UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)
[x]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934
       For the quarterly period ended June 30, 2000

[ ]  TRANSITION REPORT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934
      For the Transition Period from _______________ TO _______________.

                                    333-83123
                            (Commission File Numbers)

                            TALISMAN ENTERPRISES INC.
             (Exact name of registrant as specified in its charter)

<TABLE>
<CAPTION>
<S>                                                            <C>
                  ONTARIO                                                   3600
         (State or other jurisdiction of                       (Primary Standard Industrial
         incorporation or organization)                        Classification Code Number)
</TABLE>


                         2330 Southfield Road, Unit 3-4
                              Mississauga, Ontario
                                 Canada L5N 2W8
                    (Address of principal executive offices)

                                 (905) 826-3995
              (Registrants' telephone number, including area code)

                                 Not Applicable
              (Former name, former address and former fiscal year,
                          if changed since last report)

     Indicate by check mark whether the  Registrants  (1) have filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
Registrants  were required to file such  reports),  and (2) have been subject to
such filing requirements for the past 90 days. YES [ X ] NO[ ]

     As of June 30, 2000,  3,035,187 shares of Common Stock, par value $.001 per
share, of Talisman Enterprises Inc. were issued and outstanding.
<PAGE>
                                     PART I
                              FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                      Consolidated Financial Statements of

                            TALISMAN ENTERPRISES INC.

                  Three MONTHS ended June 30, 2000 - Unaudited
<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

<S>                                     <C> <C>               <C> <C>                                             <C>
Consolidated  Balance Sheets as at June 30, 2000 and December 31, 1999                                            3

Consolidated Statements of Loss and Deficit for the three and six months ended June 30, 2000 and June             4
30,1999

Consolidated Statements of Cash Flows for the three and six months ended June 30, 2000 and June 30,1999           5


Notes to Consolidated Financial Statements                                                                      6-7


</TABLE>
<PAGE>
Talisman Enterprises Inc.
Incorporated under the laws of Ontario

                           CONSOLIDATED BALANCE SHEET
     [in U.S. dollars and prepared in accordance with accounting principles
                    generally accepted in the United States]

<TABLE>
<CAPTION>



                                                                      Unaudited        Audited
                                                                      June 30,      December 31,
                                                                        2000            1999
                                                                          $               $
-------------------------------------------------------------------------------------------------------------------

ASSETS
Current
<S>                                                                    <C>                 <C>
Cash                                                                   322,806             16,557
Accounts receivable                                                    293,619            400,672
Inventories [note 2]                                                 1,315,323          1,035,006
Prepaid expenses                                                        78,227            511,193
Deferred financing costs                                                52,021            366,505
------------------------------------------------------------------------------------------------------------------
Total current assets                                                 2,061,996          2,329,933
------------------------------------------------------------------------------------------------------------------
Capital assets                                                       3,354,652          3,430,218
------------------------------------------------------------------------------------------------------------------
                                                                     5,416,648          5,760,151
------------------------------------------------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY)
Current
Bank operating line                                                         --            539,872
Accounts payable and accrued liabilities                               522,693          1,622,594
Note payable                                                                --            358,003
Convertible promissory note                                                 --          5,073,135
Current portion of long-term debt                                      127,195            130,368
------------------------------------------------------------------------------------------------------------------
Total current liabilities                                              649,888          7,723,972
------------------------------------------------------------------------------------------------------------------
Long-term debt                                                         243,385            314,640
Deferred income tax liability                                          448,895            491,111
Shareholders' equity (deficiency)
Share capital                                                       12,708,133          4,277,540
Warrants                                                               101,463            101,463
Contributed surplus                                                    284,233            284,233
Deficit                                                             (8,680,240)        (7,279,842)
Accumulated other comprehensive loss                                  (339,109)          (152,966)
------------------------------------------------------------------------------------------------------------------
Total shareholders' equity (deficiency)                              4,074,480         (2,769,572)
------------------------------------------------------------------------------------------------------------------
                                                                     5,416,648          5,760,151
------------------------------------------------------------------------------------------------------------------
</TABLE>

See accompanying notes

On behalf of the Board:


                                Director                Director


<PAGE>
Talisman Enterprises Inc.


