Quarterly Report

Commodity Exposure

GOLD and SILVER

Board and Management

Charbel Nader
Chairman/Independent Director

Matthew G Hill
Chief Executive/Managing Director

Murray McKee
Independent Director

Murray Stevens
Non executive Director

Tony Haworth
Independent Director

Jane Bell
Company Secretary

Ash Clark
CFO

Wayne Chowles
COO

Capital Structure

Ordinary Shares on issue -
2,163,498,520
Listed Options – 118,530,578
A 2 cent – expiring Nov 2017
Listed Options – 17,036,384
NZ 5.5 cent – expiring Sept 2022

Share Chart



Market Announcement
ASX:NTL, NZX:NTL
For Immediate Release
HIGHLIGHTS
 High Grade Bonanza resource module completed
 NTL acquires Newcrest NZ
 Substantial progress underground
 SPP Successfully completed raising approx. 2M NZD


New Talisman Gold Mines Limited is pleased to present the quarterly report
on activities for the period ended 30 September 2017.

During the Period under review the company has progressed substantially on
a number of corporate fronts including the acquisition of Newcrest New
Zealand Pty Ltd which holds the Rahu permit providing New Talisman 100%
ownership of the Rahu Project.

More recently the company made a site visit to Fiji looking at a number of
opportunities. A review of options for toll treatment was also reviewed given
the close proximity to Fiji and available transportation for high grade ore or
concentrate export.

During the period the company continued to look at other gold projects in New
Zealand, Fiji, Vanuatu, and the USA

New Talisman is building its Gold resources and establishing a world class
high grade project and has commenced updating its Prefeasibility
Study(PFS) to meet the significant uplift in these resources. The company
is continuing along its path and upon completion of prospecting and
commencement of bulk sampling will be well positioned as the newest
underground gold mine in NZ to commence underground operations for
many years. With the acquisition of Rahu Talisman is well poised for the
longer term with significant potential for further resource upgrades as
drilling and bulk sampling provide further data for the Feasibility study.

Gold Price in NZD

Gold is up over $70 NZD over the past 30 days, trading consistently above
NZ $1,800 per ounce. New Talisman is one of the very few equity
investments which allows investors to take advantage of NZD gold price.

Quarterly Activities Report to 30 September 2017

MARKET ANNOUNCEMENT


2
Capital

During the period under review the company completed a successful SPP raising just
under 2M NZD at a premium to the prevailing share price traded during the issue
period. This demonstrates the significant support for the project by current
shareholders who have been rewarded with an attaching 1 for 5 option with a generous
5 year term which has recently traded at 0.7 providing investors long term incentives.

The current 2017 listed options which expire in November have begun to be exercised
and further applications to convert have been recently received. Funds from the
exercise of these options coupled with the recent $2M raised will be applied to
exploration at Rahu and the test work being undertaken with regard to concentration
plant for Talisman.

With approximately 6M NZD in cash the company is in a healthy position with the bulk
sampling project having a phase 1 budget including prospecting activities of $2.2M
previously approved.

Share performance

In just the last six months, New Talisman shares have risen from 0.5 cents per share
to a high of 3.1 cents per share and currently are consistently trading on the NZX at
1.9 to 2 cents following the SPP. The market capitalisation has increased to 40M NZD
which is up over 280% during the last 6 months.

The significant uplift has coincided been the substantial gold resource upgrade which
recently doubled and with high grades placing Talisman as one of the highest grade
underground mines in NZ, as well as the extensive activity at site being undertaken
which has established the platform for the reopening of this highly productive mine
once prospecting phase is complete.

TALISMAN GOLD PROJECT (100%) – Hauraki District, NZ
During the quarter the company continued to make progress on upgrading all
resources to 2012 JORC. The completion of these upgrades to include mystery and
other areas is expected to be completed in the coming quarter.

As announced NTL is investigating the possibility of installing a modular gravity
separation/flotation plant. This would mean that the company is able to despatch a
saleable product directly from the mine site and greatly increase the gold content of
ore dispatched.

