New Talisman Gold Mines Ltd logo

2022 Annual Report

Annual Report28 June 2022NTLIndustrials

ANNUAL REPORT 2022
www.newtalisman.co.nz

RESPONSIBLE, ENVIRONMENTALLY SUSTAINABLE MINING

NEW TALISMAN GOLD
ANNUAL REPORT 2022

2

CONTENTS

Chairman’s Report 3

Board of Directors 6

Audit Report 7

Financial Statements 13

Notes to the Financial Statements 17

Tenement Schedule 26

Additional Information 30

Corporate Governance 32

Company Directory back page

1852 – Gold discovered on the Coromandel

1875 – Ohinemuri goldfield opened for prospecting

1882 – Maria Vein discovered at Mt Karangahake

1883 – Crown Mine established

1887 – Woodstock Mine established

1894 – Historical Talisman Mine established

1904 – Woodstock Mine incorporated into Talisman

1919 – Talisman Closure

1928 – Crown Mine closure

1971 – Southern Cross Minerals begin exploration

1980 – NZ Goldfields registered

1985 – NZ Goldfield/Freeport JV

1987 – NZ Goldfields/Cyprus Minerals JV

1989 – Discovery of Dubbo Zone

1993 – Southern Mining license lapses

1995 – Exploration Permit granted to Heritage Gold

2003 – 1st Phase exploration – 109 600 Oz

2006 – 2nd Phase exploration – 205 000 Oz

2012 – Renamed New Talisman Gold Mines Limited

2012 – Scoping Study completed

2013 – Pre-Feasibility Study completed

2013 – Advanced stage access negotiations

2013 – Detailed planning in process for Bulk Sampling

2013 – Feasibility Study commissioned

2013 – Bulk sampling Project Plan Completed

2013 – Resource consent granted

2013 – Access Arrangement approved

2014 – Authority to Enter and Operate obtained

2014 – Rahu Mineral Resource Estimate

2014 – First Gold Production of 64Oz Au @47g/t

2014 – Health and Safety plan lodged

2015 – Water Management Plan reviewed

2015 – Second ore treatment yields 16 Oz Au @ 37g/t

2015 – Judicial Review successfully defended

2016 – Traffic Management Plan Approved

2016 - Initiate Bulk Sampling Project

2016 – Identify and evaluate additional resources

2016 – Site Establishment

2016 – Initial Mine refurbishment

2016 – Finalisation of Proposed Newcrest JV

2016 – Rehabilitation to Mystery Vein

2016 – Development of Mystery Block

2017 – Rehabilitation to Dubbo

2017 – Development of Dubbo Block

2017 - Prefeasibility study

2018 – Initiate extraction activities

2019 – Commissioning of pilot plant,

2019 – Completion of metallurgical testwork,

2020 – Completion of Mineral Resource estimate

update and review

2020 – Extraction activities at Mystery

2020 – Design and planning of larger plant

TALISMAN GOLD MINE

ESTABLISHED 1894

ANNUAL REPORT 2022NEW TALISMAN GOLD
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REPORT TO THE SHAREHOLDERS

OF NEW TALISMAN GOLD MINES LTD

HIGHLIGHTS

ANNUAL REPORT 2022


CHAIRMAN’S REPORT

Dear Shareholders

New Talisman’s Financial Year to 31st March 2022 saw Shareholder activism succeed at a level seldom seen in NZ, resulting in a

transformed Board of Directors and a renewed focus on bringing the company’s core asset, the Talisman gold mine, into production.

Votes for the removal of two longstanding directors at the ASM in September were carried, resulting in both directors resigning in

October and subsequently two new director appointments were made in November; they being Michael Stiassny and Samantha

Sharif.

October also saw the termination of Asia Pacific Capital’s management contract and the departure of its principal Matt Hill.

The following period was not without its distractions as the reconfigured Board dealt with a number of regulatory queries and also

reviews of transactions inherited from previous management. As a result, the Broken Hills Historic Mine purchase was cancelled

and the Board found the company to be bound to complete the Vanuatu exploration deal. While the quality of the exploration

opportunity is attractive, the timing of the latter purchase in the middle of a pandemic was less than ideal and is probably emblematic

of the reasons for the shareholder intervention.

Notwithstanding, I am of the view that the company is destined for better things. In the final quarter the Board was able to focus its

efforts on developing a new Strategic Plan for the company, which was announced to the market post period, in April.

The Directors focused on development of the Strategic Plan for the Talisman Mine and testing the underlying assumptions and

costings. The strategic plan includes:

• Recommencing underground activities at the mine, including developing the required Second Egress.

• Advancing the Mystery Vein Drive.

• Advancing the Mystery Vein will trigger the existing 2 year Bulk Sampling Consent.

• Opening a second face on the Mystery vein once the Second Egress is complete.

• Funding the implementation of the Traffic Management Plan

• Funding the Resource Consent application for Full Mining Consent

I would like to acknowledge the support of shareholders and fellow Board members through what has been a challenging, but in my

opinion, transformational period for the company.

John Upperton

Chair, New Talisman Gold Mines Limited

NEW TALISMAN GOLD
ANNUAL REPORT 2022

4

TALISMAN MINE

Mine-site activity remained on hold throughout the year with the focus for the second half of the year on development of the

Strategic Plan for the Talisman Mine and testing the underlying assumptions and costings. This ultimately culminated in the post

period announcement of the Strategic Plan and how it is intended to be funded – refer release dated 27 April 2022 which can be

found on the following link https://www.asx.com.au/asxpdf/20220427/pdf/458bz20069nqqx.pdf

The funding proposal will be put to a shareholder vote on 29th June, a vote that is pivotal to the company’s future.

NTL’s Access Agreement with the Department of Conservation was renewed in late January 2022. The company continues to engage

with stakeholders to enable a rapid mobilisation when onsite activities are able to recommence.

TALISMAN PROCESSING PLANT

NTL continues to evaluate processing options with third parties, and has preliminary designs for its own small scale plant if required.

Surety of a processing route for Talisman ore is an essential part of the Company’s future and the Board remains focused on securing

this through existing industry capacity or if need be, commissioning a small scale plant.

TALISMAN MINE-CURRENT RESOURCES

Resource CategoryOre Zone/VeinTonnes

Grade g/t Bullion

equivalent

Ounces Bullion

equivalent

IndicatedTalisman Bonanza 29,0004.34,100

IndicatedDubbo 15,0009.04,400

IndicatedDubbo splay 4,30019.02,600

IndicatedWoodstock 35,0005.15,600

IndicatedWoodstock splay 22,0005.13,600

Total Indicated110,0006.020,000

InferredTalisman-Bonanza 300,00019.0190,000

InferredDubbo 150,00023.0110,000

InferredDubbo splay 56014.0250

InferredWoodstock 62,0005.611,000

InferredWoodstock splay 20,0004.72,900

InferredMystery 14,00025.011,000

Total Inferred

 

550,00019.0330,000

Total Resources (* Crown excluded)660,00017.0350,000

Note: Data sources include historic bullion samples, drill holes and underground channel samples

• Mineral Resources are reported on a 100% basis to a nominal 2.2 Bullion equivalent grams per tonne cut-off grade which was

determined in 2017 based on estimates of mining costs, metallurgical recoveries, treatment and refining costs, general and

administration costs, royalties, and commodity prices.

• Ounces are estimates of metal contained in the Mineral Resource and do not include allowances for processing losses.

• For reporting purposes, all resources are reported as equivalent bullion values, due to bullion values rather than gold and silver

grades being the only grade information that is available for historic channel samples. Conversion of more recent gold and silver

values to equivalent bullion values uses the formula: Equivalent bullion grade = Gold grade + (Silver grade * 0.031609), which

is based on historical prices of gold and silver. The equivalent bullion value of the resource is the same as an estimated gold

equivalent grade due to the manner in which the historic and modern bullion values have been determined. Bullion conversions

by NTL were based on a constant gold price of at £4-6s-0d/oz or USD20.47/oz during the period of historical production. Silver

prices ranged from USD 0.49 to USD 1.03/oz.

• Tonnage and grade measurements are in metric units. Gold ounces are reported as troy ounces. Rounding as required by

reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content.

The table above excludes the Mineral Resource Estimate for the Crown/Welcome vein system, that were not reassessed during

2019 and were not included in the review by AMC but remain part of the total Talisman Mineral Resource. Resources attributable

to the Crown/Welcome system were estimated previously at 31,000 equivalent bullion ounces. This information was prepared and

first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the

information has not materially changed since it was last reported.

The more detailed information, including JORC Table 1, was released to the market on 24/06/2020. Please see the full report at

https://www.asx.com.au/asxpdf/20200624/pdf/44jxg7jlm05d5q.pdf

NTL is aware that the updated estimate of mineral resources within the Maria and Mystery Veins is likely to have a material effect on

the outcome of any previously announced studies and/or Ore Reserves.

ANNUAL REPORT 2022NEW TALISMAN GOLD
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VANUATU PROJECT

In December 2021 NTL finalised the acquisition of the Vanuatu assets of Canterbury Resources Limited (ASX:CBY)

By world standards Vanuatu is extremely underexplored. Modern exploration for gold started in the mid 1980’s and with sporadic

bursts mainly in the 1990’s and briefly in the early 2000’s. Further information about this acquisition can be found on the release dated

10 December 2020 https://www.asx.com.au/asxpdf/20201210/pdf/44qts898964wsv.pdf

This acquisition represents a rare opportunity to

acquire a strategic holding in a highly prospective

part of the Pacific Rim of Fire that extends from

Japan through the Philippines, PNG, Solomons,

Vanuatu, Fiji to New Zealand and identify

opportunities for hard rock exploration and alluvial

production opportunities.

Active mines in the region include OK Tedi (17Moz),

Porgera (7 Moz), Lihir (30Moz) and Vatukoula

(11Moz), Waihi (10 Moz), Talisman (3 Moz) plus

several world class deposits slated for development

such as Wafi Golpu, PNG, (28Moz), and Namosi,

Fiji, (5.5Moz). The nearest significant deposits to

Vanuatu are the Emperor (Vatukoula) gold mine to

the east in Fiji and Gold Ridge gold deposit to the

north in the Solomon Islands.

The Board will reassess the Vanuatu prospect once

the recapitalisation of the company is complete and

the world settles to a new normal post pandemic.

CORPORATE

NZ RegCo reviewed certain matters raised by shareholders during 2021. The outcome was that NZ RegCo found that NTL breached

multiple provisions of the NZX Listing Rules, in relation to the 2019 capital raise and also in relation to subsequent events in 2021,

when the previous Board and management were in place. NZ RegCo determined, that given the changes to the Board since the

2021 ASM, an educative outcome was appropriate, rather than taking enforcement action. Accordingly NZ RegCo published a report

regarding its review, instead of referring the matter to the NZ Markets Disciplinary Tribunal.

The Company considers this is a fair result for shareholders who had already demonstrated their displeasure with the previous Board

at the 2021 ASM. The process has been time consuming for the Board. Other than dealing with the current claim by Matthew Hill, we

are pleased to now be able to concentrate our effort on looking forward.

In March 2022 Matthew Hill (former Director) filed a claim with the NZ Employment Relations Authority. Mr Hill asserted in the claim

that he is entitled to various employment related entitlements and compensation, provisionally quantified at $817,537.

NTL does not accept that Mr Hill has been an employee, continues to deny the claims and considers them to be without foundation.

Mr Hill had specifically requested a management services contract for Asia Pacific Capital Group Limited.(APC) As part of NTL’s

defense, Mr Hill has been asked to provide financial records for a number of entities APC and he were involved with whilst contracting

to NTL.