                   CONSOLIDATED STATEMENT OF LOSS AND DEFICIT
     [in U.S. dollars and prepared in accordance with accounting principles
                    generally accepted in the United States]
                                    Unaudited



<TABLE>
<CAPTION>

                                          Three months  Three months    Six months      Six months
                                              ended         ended          ended           ended
                                            June 30,      June 30,       June 30,        June 30,
                                              2000          1999           2000            1999
                                                $             $              $               $
-------------------------------------------------------------------------------------------------------------------

<S>                                         <C>             <C>            <C>             <C>
Revenues                                    221,979         41,840         335,226         70,688
Operating expenses [exclusive of
   amortization shown separately below]     534,646        383,079         732,886        639,566
------------------------------------------------------------------------------------------------------------------
Gross profit                               (312,667)      (341,239)       (397,660)      (568,878)
------------------------------------------------------------------------------------------------------------------

Expenses
Selling, general and administrative         386,758        547,499         779,717        872,648
Amortization                                120,202        291,699         222,128        370,003
Interest and bank charges                     6,123         96,134          31,415        105,133
------------------------------------------------------------------------------------------------------------------
                                            513,083        935,332       1,033,260      1,347,784
------------------------------------------------------------------------------------------------------------------
Loss before income taxes                   (825,750)    (1,276,571)     (1,430,920)    (1,916,662)
Income taxes - deferred                     (15,123)       (14,695)        (30,522)       (28,990)
------------------------------------------------------------------------------------------------------------------
Loss for the period                        (810,627)    (1,261,876)     (1,400,398)    (1,887,672)

Deficit, beginning of period             (7,869,613)    (3,864,778)     (7,279,842)    (3,238,982)
------------------------------------------------------------------------------------------------------------------
Deficit, end of period                   (8,680,240)    (5,126,654)     (8,680,240)    (5,126,654)
------------------------------------------------------------------------------------------------------------------

Loss per share                                (0.27)         (1.22)         (0.52)         (1.83)
-------------------------------------------------------------------------------------------------------------------
</TABLE>

See accompanying notes


<PAGE>
Talisman Enterprises Inc.


                      CONSOLIDATED STATEMENT OF CASH FLOWS
     [in U.S. dollars and prepared in accordance with accounting principles
                    generally accepted in the United States]
                                    Unaudited
<TABLE>
<CAPTION>



                                          Three months  Three months    Six months      Six months
                                              ended         ended          ended           ended
                                            June 30,      June 30,       June 30,        June 30,
                                              2000          1999           2000            1999
                                                $             $              $               $
-------------------------------------------------------------------------------------------------------------------

OPERATING ACTIVITIES
<S>                                        <C>          <C>             <C>            <C>
Loss for the period                        (810,627)    (1,261,876)     (1,400,398)    (1,887,672)
Charges to income not affecting cash
   Amortization of capital assets           120,202        291,699         222,128        370,003
   Deferred income taxes                    (15,123)       (14,695)        (30,522)       (28,990)
Change in non-cash working
   capital items                           (136,468)      (371,231)       (855,318)    (1,003,634)
------------------------------------------------------------------------------------------------------------------
Cash used in operating activities          (842,016)    (1,356,103)     (2,064,110)    (2,550,293)
------------------------------------------------------------------------------------------------------------------

INVESTING ACTIVITY
Purchase of capital assets                  (63,660)      (453,535)       (216,983)      (676,211)
------------------------------------------------------------------------------------------------------------------

FINANCING ACTIVITIES
Issue of convertible promissory note             --      2,478,628              --      5,174,473
Deferred financing costs                         --       (322,222)             --       (797,677)
Repayment of long-term debt                 (31,780)       (25,510)        (64,140)      (153,588)
Increase in note payable                         --             --              --             --
Issue of common shares                           --             --       3,299,956             --
Bank operating line                              --         19,695        (531,223)      (335,833)
------------------------------------------------------------------------------------------------------------------
Cash provided by (used in)
------------------------------------------------------------------------------------------------------------------
   financing activities                     (31,780)     2,150,591       2,704,593      3,887,375
------------------------------------------------------------------------------------------------------------------

Effect of exchange rate changes on cash     (28,914)       (47,251)       (117,251)      (15,348)
-------------------------------------------------------------------------------------------------------------------

Increase (decrease) in cash during
   the period                              (966,370)       293,702         306,249        645,523
Cash, beginning of period                 1,289,176        368,522          16,557         16,701
------------------------------------------------------------------------------------------------------------------
Cash, end of period                         322,806        662,224         322,806        662,224
------------------------------------------------------------------------------------------------------------------

