Talus Resources Investor Presentation March 2012

1. Talus Resources Investor Presentation March 2012 Mark Seyer, CEO Talus Resources LLC Suite 330 770 South Post Oak Lane Houston, Texas 77056 832.830.8767 mseyer@talusresources.com www.talusresources.com

2. Talus Resources LLC • Independent oil and natural gas exploration and production company formed in 2007. • Acquired rights to Earth Radiation Analysis (ERA) technology, which identifies smaller scale faults, reservoir boundaries, and oil saturated fault blocks. • Further developed the technology to include rapid data acquisition and 3-D graphical data display. • Purchased The Calvert Oil Field, 1800+ acre approximately 80% NRI lease in Robertson County, Texas with 9 producing wells with total 5-10 BOD, and two injection wells. • The lease acquisition included workover equipment valued over $500,000. • Historical production was 700,000 +/- barrels of oil from the Nacatoch. • Talus believes there are 500,000 barrels of primary production and 250,000 barrels of secondary production yet to be produced. • Talus has identified several virgin fault blocks and is seeking investors to purchase Talus common stock enabling it to drill 8 vertical and horizontal wells to develop the lease. • Talus believes there is a large, underexplored trend of small fault block targets in the shallow and prolific Nacatoch and Woodbine formations that ERA can exploit.

3. Proposed Calvert Field Development • Talus will drill and complete new wells and workover existing wells with its own equipment. • New Wells • The #32 is scheduled in late March to deepen to 4,200’ and test the Woodbine. • Immediately following #32 will be #31 as an infill vertical Nacatoch, which is positioned on a hydrocarbon high, near #10, the best well in the field. • Field development is expected to be completed within a year. • Workovers • The #21 workover, a 63-year old, non-producing well, resulted in production of 5 b/d of oil with no water. • High gas pressure in this well, indicates the reservoir is not depleted. • The ERA system identified this opportunity. • Other workovers will help Talus reach its target of 20 b/d by midyear. • Although each old well has the capacity to produce more oil, years of poor maintenance makes it difficult and expensive to increase production. Talus’s focus is therefore on drilling new wells.

4. Investment Opportunity • Talus is currently raising $250,000 - $500,000 by selling B Shares • - 125,000 - 250,000 B shares at $2.00 per share • - As production increases future equity sales will be at higher prices • - Subject to drilling success and market conditions, a listing on the TSX is planned

5. Management Team • President & CEO, Mark Seyer, primary organizer of Talus - 20+ years as a practicing geologist and leader of several small E & P Companies • VP Operations, Hal Jarrell- 35+ years performing engineering and fabrication work for field development including some of the 1stIn Situ, Combustion projects in the US • VP Corporate Development, Michael Smith -30+ years providing exploration, production and reserve services internationally to Major Oil Companies • Field Operation Manger, Frank Sims - 35 years experience in all phases of onshore drilling and oil field operations • Key Consultants/Employees • Chang Lee, Reservoir Engineer • John Longman, Finance • Larry O’Neill, ERA Interpretation • Dr. Daulat Mamora, ISC Technology • Dr. Joseph O’Neill, ERA & MonoDrill • Dr. Thomas Paulus, ERA & Radiation Instrumentation

6. Technology OverviewEarth Radiation Analysis (ERA) • Talus has exclusive rights to the proprietary ERA digital mapping technology. • The ERA system intercepts and decodes natural gamma radiation emanating from the earth’s core and 3-D plots the data for rapid and accurate interpretation. • Oil and gas saturated rock absorbs different levels of gamma radiation than unsaturated rock. • An older analog ERA system participated in a DOE (GERT) study was 83% accurate in predicting producing wells. However with traditional technologies accuracy was only 17%. Talus’ integrated digital ERA Recon is more accurate. • Conventional exploration typically utilizes seismic technology to identify structures or traps that often do not contain hydrocarbons. • Digital ERA detects oil and gas saturation, and outlines the reservoirboundaries and faults. • Digital ERA identifies commercial quantities oil and gas from areas where marginal or no production will occur.

