Quarterly Report

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New Talisman Gold Mines
Limited

Responsible,
Environmentally
Sustainable Mining

ASX/NZX Code NTL
____________________

Commodity Exposure
GOLD and SILVER

Board and Management

Charbel Nader Chairman/Independent Director
Matthew Hill Chief Executive/ Managing Director
Murray Stevens Non Executive Director
Tony Haworth Independent Director
Jane Bell Company Secretary
Wayne Chowles Chief Operating Officer
Ash Clarke Chief Financial Officer


Capital Structure
Ordinary Shares at 31/07/2018 2,165m

Share Price
Share Price at 30/07/2018 (NZX) 1.5cps
Share Price at 30/07/2018 (ASX) 1.4cps



New Talisman Gold Mines Limited

Address 541 Parnell Rd, Parnell,
Auckland
Phone +64 27 5557737
Website www.newtalisman.co.nz
Email info@newtalisman.co.nz

Market Announcement
For Immediate Release
HIGHLIGHTS
• Support works extended to Mystery and Dubbo Zones;
• Updated Pre-Feasibility Study released;
• Updated Ore Reserve Statement released;
• Carrying value review completed.

The quarter to end June 2018 proved to be another busy one for the Company
and one during which the robust nature of the Company’s flagship project at the
Talisman Mine has been clearly demonstrated. Installation and commissioning of
the custom built ventilation fan, which is now on its way from Perth, will allow
the commencement of production under the company’s resource consent for
extraction of ore from the Talisman Mine. During the quarter the company
completed underground refurbishments ahead of schedule which now see both
target areas Mystery and Dubbo in sight. Mystery is currently accessible and
recent check sampling of ore exposed at the drive face yielded grades of up 40
g/t Au as announced to the market on 31 March 2018 (please see
https://www.asx.com.au/asxpdf/20180508/pdf/43tvlpmv420f4f.pdf) This
confirms previous similar results obtained in the area. Work on reopening the
Dubbo Zone has commenced which, once completed, will allow access to the
high-grade areas identified by borehole BM37, drilled in 1989, which assayed 656
g/t Au over 1.8m including 1154 g/t Au over 1.0m


Quarterly Activities Report to 30 June 2018

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1.TALISMAN MINE PROJECT
Mine Refurbishment
Progress has been made on refurbishment of the No 8 Level drives with works having been completed
through Keillors Crosscut to the face of the
drives on the Mystery Vein. Concurrently
the team has continued with rehabilitation
of the Dubbo Drive which is now nearing
completion to the BM37 crosscut. This
means that remedial works have now
progressed more than 900m into the
mine. Services have been extended to the
Mystery Vein and telecommunications are
in place at Dubbo. The team have faced
many geotechnical challenges along the
way and have completed the works to
date without any notifiable incidents.
The processing options regarding a gravity
pilot plant for producing concentrate, as set out in recent annual report, are currently being reviewed
by the relevant regulatory authorities.
COO Wayne Chowles said, “We are very pleased at the quality of work that has been attained by the team over
the last year and, particularly, in the robust safety culture that has developed. The next exciting phase of this
project will bring with it many new challenges, and we look forward to meeting them with the same positive
approach that has yielded such excellent results to date”
Ore Reserve Update
The outcome of the PFS supports a 50% increase in the Ore Reserve attributable to the Talisman Mine.
Ore Reserves, based on an average in-situ cut-off grade of 2.6 g/t, are 45,000 tonnes at 30.6 grams
per tonne gold equivalent. Reserves are quoted at the point of delivery to the gold processing plant
and are derived from and contained within, not additional to, the Measured and Indicated portions of
the Mineral Resource.
The study was reviewed by independent experts who found that the proposed mining plan is
appropriate for the style of deposit at Talisman, and that determination of Ore Reserves has been
attained through reasonable evaluation of mining costs and process recoveries.
Mineral Resource and Ore Reserve categories are tabulated below.
Mineral
Resources
Total NTL Gold Equivalent
Category Tonnes Grade Ounces

