TALON METALS CORP.

Brazauro Resources reported to have entered into a non-binding Letter of Intent with Talon Metals to acquire the Água Branca property from Talon’s Brazilian subsidiary. The contemplated transaction remains subject to approval by the board of directors of Talon. Água Branca consists of approximately 9,356 hectares of Exploration Licenses in the Tapajós region of Pará State, Brazil. The non-binding Letter of Intent contemplates that, after due diligence by Brazauro is completed, the parties will enter into a definitive option agreement under which Brazauro will acquire 100% of the Property in consideration for option payments of $120,000 on signing of the agreement, $130,000 on or before December 31, 2010 and $1,870,000 two years from the date of the definitive agreement.