The matter is currently in mediation and New Talisman will update the market if it is concluded. Further action against Mr Hill has not

been ruled out by the Company.

Tenement Holdings

Talisman MMP 51326 100% New Talisman Gold Mines Ltd

Capella Vanuatu PL 1851

Competent Persons Statements

The information in the report to which this statement is attached that relates to Exploration Targets or Mineral Resources contained

within the Maria and Mystery Vein systems is based on information compiled by Jackie Hobbins, a Competent Person who is a

Member of the Australian Institute of Geoscientists. She has sufficient experience that 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’. Ms Hobbins is an

independent consultant employed by Hobbins Consulting Limited and has no financial interests in New Talisman Gold Mines Limited

or any associated companies and was remunerated for this report on a standard fee for time basis.

The information in this report that relates to exploration results, exploration targets and mineral resources contained within the Crown

and Welcome vein systems is based on information compiled by or supervised by Mr Murray Stevens. Mr Stevens is a consulting

geologist and was a 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”.

Pacific Rim = World Class Deposits

Right Neighbourhood Right Neighbourhood

NEW TALISMAN GOLD
ANNUAL REPORT 2022

6

BOARD OF DIRECTORS

Mr John Upperton

Chairman and Non-executive Director

Mr Upperton has a background in both Commercial and

Residential Construction Project Management. Alongside these

projects, Mr Upperton has garnered considerable experience in

aspects of the RMA and District Planning requirements, including

successfully representing himself in Environment Court.

Mr Upperton has 16 years’ experience as Managing Director

of a Limited Company. He has served on and chaired several

community organisations over a 25 year period.

Mr Upperton has also previously held a senior management

role for one of NZ’s leading Manuka Honey producers, being

responsible for the negotiation and placement of bee hives

across the North Island involving more than 300 landowners.

First appointed September 29, 2021

Mr A Victor Rabone, BE(Civil Engineering)

Director

Mr Rabone is a Geotechnical Engineer with over 20 years of

operational experience in all facets of mining gained in New

Zealand and internationally. He has specialised expertise in hard

rock underground mining.

Victor’s experience includes feasibility analysis, management

of operations, geotechnical stability analysis, ground support

design and installation, drill and blast tunnel development, rail

haulage system’s design and installation, mineral processing,

refining and environmental management.

Victor holds a number of certifications required to manage a hard

rock underground gold mining operation including Controlled

Substance License, Handlers Certificate for blasting, he holds an

A Grade Tunnel Manager certification and a Site Senior Executive

qualification.

Victor has in recent years been dedicated fulltime to the planning

and development of the Broken Hills Gold Mine in the Puketui

valley, Coromandel Peninsula .

Victor is a member of a number of professional organisations;

Engineering NZ, NZ Geomechanics Society, NZ Tunnelling

Society, International Society for Rock Mechanics and Rock

Engineering and the Railway Technical Society of Australasia.

Victor has had experience in the project management of a variety

of construction activities such as installation of screw piles,

seismic reinforcement using stone columns, geotechnical drilling

programmes, alluvial mining operations and underground mining

and tunnelling projects.

First appointed September 13, 2021.

Ms Samantha Sharif, LLM (Hons), LLB (Hons), Grad

Dip CSP, CMinstD

Independent Non-executive Director

Samantha Sharif is a Professional Director with extensive

leadership experience in infrastructure, resources, safety critical

industries, as well as investment and capital markets.

Ms Sharif is an experienced Board and Board Committee Chair,

and a Chartered Member of the Institute of Directors.

Samantha has experience as a CEO and has also practised as a

senior commercial lawyer, with post-graduate legal and finance

qualifications. Current governance roles include: SIL/MFL Mutual

Funds – Director, NZ Shareholders Association – Deputy Chair,

Motor Trades Association Group – Director, Chair of Audit &

Risk Committee, Chair of Investment Committee, Museum of

Transport & Technology (MOTAT) – Director, Dept of Corrections

Audit & Risk Committee – External Member

First appointed November 1, 2021.

Michael Stiassny LLB, BCom, FCA, CFInstD

Independent Non-executive Director

Michael has over 40 years’ experience as a Chartered Accountant,

specialising in strategic advice, insolvency, and turnaround

activities.

Michael is currently Chair of Ngāti Whātua Ōrākei Whai Rawa

Limited and Tower Limited, and a director of a number of other

companies.

Michael is a Chartered Fellow of The Institute of Directors in

NZ (Inc) (CFInstD) and is also past President of the Institute of

Directors. He is a Fellow of Chartered Accountants Australia and

New Zealand (retired) and a life member of RITANZ.

First appointed November 1, 2021.

ANNUAL REPORT 2022NEW TALISMAN GOLD
7

AUDITOR’S REPORT

Scott Bennison

Level 1

251 Elizabeth Street

SYDNEY NSW 2000

ABN 48 117 620 556

20 Grose Street

NORTH PARRAMATTA NSW 2151

75 Lyons Road

DRUMMOYNE NSW 2047


PO BOX 2210

NORTH PARRAMATTA



Liability limited by a scheme

approved under Professional

Standards Legislation

Phone 02 8839 3000 Fax 02 8839

3055

WWW.ksblack.com.au




INDEPENDENT AUDITOR’S REPORT


To the Members of New Talisman Gold Mines Limited



Report on the Financial Statements.


Opinion


We have audited the financial report of New Talisman Gold Mines Limited (“the company”) and its

subsidiaries (together “the group”), which comprise the consolidated balance sheet as at 31 March 2022,

and the consolidated statement of comprehensive income, consolidated statement of changes in equity

and consolidated statement of cash flows for the year then ended of the group, and the notes to the

financial statements, including a summary of significant accounting policies.


In our opinion, the financial report presents fairly, in all material respects, the financial position of the

group as at 31 March 2022 and its financial performance and cash flows for the year then ended in

accordance with New Zealand equivalents to International Financial Reporting Standards and International

Financial Reporting Standards.


This report is made solely to the company’s shareholders, as a body. Our audit has been undertaken so

that we might state to the company’s shareholders those matters we are required to state to them in

an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept

or assume responsibility to anyone other than the company and the company’s shareholders as a body,

for our audit work, for this report, or for the opinions we have formed.


Basis for Opinion


We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our

responsibilities under those Standards are further described in the ‘Auditor’s responsibilities for the audit

of the financial report’ section of our report.


We are independent of the group in accordance with Professional and Ethical Standard 1 (revised) Code of

Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board, and

we have fulfilled our other ethical responsibilities in accordance with these requirements.


We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our opinion. Other than our capacity as auditor, we have no other relationship with, or interest in New

Talisman Gold Mines Limited and its subsidiaries.




NEW TALISMAN GOLD
ANNUAL REPORT 2022

8

Scott Bennison

Level 1

251 Elizabeth Street

SYDNEY NSW 2000

ABN 48 117 620 556

20 Grose Street

NORTH PARRAMATTA NSW 2151

75 Lyons Road

DRUMMOYNE NSW 2047


PO BOX 2210

NORTH PARRAMATTA



Liability limited by a scheme

approved under Professional

Standards Legislation

Phone 02 8839 3000 Fax 02 8839

3055

WWW.ksblack.com.au





Material uncertainty related to going concern


We draw attention to Note 1 in the financial statements, which indicates that the Group’s financial

statements are prepared on a going concern basis.


The Group as at 31 March 2022 has NZ$492,507 cash available and we note that the Group is

undertaking a convertible note issue to raise $NZ3.5m to allow the Group to further advance its

underground mining activities.


We note that issue of convertible notes has not been approved by shareholders and if not approved,

this may create a material uncertainty related to going concern.


Our opinion is not modified in respect of this matter.



Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance

in our audit of the financial report for the current period. These matters were addressed in the

context of our audit of financial report as a whole, and in forming our opinion thereon, and we do

not provide a separate opinion on these matters. For each matter below, our description of how our

audit addressed the matter is provided in that context.


We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the

financial report section of the audit report, including in relation to these matters. Accordingly, our

audit included the performance of procedures designed to respond to our assessment of the risks of

material misstatement of the financial statements. The results of our audit procedures, including the

procedures performed to address the matters below, provide the basis for our audit opinion on the

accompanying financial statements.


Key audit matter How our audit addressed the key audit matter


Impairment of Assets under

construction

Refer to note 12 (Assets under

Construction)


At 31 March 2022, the Group had

originally capitalised mining tenement

costs of NZ$13.69m. IAS 136,

‘Impairment of Assets’ requires that the

recoverable amount of an asset, or cash


Our procedures included, amongst others:

 Consideration of the Group’s board paper, “Impairment

of Assets under construction” dated 15 May 2022.

 We have reviewed of the Technical Valuation 2021

prepared by GEOS Mining Minerals Consultants dated 17

November 2021 having regard to the underlying

estimates, assumptions, licence requirements,

discounted cash flow (DCF) inputs, discount rate and

other risk factors.

ANNUAL REPORT 2022NEW TALISMAN GOLD
9

Scott Bennison

Level 1

251 Elizabeth Street

SYDNEY NSW 2000

ABN 48 117 620 556

20 Grose Street

NORTH PARRAMATTA NSW 2151

75 Lyons Road

DRUMMOYNE NSW 2047


PO BOX 2210

NORTH PARRAMATTA



Liability limited by a scheme

approved under Professional

Standards Legislation

Phone 02 8839 3000 Fax 02 8839

3055

WWW.ksblack.com.au




generating unit to which it belongs, be

determined whenever an indicator of

impairment exists.


The Market Capitalisation of the Group

at reporting date was NZ$6.9m

compared with net assets of

NZ$14.916m.


We note that the market capitalisation

of the Group from decreased by 47%

compared with last financial year.


Post pandemic, the NZ economy is

experiencing high interest rates,

inflationary pressures and supply chain

concerns impacting the cost to exploit

resources and one consequence, may

be a further deterioration of its Market

Capitalisation.


We note the Group has now capitalised

mining tenement costs to NZ$9.029m

only.


Due to the above identified issues, the

Groups’ mining assets under

construction, and valuation thereto,

are a key audit matter requiring

disclosure.

 We have reviewed the “Project Dragon” report prepared

by AMC Consultants Pty Limited dated 27 May 2020 which

discussed the resource grade in estimates used by the

Group

 We reviewed the Pre-F easibility Update, and Technical

Report, prepared by New Talisman Gold Mines Limited

dated 8 June 2018 and compared consistency of

assumptions and estimates to the recent 2021

independent valuation, current economic conditions,

current licence conditions and future aspirations of the

Group.

 We reviewed the Technical Valuation 2018 prepared by

GEOS Mining Minerals Consultants dated 8 June 201 8 and

compared consistency of assumptions and estimates to

the recent 2021 independent valuation, current economic

conditions, current licence conditions and future

aspirations of the Group.

 We have assessed whether the external expert engaged

in the preparation of independent valuations and other

reports was appropriately experienced and qualified.

 In reviewing impairment and fair value, we considered

post COVID pandemic New Zealand economic forecasts of

interest rates, inflation, and supply chain vulnerability,

and its impact on the discount rate applied to estimated

cash flows used for the purposes of consideration of

impairment and determination of fair value.

 We undertook sensitivity analyses with respect to

quantity and grade of resources, and licen ce

requirements, in determining reasonableness of

estimated timing, grade and volumes of resources to be

drilled.

 We checked the mathematical accuracy of the cash flow

models, testing inputs, from valuation reports produced,

as well as external input, including spot and forecast

prices for gold at the reporting date.

