Respecting Diverse Cultures

In 2005, three Talisman employees participated in a threeday cultural wilderness course hosted by the Aseniwuche Winewak Nation near Grande Prairie.

HOW DOES TALISMAN ENSURE EMPLOYMENT AND ECONOMIC OPPORTUNITIES FOR ABORIGINAL COMMUNITIES IN NORTH AMERICA?

Aboriginal communities continue to face many barriers in accessing employment and contract opportunities within the oil and gas industry. Talisman seeks innovative ways to reduce these barriers so that Aboriginal communities may further share in the benefits of resource development. For example, in 2005, Talisman further developed its pre-qualification standards for local and Aboriginal contractors to help service providers understand the Company's safety and performance requirements. Talisman co-operatively consults with, provides feedback to and inspects equipment for Aboriginal contractors to help them achieve equal access to economic opportunities associated with our activities.

Talisman recognizes and respects the diverse cultures and perspectives of communities, including those of indigenous peoples. We work with local communities affected by our operations to better understand each other's culture so that we can design and implement community relations activities that reflect mutual interests. We also encourage participation of indigenous peoples in our activities through business and employment opportunities.

Employment and Economic Opportunities

Talisman and its subsidiaries value the benefits of a diversified workforce and we give fair consideration for employment and contract opportunities to Aboriginal individuals and businesses. For example, in 2005, FEX co-ventured with ASRC Energy Services to provide engineering, construction, project management, maintenance and operations for its interests in Alaska. Based in Anchorage, ASRC Energy Services is a wholly owned subsidiary of Arctic Slope Regional Corporation (ASRC), a native corporation owned by the Inupiat Eskimos of Alaska's North Slope.

Aboriginal Project Referral Process

In 2005, Talisman participated in the development of an Aboriginal project referral process in relation to Traditional Sites and ceremonial areas in the Foothills Model Forest area, near the Company's Hinton and Grande Cache operations. The referral process catalogues sensitive areas helping Talisman better understand the interests of Aboriginal Peoples on the land.

Contractor Pre-qualification Process

Talisman further developed a contractor pre-qualification process in 2005 to encourage all contractors, including Aboriginal-owned and operated businesses, to actively participate in Talisman's exploration and development programs throughout Western Canada. Pre-qualification ensures that contractors are aware of the Company's expectations to provide quality service, delivered in a safe manner, for a competitive price. Further, it clearly provides all contractors with a checklist of minimum requirements and is the first step for potential access to Talisman-generated business, including seismic testing; pipeline, facilities and wellsite construction; operations and production; drilling and completion services; and reclamation contracts.

Aboriginal Community Consultation in North America

Talisman is committed to consulting with Aboriginal communities regarding our operations. Talisman works with Aboriginal communities, in a manner that it believes is honest and respectful, to build strong relationships and develop an understanding of mutual interests. We also consider the unique culture of each community when designing and carrying out community relations activities. This includes community interests, languages, customs and cultural communication styles. For instance, Talisman uses community translators in consultation efforts in personal visits, printed material and in emergency response. Advance consultation with Aboriginal communities regarding key seismic, wellsite and access road locations and pipeline construction has helped the Company gain needed approvals on a number of key Canadian projects.

Community Consultation in Alaska

FEX recognizes and respects the unique culture and history of the Inupiat people and their subsistence way of life. In 2005, FEX worked and consulted with Inupiat communities and organizations such as the North Slope Borough (NSB), Alaska Eskimo Whaling Commission (AEWC) and the Inupiat Community of the Arctic Slope (ICAS), and opened a dialogue with the NSB mayor, NSB Planning and Wildlife Departments, AEWC and ICAS to seek additional opportunities for native and local input. FEX is committed to communicating its activities to local stakeholders through meetings, newsletters, ongoing discussions and gathering Traditional Knowledge for cabin locations, travel routes and subsistence activities. As a result of this consultation, Inupiat well names were selected by FEX to complement local features and resources.