NON-CASH FINANCING ACTIVITIES
Conversion of promissory note                    --             --      (5,073,135)            --
Conversion of note payables                      --             --        (356,349)            --
Deferred financing costs                         --             --         299,022             --
-------------------------------------------------------------------------------------------------------------------
                                                 --             --      (5,130,462)            --
-------------------------------------------------------------------------------------------------------------------

SUPPLEMENTARY INFORMATION
Cash interest paid                           16,082         19,459          32,665         36,815
Cash income taxes paid                           --             --              --             --
See accompanying notes
</TABLE>

<PAGE>
Talisman Enterprises Inc.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
     [in U.S. dollars and prepared in accordance with accounting principles
                    generally accepted in the United States]
                                    Unaudited

June 30, 2000

1. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information  in the United States and with the  instructions  to Form
10-Q and Article 10 of Regulation S-X.  Accordingly,  they do not include all of
the  information  and  footnotes  required  by  generally  accepted   accounting
principles for complete financial statements. In the opinion of management,  all
adjustments  considered  necessary for a fair  presentation  have been included.
Operating  results  for the six  months  period  ended  June  30,  2000  are not
necessarily  indicative  of the results  that are  expected  for the year ending
December 31, 2000. For further information,  refer to the consolidated financial
statements and footnotes included in the Talisman Enterprises Inc. annual report
on Form 10-KSB for the year ended December 31, 1999.

For purposes of these consolidated financial statements, the company has adopted
the U.S. dollar as the reporting  currency.  This improves investors' ability to
compare  the  company's  results  with  those  of  most  other  publicly  traded
businesses in the industry.  These consolidated  financial  statements have been
translated  from  Canadian  dollars to U.S.  dollars by  translating  assets and
liabilities  at the rate in  effect at the  respective  balance  sheet  date and
revenues and expenses at the average rate for the period.  Any resulting foreign
exchange gains or losses are recorded in accumulated other comprehensive loss.

2. NATURE OF OPERATIONS

Talisman Enterprises Inc. is a company incorporated to primarily produce premium
private label alkaline  batteries.  The consolidated  financial  statements have
been prepared by management in accordance with accounting  principles  generally
accepted in the United States on a going concern basis,  which  contemplates the
realization  of assets and the discharge of  liabilities in the normal course of
business for the foreseeable future. The company has incurred significant losses
and  negative  cash flow  from  operations  and has an  accumulated  deficit  of
$8,680,240  at June 30, 2000  [December  31, 1999 -  $7,279,842].  The company's
ability to continue as a going concern is in substantial  doubt and is dependent
upon  achieving a profitable  level of operations  and, if necessary,  obtaining
additional financing.  Management of the company has undertaken steps as part of
a plan to improve  operations with the goal of sustaining company operations for
the next twelve months and beyond.  These steps  include (i) focusing  sales and
marketing on specific  markets and customers and (ii)  controlling  overhead and
expenses. There can be no assurance the company can attain profitable operations
in the future. These consolidated financial statements do not give effect to any
adjustments which would be necessary should the company be unable to continue as
a going concern and  therefore,  be required to realize its assets and discharge
its  liabilities  in other than the  normal  course of  business  and at amounts
different  from  those  reflected  in the  accompanying  consolidated  financial
statements.
<PAGE>
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
     [in U.S. dollars and prepared in accordance with accounting principles
                    generally accepted in the United States]
                                    Unaudited

<TABLE>
<CAPTION>

3. INVENTORIES

                                                                      June 30,      December 31,
                                                                        2000            1999
                                                                          $               $
-------------------------------------------------------------------------------------------------------------------

<S>                                                                   <C>                 <C>
Raw materials and packaging                                           388,146             316,829
Finished goods                                                        927,177             718,177
------------------------------------------------------------------------------------------------------------------
                                                                    1,315,323           1,035,006
------------------------------------------------------------------------------------------------------------------
</TABLE>

4. LOSS PER SHARE

The  calculation  of loss per  common  share is based on the  reported  net loss
divided by the weighted average number of shares  outstanding during the period.
The weighted  average number of common shares  outstanding  for the three months
ended  June 30,  2000 was  3,035,187  and six  months  ended  June 30,  2000 was
2,705,250, [three and six months ended June 30, 1999 - 1,034,324].
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
        Results of Operations

         The  statements  contained in this Report that are not  historical  are
forward-looking   statements,   including  statements  regarding  the  Company's
expectations,  intentions,  beliefs or strategies regarding the future. Forward-
looking  statements  include  the  Company's   statements  regarding  liquidity,
anticipated  cash needs and  availability  and anticipated  expense levels.  All
forward-looking  statements  included  in this  Report are based on  information
available  to the  Company  on the  date  hereof,  and the  Company  assumes  no
obligation to update any such forward-looking statement. It is important to note
that the Company's  actual  results could differ  materially  from those in such
forward-looking statements.  Additionally, the following discussion and analysis
should be read in  conjunction  with the Financial  Statements and notes thereto
appearing  elsewhere in this Report. The discussion is based upon such financial
statements which have been prepared in accordance with U.S.  Generally  Accepted
Accounting Principles and are presented in United States dollars ($).

