Talisman 2009 Highlights

• Cash flow ¹ was $4 billion, down 36% from 2008, primarily due to low commodity prices.
• Net income was $437 million versus $3.5 billion in 2008.
• Earnings from continuing operations ¹ were $640 million versus $2.3 billion in 2008.
• Talisman completed non–core asset sales with proceeds of approximately $2.7 billion.
• Capital spending was $4.3 billion, with approximately one–third directed at North America shale programs.
• Talisman reduced its net debt ¹ at year end to $2.1 billion, down from $3.9 billion in 2008.
• Total production of 425,000 boe/d.
• Talisman replaced 162% of production with proved reserves, excluding divestitures.
• Talisman’s reserve replacements costs were $24.30/boe, excluding price revisions, and $19.72/boe excluding land and price revisions.
• Talisman’s average netback was $27.72/boe in 2009, 41% lower than 2008.

This Annual Report is dated March 8, 2010.

Talisman encourages its stakeholders to read the company’s 2009 Corporate Responsibility Report, which can be obtained from the company or viewed online at www.talisman–energy.com.

Readers are referred to the advisories, definitions and abbreviations at the back of this Annual Report.