7. DOE Funded Geochemical Research Team (GERT)ERA in 1993 was a Stationary, Non-integrated, Analog System • GERT conducted a blind test on 12 oil and gas survey technologies covering 18 actual drilling prospects from Permian Basin companies. • Downloads from the Talus Website will detail this original and updated report: • http://www.talusresources.com/updated/GERT_O&GJ6-13-91.pdf • http://www.talusresources.com/updated/GERT_O&GJ5-10-93.pdf • Analog ERA made18 predictions: 15 were correctly identified as dry or marginal for 83.3% accuracy. • Without ERA, and relying solely on the prospect information, 3 out of 18 or 16.7% would have been commercially successful and an exploration company would have wasted many dollars on dry holes and marginal wells that didn’t recover their costs. • ERA would have avoided the expenses of 15 dry and marginal producers. • ERA predicted three oil wells but one was dry and 2 were commercial for 2/3 or 66.6% accuracy (Note: we believe a tabulation mistake was made against ERA, where Drill Success Accuracy was recorded as 2/4 or 50%).

8. DOE Funded Geochemical Research Team (GERT) ERA predicted: 83% overall accuracy (15/18 correct) 67% for oil discovery (2/3 correct) 87% success predicting marginal or dry wells.

9. Estimated Exploration Cost to Create, Drill, and Complete: Commercial 4,000 Foot Oil Well The following table compares exploration costs for the Industry and Talus. • ERA technology is better, less expensive, more accurate than traditional seismic surveys. • Early use of ERA reduces the leasing of unproductive acreage. • ERA’s higher success ratio of 85% vs. 20% for the industry consumes much less time and capital in the quest to find oil. Exploration Cost Comparisons – Industry vs. Talus

10. Economic Analysis of Gross and Net Reserves Using ERA technology, substantial savings accrue from higher success rates, and shorter prospect development time and expense. The yellow line, Return on Investment, distills this analysis. Exploration investments in Talus using ERA should show approximately a 5 to 1 advantage over traditional industry exploration returns.

11. Talus’ Revolutionary ERA NaI-SS ReconIdentify New Fields and Accurately Delineate Boundaries • Determines reservoir energy, (ratio of oil-gas-water) and approximates flow rates. • Identifies commercial and non-commercial reservoirs. • Finds field boundaries quickly, accurately, and efficiently. • Can detect bypassed oil and depleted areas in existing fields. • Avoids cost of dry holes from step-out drilling to find field boundaries,

12. Evolution of ERA System

13. Immediate Reserve Development Projects • CALVERT PROJECT • The Calvert Field was discovered in 1944. • The Gibson Lease produced approximately700,000 Bbls from the shallow Nacatoch (2,200’). • Approximately 80% or 500,000 Bbls was produced from eight wells within eight years. • Using NaI-SS Recon, Talus has identified a large area of new reserves. • The survey clearly show that only one well (#10) had effective drainage and contributed 22% +- of the fields total, and 7 were mostly effective, but 23 wells were non-commercial or dry holes. • The survey also shows that new wells should be drilled either on closer spacing, or developed more efficiently horizontally.

14. Evidence of Additional Reserves for Redevelopment • ERA Surveys show that the Calvert field is broken into multiple independent fault blocks and, many contain bypassed reserves with virgin pressure. • Ongoing production in the shallow Nacatoch causes a reduction in reservoir pressure and subsequent migration of additional oil and gas along the numerous faults from deeper Eagle Fordformation. • #1 Gibson was drilled into a fault and plugged in 1945. Faults can severely restrict production. Within the past 16 months the top plug failed and oil and gas is now flowing to the surface. • It takes high pressure to dislodge a cement plug. • Talus will re-enter #1 and sidetrack into the high pressure fault block. #1 Gibson (discovery) was drilled in 1944 and plugged in 1945 is clear indication of bypassed reserves in Calvert. Pipe, valve, and cement plug have been pushed up 3’ higher Gas bubbles and fresh green oil indicate the well continues to flow