The preliminary design of the concentrator is well underway and NTL have removed
300kg of ore from the face of the Mystery vein which will be sent to the designer to
conduct crush and grind testing along with more detailed flow sheet analysis to
estimate recovery percentages and other key data.

With mine refurbishments for prospecting having upgraded the mine through to the
underground bridge which is approximately 550M inside the level 8 portal, the team
now has commenced making clear access to the Mystery vein for small scale sampling
and extraction of small quantities of gold bearing ore during the prospecting phase.

MARKET ANNOUNCEMENT


3
Further work is being undertaken which will allow higher volumes catered for in the
previously announced project plan.

Consistent quantities of gold bearing ore extracted during prospecting phase and
subsequent bulk sampling are the focus discussions which have been initiated with
NZPAM as part of the permit conditions which require that an extraction rate is agreed.

Prospecting and Bulk Sampling
The prospecting phase is progressing well with numerous geological samples having
been extracted from various parts of the permit area at surface and along the areas of
refurbishments underground with high grade results from a series of grab samples.

Reconnaissance work is being undertaken looking at areas accessible within the
deeps to sample as part of the prospecting phase.

Recent developments have made Mystery accessible for a 300kg sample taken as
outlined above for concentrator design and further refurbishments are required before
commencing a fuller prospecting and geological sampling program at Mystery.

The mine team intend to commence small scale extraction under the current
prospecting certificate by end November on low volumes increasing toward the fuller
bulk sampling plan later in the year once a number of refurbishments are complete
and ventilation system installed.

With the high grades outlined in the recent resource upgrades the use of a concentrator
may provide readily saleable concentrate material without the need for further
processing.

The company has received an initial approach by a NZ group keen on acquiring high
grade concentrate and will explore this further upon completion of the testwork being
undertaken.

Talisman Deeps Project
The Talisman Deeps project was completed during the quarter with the final Bonanza
module making up the first phase of upgrades at Deeps comprising of 3 modules. The
overall resulted in a significant upgrade to the overall Jorc compliant resources and
providing an extensive global mineral target.

A gap analysis is currently underway to ascertain potential for further resources and
will scope the requirements and costs to determine the ability to convert inferred
resource components to indicated resources.

With the recent increase of resources and grades inclusive of the Talisman deeps
project NTL has initiated the revised PFS for which data from both prospecting
currently being undertaken and Bulk sampling provide opportunities for extension of
both mine life and increased extraction potential compared to the original PFS
completed in 2013.

Rahu
The wholly owned subsidiary now renamed Rahu Resources Pty Ltd holds access
agreements and substantial data provided as part of the acquisition from Newcrest
which will allow NTL to fast track exploration development.

MARKET ANNOUNCEMENT


4
To date 31 drill holes, totalling 4585 metres, have been completed into this structure
and have intersected highly anomalous Au and Ag values with some high-grade gold
and silver intercepts.

Resource estimation carried out based on these results has determined a JORC 2012
compliant resource of 41,590 oz. gold and 258,400 oz. silver in the indicated and
inferred categories.

As previously announced Exploration Targets have been estimated at 14 million
tonnes ranging between 0.5g/t and 2.0g/t Au for between 225,000 oz. and 902,000
oz. gold. This target constitutes a global Exploration Target as defined in the 2012
JORC Code. The potential quantity and grade is conceptual in nature and there has
been insufficient exploration to estimate a Mineral Resource. It is uncertain if further
exploration will result in the estimation of a Mineral Resource.

A Drill rig has been identified which has the ability to complete deep drill holes to a
depth of over 1000 metres is currently being independently inspected and a cost
benefit analysis carried out with an aim to develop an inhouse drilling capability which
could be used at both Rahu and other highly prospective target areas at the Talisman
permit such as Takani Hill and Dominion Knoll.

