Talon extends merger agreement with Saber Energy

/NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES /

TSX:TLO

ROAD TOWN, TORTOLA, BRITISH VIRGIN ISLANDS , Dec. 30 /CNW/ - Talon Metals Corp., ("Talon" or the "Company") (TSX: TLO) today announces that it has extended the deadline to March 15, 2010 for the completion of conditions precedent under the definitive, binding pre-merger agreement with Saber Energy Corp. ("Saber"), which was previously amended in October 2009 .

Both companies are continuing to pursue the proposed merger of Talon and Saber (the "Merger"), which remains subject to the approval of the Toronto Stock Exchange and the shareholders of both Talon and Saber.

Talon also announces that it has agreed to a further extension to the maturity date of its previously announced interim loan (the "Interim Loan") to Saber. The Interim Loan will mature on the earlier of March 30, 2010 or the effective date of the Merger.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States or in any state in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Talon

Talon is a TSX-listed company focused on the acquisition, exploration and development of high quality resource projects. The Company has a well-qualified exploration and management team with extensive experience in exploration and project management.

Talon has a treasury of approximately CDN$4.1 million and holds 2,450,000 common shares in Beadell Resources Limited (ASX:BDR). Talon has 27,054,222 common shares outstanding and 30,239,222 shares fully diluted.

For further information: For additional information on Talon please visit the Company's website at www.talonmetals.com or contact: Erica Belling, VP Investor Relations, Tau Capital Corp., Tel: [phone] x 243, Email: [email protected]