Aboriginal Community Development in Canada

Talisman's Aboriginal community investments focus on programs related to youth, education and capacity building that help prepare Aboriginal Peoples to participate in the economic opportunities associated with our activities. Talisman invested approximately $242,000 through its Aboriginal Community Investment Fund in support of 95 projects and initiatives in Aboriginal communities throughout our Alberta and BC operating areas. Examples of Talisman-supported community programs include: a Stay-in-School Program in nine northeastern BC communities; an elders dinner at the Aboriginal Resource Centre; Aboriginal Student Symposium at SAIT; scholarships at Northern Lights College, Grande Prairie College, NAIT, Mount Royal College and the National Aboriginal Achievement Foundation.

Addressing barriers to Aboriginal education

Talisman's partnership with the Chinook Lodge Aboriginal Resource Centre at the Southern Alberta Institute of Technology (SAIT), reflects the Company's commitment to supporting Aboriginal education and training initiatives. The Lodge focuses on developing leadership skills and supports Aboriginal students in various stages of their career development. Customized programs in the areas of academic orientation, study skills, jobsearch skills and on-the-job coaching are among the most popular of the Lodge's student services. The Lodge also hosts an annual Aboriginal students' symposium that delivers a stay-in-school message to Aboriginal high school students. More than 400 high school students from southern Alberta attended the symposium in 2005.

If it was not for Chinook Lodge, I would be just another student. Because of it, I have been able to give back and be a role model for other Aboriginal students. I look forward to life after SAIT and the positive impact that I can have in the Aboriginal community. Truman Soop, Chief, Chinook Lodge Aboriginal Student Alliance

Supporting Aboriginal Education

In 2005, Talisman supported the Petroleum Employment Training (PET) program, which provides formal training and work experience placements in the oil and gas industry for Aboriginal students. Graduates of PET may apply for employment with participating industry partners as trainee operators, field maintenance workers, trades helpers, or apprentices. Talisman offered an additional six-month work term following completion of the program to some graduates. In addition, Talisman supported a number of awards through local colleges to encourage Aboriginal education and training in oil and gas related trades and careers.

Cultural Awareness

Talisman values cross-cultural awareness and strives to develop high level understanding of each community's culture, interests and concerns regarding our operations. The Company respects the importance of traditional activities and locations that hold spiritual or cultural significance and consults with the community to help identify and mitigate any impacts our operations may cause. Fifty-eight Talisman employees and contractors participated in Aboriginal cross-cultural awareness courses in Alberta in Calgary, Edson, Grande Prairie and Grande Cache. Of those, 54 participated in a three-day introductory course held in Calgary, Edson and Grande Prairie and three employees participated in a three-day cultural wilderness course hosted by the AWN in Grande Cache, Alberta. One other participated in a one-day event in Grande Cache, further strengthening key relationships with the community and fostering a broader understanding of key Aboriginal issues.

Respecting Indigenous Cultures Globally

Talisman (Peru)'s operating co-venturer in Block 64. It has been consulting with the indigenous communities in Block 64 for more than four years and has entered into an agreement with the federation that represents the indigenous communities within the current exploration area. This agreement establishes ground rules for the relationship between the operator and the local communities during the exploration phase of the project. The communities represented by the federation have approved the drilling of up to eight wells and seismic activities within their territory. In exchange, these communities are being compensated for the use of their land during the proposed exploration program. The federation manages these funds and decides which community projects to support. These projects have ranged from awarding scholarships to the purchase of communications equipment, medical supplies and education materials. In addition, the federation and the operator have jointly developed a code of conduct that regulates exploration activities and the interactions between the operator, contractors, workers and the local communities.

Colombia

Talisman (Colombia) has also engaged in advocacy and dialogue in support of local indigenous culture relative to exploration and remediation activities in the Tangara and Acevedo Blocks. Working with the Government of Colombia, non-governmental organizations and the local communities, Talisman (Colombia) and its co-venturers have developed programs that provide educational training and improve capacity among indigenous communities, including agriculture and micro-businesses. Talisman (Colombia) also continues to engage with the Government of Colombia with respect to the government's efforts to consult more effectively with indigenous communities in the Mundo Nuevo Block, who, at this point in time, do not support any exploration activity in the area.