Tenements
The interest in Mining Tenements Held by New Talisman Gold Mines (and its
subsiduaries) at the end of the quarter and related percentage of ownership.

Permit
Number Type
Permit
Name Interest
MP51326 Mining Talisman 100%
EP60144 Exploration Rahu
100% through wholly owned subsiduary Rahu
Resources Pty Ltd



Matthew Hill
Chief Executive Officer
New Talisman Gold Mines Limited
+64 217 95559


FOR MEDIA ENQUIRIES PLEASE CONTACT MATTHEW HILL ON +64 217 9 5559

__________________________________________________________________________
About New Talisman Gold Mines Ltd
New Talisman Gold is a dual listed (NZSX & ASX: NTL) with over 2250 shareholders who are
mainly from Australia and New Zealand and has been listed since 1986. It is a leading New
Zealand minerals development and exploration company with a mining permit encompassing
the Talisman mine, one of New Zealand’s historically most productive gold mines. The
company has commenced prospecting and upgrading activities at the mine, and advance the
exploration project and increase its considerable global exploration target into JORC 2012
resources.

Its gold properties near Paeroa in the Hauraki District of New Zealand are a granted mining
permit, including New Zealand’s highest-grade underground gold mine, a JORC 2012

MARKET ANNOUNCEMENT


5
compliant mineral resource of over 427,000 ounces au/eq at an average above 17 gt AU/eq
and a JORC compliant reserve statement. The company owns 100% exploration permit Rahu
which holds a 2012 JORC resource and a significant global exploration target. The project lies
contiguously along strike from the Talisman mine of which 80% was recently acquired from
Newcrest Mining. The company will shortly commence exploration activities at Rahu.



Competent Persons Statement
The information in this report that relates to exploration results, exploration targets and mineral
resources is based on information compiled by or supervised by Mr Murray Stevens and Mr
Wayne Chowles. Mr Stevens is a consulting geologist and director of New Talisman Gold Mines
Ltd, who is a corporate member of the AusIMM. Mr Stevens has sufficient experience which is
relevant to the style of mineralisation and type of deposit under consideration and to the activity
being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the
“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves”.

Mr Chowles is a Mining Engineer and member of the AusIMM. Mr Chowles is a full-time
employee of New Talisman Gold Mines Limited, he has sufficient experience which is relevant
to the style of mineralisation and type of deposit under consideration and to the activity being
undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.

Both Mr Chowles and Mr Stevens consent to the inclusion in this report of the matters based
on his information in the form and context in which it appears.

---

Page | 1




Current
Quarter
$NZ



Year to Date
(6 Mths)
$NZ



Nil

(464,030)
Nil
(458,688)
Nil
154
Nil
Nil
Nil



Nil
(657,678)
Nil
(653,596)
Nil
1,547
Nil
Nil
Nil
(922,564) (1,309,727)



Nil
Nil
(42,176)
Nil
Nil
Nil
Nil
Nil
Nil



Nil
Nil
(71,166)
Nil
Nil
Nil

Nil
Nil

(42,176)

(71,166)



1,250
Nil
Nil
Nil
Nil
Nil



1,250
Nil
Nil
Nil
Nil
Nil

1,250

1,250

(963,490)
5,333,820
(314)

(1,379,643)
5,754,398
(4,739)

4,370,016

4,370,016
APPENDIX 11
(Rule10.8.4)



QUARTERLY REPORT OF CONSOLIDATED CASH
FLOWS
NEW TALISMAN GOLD MINES
LIMITED

For Quarter ended 30 September 2017
(Referred to in this Quarter as the "Current Quarter")


Quarterly Report of Consolidated Cash Flows in accordance with
Listing Rule 10.8.4. These figures are based on accounts which are
*unaudited. If these figures are based on audited accounts, a
statement is required of any material qualification made by the
auditor. The Mining Issuer *has a formally constituted Audit
Committee of the Board of Directors.


