 3.00 metres in hole SJD-068A
6.25 g/t Au over 0.61 metres and 2.66 g/t Au over 1.10 metres in hole SJD-065-06

Wilton West Zone
1.34 g/t Au over 10.00 metres in hole SJD-063-06

Borboleta Zone
3.82 g/t Au over 2.92 metres in hole SJD-074-06

WILTON ZONE MINERAL RESOURCE ESTIMATE:
An independent mineral resource estimate for the Wilton Zone to a depth of 100 metres was prepared by SRK Consulting (Canada) Inc. (see Table 1 below).

Table 1: Wilton Zone Indicated Mineral Resource* (approximately 0 to 100 metres depth)

*effective date: August 30, 2006
**gold cut-off grade of 0.5 grams per tonne ("g/t") gold, all individual composite assays capped at 20 g/t gold
Note: numbers in columns above may not total due to rounding Mineral resources have been classified according to "CIM Standards on Mineral Resources and Reserves: Definition and Guidelines" (December, 2005) and prepared by G. David Keller, P. Geo. Mr. Keller is a Professional Geoscientist with the Association of Professional Geoscientists of Ontario and an employee of SRK.

PRELIMINARY METALLURGICAL RESULTS:
Three composite samples representative of the different grades and depths along the mineralized trend within unoxidized Wilton Zone mineralization were prepared for initial metallurgical testwork. Samples were analyzed and tested by SGS Lakefield Research Limited ("SGS") in Lakefield, Ontario under the direction of Mr. John R. Goode, P.Eng. SGS performed a mineralogical study of the high grade sample and found that pyrite was the only significant sulphide present. Gold was observed as native gold, with grain sizes in the 1 to 212 micrometre ("µm") range.

SGS determined the Bond ball mill work index, which is a measure of the energy required for grinding, on a blend of the three São Jorge composites. The test yielded a value of 16.8 (metric) which is typical of many gold ores and indicates normal grinding requirements.

Following grinding to a nominal 80% passing through a 90 µm screen, the three samples yielded between 33% and 43% gold recovery by gravity concentration alone. Mr. Goode commented "These are favourable values and indicate that gravity concentration can be used ahead of leaching or flotation to maximize overall gold recovery and reduce plant costs".

SGS conducted a carbon-in-leach test on the gravity tailings from each of the three samples. Overall recovery varied from 91% for the low grade sample to 98% for the high grade sample. Reagent consumption values were very low, at less than 0.3 kg/t of NaCN and about 0.6 kg/t of lime. Preliminary rougher flotation tests on gravity tailings showed that flotation could be developed as an alternative process approach. Overall rougher recovery for the high grade sample was 99% to a concentrate containing 35 g/t gold. The medium and low grade samples gave 97 and 94% recovery respectively to a 14 g/t concentrate. Mr. Goode anticipates that all three concentrates could be upgraded, albeit with some loss in overall gold recovery.

Mr. Goode commented: "These are excellent results and show that the São Jorge samples examined by SGS are very responsive to standard gold recovery techniques. Given the very satisfactory results from the gravity-leach approach, further development of the gravity-flotation route has been deferred. Future tests will optimize leaching parameters and study the variability of other samples from within the deposit".