General

         Talisman was  incorporated in July 1978 and for almost 20 years carried
on business as a junior mineral  exploration company in the Province of Ontario,
Canada.  In September  1997,  Talisman (then known as Firesand  Resources  Ltd.)
entered  into a  share  exchange  agreement  with  Talisman  International  Inc.
pursuant to which Talisman acquired all of the issued and outstanding  shares of
common stock of Talisman International in exchange for shares of Talisman.  Upon
completion of the share exchange,  Firesand  Resources Ltd.  changed its name to
its current name, Talisman Enterprises Inc. The share exchange was accounted for
as a reverse  takeover  and  accordingly,  the  results  of  Talisman  (formerly
constituted as Firesand) have been included with those of Talisman International
from the date of the share exchange.

            Talisman,  through our wholly-owned  operating subsidiary,  Talisman
International  Inc.,  manufacturers  high-quality  AA size  disposable  alkaline
batteries  for  private  label  sale  by  retailers.  We are  currently,  to our
knowledge,  the only North  American-based  battery  manufacturer  that  focuses
primarily on the private label  market.  Our objective is to leverage our unique
strategic position to build market share in the private label battery market and
capitalize  on the  significant  growth in private  label battery sales in North
America.

Results of Operations

Three month period ended June 30, 2000 and June 30, 1999

Revenues

         Revenues  for the three  month  period  ended June 30,  2000  increased
$180,139 to $221,979,  a 431% increase over revenues of $41,840 during the three
months  period  ended June 30, 1999.  The sales  increase  was  attributable  to
greater  than prior  year  sales from  Amcon,  CVP,  Harris  Teeter and  Navarro
Pharmacy.

Operating Expenses and Gross Margins

         Operating  expenses  for the three  month  period  ended June 30,  2000
increased  $151,567 to  $534,646,  a 40%  increase  from  operating  expenses of
$383,079  during the three months  period  ended June 30, 1999.  The increase in
operating  expenses was attributable to increases in variable  overhead spending
in relation to the growth in sales.
<PAGE>
         Gross margins,  as a percentage of revenues  improved to (141%) for the
three  month  period  ended June 30,  2000,  as compared to (816%) for the three
month  period ended June 30,  1999.  The  improvement  was  attributable  to the
increase in sales and a less than  proportionate  increase in variable  overhead
spending relative to the sales improvement.

Selling, General and Administrative Expense

         Selling,  general and administrative expense for the three month period
ended June 30, 2000 decreased $160,741 to $386,758, a 29% decrease over selling,
general and  administrative  expenses of $547,499 during the three months period
ended June 30, 1999. The decrease is primarily  attributable  to one time costs,
recorded in the prior year,  covering relocation costs for the CEO and severance
costs for the VP Sales - Canada,  along with the  elimination  of the  executive
bonus program in 2000.

Amortization Expense

         Amortization  expense  for the three month  period  ended June 30, 2000
decreased  $171,497 to $120,202,  a 59% decrease  from  amortization  expense of
$291,699  during the three months  period  ended June 30, 1999.  The decrease in
amortization  expense is due to the fact that the three month  period ended June
30, 1999 included  amortization of deferred  financing costs related to the 1999
private placement.

Interest Expense and Other Financing Charges

         Interest expense and other financing charges for the three month period
ended June 30, 2000  decreased  $90,011 to $6,123,  a 94% decrease from interest
expense and other  financing  charges of $96,134  during the three month  period
ended June 30,  1999.  The  decrease  in interest  expense  and other  financing
charges was primarily attributable to the following:

o        during the three month period ended June 30, 1999, the company recorded
         a one time  commencement  fee in connection  with the initiation of the
         revolving loan process with GE Capital Canada; and
o        during the three month period ended June 30, 1999, the company incurred
         interest expenses in connection with the revolver loan that it had with
         CIBC.