1. CASH FLOWS RELATING TO OPERATING ACTIVITIES
(a) Receipts from product sales and related debtors
(b) Payments for exploration and evaluation
for development
for production
for administration
(c) Dividends received
(d) Interest and other items of a similar nature received
(e) Interest and other costs of finance paid
(f) Income taxes paid
(g) Other (provide details if material)
(h) NET OPERATING CASH FLOWS



2. CASH FLOWS RELATED TO INVESTING ACTIVITIES
(a) Cash paid for purchases of prospects
equity investments
other fixed assets
(b) Cash proceeds from sale of prospects
equity investments
other fixed assets

(c) Loans to other entities Nil
(d) Loans repaid by other entities
(e) Other (provide details if material) - Sale of share investments


(f) NET INVESTING CASH FLOWS


3. CASH FLOWS RELATED TO FINANCING ACTIVITIES
(a) Cash proceeds from issues of shares, options, etc
(b) Proceeds from sale of forfeited shares
(c) Borrowings
(d) Repayments of borrowings
(e) Dividends paid
(f) Other (provide details if material)


(g) NET FINANCING CASH FLOWS


4. (a) *NET INCREASE (DECREASE) IN CASH HELD
(b) Cash at beginning of quarter/year to date
(c) Exchange rate adjustments to Item 4(a) above


(d) CASH AT END OF QUARTER

Page | 2


Amount Available
$NZ

Amount Used
$NZ




Current Quarter#
$NZ

Following Quarter
$NZ

Nil


Nil

300,000

300,000

300,000

300,000

Current Quarter
$NZ

Previous Quarter
$NZ

265,016


1,228,820

4,000,000



4,000,000

Nil

Nil

105,000


105,000


4,370,016



5,333,820
5. NON-CASH FINANCING AND INVESTING ACTIVITIES

(a) Provide details of financing and investing transactions which have had a material effect on consolidated assets and
liabilities but did not involve cash flows:

Nil....................................................................................................................................................

(b) Provide details of outlays made by other entities to establish or increase their shares in projects in which the reporting
entity has an interest.

Nil..............................................................................................................................................................................

.
6. FINANCING FACILITIES AVAILABLE


Provide details of used and unused loan facilities and
credit standby arrangements, adding such notes as are
necessary for an understanding of the position.


N/A................................................................................


..........................................................................................


..........................................................................................



7. ESTIMATED OUTLAYS FOR SPECIFIED QUARTERS



(a) Exploration and evaluation



(b) Development



TOTAL




# The outlays to be shown in this column are the estimates made for this quarter in the previous quarterly report. Where
these estimates differ by more than 15% from the actual outlays reported in Item 1(b) of this report, provide an
explanation of the reason(s) for these differences as an attachment to this report – see Annexure 1.

8. RECONCILIATION OF CASH

For the purposes of this statement of cash flows, cash includes:

Petty cash, Westpac cheque & savings accounts, ANZ accounts, NAB, Macquarie & Westpac Australian dollar cheque
accounts.


Cash at the end of the quarter as shown in the statement
of cash flows is reconciled to the related items in the
amounts as follows:


Cash on hand and at bank



Deposits at call and Term Deposits



Bank overdraft



Other (provide details) - Bond



TOTAL = CASH AT END OF QUARTER [Items
4(d)/4(b)]

Page | 3


Tenement
Reference

Nature of
Interest

Interest at
Beginning
of Quarter

Interest at End
of Quarter

a) N/A



b) Rahu 40117
Permit held by
subsidiary Rahu
Resources Pty Ltd
20% 100%
9. CHANGES IN INTERESTS IN MINING TENEMENTS


(a) Interests in mining
tenements relinquished,
reduced and/or lapsed

(b) Interests in mining
tenements acquired
and/or increased

(c) Where changes are
reported in (a) and/or (b),
an amended list of
interests in mining
tenements is attached to
this statement.