Measured 19,600 17.4 57,480
Indicated 62,900 7.4 23,100
Inferred 82,500 15.9 389,200
Total Resources 165000 15.1 469,800

Ore
Reserves
Total NTL Gold Equivalent
Category Tonnes Grade Ounces

Proved 30,294 35.7 34,791
Probable 14,632 20.1 9,470
Total Reserves 44,926 30.6 44,260

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Full details of the Ore Reserve were released to the market on 26/06/2018. The Company confirms
that it is not aware of any new information or data that materially affects the information included in
the relevant market announcements [and, in the case of estimates of mineral resources or ore
reserves, that all material assumptions and technical parameters underpinning the estimates in the
relevant market announcement have not materially changed.
2018 Prefeasibility study
During the quarter the Company completed and released a revised Prefeasibility study on the Talisman
Project. This study, based on the updated Mineral Resource Estimate, which was released to the
market in July 2017 and prepared in accordance with the requirements of the JORC Code by Wayne
Chowles, a competent person, has demonstrated an increase in the Net Present Value of the project,
(NPV) from NZD15.4m to NZD35.9m at a 9% Discount Rate. The updated study proposes a mine plan,
focussed on high confidence areas adjacent to No 8 level, based on the production of 45,000 tonnes
at 30.6 g/t AuEq with a significant drop in on mine costs to NZD583 per ounce and C2 cash costs of
NZD710 per ounce. The IRR increased significantly to 118%.
The key drivers for this increase in value are discussed below:
 Increased ounces available for extraction – this is a result of the Mineral Resource Upgrade which
saw gold equivalent ounces in the Measured and Indicated categories increase by some 18,000
ounces. These are included in the mining
plan which has seen an increase in gold
production of some 18,800 Oz AuEq.
 Increased mine life – on the back of the
increased ounces life of mine is extended
by a year giving a current expectation of
6 years;
 Grade – Run of Mine grade, on a gold
equivalent basis, has increased from
11.2g/t to more than 27 g/t.
 The USD gold price, based on
independent forecasts, is expected to continue trading in a narrow range of between USD1300/Oz
and USD1400/Oz;
 Continued USD strength is expected to result in a falling NZD: USD exchange rate over the project
life
 Extended mine life has seen an increase in operating costs of approximately $8m;
 Capital expenditure is reduced by $1m because of the work already completed towards the Bulk
Sampling Project;

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Other key project metrics, in comparison with the previous PFS results, are tabulated below

Unit 2013 2018 Variance
Production
Life of Mine Years 5 6 1
Tonnes Milled ktpa 107 64 -43
Gold Recovered Oz Total 32,200 51,000 18,800
Cost
Total Revenue NZD(m) 68 109 41
Total Opex (C3) NZD(m) 34 42 8
Total Capex NZD(m) 11 12 1
Financial
Cash Surplus NZD(m) 23 55 32
NPV @9% (Pre-Tax) NZD(m) 15 36 21
IRR % 83% 118% 35%
Payback period Yrs 3 2 -1
Unit Costs
C1 cash Cost NZD/Oz 692 583 -109
C2 Cost NZD/Oz 904 710 -194
C3 Cost NZD/Oz 1,041 985 -56
Breakeven Gold Price NZD/Oz 1,075 820 -255
Full details of the Pre-Feasibility Study were released to the market on 26/06/2018. The release can
be viewed here https://www.asx.com.au/asxpdf/20180626/pdf/43w27wyn66hkx8.pdf .
The Pre-Feasibility Study referred to earlier in this report is a technical study as defined in the JORC
Code and can be used for the purposes of defining an Ore Reserve. Because of this the PFS is confined
to examining only the higher confidence Measured and Indicated Resources and does not take
account of the extensive information available pertaining to the deeper extents of the mine where
the Mineral Resources are classified in the Inferred Resource category.
The PFS thus sets out a roadmap for initial development of the Talisman Mine project which has
progressed through the traditional methods of mine evaluation and development.
TALISMAN MINE DEVELOPMENT