 We assessed the accuracy of management’s forecasting

by assessing the reliability of historical forecasts and

reviewing whether current market conditions would

impact those forecasts.

 Assessing whether appropriate disclosure regarding

significant areas of uncertainty has been made in the

financial report.

NEW TALISMAN GOLD
ANNUAL REPORT 2022

10

Scott Bennison

Level 1

251 Elizabeth Street

SYDNEY NSW 2000

ABN 48 117 620 556

20 Grose Street

NORTH PARRAMATTA NSW 2151

75 Lyons Road

DRUMMOYNE NSW 2047

PO BOX 2210

NORTH PARRAMATTA

Liability limited by a scheme

approved under Professional

Standards Legislation

Phone 02 8839 3000 Fax 02 8839

3055

WWW.ksblack.com.au

In our assessment of impairment, we considered the

impact of historical gold prices on the market

capitalisation of the Group.

We have relied upon representations from management

regarding cash flow projections, quality and grade of

resources, ability to raise capital, cost estimate of

extraction, licence requirements and other information.

Key audit matter How our audit addressed the key audit matter

Going concer

n

Refer to note 1 (Going Concern)

At 31 March 2022, the Group has

prepared its financial statements on a

going concern basis.

The Group has $NZ492k in available

cash reserves and seeks to raise

NZ$3.5m through the issue of

convertible notes.

In the event that the convertible note

issue is not approved by shareholders,

this may create a material uncertainty

related to going concern and needs to

be disclosed as a key audit matter.

Our procedures included, amongst others:

We have reviewed the Groups 12-month cash flow

forecast and reviewed whether the estimates are

reasonable.

We have reviewed the convertible note documentation

and its impact on the available cash reserves should it not

be approved by shareholders or issued in full.

We have considered the economic impact of rising

interest rates and inflation on cash flow projections.

We have relied upon representations from management

regarding cash flow projections.

Other Matter

We refe r to not e 3 to the financial statements, “Inventory” and not e tha t th e Group has included inventory

valued at NZ$314,275.

Inventory represents approximately 2.9 % and whilst not considered a key audi t matter for my report,

inventory is of significance importance and in my view, requires disclosure by way of other matter.

Due to COVID travel and other restrictions we have not physically sighted inventory for the year end.

Inventory related to the stockpile of gold ore bearing material intended to be produced once the

mine becomes operational pursuant to its current licence agreement.

The stockpile of gold ore bearing material is representative of the grade of resource included in

the independent valuation reports prepared for the Group.

We have been provided with representations from management and other parties confirming the

existence of inventory at year-end and due to the mine site being closed, the quantum of resource has not

changed.

ANNUAL REPORT 2022NEW TALISMAN GOLD
11

Scott Bennison

Level 1

251 Elizabeth Street

SYDNEY NSW 2000

ABN 48 117 620 556

20 Grose Street

NORTH PARRAMATTA NSW 2151

75 Lyons Road

DRUMMOYNE NSW 2047

PO BOX 2210

NORTH PARRAMATTA

Liability limited by a scheme

approved under Professional

Standards Legislation

Phone 02 8839 3000 Fax 02 8839

3055

WWW.ksblack.com.au

Information Other than the Financial Statements and Auditor’s Report

The directors of the company are responsible for the Annual Report, which includes information other

than the financial statements and auditor’s report which is expected to be made available to us after the

date of the auditor’s report.

Our opinion on the financial statements does not cover the other information and we do not express

any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with the

financial statements or our knowledge obtained during the audit, or otherwise appears to be materially

misstated.

When we read the Annual Report if we conclude that there is a material misstatement therein, we are

required to communicate the matter to those charged with the governance and, if uncorrected, to take

appropriate action to bring the matter to the attention of users for whom our auditor’s report was

prepared.

Directors’ Responsibilities for the Financial Report

The directors are responsible, on behalf of the Group, for the preparation and fair presentation of the

financial statements in accordance with New Zealand equivalents to International Financial Reporting

Standards and International Financial Reporting Standards, and for such internal control as the

directors determine is necessary to enable the preparation of financial statements that are free from

material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group’s ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the

going concern basis of accounting unless the directors either intend to liquidate the group or cease

operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole

are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report

that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee

that an audit conducted in accordance with International Standards on Auditing (New Zealand) will

always detect a material misstatement when it exists. Misstatements can arise from fraud or error and

are considered material if, individually or in the aggregate, they could reasonably be expected to

influence the economic decisions of users taken on the basis of these consolidated financial

statements.

A further description of the auditor’s responsibilities for the audit of the financial statements is

NEW TALISMAN GOLD
ANNUAL REPORT 2022

12

Scott Bennison

Level 1

251 Elizabeth Street

SYDNEY NSW 2000

ABN 48 117 620 556

20 Grose Street

NORTH PARRAMATTA NSW 2151

75 Lyons Road

DRUMMOYNE NSW 2047

PO BOX 2210

NORTH PARRAMATTA

Liability limited by a scheme

approved under Professional

Standards Legislation

Phone 02 8839 3000 Fax 02 8839

3055

WWW.ksblack.com.au

located at External Reporting Board’s website: https://www.xrb.govt.nz/Site/Auditing_ Assurance

Standards/Current Standards/Page1.aspx. This description forms part of our auditor’s report.

Report on the Other Legal and Regulatory Requirements

The engagement partner on the audit resulting in this independent auditor’s report is Scott Bennison.

Scott Bennison

A Partner of KS Black & Co


Chartered Accountants

Dated:

Sydney

28 June 2022

ANNUAL REPORT 2022NEW TALISMAN GOLD
13

NEW TALISMAN GOLD MINES LIMITED

Statement of Comprehensive Income

For year ended 31 March 2022


GroupParent

Note

2022

NZ$

2021

Restated

NZ$

2022

NZ$

2021

Restated

NZ$

Continuing Operations

Revenue----

Cost of sales of goods3----

Gross Profit----

Other Operating income41,1912,9731,1912,973

Operating and administrative expenses5, 7(1,067,314)(763,892)(944,074)(751,729)

Impairment of mine development 12(4,650,097)-(4,650,097)-

Gain/(loss) from operations (5,716,220)(760,919)(5,592,980)(748,756)

Finance Costs6(3,100)(1,483)(3,100)(1,483)

Net profit/(loss) for the year (5,719,320)(762,402)(5,596,080)(750,239)

Other Comprehensive Income / (Loss)----

Total comprehensive income/(loss)(5,719,320)(762,402)(5,596,080)(750,239)

Net profit/(loss) attributable to equity holders

of the parent(5,719,320)(762,402)(5,596,080)(750,239)

Comprehensive profit/(loss) attributable to

equity holders of the parent(5,719,320)(762,402)(5,596,080)(750,239)

Earnings per share

Basic earnings/(loss) per share

From continuing operations(0.01) cent (0.03) cent(0.01) cent (0.02) cent

Diluted earnings/(loss) per share

From continuing operations(0.01) cent (0.03) cent(0.01) cent (0.02) cent

The accompanying notes form part of these financial statements

NEW TALISMAN GOLD
ANNUAL REPORT 2022

14

NEW TALISMAN GOLD MINES LIMITED

Statement of Changes in Equity

For the Year Ended 31 March 2022

Group 2022Group 2021 Restated

NoteShare

Capital

Capital

Reserves

Accumulated

Deficit

Total

Equity

Share

Capital

Capital

Reserves

Accumulated

Deficit

Total

Equity

NZ$NZ$NZ$NZ$NZ$NZ$ NZ$NZ$

Profit/(Loss)--(5,719,320)(5,719,320)--(762,402)(762,402)

Other comprehensive

income/(loss)


----


----

Net proceeds from

share capital issued10847,774--847,774----

Prior period

adjustment------(69,530)(69,530)

Transfer to

accumulated income10--------

Equity at beginning of

year38,216,371-(23,082,466)15,133,90538,216,371-(22,250,534)15,965,837

Equity at end of year 1039,064,145-(28,801,786)10,262,35938,216,371-(23,082,466)15,133,905

Parent 2022Parent 2021 Restated

NoteShare

Capital

Capital

Reserves

Accumulated

Deficit

Total

Equity

Share

Capital

Capital

Reserves

Accumulated

Deficit

Total

Equity

NZ$NZ$NZ$NZ$NZ$NZ$NZ$NZ$

Profit/(Loss)--(5,596,080)(5,596,080)--(750,239)(750,239)

Other comprehensive

income/(loss)--------

Net proceeds from

share capital issued10847,774--847,774----

Prior period

adjustment------(69,530)(69,530)

Transfer to

accumulated income10--------

Equity at beginning of

year38,216,371-(23,004,928)15,211,44338,216,371-(22,185,159)16,031,212

Equity at end of year 1039,064,145-(28,601,008)10,463,13738,216,371-(23,004,928)15,211,443

The accompanying notes form part of these financial statements

ANNUAL REPORT 2022NEW TALISMAN GOLD
15

NEW TALISMAN GOLD MINES LIMITED

Balance Sheet

As at 31 March 2022

Group Parent

Note

2022

NZ$ 

2021

Restated

NZ$ 

2022

NZ$ 

2021

Restated

NZ$ 

Equity

Attributable to parent company shareholders1010,262,35915,133,90510,463,13715,211,443

10,262,35915,133,90510,463,13715,211,443

Term liabilities

Long term lease liabilities

Rehabilitation Reserve

25

12

17,924

34,438

41,305

32,215

17,924

34,438

41,305

32,215

Total term liabilities52,36273,52052,36273,520

Current liabilities

Payables23200,436132,577200,436132,577

Employee benefits24----

Short Term Lease Liabilities2529,54024,14129,54024,141

Total current liabilities229,976156,718229,976156,718

Total liabilities 282,338230,238282,338230,238

Total equity and liabilities 10,544,69715,364,14310,745,47515,441,681

Current assets

Cash492,5071,110,695492,5071,110,695

Inventories3314,275314,275314,275314,275

Receivables and prepayments2692,379100,368644,980179,178

Total current assets 899,1611,525,3381,451,7621,604,148

Non-current assets

Property, plant & equipment12163,097191,388163,097191,388

Assets under construction129,029,76313,385,4139,000,00013,385,413

Right of use assets1246,05764,53946,05764,539

Intangible assets13330,86511,63710,57510,575

Investments1475,754185,82873,984185,618

Total non-current assets 9,645,53613,838,8059,293,71313,837,533

Total assets 10,544,69715,364,14310,745,47515,441,681

For and on behalf of the Board:


J K Upperton (Chairman) M P Stiassny

27 June 2022 27 June 2022

The accompanying notes form part of these financial statements.