10. ISSUED AND QUOTED SECURITIES AT END OF CURRENT QUARTER

Category of Securities Number Issued Number Quoted Paid-Up Value Cents
PREFERENCE SHARES Nil Nil
ORDINARY SHARES

2,157,271,250 2,157,271,250
SHARES
Issued during current
quarter:
Nil

Nil

CONVERTIBLE NOTES: Nil

Nil

Issued during current
quarter
Nil

Nil

OPTIONS:



Exercise Price / Expiry Date

Quoted
118,530,578

15,790,930
118,530,578

15,790,930
A$0.0216 or NZ equivalent
/ 28 November 2017
A$0.055 or NZ equivalent
/ 30 September 2017
Issued during current
quarter
Nil Nil
Expired during current
quarter
Nil Nil
Not quoted and not
transferable



1,250,000

3,000,000


Nil

Nil

A$0.011 or NZ equivalent
/ 13 February 2019
A$0.011 or NZ equivalent
/ 13 November 2018

Issued during current
quarter

Nil

Nil

WARRANTS:
Nil Nil
DEBENTURES – totals
only:
Nil Nil
UNSECURED NOTES –

totals only:

Nil Nil


Jane Bell (Company Secretary)
Authorised Officer of Listed Issuer
30 September 2017

Page | 4

Annexure 1

The actual development expenditure for the quarter was $464,030 compared to a budget of $300,000. The reason for the variance
was due to the earlier commencement of work planned for the following quarter.

List of interest in mining permits:

Talisman 51326
Rahu 40117

---

Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
+ See chapter 19 for defined terms
1 September 2016 Page 1
+Rule 5.5
Appendix 5B
Mining exploration entity and oil and gas exploration entity
quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity
NEW TALISMAN GOLD MINES LIMITED
ABN Quarter ended (“current quarter”)
009 474 702 30 September 2017

Consolidated statement of cash flows
Current quarter
$NZ’000
Year to date (6mths)
$NZ’000
1. Cash flows from operating activities
Nil Nil 1.1 Receipts from customers
1.2 Payments for
Nil Nil (a) exploration & evaluation
(b) development (318,003) (511,651)
(c) production Nil Nil
(d) staff costs (146,027) (202,677)
(e) administration and corporate costs (458,688) (596,946)
1.3 Dividends received

(see note 3) Nil Nil
1.4 Interest received 154 1,547
1.5 Interest and other costs of finance paid Nil Nil
1.6 Income taxes paid Nil Nil
1.7 Research and development refunds Nil Nil
1.8 Other (provide details if material) Nil Nil
1.9 Net cash from / (used in) operating
activities
(922,564) (1,309,727)

2. Cash flows from investing activities
(42,176) (71,166)
2.1 Payments to acquire:
(a) property, plant and equipment
(b) tenements (see item 10) Nil Nil
(c) investments Nil Nil
(d) other non-current assets Nil Nil

Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
+ See chapter 19 for defined terms
1 September 2016 Page 2
Consolidated statement of cash flows
Current quarter
$NZ’000
Year to date (6mths)
$NZ’000
2.2 Proceeds from the disposal of:
Nil Nil (a) property, plant and equipment
(b) tenements (see item 10) Nil Nil
(c) investments Nil Nil
(d) other non-current assets Nil Nil
2.3 Cash flows from loans to other entities Nil Nil
2.4 Dividends received (see note 3) Nil Nil
2.5 Other (provide details if material) Nil Nil
2.6 Net cash from / (used in) investing
activities
(42,176) (71,166)

3. Cash flows from financing activities
1,250 1,250 3.1 Proceeds from issues of shares
3.2 Proceeds from issue of convertible notes Nil Nil
3.3 Proceeds from exercise of share options Nil Nil
3.4 Transaction costs related to issues of
shares, convertible notes or options
Nil Nil
3.5 Proceeds from borrowings Nil Nil
3.6 Repayment of borrowings Nil Nil
3.7 Transaction costs related to loans and
borrowings
Nil Nil
3.8 Dividends paid Nil Nil
3.9 Other (provide details if material) Nil Nil
3.10 Net cash from / (used in) financing
activities
1,250 1,250