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Figure 1 - Long section of the Maria lode showing the location of the Talisman Project area (pink) and the
Talisman Deeps Project Area (Light Blue)


2.TALISMAN DEEPS Development-Early Stages
In contrast to the above, the Talisman Deeps project is in its very early stages of development. This
standalone project was conceptualised primarily as a result of the upgraded mineral resource estimate
which was released to the market in the latter part of 2017. This estimate, which substantially
increased the overall mineral resources available within the Company’s lease area, identified a
substantial inferred resource occurring at depth within the Talisman Mine. These inferred resources
fall outside the scope of works delineated by the Talisman Project but nevertheless offer the potential
for considerable upside to the company. In order to gain an understanding of the possible impact of
developing the Talisman Deeps Project NTL commissioned a Scoping Study.
The scoping study referred to above was completed in June 2018 and, following an independent
review of the outputs, which was reviewed as part of the Valmin compliant valuation discussed in the
2018 Annual Report, the results were released to the market on 27 June 2018. However, under the
ASX listing rules, where inferred resources form a majority of the mineral resources on which a scoping
study is based, the study must meet a number of requirements over and above those set out in the
JORC Code. These requirements are set out in the ASX guidance note which can be viewed here
https://www.asx.com.au/documents/asx-compliance/asx-guidance-on-reporting-scoping-studies-
with-checklist.pdf.
Following discussions with ASX the release containing the results of the scoping study was retracted
and the study is currently being reviewed so that it can be released in a form suitable for market.
It is important to note that the scoping study is the next step following the completion of the Talisman
Deeps mineral resource upgrade as is a broad evaluation of the economics (traditionally +-30%).
3.OVERALL PROGRESS
CEO Matthew Hill stated
“We are now nearing commencement of mining activities at the Talisman mine. The recent PFS demonstrated
the significant returns from the exploitation of this world class resource. The ventilation fan is currently on its
way to NZ following assembly in Perth. Once the ventilation fan is installed, underground machinery, blasting,
ore extraction and subsequent processing activities can commence. This is in line with the extraction volumes
agreed with the regulators under the existing resource consent and mining permit.”

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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 to 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
one of New Zealand’s highest-grade underground gold mines, a JORC 2012 compliant mineral resource of over
469,000 ounces AuEq at an average above 15 g/t AuEq and a JORC compliant reserve statement. The Company
owns 100% of the Rahu exploration permit, which lies along strike from the Talisman mine of which 80% was
recently acquired from Newcrest Mining. The company will shortly commence exploration activities at Rahu.

Cautionary Statement for Public Release
Certain information contained in this public release may be deemed “forward-looking” within the meaning of
applicable securities laws. Forward-looking statements and information relate to future performance and reflect
the Company’s expectations regarding execution of business strategy, business prospects and opportunities of
New Talisman Gold Mines and its related subsidiaries. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or
performance are not statements of historical fact and may be forward-looking statements. Forward-looking
statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ
materially from those expressed in the forward-looking statements and information. They include, among
others, the accuracy of mineral reserve and resource estimates and related assumptions and inherent operating
risks. There are no assurances the Company can fulfil forward-looking statements and information. Such
forward-looking statements and information are only predictions based on current information available to
management as of the date that such predictions are made; actual events or results may differ materially as a
result of risks facing the Company, some of which are beyond the Company's control. Although the Company
believes that any forward-looking statements and information contained in this press release is based on
reasonable assumptions, readers cannot be assured that actual outcomes or results will be consistent with such
statements. Accordingly, readers should not place undue reliance on forward-looking statements and
information. The Company expressly disclaims any intention or obligation to update or revise any forward-
looking statements and information, whether as a result of new information, events or otherwise, except as
required by applicable securities laws. The information contained in this release is not investment or financial
product advice.