NEW TALISMAN GOLD
ANNUAL REPORT 2022

16

16

NEW TALISMAN GOLD MINES LIMITED

Statement of Cash Flows

For year ended 31 March 2022

GroupParent

Note2022

NZ$

2021

NZ$

2022

NZ$

2021

NZ$

Cash flows from operating activities

Cash was provided from:

Interest received6911,6696911,669

Other----

6911,6696911,669

Cash was disbursed to:

Interest expense on leases(2,907)(1,483)(2,907)(1,483)

Payments to suppliers and employees(883,125)(682,838)(1,173,988)(682,838)

Rent(3,163)(13,406)(3,163)(13,406)

(889,195)(697,727)(1,180,058)(697,272)

Net cash outflows used in operating activities17(888,504)(696,068)(1,179,367)(696,068)

Cash flows from investing activities

Cash was provided from:

Intercompany loan repayments---

Proceeds from disposal of property, plant and

equipment-1,304-1,304

Proceeds from sale of shares----

-1,304-1,304

Cash was applied to:

Prospecting and mine development expenditure(292,224)(529,787)(262,461)(529,787)

Purchase of property, plant and equipment(2,489)-(2,489)-

Purchase of Investments(264,104)(164,472)-(164,472)

Intercompany loans ----

(558,817)(694,259)(264,950)(694,259)

Net cash outflows used in investing activities (558,817)(692,955)(264,950)(692,955)

Cash flows from financing activities

Cash was provided from:

Issue of shares

Other

847,774

-

-

-

847,774

--

847,774-847,774-

Cash was applied to:

Issue of shares----

Lease liabilities & right of use assets(26,146)(9,177)(26,146)(9,177)

(26,146)(9,177)(26,146)(9,177)

Net cash inflows from/(used in) financing

activities821,628(9,177)821,628(9,177)

Net (decrease) / increase in cash held(625,693)(1,398,200)(622,689)(1,398,200)

Effect of changes in exchange rates 7,50513,1774,50113,177

Cash and cash equivalents at beginning of year1,110,6952,495,7181,110,6952,495,718

Cash and cash equivalents at end of year 492,5071,110,695492,5071,110,695

CASH AND CASH EQUIVALENTS COMPRISES:

Cash387,5071,005,695387,5071,005,695

Short term deposits105,000105,000105,000105,000

492,5071,110,695492,5071,110,695

All cash balances are available without restriction except for NZ$105,000 held on deposit as security for guarantees issued by the bank.

The bank holds a $75,000 bond on behalf of the NZ Stock Exchange for the term of the exchange listing and a $30,000 bond on behalf

of the Department of Conservation held for any potential mining rehabilitation.

ANNUAL REPORT 2022NEW TALISMAN GOLD
17

1. STATEMENT OF ACCOUNTING POLICIES

Reporting entity

New Talisman Gold Mines Limited is a profit-oriented company

incorporated and domiciled in New Zealand, registered under

the Companies Act 1993 and listed on the New Zealand Stock

Exchange (NZX) and the Australian Stock Exchange (ASX).

The company is an FMC reporting entity for the purposes of the

Financial Markets Conduct Act 2013 and the financial statements of

the company and group have been prepared in accordance with the

Financial Markets Conduct Act 2013 and comply with NZX Listing

Rule 10.6.1 with the exception that separate financial statements

for the parent have been presented as the parent engages in the

majority of the group’s business activities.

The group consists of New Talisman Gold Mines Limited (the

“company”) and its subsidiaries (the “group”) and these financial

statements comprise the separate financial statements of the

parent company and the consolidated financial statements of the

group. The group is engaged in mine development and mineral

exploration.

These financial statements were approved for issue by the Directors

on 27 June 2022.

The financial report has been prepared on a going concern basis

due to the company being in the process to raise additional funds

through the issuing of convertible notes to ensure that financial

obligations can continue to be met for longer than 12 months.

Please refer to note 21 for further information.

Statement of compliance

These consolidated and parent financial statements have been

prepared in accordance with New Zealand generally accepted

accounting practice (NZ GAAP), the requirements of the

Companies Act 1993 and comply with New Zealand equivalents to

the International Financial Reporting Standards (NZ IFRS) and with

International Financial Reporting Standards (IFRS).

Measurement base

The accounting principles adopted are those recognised as

appropriate for the measurement and reporting of financial

performance and financial position on the historical cost basis

modified by the revaluation of certain assets. The accrual basis of

accounting has been used unless otherwise stated and the financial

statements have been prepared on a going concern basis.

The information is presented in New Zealand dollars which is the

company’s functional currency.

Use of estimates and judgements

The preparation of financial statements in conformity with NZ

IFRS requires management to make judgements, estimates and

assumptions that affect the application of accounting policies and

the reported amounts of assets, liabilities, income and expenses.

Where material, information on significant assumptions and

estimates is provided in the relevant accounting policy or will be

provided in the relevant note.

The estimates and associated assumptions are based on historical

experience and other factors that are believed to be reasonable

under the circumstances. Actual results may differ from these

estimates.

The group has made significant accounting estimates in respect of:

• the assessment of impairment to capitalised exploration and

development expenditure, and

• the anticipated rehabilitation costs at the conclusion of mining.

The estimate does not have a profit effect in the current year.

Estimates and underlying assumptions are reviewed on an ongoing

basis. Revisions to accounting estimates are recognised in the

year in which the estimates are revised and in any future periods

affected.

Specific accounting policies

The following specific accounting policies, which materially affect

the measurement of financial performance and financial position,

have been applied consistently.

(a) Inventories

Inventories are valued at the lower of weighted average cost and

net realisable value. Costs include mining and production costs as

well as commercial, environmental, health and safety expenses,

and stock movements.

(b) Prospecting costs

Acquisition, exploration and development expenditure on

exploration and mining tenements is initially recorded at cost.

Exploration and evaluation costs are capitalised as deferred

expenditure.

In the event where exploration demonstrates a permit area is no

longer prospective for economically recoverable reserves, or the

exploration or prospecting permit is relinquished, the value or cost

of the tenement is immediately recognised as an expense in the

statement of comprehensive income.

Prospecting costs are expected to be recovered from future mining

revenues. The recoverability of exploration and evaluation assets

is contingent upon future events, such as technical success and

commercial development, sale of the area of interest, the results

of further exploration, agreements entered into with other parties,

and also upon meeting commitments under the terms of the

permits.

(c) Mining tenements

When a tenement is assessed as capable of sustaining commercial

mining operations, capitalised exploration and evaluation

expenditure is reclassified as assets under construction and is

disclosed as a component of property, plant and equipment.

All subsequent development expenditure, net of any proceeds

from ore sales during the development stage, is capitalised

and classified as assets under construction. On completion of

development, the value or cost of accumulated exploration and

development costs will be reclassified as other mineral assets and

amortised on the basis of units of production over the expected

productive life of the mine. Provisions for closure and rehabilitation

are initially recognised when an environmental disturbance first

occurs. The estimate for the rehabilitation provision is reviewed by

management at each reporting date and an assessment is made

on whether the estimate continues to reflect the company’s present

legal and constructive obligations.

(d) Property plant and equipment

All property, plant and equipment is initially recorded at cost.

When an item of property, plant and equipment is disposed of,

the gain or loss is recognised in the statement of comprehensive

income and is calculated as the difference between the sale price

and the carrying value.

(e) Depreciation

Depreciation is provided on all tangible property, plant and

equipment on a straight line basis at rates calculated to allocate

the difference between the cost and residual values of each asset

over its estimated useful life. For this purpose, the company

has adopted the depreciation rates set by the Inland Revenue

Department as appropriate.

Rates used during the year were:

Computer software and hardware Straight line 13.5-67%

Field equipment Straight line 7-30%

Fixtures and fittings Straight line 9-10%

Motor Vehicles Straight line 10.5-30%

(f) Impairment of assets

At each reporting date, the carrying amounts of tangible and

intangible assets are reviewed to determine whether there is any

indication of impairment. If the recoverable amount of an item of

property, plant and equipment is less than its carrying amount, the

item is written down to its recoverable amount and the write down

recognised as an expense in the statement of comprehensive

income. Recoverable amount is the higher of fair value less costs

to sell and value in use.

If the carrying value of intangible capitalised exploration

expenditure exceeds the value determined by an independent

valuation, the asset is written down and the write-down recognised

NOTES TO THE FINANCIAL STATEMENTS

For year ended 31 March 2022

NEW TALISMAN GOLD
ANNUAL REPORT 2022

18

NOTES TO THE FINANCIAL STATEMENTS

For year ended 31 March 2022

as an expense. A reversal of an impairment loss for an asset is

recognised immediately in the statement of comprehensive

income.

(g) Segment information

Operating segments are reported if:

• Revenue is 10% or more of combined operating segment

revenues;

• The absolute value of profit or loss is greater than 10% of the

combined reported profits or losses of all operating segments,

whichever is greater;

• Assets are 10% or more of the combined assets of all operating

segments; or

• Information about the segment would be useful to users of

the financial statements.

(h) Income tax

The company is a mining company for New Zealand tax purposes.

All exploration and development expenditure, including the cost

of mining assets, is tax deductible in the year the expenditure is

incurred. Mining losses can be set off against non-mining income

in the ratio 3:2.

Deferred taxation assets are recognised in the financial statements

only to the extent that it is probable that there will be future taxable

profit to utilise them.

(i) Share capital

Ordinary shares and options are classified as equity. Direct costs of

issuing shares and options are deducted from the proceeds of the issue.

(j) Cash flows

For the purpose of the statement of cash flows, cash includes cash

on hand, deposits held at call with banks and short-term highly

liquid investments with original maturities of three months or less.

(k) Employee entitlements

The liability for annual leave is accrued and recognised in the statement

of financial position. Annual leave is recorded at the undiscounted

amount expected to be paid for the entitlement earned.

(l) Foreign currencies

Transactions in foreign currencies are converted into NZ currency

at the rate of exchange ruling at the date of the transaction. At

balance date foreign monetary assets and liabilities are translated

at the closing rate and exchange variations resulting from these

translations are recognised in the statement of comprehensive income.

(m) Leases

A lessee is required to recognise a right-of-use asset representing

its right to use the underlying leased asset and a lease liability

representing its obligation to make lease payments. A depreciation

charge for right-of-use assets for lease liabilities and an interest

charge for lease liabilities will be recognised in the Statement of

Profit or Loss and Other Comprehensive Income.

Leases on a short term basis or of low value assets are recognised

as lease payments which are included in the statement of

comprehensive income in equal instalments over the lease term.

(n) Basis of consolidation

The consolidated financial statements include the parent company

and all subsidiaries over which the parent company has the power

to control the financial reporting and operating policies. The

purchase method is used to prepare the consolidated financial

statements, which involves adding together like terms of assets,

liabilities, income and expenses on a line-by-line basis. All significant

intercompany transactions are eliminated on consolidation. In the

parent company’s separate financial statements, the investment in

subsidiaries is stated at cost less any impairment losses.

(o) Financial instruments

Financial instruments recognised in the statement of financial

position include cash balances, receivables, payables, investments

in and loans to others and borrowing. The parent and group have

no off-balance sheet financial instruments.

(1) Receivables and payables

Receivables and payables are initially recorded at fair value and

subsequently at amortised cost using the effective interest method.

Due allowance is made for impaired receivables (doubtful debts).

The resulting carrying amount for receivables is not materially

different from estimated realisable value.

(2) Share investments

Share investments in listed companies are designated as financial

assets at fair value. They are initially recorded at cost and

subsequently at market value. Gains or losses are recorded in

the statement of comprehensive income. Share investments in

unlisted companies cannot be reliably valued. They are therefore

carried at cost less any impairment losses. Impairment losses, once

recognised, are not reversed even if the circumstances leading to

the impairment are resolved.

A gain or loss on financial instruments stated at market value is

recognised in the statement of comprehensive income.

(p) Goods and Services Tax

All amounts are shown exclusive of Goods and Services Tax (GST),

except for receivables and payables that are stated inclusive of

GST. The net amount of GST recoverable or payable is included as

part of the receivables or payables balance in the balance sheet.

(q) Earnings per share

The Group presents basic and diluted earnings per share (EPS)

data for its ordinary shares. Basic EPS is calculated by dividing the

profit or loss attributable to ordinary shareholders of the parent

by the weighted average number of ordinary shares outstanding

during the year, adjusted for own shares held. Diluted EPS is

determined by adjusting the profit or loss attributable to ordinary

shareholders and the weighted average number of ordinary

shareholders outstanding, adjusted for the effects of all dilutive

potential ordinary shares, comprising share options.