Foreign Exchange

         For the  three  months  ended  June 30,  2000,  Talisman  had a foreign
exchange gain of approximately  $21,747,  which was included in the results from
operations of gains on U.S.  sales/receivables  and funds on deposit,  offset by
losses on U.S.  purchase/payables  from U.S. dollar suppliers.  During the three
months ended June 30, 1999,  Talisman  experienced  a foreign  exchange  gain of
$20,876.  Currently, a majority of revenues from sales are in U.S. dollars and a
majority of  expenses  from goods  purchased  for resale are  purchased  in U.S.
dollars.  Since  Talisman  is based in  Ontario,  Canada,  approximately  80% of
Talisman's combined operational and selling, general and administrative expenses
for the  period  ended  June  30,  2000,  were  incurred  in  Canadian  dollars.
Variations in the value of the Canadian dollar,  as compared to the value of the
U.S. dollar, could adversely effect Talisman's results.
<PAGE>
Stock Based Compensation
         We account for our stock options and warrants  under APB Opinion 25. If
Talisman  was required to account for the stock  options and warrants  using the
fair value  method,  the pro forma net loss for the three  months ended June 30,
2000  would be  ($830,832).  The pro forma  loss per share for the three  months
ended June 30, 2000 would be $(0.27).  Such amounts  represent the fair value of
options and  warrants at the time they  vested.  Since some of the options  vest
over a period of time there will be future charges to income with respect to the
options  granted  in 1999 of  $254,593  over  the next 7  years.  There  were no
employee  stock  options or warrants  issued in the three  months ended June 30,
2000.

Inflation

         Talisman has  experienced  minimal  impact from  inflation and changing
prices on its net sales and on its income  from  continuing  operations  for the
periods it has been engaged in business.

Liquidity And Capital Resources

         For the three month  period  ended June 30, 2000,  the  Company's  cash
position  decreased by $966,370 from $1,289,176 to $322,806.  The principal uses
of cash were $842,016 that was used for operating  activities,  $63,660 that was
used to  purchase  capital  assets  and  $31,780  that  was used to pay down the
Company's borrowing facility.

         Talisman  has  financing  facilities  in place  with  General  Electric
Capital Canada Inc.,  which currently  consist of (1) a Cdn.$940,800  term loan;
(2) a revolving credit line of up to  Cdn.$7,500,000,  and (3) a "capex" loan of
up to  Cdn.$2,059,200.  The term loan is due and  payable on or before  June 30,
2002.  Interest charged on the General Electric Capital  facilities is, (i) with
respect to funds  advanced in Canadian  dollars,  calculated at the average rate
per annum  established  by the Royal  Bank of  Canada at its  discount  rate for
30-day Canadian bankers acceptances plus 4.0% per year, and (ii) with respect to
funds  advanced  in U.S.  dollars,  the  latest  rate for 30-day  dealer  placed
commercial  paper,  which  normally is published in the "Money Rates" section of
the Wall Street  Journal.  Furthermore,  all  indebtedness of Talisman under the
General Electric Capital facilities is secured by Talisman's assets.

         Except for the existing  financing  arrangements  with General Electric
Capital Canada Inc.,  Talisman has no other current  arrangements  in place with
respect to financing.  If additional financing arrangements are not obtained, we
may be unable to fully fund our operations,  pursue our business strategy,  take
advantage of new opportunities,  develop or enhance our products,  or respond to
competitive  pressures and financial or marketing hurdles.  Such inability could
have a materially adverse effect on Talisman's  business,  operating results and
financial condition.  Moreover,  the estimated cost of the proposed expansion of
our  production and marketing  activities is subject to numerous  uncertainties,
including the problems, expenses,  difficulties,  complications and delays, many
of which are beyond our control,  frequently  encountered in connection with the
establishment and development of new business activities, and may be affected by
the competitive environment in which we are operating. Accordingly, there can be
no assurance that we will complete the proposed  expansion of our production and
marketing activities described herein.
<PAGE>
                                     PART II

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

  (a)  Exhibits

         Exhibit 27:        Financial Data Schedule

  (b)  Reports on Form 8-K

       The  Company  did not file any reports on Form 8-K during the three month
period ended June 30, 2000.



<PAGE>
                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  the  project  to be  signed  on its  behalf by the
undersigned thereto duly authorized.



                                                       TALISMAN ENTERPRISES INC.


August 10, 2000                             By:      /s/ Thomas O'Dowd
                                                         Thomas O'Dowd
                                                         Chief Financial Officer