4. Net increase / (decrease) in cash and
cash equivalents for the period
5,333,820 5,754,398
4.1 Cash and cash equivalents at beginning of
period
4.2 Net cash from / (used in) operating
activities (item 1.9 above)
(922,564) (1,309,727)
4.3 Net cash from / (used in) investing activities
(item 2.6 above)
(42,176) (71,166)
4.4 Net cash from / (used in) financing activities
(item 3.10 above)
1,250 1,250
4.5 Effect of movement in exchange rates on
cash held
(314) (4,739)
4.6 Cash and cash equivalents at end of
period
4,370,016 4,370,016

Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
+ See chapter 19 for defined terms
1 September 2016 Page 3
5. Reconciliation of cash and cash
equivalents
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
Current quarter
$NZ’000
Previous quarter
$NZ’000
5.1 Bank balances 265,016 1,228,820
5.2 Call deposits 4,000,000 4,000,000
5.3 Bank overdrafts Nil Nil
5.4 Other (provide details) 105,000 105,000
5.5 Cash and cash equivalents at end of
quarter (should equal item 4.6 above)
4,370,016 5,333,820

6. Payments to directors of the entity and their associates
Current quarter
$NZ'000
6.1 Aggregate amount of payments to these parties included in item 1.2 143,456
6.2 Aggregate amount of cash flow from loans to these parties included
in item 2.3
Nil
6.3
Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2

Consultancy services, Director’s fees and Geotechnical Consultancy.


7. Payments to related entities of the entity and their
associates
Current quarter
$NZ'000
7.1 Aggregate amount of payments to these parties included in item 1.2 Nil
7.2 Aggregate amount of cash flow from loans to these parties included
in item 2.3
Nil
7.3 Include below any explanation necessary to understand the transactions included in
items 7.1 and 7.2

Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
+ See chapter 19 for defined terms
1 September 2016 Page 4
8. Financing facilities available
Add notes as necessary for an
understanding of the position
Total facility amount
at quarter end
$NZ’000
Amount drawn at
quarter end
$NZ’000
8.1 Loan facilities Nil Nil
8.2 Credit standby arrangements Nil Nil
8.3 Other (please specify) Nil Nil
8.4 Include below a description of each facility above, including the lender, interest rate and
whether it is secured or unsecured. If any additional facilities have been entered into or are
proposed to be entered into after quarter end, include details of those facilities as well.




9. Estimated cash outflows for next quarter
$NZ’000
9.1 Exploration and evaluation Nil
9.2 Development 300,000
9.3 Production Nil
9.4 Staff costs 70,000
9.5 Administration and corporate costs 150,000
9.6 Other (provide details if material) Nil
9.7 Total estimated cash outflows 520,000

10. Changes in
tenements
(items 2.1(b) and
2.2(b) above)
Tenement
reference
and
location
Nature of interest Interest at
beginning
of quarter
Interest
at end of
quarter
10.1 Interests in mining
tenements and
petroleum tenements
lapsed, relinquished
or reduced
N/A
10.2 Interests in mining
tenements and
petroleum tenements
acquired or increased
Rahu
40117
Permit held by subsidiary
Rahu Resources Pty Ltd
20% 100%

Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
+ See chapter 19 for defined terms
1 September 2016 Page 5
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which
comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: .............................................
(Director/Company secretary)

Print name: .........................................................

Notes
1. The quarterly report provides a basis for informing the market how the entity’s activities have
been financed for the past quarter and the effect on its cash position. An entity that wishes to
disclose additional information is encouraged to do so, in a note or notes included in or attached
to this report.
2. If this quarterly report has been prepared in accordance with Australian Accounting Standards,
the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral
Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report
has been prepared in accordance with other accounting standards agreed by ASX pursuant to
Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows
from investing activities, depending on the accounting policy of the entity.