(r) Revenue recognition

Revenue is recognised at the fair value of the consideration

received net of the amount of GST.

(s) Change in Accounting Policies

There have been no significant changes in accounting policies. All

policies have been applied on bases consistent with those used in

the prior period.

2. CORRECTION OF A TECHNICAL ERROR

Subsequent to the publishing of the year ended 31 March 2021 financial statements, an adjustment to the financial statements was

made to correct a technical error. Previously, gold inventories held by New Talisman Gold Mines Limited was recorded within sundry

receivables in the Balance Sheet, and any net changes in gold inventories were recorded within sundry income in the Statement of

Comprehensive Income. No exploration costs had been released to the Statement of Comprehensive Income as costs attributed to

acquiring the inventories had been capitalised.

The classification of gold inventories within sundry receivables represents an incorrect application of accounting policy 1(o), as this

balance is not a financial instrument or financial asset.

The changes to the prior period comparatives are as follows:

ANNUAL REPORT 2022NEW TALISMAN GOLD
19

Statement of Comprehensive Income

Group

2021

Original

Group

2021

Restated

Continuing operations

Revenue--

Cost of sales of goods *--

Gross Profit--

Other operating income247,7182,973

Operating and administrative expenses(763,892)(763,892)

Gain/(loss) from operations(516,174)(760,919)

Finance costs(1,483)(1,483)

Net profit/(loss) for the year(517,657)(762,402)

Statement of Changes in Equity – Changes Only

Group

2021

Retained

Earnings

Original

Group

2021

Retained

Earnings

Restated

Profit/(Loss)(517,657)(762,402)

Prior period adjustment-(69,530)

Equity at beginning of year(22,250,534)(22,250,534)

Equity at end of year(22,768,191)(23,082,466)

Balance Sheet – Changes only

Group

2021

Original

Group

2021

Restated

Equity – Attributable to parent company shareholders15,448,18015,133,905

Current Assets

Inventories-314,275

Receivables and prepayments414,643100,368

Non-current assets

Assets under construction13,699,68813,385,413

Total assets15,678,41815,364,143

There are no other changes to the prior period comparatives.

3. COST OF SALES OF GOODS

Group

Mar 2022

NZ$

Group

Mar 2021

Restated

NZ$

Parent

Mar 2022

NZ$

Parent

Mar 2021

Restated

NZ$

Opening inventories314,275-314,275-

Current year mining exploration costs released (refer to

note 12)

-244,745-244,745

Correction of an error (refer to note 2)-69,530-69,530

Less closing inventories(314,275)(314,275)(314,275)(314,275)

Total operating income----

Inventories comprises of gold held by the company obtained through its mining exploration activities.

NOTES TO THE FINANCIAL STATEMENTS

For year ended 31 March 2022

NEW TALISMAN GOLD
ANNUAL REPORT 2022

20

NOTES TO THE FINANCIAL STATEMENTS

For year ended 31 March 2022

4. OPERATING INCOME

Group

Mar 2022

NZ$

Group

Mar 2021

Restated

NZ$

Parent

Mar 2022

NZ$

Parent

Mar 2021

Restated

NZ$

Interest69116696911,669

Reimbursement of Expenditure----

Sundry income5001,3045001,304

Total operating income1,1912,9731,1912,973

5. OPERATING AND ADMINISTRATION EXPENSES BY NATURE

Group

Mar 2022

NZ$

Group

Mar 2021

NZ$

Parent

Mar 2022

NZ$

Parent

Mar 2021

NZ$

Accountancy fees156,224110,273150,676110,273

Auditor’s fees – auditing and review of the financial

statements

49,09337,81349,09337,813

Consultancy fees32,41968,22432,41968,224

Depreciation57,42641,76957,42641,769

Director fees142,41885,333142,41885,333

Foreign exchange loss/(gain)(7,505)(13,177)(4,501)(13,177)

Insurance80,74359,83680,74359,836

Legal fees119,39923,979119,39923,979

Loss on Investments112,366---

Rental and lease costs3,16313,4063,16313,406

Secretarial expenses69,25052,00069,25052,000

Security64,11579,28264,11579,282

Share registry 99,65059,51499,65059,514

Share revaluation loss/(gain)(54,397)(15,775)(52,838)(15,775)

Stock exchange fees58,28156,69058,28156,690

Other84,669104,72574,78092,562

Total administration expenses1,067,314763,892944,074751,729

6. FINANCE COSTS

Group

Mar 2022

NZ$

Group

Mar 2021

NZ$

Parent

Mar 2022

NZ$

Parent

Mar 2021

NZ$

Interest paid on bank overdraft193-193-

Interest and finance charges paid on lease liabilities2,9071,4832,9071,483

Total operating income3,1001,4833,1001,483

7. DIRECTOR REMUNERATION

Director remuneration2022

NZ$

2021

NZ$

M G Hill (Former Executive Director – resigned 8 October 2021)*192,000288,000

C Nader 27,50040,000

A V Haworth-13,333

M R Stevens 18,65832,000

A V Rabone**33,808-

J K Upperton39,231-

M P Stiassny16,666-

S H Sharif16,666-

ANNUAL REPORT 2022NEW TALISMAN GOLD
21

NOTES TO THE FINANCIAL STATEMENTS

For year ended 31 March 2022

*Of which $24,960 (2021: $37,440) is expensed as office consultancy fees and the remainder is capitalised in the Statement of Financial

Position as Talisman development expenditure. The development expenditure amount is based on time spent on directly attributable

mine development activities.

**Mr Rabone was appointed as Operations Manager effective 18 October 2021 and was paid an additional $12,000 (2021: $nil) for this

role on top of his directors remuneration of $21,808 during the period. This expense was capitalised in the Balance Sheet as Talisman

development expenditure. The development expenditure amount is based on time spent on directly attributable mine development

activities.

All director fees paid were reduced by 20% from 1 September 2019 to 30 June 2021. All director fees were reinstated to 100% from 1 July

2021 onwards.

A V Rabone was appointed as Director effective 13 September 2021.

K Wyse was appointed as Director effective 13 September 2021. The election of Ms Wyse as Director at the company’s annual general

meeting was not resolved and she subsequently resigned as Director effective 29 September 2021.

J K Upperton was appointed as Director effective 29 September 2021 and was elected as Chair effective 11 October 2021.

M R Stevens resigned as Director effective 6 October 2021.

M G Hill resigned as Director effective 8 October 2021.

C Nader resigned as Chair and Director effective 8 October 2021.

Calum McKenzie was appointed as Director effective 11 October 2021 and resigned as a Director effective 1 November 2021.

M P Stiassny was appointed as Director effective 1 November 2021.

S H Sharif was appointed as Director effective 1 November 2021.

There were no other changes to the board of directors during this period.

During the reporting period, no options were issued to directors or employees. In the prior year, no options were issued to directors or

employees.

Remuneration of Employees

There were no employees during the reporting period.

8. TAXATION

Group

2022

NZ$

Group

2021

Restated

NZ$

Parent

2022

NZ$

Parent

2021

Restated

NZ$

Net profit / (loss) before taxation(5,719,320)(762,402)(5,596,080)(762,402)

Prima facie income tax at 28%(1,601,410)(213,473)(1,566,902)(213,473)

Add/(subtract) the taxation effect of permanent

differences:

Impairment of mine development1,302,131-1,302,131-

Non- Deductible Entertainment Adjustment104155104155

Loss on Investment31,462---

Other Non-Deductible Expenses----

Tax losses not recognised(267,713)(213,318)(264,667)(213,318)

Temporary differences not recognised----

Income tax expense/(benefit) not recognised(267,713)(213,318)(264,667)(213,318)

Deferred tax will not be recognised unless future taxable profit is probable.

The parent company has the following estimated taxation losses available:

(a) mining losses to offset against future mining income of NZ$10,915,653 (2021: NZ$10,911,653) and

(b) non-mining taxation losses of NZ$19,035,456 (2021: NZ$19,552,999).

The mining losses are currently being assessed by the IRD and the company is working closely with their representatives to confirm

balances brought forward from previous years. Such losses will only be available to be offset if:

(a) the company derives future assessable income of a nature and an amount sufficient to enable the benefit of the losses to be

realised;

(b) the company continues to comply with the conditions for deductibility imposed by the law;

(c) there are no adverse changes in tax legislation or tax rates which affect the company in realising the benefit from the

deduction for the losses.

At balance date the company’s imputation credit account balance was $559 (2021: $559).

NEW TALISMAN GOLD
ANNUAL REPORT 2022

22

NOTES TO THE FINANCIAL STATEMENTS

For year ended 31 March 2022

9. SEGMENT INFORMATION

During the current period, the company had one business segment - mineral exploration, within New Zealand and Vanuatu.

10. EQUITY & RESERVES

EquityGroup

2022

NZ$

Group

2021 Restated

NZ$

Parent

2022

NZ$

Parent

2021 Restated

NZ$

Share capital39,064,14538,216,37139,064,14538,216,371

Accumulated deficit

(28,801,786)

(23,082,466)(28,601,008)(23,004,928)

Total parent shareholder equity10,262,35915,133,90510,463,13715,211,443

The group’s capital is managed with the objective of maintaining adequate working capital so that all obligations can be met when they

fall due. All components of equity are regarded as “capital”. All internal capital management objectives have been met. There has been

no change to the management of capital since the prior year.

Accumulated deficitGroup

2022

NZ$

Group

2021 Restated

NZ$

Parent

2022

NZ$

Parent

2021 Restated

NZ$

Balance at beginning of year(23,082,466)(23,082,466)(23,004,928)(23,004,928)

Net profit / (loss) attributable to shareholders (5,719,320)(762,402)(5,596,080)(750,239)

Other Comprehensive Income----

Correction of an error (refer to note 2)-(69,530)(69,530)

Transfer of Reserves ----

Balance at end of year(28,801,786)(23,082,466)(28,601,008)(23,004,928)

Share capital Group and Parent

Ordinary shares

2022

Number

2021

Number

2022

NZ$

2021

NZ$

Balance beginning of year2,792,225,3632,692,184,32538,216,37138,216,371

Proceeds from Rights issues-100,041,038--

Proceeds from Private Placement335,000,000-647,774-

Proceeds from Settlement of Capella Vanuatu Limited62,080,075600,000

Proceeds from Settlement of Broken Hills Historic Mine

Limited

80,000,000---

Cancellation of shares issued (refer to note 14)(80,000,000)-(400,000)-

Transfer from Reserves----

Balance at end of year3,189,305,4382,792,225,36339,064,14538,216,371

All authorised shares have been issued, have equal voting rights and will share equally in dividends and surplus on winding up. The shares

have no par value.

New Talisman Gold Mines Limited issued 397,080,075 ordinary shares during the period by way of:

• Private placement of 335,000,000 new ordinary shares for the value of A$670,000 (less associated costs) as announced on 14

September 2021.

• Issue of 80,000,000 new ordinary shares for the value of $400,000 as announced on 28 September 2021 as part of the partial settlement

of the acquisition of 100% of the shares in Broken Hills Historic Mine Limited. These new shares were subsequently cancelled on

termination of the contract to purchase of 100% of the shares in Broken Hills Historic Mine Limited as announced on 25 November

2021.

• Issue of 62,080,075 new ordinary shares for the value of $200,000 as announced on 31 December 2021 as part of the partial settlement

of the acquisition of 100% of the shares in Capella Vanuatu Limited.

