Forward-Looking Statements

This Corporate Responsibility Report contains statements concerning future projects, business plans for exploration, development and drilling, estimated amounts and timing of future power and electricity generation, future oil and gas prices, anticipated social and health, safety and environmental activities, anticipated employment positions, or other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about future events, conditions, results of operations or performance that constitute “forward-looking statements” within the meaning of the applicable securities legislation

Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements. These risks and uncertainties include:

• the risks of the oil and gas industry, such as operational risks in exploring for, developing and producing crude oil and natural gas and market demand;
• the uncertainty of estimates and projections relating to production, costs and expenses;
• potential delays or changes in plans with respect to exploration or development projects or capital expenditures;
• health, safety and environmental risks;
• uncertainties related to the litigation process, such as possible discovery of new evidence or acceptance of novel legal theories and the difficulties in predicting the decisions of judges and juries;
• risks in conducting foreign operations (for example, political and fiscal instability or the possibility of civil unrest or military action);
• general economic conditions;
• the effect of acts of, or actions against international terrorism; and
• the possibility that government policies or laws may change or governmental approvals may be delayed or withheld.

We caution that the foregoing list of risks and uncertainties is not exhaustive. Additional information on these and other factors, which could affect the Company’s operations or financial results, are included: (1) under the headings “Management’s Discussion and Analysis — Risks and Uncertainties” and “Outlook for 2005” and elsewhere in the Company’s 2004 Annual Report Financial Review; and (2) under the heading “Risk Factors” in the Company’s annual information form for the year ended December 31, 2004. Additional information may also be found in the Company’s other reports on file with Canadian securities regulatory authorities and the United States Securities and Exchange Commission.

Forward-looking statements are based on the estimates and opinions of the Company’s management at the time the statements are made. The Company assumes no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.

You may read any document Talisman furnishes to the SEC at the SEC’s public reference rooms at Room 1024, 450 Fifth Street, N.W., Washington, D.C. 20549 and 500 West Meridian Street, Suite 1400, Chicago, Illinois 60661. You may also obtain copies of the same documents from the public reference room of the SEC at 450 Fifth Street, N.W.,Washington D.C. 20549 by paying a fee. Please call the SEC at 1-800-SEC-0330 for further information on the public reference rooms.

“The Company has done its utmost to serve and assist in the needs of the citizens of the countries wherever it operates.” 2003 shareholder feedback card