15. Calvert Field ERA Digital Graphical Mapping • The following slides depict the ERA Survey of the Calvert field, which is characterized by multiple independent fault blocks, some productive and some not. The “Peaks” of the 3-D mapping are saturation highs, not necessarily structural highs. • The four white flags indicate plugged and abandoned wells that were dry. ERA would have advised against drilling these wells as they were in “lows” or valleys as graphed by the color green, indicative of low or no-oil saturation. • The four green flags are proposed new wells to be drilled on “highs”, as graphed by darker brown. • The nine blue flags are existing wells that could be reworked, as they are still on relatives “highs” and could have additional production remaining. • The six red flags are existing or new wells designed for horizontal completions into their respective untested fault blocks. • Average initial production for the eight wells was 108 b/d, with #13 @ 140 b/d and #21 @ 24 b/d • Talus expects the red flag wells to have production several times greater as they will be horizontal completions, which expose more reservoir to production pipe.

16. #19 CALVERT FIELD, GIBSON LEASEROBERTSON COUNTY, TX Probable Woodbine Wells #32, #33, #34, #35 #34 #20 #33 #31 #32 #16 #23 New Wells & Horizontal Reentries #1, #21 #31, #33, #34, #36 #35 #33 #10 #8 P&A #13 P&A #27 P&A #21 29 #9 #22 #7 P&A Existing wells to be reworked #9,#10, #12, #16, #19, #20, #21, #22, #23, #24 #12 #36 #1 #24 P & A Wells #1, #7, #8, #13, #27 ERA, NAI-SS RECONNAISSANCE SURVEYS

17. Calvert Field, Gibson Lease, Robertson County, TX ERA, NaI-SS Reconnaissance Surveys Audio and video will play in 7 seconds New Calvert 500,000 Bbls Est. (highest ERA signature) #20 Old Calvert 700,000 Bbls Recovered (highest ERA signature) #16 #23 #17 #8 #10 #29 #13 #9 #11 #12 #22

18. Calvert Field, Gibson Lease, Robertson County, TX ERA, NaI-SS Reconnaissance Surveys Audio and video will play in 5 seconds Background Radiation Level NewCalvert Edgeof Main Fault No Hydrocarbons Non Commercial Deposits Old Calvert Well #16 miles

19. Calvert Field, Gibson Lease Robertson County, TX ERA, NaI-SS Reconnaissance Surveys #16 116 b/d IP Existing Wells Old Calvert #8, 125 b/d IP,P&A Proposed Wells New Calvert #17, 125 b/d IP, P&A #31 (New Well) #10, 99 b/d IP #13, 140 b/d IP, P&A #9, 102 b/d IP #32 (New Well) #12 140 b/d IP #21, 24 b/d IP Bypassed Reserves (Nacatoch) Audio and video will play in 7 seconds Extensive Oil Drainage #10 Best Well in Field Bypassed Reserves New Production (Woodbine) Main Fault

20. Investor Business Investment Concepts • Talus is planning to be publicly traded on the Toronto TSX within a year • Investors will: • Prior to conversion of B Shares to A Shares; receive monthly cash distributions through direct ownership in oil and gas production, and reserves. • Following registration shareholders will be provided with greater liquidity. • An estimated 15% quarterly dividend will underpin a stable high share price. • Ongoing increases in exploration and production willlikely increase shareholder value. • Strategic entry pointto high reserve growth of the world’s most valuable commodity will insulate investors from a declining US Dollar and inflation.

21. Revenue Distribution • An LLC Investor receives 99% of net distributable cash flow before payout (100% of investment) and after payout pro-rata between A and B Shares. • Payout begins following the completion of proposed new wells in April and is projected to be ongoing in 2012 until the planned registration on the TSX.

22. B Shares Offering and Equity Structure • The Company is authorized to sell 55% of its equity. • Historically, it has sold approximately 33% and raised $3 million. • It currently is selling an additional 2.8% - 5.6% of its equity for $250,000 - $500,000 in $50,000 units leaving 16.5% to 19.3% to be sold in the near future at a significantly higher valuation.