Share based payments

There were no share-based payment arrangements that existed during the year. (2021: Nil)

ANNUAL REPORT 2022NEW TALISMAN GOLD
23

Listed options Group and Parent

2022

Number

2021

Number

Balance at beginning of year 17,036,38417,036,384

Expired Options- -

Issued Options--

Balance at end of year17,036,38417,036,384

Listed options can be exercised on or before 30 September 2022. Conversion price is A$0.055. When exercised, one option will convert

to one ordinary share.

Unlisted Options Group and Parent

Options issued to employees:2022 Number 2021 Number

Opening Balance of options on issue--

Unlisted options cancelled during period--

Unlisted options converted to fully paid share at A 1.1 cent each--

Total unlisted options on issue to employees


--

Options issued to directors:

Unlisted options issued during the period--

Total unlisted options on issue to directors --

Total unlisted options on issue at end of year--

Total listed and unlisted options on issue at end of year17,036,38417,036,384

Nil unlisted employee options were converted during the year (Last Year Nil).

11. RELATED PARTY TRANSACTIONS

Payments for consulting services to companies in which directors and major shareholders have a substantial interest amounted to

NZ$221,287 (2021:NZ$338,499). These payments are detailed as follows:

Group and Parent

2022

NZ$

2021

NZ$

Asia Pacific Capital Group Limited (related to M G Hill)186,300331,200

Stevens and Associates (related to M R Stevens)22,9877,299

A V Rabone12,000-

Total221,287338,499

At balance date, creditors included NZ$83,586 payable to former directors and other related companies (2021:NZ$48,394). Related party

debtors totalled $7,395 at balance date (2021:NZ$3,972) and no related party debts were written off during the year.

The former NTL Board agreed to purchase Capella Vanuatu Limited during 2021. Mr M R Stevens was a member of the NTL Board

during the relevant time. Mr M R Stevens was also engaged and remunerated by Canterbury Resources Limited in relation to the sale

of Capella Vanuatu Pty Limited.

NOTES TO THE FINANCIAL STATEMENTS

For year ended 31 March 2022

NEW TALISMAN GOLD
ANNUAL REPORT 2022

24

NOTES TO THE FINANCIAL STATEMENTS

For year ended 31 March 2022

12. PROPERTY, PLANT & EQUIPMENT

Group and Parent

Fixtures &

fittings

Office

equipment

Field

equipment

Motor

Vehicles

Total

NZ$NZ$NZ$NZ$NZ$

Year ended 31 March 2021

Carrying amount 1 April 20201403,683205,01918,579227,421

Additions---(4,349)(4,349)

Depreciation(95)(1,622)(28,243)(1,724)(31,684)

Carrying amount452,061176,77612,506191,388

31 March 2021

Cost1,26051,547262,87844,655360,340

Depreciation(1,215)(49,486)(86,102)(32,149)(168,952)

Carrying amount452,061176,77612,506191,388

Year ended 31 March 2022

Carrying amount 1 April 2021452,061176,77612,506191,388

Additions-2,489--2,489

Disposals-----

Depreciation(20)(1,280)(27,905)(1,575)(30,780)

Carrying amount253,270148,87110,931163,097

31 March 2022

Cost1,26051,547262,87844,655360,340

Depreciation(1,235)(48,277)(114,007)(33,724)(197,243)

Carrying amount253,270148,87110,931163,097

ASSETS UNDER CONSTRUCTION

Mine developmentGroup

2022

NZ$

Group

2021

Restated

NZ$

Parent

2022

NZ$

Parent

2021

Restated

NZ$

Balance at beginning of year13,385,41313,149,90113,385,41313,149,901

Development expenditure294,447549,787264,684549,787

Mining exploration costs

released during the period

-(244,745)-(244,745)

Impairment of mine development (4,650,097)-(4,650,097)-

Correction of an error (refer to note 2)-(69,530)-(69,530)

Balance at end of year9,029,76313,385,4139,000,00013,385,413

A mine is currently being developed on the Talisman Mining permit and the Company holds a prospecting license at Capella in Vanuatu.

All development expenditure has been recorded at cost in the statement of financial position.

Development expenditure consists of mining development costs, professional salaries, data acquisitions and all overhead expenses

relating to the operation of the mine. Management assesses the allocation of directly attributable overheads at the end of each reporting

date.

The directors have provided for rehabilitation costs of the Talisman mine site on its closure. The estimated cost is $34,438 (2021: $32,215).

The same value has been included in the development expenditure.

Impairment of Assets

The Group assesses each mining development at the end of each period to determine whether there are any indicators of impairment.

Where an indicator of impairment exists, an estimate of the recoverable amount is made.

The key assumptions and factors considered as part of this assessment of impairment includes:

• The current state of the mine

• The status of the mining permits held

• A formal independent valuation report on the mine

• Market capitalisation

• The strategic plan

ANNUAL REPORT 2022NEW TALISMAN GOLD
25

Talisman Mine Development

An independent Technical Valuation of the Talisman Gold Project was provided by Geos Mining Minerals Consultants as at 30 September

2021. The report concluded that a preferred valuation of the Project was NZ $15.6 million. This valuation is based on a six year period

discounted cash flow.

Furthermore, the mining permit consists of a two year bulk sampling period and will require an application for full mining. A two year

period discounted cash flow results in an indicative valuation of $9 million.

The Directors reviewed other factors as mentioned above that may indicate impairment.

Given the conditional nature of the mining permit, the difference in indicative valuation between the two abovementioned valuations,

and that no commercial activity has yet been generated from mining activities, the Directors concluded that an impairment to the

Talisman mine development would be appropriate. The Talisman mine development has therefore been impaired down to a net book

value of $9 million.

Vanuatu Mine Development

The Directors reviewed all factors as mentioned above that may indicate impairment to the Vanuatu mine development. Given this is a

relatively new development, acquired back in July 2021, the Directors believes the noted carrying values relating CVL are appropriate.

RIGHT OF USE ASSETS

The company has recognised a right of use asset for the lease of the premises situated at 547 Parnell Road, Auckland. The Group had

entered into a lease agreement on 6 October 2020 for a lease term of three years. The Group had previously held a short term lease

agreement for its previous premises situated at 541 Parnell Road, Auckland, hence no right of use asset for these premises were previously

recorded.

Movements in right of use assets are summarised below:

Group Parent

2022

NZ$

2021

NZ$

2022

NZ$

2021

NZ$

Balance at beginning of year64,539-64,539-

Additions8,16474,6248,16474,624

Depreciation Charge(26,646)(10,085)(26,646)(10,085)

Balance at end of year46,05764,53946,05764,539

13. INTANGIBLE ASSETS

Group Parent

2022

NZ$

2021

NZ$

2022

NZ$

2021

NZ$

Prospecting costs

Balance at beginning of year11,63711,63711,63710,575

Development expenditure ----

Impairment of prospecting costs----

Balance at end of year11,63711,63711,63710,575


Group Parent

2022

NZ$

2021

NZ$

2022

NZ$

2021

NZ$

Gross prospecting costs

Gross cost of current permit11,63711,63710,57510,575

Balance at end of year11,63711,63710,57510,575

Exploration and evaluation expenditure is recorded at cost. The Group recorded an impairment in the carrying value of the Rahu

exploration asset due to uncertainty around access to the land at that time. Subsequently the Company has relinquished the exploration

license for the Rahu area and applied to extend the land area of the Talisman tenement to cover a large part of the area previously under

the Rahu tenement.

NOTES TO THE FINANCIAL STATEMENTS

For year ended 31 March 2022

NEW TALISMAN GOLD
ANNUAL REPORT 2022

26

Group Parent

2022202120222021

NZ$NZ$NZ$NZ$

Goodwill

Balance at beginning of year----

Additions 319,228---

Amortisation Charge----

Impairment of Goodwill

Balance at end of year319,228---

Total Intangible Assets 330,86511,63710,57510,575

The goodwill has arisen from the acquiring of a business combination associated with the acquisition of the shares in Capella Vanuatu

Limited which was completed during the period. Management has assessed the above costs and believed that these costs are

representative of its fair value and thus, no amortisation of goodwill has been recorded.

TENEMENT SCHEDULE:

Permits held by New Talisman Gold Mines Limited Group:


51 326 Talisman (Mining) – Granted mining permit, Coromandel, New Zealand

1851 Capella Vanuatu - Prospecting License, Vanuatu

14. SHARE INVESTMENTS

Group

2022

NZ$

Group

2021

NZ$

Parent

2022

NZ$

Parent

2021

NZ$

Investment in listed companies – at fair value75,75421,35673,98421,146

Unlisted options to acquire – at cost value-109,348-109,348

Capella Vanuatu Limited-55,124-55,124

Total share investments75,754185,82873,984185,618


Investment in listed companies includes the investment in American Rare Earths Limited.

Unlisted options to acquire

As announced on 27 January 2021, the company had entered a binding option for the purchase of 100% of the shares in Broken Hills

Historic Mine Limited. The Final purchase price of the shares in Broken Hills Historic Mine Limited was $750,000. Settlement, along with

a final payment, of this share purchase was due to be completed by 31 December 2021. The company announced on 25 November 2021

that the company had terminated this binding agreement as the condition of obtaining consent under the Crown Minerals Act 1991 by

31 December 2021 had become incapable of being satisfied. As part of this termination, 80 million ordinary shares valued at $400,000

that were initially issued have subsequently been cancelled. All other associated costs were recorded as investment in unlisted options

to acquire until the company gains control of Broken Hills Historic Mine Limited at which point, the financial statements of Broken Hills

Historic Mine Limited would be consolidated with the rest of the Group. It was mutually agreed between both parties that the $100,000

deposit paid on signing of the Term Sheet would not be refunded by Broken Hills Historic Mine Limited to the company. This termination

has been reflected in these financial statements and the original cost value of the Broken Hills Historic Mine Limited of $112,367 has been

written off. The treatment of this cost value are as follows:

80 million New Talisman Gold Mine Limited shares issued$400,000

Cancellation of 80 million New Talisman Gold Mine Limited shares

issued

($400,000)

Funds paid on signing of the Term Sheet$100,000

Investment for the period$12,367

Total cost value$112,367

Capella Vanuatu Limited

As announced on 10 December 2020, the company had signed a binding term sheet for the purchase of 100% of the shares in Capella

Vanuatu Limited. The purchase of these shares was completed on 5 July 2021. All associated costs were recorded as investment in unlisted

options to acquire until the company gained control of Capella Vanuatu Limited at which point, the financial statements of Capella

Vanuatu Limited have been consolidated with the rest of the Group.

NOTES TO THE FINANCIAL STATEMENTS

For year ended 31 March 2022

ANNUAL REPORT 2022NEW TALISMAN GOLD
27

15. SUBSIDIARY COMPANIES

Percent held Incorp Balance Activity

2022 2021 in date

Subsidiaries

Coromandel Gold Limited 100% 100% NZ 31 March Share investment

Critical Minerals Resources Limited 100% 100% NZ 31 March Minerals exploration

Rahu Resources Pty Limited 100% 100% NZ 31 March Minerals exploration

Capella Vanuatu Limited 100% 0% Vanuatu 31 March Minerals exploration

Capella Vanuatu Limited is a direct subsidiary of Coromandel Gold Limited. All other subsidiaries are direct subsidiaries of the company.

The investment in each subsidiary is recorded at cost (NZ$Nil) in the company’s statement of financial position. Critical Minerals Resources

Limited did not trade during the year.

Critical Minerals Resources Limited was previously known as Northland Minerals Limited.

