On the Mongoose forum Matt Sprange wrote "...I regret to say there will be no further Elric books forthcoming in the foreseeable future." So we'll most likely not see it in that form in the future. However, havercake lad, one of the writers working on the book, notes that
"I am sure a good deal of the material I wrote for Talons of Winter will get used in some RPG system. I'm sorry for anyone who kept campaigns on hold waiting for the book, I had sent the draft in over a year ago and it was recieved very positively by its playtesters. I'd urge budding RPFG writers not to be discouraged by projects like this, I gather situations like this happen to far better writers.
Ideally the book is best left as uinchanged (sic) as possible and placed in a Young Kingdoms campaign setting, but if no one goes for the license then I will try to get parts of it published in another RPG setting such as RQ6's The Realm (RQ6) or in Uma (Orbis Terrarum)."
So we may yet see some of the setting published in some other non YK supplement.