16. FINANCIAL INSTRUMENTS

Credit Risk

Financial instruments which potentially subject the company to credit risk principally consist of bank balances and receivables. Surplus

funds are placed in interest bearing accounts with major trading banks and the company does not anticipate non-performance by those

parties. Maximum exposure to credit risk at balance date is represented by the carrying value of the financial instruments. No collateral

is held on these assets and the balances are stated net of recognised impairment losses. Cash at bank represented 97% of total cash and

receivables. The group deals only with banks having at least an A credit rating.

Currency Risk

At present the Company does not hedge foreign currency transaction or translation exposures. The company has exposure to foreign

exchange risk as a result of transactions from normal trading activities mainly denominated in Australian currencies. The company holds

funds in an Australian currency bank account.

Liquidity Risk

Management supervises liquidity through cashflow forecasting, budgeting and by carefully controlling cash outflows from existing cash

resources. The group relies on new equity to fund exploration and mine development expenditure.

Interest Rate Risk

At balance date the company had no exposure to interest rate risks. The table below shows short term deposits held at balance date:

Re-pricing AnalysisEffective Interest RateTotal

NZ$

6 months or less

NZ$

Short term bank deposits0.55-2.25%105,000105,000

Fair Values

Fair values used in the measurement of financial instruments may vary from values directly observed in active markets to those that must

be derived without reference to observable data. Investments in listed companies are measured at fair value based on quoted prices

in active markets. As stated in Note 10, the fair value of unlisted shares cannot be reliably measured and are stated at cost. Except for

unlisted shares, there is no material difference between the carrying amounts and estimated fair values of the company’s financial assets

and liabilities.

17. RECONCILIATION OF OPERATING CASHFLOW AND REPORTED DEFICIT


GroupParent

2022

NZ$

2021

Restated

NZ$

2022

NZ$

2021

Restated

NZ$

Net profit / (loss) after taxation

(5,719,320)(762,402)(5,596,080)(750,239)

Add non-cash items:

Depreciation57,42641,76957,42641,769

Impairment of mine development4,650,097-4,650,097-

Loss on disposal of property, plant & equipment-3,044-3,044

Loss on investment109,346---

Share revaluation (gain)/loss(54,397)(15,775)(52,838)(15,775)

Exchange (gain)/loss

(7,505)(13,177)(4,501)(13,177)

4,754,96715,8614,650,18415,861

Add (less) movement in working capital:

Decrease (increase) in debtors(3,423)748(3,423)748

Increase (decrease) in creditors 67,86059,99267,86059,992

NOTES TO THE FINANCIAL STATEMENTS

For year ended 31 March 2022

NEW TALISMAN GOLD
ANNUAL REPORT 2022

28

NOTES TO THE FINANCIAL STATEMENTS

For year ended 31 March 2022

Increase (decrease) in employee benefits -(18,240)-(18,240)

Decrease (increase) in accrued income----

Decrease (increase) in Development WC----

Decrease (increase) in prepayments18,8605,44718,8605,447

Decrease (increase) in intercompany loans--(312,750)(9,163)

Decrease (increase) in GST

(7,448)2,526(4,018)(474)

72,51650,473(233,471)38,310

Net cash outflows used in operating activities(888,504)(696,068)(1,179,367)(696,068)

18. COMMITMENTS

The group has capital commitments of NZ$Nil (2021:Nil).

19. CONTINGENT LIABILITIES

Group and Parent

Mar 2022

NZ$

Mar 2021

NZ$

Contingent liabilities817,537-

As announced on 23 March 2022, Matthew Hill has filed a claim with the NZ Employment Relations Authority for $817,537 against the

company. The company does not accept that Mr Hill has been an employee of the Company and considers the claim has no merit. Mr

Hill had specifically requested a management services contract for Asia Pacific Capital Limited under which he provided services to the

Company since early 2014. No provision has been recorded in the financial statements in relation to this matter.

20. NET TANGIBLE ASSETS PER SECURITY

Group and Parent

Mar 2022

NZ$

Mar 2021

NZ$

Net tangible assets

Net tangible assets per security

9,931,494

0.31 cent

15,568,058

0.56 cent

21. GOING CONCERN

The Group and Parent financial statements are prepared on a going concern basis which anticipates the Company and entities it controls

will be able to continue its operations for the foreseeable future and will be able to realise its assets and discharge its liabilities and

commitments in the ordinary course of business.

The ability of the Company to continue as a going concern depends upon its ability to access suitable debt or equity capital to fund

its operations through to production. No assurance can be given that such capital will be available at all or on terms acceptable to the

Company. The directors announced on 27 April 2022 that the company will be offering a convertible debt security up to the value of

$3.5m on an 18 month term from drawdown in order to implement the company’s strategy plan. Refer to note 27 for further details.

22. EARNINGS PER SHARE

Group

Mar 2022

Group

Restated

Mar 2021

Parent

Mar 2022

Parent

Restated

Mar 2021

Profit/(loss) from continuing operations

Weighted average number shares

(5,719,320)

2,991,094,423

(762,402)

2,765,090,944

(5,596,080)

2,991,094,423

(750,239)

2,765,090,944

Basic earnings per share

Diluted average shares on issue

(0.01) cent

3,008,130,807

(0.03) cent

2,782,127,328

(0.01) cent

3,008,130,807

(0.02) cent

2,782,127,328

Diluted earnings per share(0.01) cent(0.03) cent(0.01) cent(0.02) cent

Weighted average number shares

Weighted average number options

2,991,094,423

17,036,384

2,765,090,944

17,036,384

2,991,094,423

17,036,384

2,765,090,944

17,036,384

Diluted average share on issue3,008,130,8072,782,127,3283,008,130,8072,782,127,328

ANNUAL REPORT 2022NEW TALISMAN GOLD
29

23. PAYABLES

Group

Mar 2022

NZ$

Group

Mar 2021

NZ$

Parent

Mar 2022

NZ$

Parent

Mar 2021

NZ$

Trade payables167,941112,253167,941112,253

Audit Accrual20,04320,32420,04320,324

Accruals12,452-12,452-

200,436132,577200,436132,577

Trade Payables

Trade payables are unsecured and are usually paid within 30 days of recognition.

24. EMPLOYEE BENEFITS

Group

Mar 2022

NZ$

Group

Mar 2021

NZ$

Parent

Mar 2022

NZ$

Parent

Mar 2021

NZ$

Balance at beginning of year-18,240-18,240

Additional provision----

Amount utilised-(18,240)-(18,240)

Balance at end of year----

Employee benefits accrued comprise holiday pay.

25. LEASE LIABILITIES

Lease commitments under non-cancellable operating leases:

Group

Mar 2022

NZ$

Group

Mar 2021

NZ$

Parent

Mar 2022

NZ$

Parent

Mar 2021

NZ$

Balance at beginning of year65,446-65,446-

Additions8,16474,6248,16474,624

Interest Expense2,9071,4832,9071,483

Principal repayments(29,053)(10,661)(29,053)(10,661)

Balance at end of year47,46465,44647,46465,446

Short term lease liabilities29,54024,14129,54024,141

Long term lease liabilities17,92441,30517,92441,305

47,46465,44647,46465,446

26. RECEIVABLES AND PREPAYMENTS

Group

Mar 2022

NZ$

Group

Mar 2021

Restated

NZ$

Parent

Mar 2022

NZ$

Parent

Mar 2021

Restated

NZ$

Sundry receivables35,58324,71235,58324,712

Prepayments56,79675,65656,79675,656

Intercompany advances--552,60178,810

92,379100,368644,980179,178

Trade Receivables

All financial assets are within the contractual terms. None are overdue and none are impaired. No collateral is held for receivables.

27. SIGNIFICANT EVENTS SINCE BALANCE DATE

As announced on 27 April 2022, the company is proposing to seek additional funding of up to $3.5m through the issuing of convertible

debt security. These funds will be used by the company to carry out its strategic plan which includes:

• Recommencing underground activities at the mine, including developing the required Second Egress.

• Advancing the Mystery Vein face.

• Advancing the Mystery Vein will trigger the existing 2 year Bulk Sampling Consent.

• Opening a second face on the Mystery vein once the Second Egress is complete.

• Funding the implementation of the Traffic Management Plan.

• Funding the Resource Consent application for Full Mining Consent.

In summary, it is proposed that the convertible debt security will be for a period of 18 months from initial drawdown, and attached an

annual interest rate of 9.5% which will be paid quarterly. This convertible debt security proposal will be subject to shareholder approval.

No other significant events have occurred since balance date.

NOTES TO THE FINANCIAL STATEMENTS

For year ended 31 March 2022

NEW TALISMAN GOLD
ANNUAL REPORT 2022

30

ADDITIONAL INFORMATION

DIRECTOR INFORMATION AND DISCLOSURE OF DIRECTORS INTERESTS

The following general disclosures of interest were received in relation to the year ended 31 March 2022:

DirectorRelevant interest in Ordinary SharesRelevant Interest in listed Options

John Upperton84,000,000-

Samantha Sharif3,000,000-

TOP 20 OPTION HOLDERS as of 14 JUNE 2022

RankNameUnits% of

Units

1.COSMO BRYAN BOREHAM1,000,0005.87

2.BANKIMCHANDRA NIRANJANBHAI PATEL & HIRALBEN BANKIMCHANDRA PATEL663,6383.90

3.CHARLES PLEWINSKI383,6362.25

4.KA FU TSE287,0641.69

5.MURRAY LAWRENCE CAMERON286,3641.68

6.STEPHEN BAGGETT254,5451.49

7.WARWICK JOHN LANGE216,0901.27

8.MICHAEL MCGOWAN200,0001.17

9.CITICORP NOMINEES PTY LIMITED181,8181.07

10.ALAENA THERESA WILLIAMS136,3640.80

11.ANDREW WARREN MCLAUGHLIN136,3640.80

12.BART KLUMPERS & MARYKE CORNELIA KLUMPERS136,3640.80

13.BEAZER INVESTMENT LIMITED136,3640.80

14.BENJAMIN PETER WOOLLCOMBE136,3640.80

15.BOON SIN LIEW136,3640.80

16.BOYI WEI136,3640.80

17.BRUCE JEFFREY DALTON & KAREN JOY DALTON136,3640.80

18.CHRISTOPHER DAVID ENGLISH & JACQUELINE ENGLISH136,3640.80

19.CHRISTOPHER JOHN POSTLEWAIGHT136,3640.80

20.CHUNG KAN CHOW136,3640.80

Total top 20 holders of 30/09/2022 Aud $0.05 Options4,973,15929.19

Total listed options17,036,384

ANNUAL REPORT 2022NEW TALISMAN GOLD
31

Holding Range

Ordinary Shares as of 31 May 2022

RangeTotal holdersShares Held% of Issued Capital

1 - 1,00012128,9370.00

1,001 - 5,000252869,4230.03

5,001 - 10,0001921,654,9120.05

10,001 - 100,00096847,153,6851.48

100,001 Over1,4403,139,598,48198.44

Total 2,9733,189,305,438100.00

TOP 20 ORDINARY SHAREHOLDERS as of 14 June 2022

RankNameUnits% of Units

1.HAMISH EDWARD ELLIOT BROWN430,000,00013.48

2.NEW ZEALAND DEPOSITORY NOMINEE LIMITED <A/C 1 CASH

ACCOUNT>

257,658,2507.40

3.BEVERLEY IDA EVANS136,000,0004.26

4.JOHN KILDARE UPPERTON84,000,0002.63

5.CANTERBURY RESOURCES LIMITED62,080,0751.95

6.CHRISTOPHER DAVID ENGLISH + JACQUELINE ENGLISH

<KRINGLES SUPER FUND A/C>

35,758,9101.12

7.RA KOURA LIMITED31,422,4040.99

8.VAN CHUONG TRAN30,000,0000.94

9.HILL FAMILY GROUP PTY LIMITED28,096,5070.88

10.THOMAS HERBERT TEBBS GOTHORP25,500,8740.80

11.PETER WILLIAM HALL25,000,0000.78

12.RONALD JOHN SCOTT22,000,0000.69

13.CHI HUA CHEN21,982,7420.69

14.RUSSELL BARRY JAMES21,424,1570.67

15.WILLIAM GEOFFREY KROON21,021,9990.66

16.CHUNHANG LI20,000,0000.63

17.CHUNG KAN CHOW19,455,9130.61

18.ALLAN MICHAEL NOBILO + LYNNE NOBILO18,953,5870.59

19.SHARESIES NOMINEE LIMITED <CHILD A/C>18,053,8630.57

20.HOI YEE JULIE TSE17,554,4670.55

Total Top 20 holders of Ordinary Shares1,325,964,36241.58

Total issued Capital3,189,305,438

NEW TALISMAN GOLD
ANNUAL REPORT 2022

32

CORPORATE GOVERNANCE

In accordance with the NZX Corporate Governance Code 2020 (“NZX Code”), and the ASX Corporate Governance Council’s Principles

and Recommendations (4th Edition) (“ASX Recommendations”) New Talisman Gold Mines Ltd (“Company”) has adopted systems of

control and accountability as the basis for corporate governance best practice.

Policies and Charters (for the board and its committees), including the Company’s Code of Ethics and other policies and procedures

relating to the Board and its responsibilities are available on the Company’s website www.newtalisman.co.nz

Commensurate with the spirit of the NZX Code and the ASX Recommendations, the Company has followed each recommendation where

the Board has considered the recommendation to be an appropriate benchmark for its corporate governance practices, taking into

account factors such as the size of the Company and the Board, resources available and activities of the Company.

After due consideration by the Board during the Company’s 2021/2022 financial year (“reporting period”) the Company’s corporate

governance practices departed from the NZX Code or ASX Recommendations only as set out below.

The information in this statement is current at 31 March 2022.

EXPLANATIONS FOR DEPARTURES FROM NZX CORPORATE GOVERNANCE CODE 2020

RecommendationNotification of DepartureExplanation for Departure

2.5: An issuer should have a written

diversity policy which includes

requirements for the board or a

relevant committee of the board to set

measurable objectives for achieving

diversity (which, at a minimum, should

address gender diversity) and to assess

annually both the objectives and the

entity’s progress in achieving them.

The issuer should disclose the policy or

a summary of it.

The Company has established a

diversity policy, a copy of which is

disclosed on the Company’s website.

However, the policy does not include

requirements for the board to establish

measurable objectives for achieving

gender diversity, or for the board to

assess annually the objectives and the

progress towards achieving them.

The Board considers the size of the Company’s

operations make it impractical to establish

meaningful measurable objectives for achieving

gender diversity.

EXPLANATIONS FOR DEPARTURES FROM ASX CORPORATE GOVERNANCE PRINCIPLES

AND RECOMMENDATIONS (4th Edition)

The Company has followed each of the ASX Recommendations during the reporting period, except in relation to the matters specified below:

RecommendationNotification of DepartureExplanation for Departure

1.5(b): The Company should establish

and disclose a diversity policy. The

policy should include requirements

for the board to establish measurable

objectives for achieving gender

diversity and for the board to assess

annually both the objectives and the

progress towards achieving them.

The Company has established a

diversity policy, a copy of which is

disclosed on the Company’s website.

However, the policy does not include

requirements for the board to establish

measurable objectives for achieving

gender diversity, or for the board to

assess annually the objectives and the

progress towards achieving them.

The Board considers the size of the Company’s

operations make it impractical to establish

meaningful measurable objectives for achieving

gender diversity.

1.5(c): Disclose in each annual

report the measurable objectives for

achieving gender diversity set by the

Board in accordance with the diversity

policy and progress towards achieving

them.

No measurable objectives for achieving

gender diversity have been set by the

Board.

The Board considers the size of the Company’s

operations make it impractical to establish

meaningful measureable objectives for

achieving gender diversity. However, the Board

recognises the importance of diversity and has

therefore adopted a diversity policy, a copy of

which is available on the Company’s website.

BOARD COMPOSITION AND EXPERTISE

The Company has established the functions reserved to the Board, and those delegated to senior executives and has set out these

functions in a Statement of Board and Management Functions, which is disclosed on the Company’s website.

A profile of each director containing the skills, experience, expertise, formal qualifications and term of office of each director is set out in

the director profiles in this Annual Report.

The mix of skills and diversity that the Board is seeking to achieve in its membership is significant experience and expertise in: mine

development and underground operations, geological modelling, financial reporting, financial markets, risk management, statutory

compliance, resource management, health and safety and employment. Each of these skills are represented in the Board’s current

composition. The size of the Board and the development of the Company’s projects places constraints on the mix of skills the Board is

able to achieve.

ANNUAL REPORT 2022NEW TALISMAN GOLD
33

It is the policy of the Board that in determining candidates for the

Board, the following process shall occur:

a. The Nomination Committee (or equivalent) evaluates the

range of skills, experience and expertise of the existing Board.

In particular, the Nomination Committee (or equivalent) is to

identify the particular skills that will best increase the Board’s

effectiveness. Consideration is also given to the balance of

independent directors on the Board.

b. A potential candidate is considered with reference to their

skills and expertise in relation to other Board members.

c. If relevant, the Nomination Committee recommends an

appropriate candidate for appointment to the Board. Any

appointment made by the Board is subject to ratification by

shareholders at the next general meeting.

The Board recognises that Board renewal is critical to performance

and the impact of Board tenure on succession planning.

Re-appointment of directors is not automatic. The Company’s

Policy and Procedure for Selection and (Re)Appointment of

Directors is disclosed on the Company’s website.

IDENTIFICATION OF INDEPENDENT

DIRECTORS

In considering independence of directors, the Board refers to the

criteria for independence as set out in NZX Listing Rule 2.1.1 and

Box 2.1 of the ASX Recommendations (“Independence Criteria”).

Applying the Independence Criteria during the reporting

period and at balance date the Board comprises a majority of

independent directors. The independent directors of the Company

were the Chair, John Upperton, Samantha Sharif, and Michael

Stiassny. Victor Rabone is not an independent director as he has a

operational contract with the Company.

STATEMENT CONCERNING AVAILABILITY

OF INDEPENDENT PROFESSIONAL ADVICE

If a director considers it necessary to obtain independent

professional advice to properly discharge the responsibility of his/

her office as a director then, provided the director first obtains

approval for incurring such expense from the Chair, the Company

will pay the reasonable expenses associated with obtaining such

advice.

DIRECTOR REMUNERATION

Details of remuneration are contained in the Notes to the Financial

Statements forming part of this report.

The Company’s Remuneration Policy is disclosed on the Company’s

website. Remuneration of Directors and senior executives is set by

reference to payments made by other companies of similar size

and industry, and by reference to the skills and experience of the

Directors and executives.

There is currently no direct link between remuneration paid to any

of the non-executive directors and corporate performance such as

bonus payments for achievement of key performance indicators.

There are no termination, retirement or Company superannuation

scheme benefits for non-executive directors.

PERFORMANCE EVALUATION OF THE

BOARD, COMMITTEES AND SENIOR

EXECUTIVES

The board reviews the size and composition of the board and the

mix of existing and desired competencies across members from

time to time. Criteria considered by the directors when evaluating

prospective candidates are contained in the board’s charter. The

chair of the board is responsible for ensuring a regular review of

the performance of the board, committees and individual directors

occurs at least annually. The chair is responsible for determining

the process under which this evaluation takes place. The board

reviews annually the size and composition of the board and the

mix of existing and desired competencies across members.

The board is responsible for evaluating the performance of

senior executives. The board evaluates the performance of

senior executives via an ongoing process of assessment and a

formal annual review in December. During the formal review, the

senior executive’s performance is measured against their role’s

assessment criteria.

The Company’s Process for Performance Evaluations is disclosed

on the Company’s website.

CORPORATE CODE OF CONDUCT

The board has adopted a Corporate Code of Conduct (available

on the Company’s website). Directors, employees and consultants

must comply with the policies which the Board has endorsed to

achieve ethical behaviour and efficiency within the authorities and

discretions designated to them, avoiding putting themselves in

a position where they stand to benefit personally or be accused

of insider trading. Compliance with all laws and regulations and

maintenance of confidentiality and honesty is expected. The

Corporate Code of Conduct forms part of every employment and

consultancy agreement. Failure to comply can result in disciplinary

action, including, where appropriate, dismissal. The Board has not

adopted a Whistleblower Policy. However, employees have direct

access to the Chair and are encouraged to contact the Chair with

any suspected departure from the Company’s Code of Conduct.

GENDER DIVERSITY

The board has adopted a Diversity Policy (available on the

Company’s website). As noted above, the Diversity Policy does

not include requirements for the board to establish measurable

objectives for achieving gender diversity. Gender diversity at

balance date for the reporting period:

ComponentTotalFemale

Component

% Female

Component

Board of Directors4125%

Consultants4250%

TOTAL*8337.5%

* Total comprises the figures for the whole organisation.

The Board considers that the Company complied with its diversity

policy during the reporting period.

AUDIT COMMITTEE

The Audit Committee as at the end of the reporting period consists

of the following non-executive independent directors: Michael

Stiassny (Chair), Samantha Sharif, John Upperton and Victor

Rabone. The Board deals with any conflicts of interest that may

occur when convening in the capacity of the Audit Committee by

ensuring that any director with conflicting interests is not party to

the relevant discussions.

During the reporting, period the Audit Committee had the

opportunity to meet with the external auditor in respect of the

financial reports. The Audit Committee is responsible for reviewing

Annual and Interim Financial Statements, related stock exchange

announcements and all other financial information published or

released to the market; monitoring and making recommendations

for improvement in internal control environment, including

effectiveness and efficiency of operations, reliability of financial

reporting and compliance with applicable laws and regulations;

overseeing the risk management and compliance framework; the

appointment, removal and remuneration of the external auditors;

reviewing the terms of their engagement and the scope and

quality of the audit, reviewing and approving the nature and scope

of non-audit services and ensuring rotation of the external audit

engagement partner.

Details of each of the director’s qualifications are included in the

Board of Director’s Profiles. All members of the sub committee

consider themselves to be financially literate and have financial

experience and industry knowledge. Mr Rabone is a Geotechnical

Engineer with over 20 years of operational experience in all facets

of mining gained in New Zealand and internationally. He has

specialised expertise in hard rock underground mining. Ms Sharif

CORPORATE GOVERNANCE

NEW TALISMAN GOLD
ANNUAL REPORT 2022

34

is a Professional Director with extensive leadership experience

in infrastructure, resources, safety critical industries, as well as

investment and capital markets. Michael is a Chartered Fellow

of The Institute of Directors in NZ (Inc) (CFInstD) and is also past

President of the Institute of Directors. He is a Fellow of Chartered

Accountants Australia and New Zealand (retired). He has both a

Commerce and Law degree. Mr Stiassny is currently Chairman of

Tower Insurance and Ngati Whatua Orakei Whai Rawa Limited, and

a director of a number of other companies.

Mr Upperton has a background in both Commercial and Residential

Construction Project Management. Alongside these projects, Mr

Upperton has garnered considerable experience in aspects of the

RMA and District Planning requirements, including successfully

representing himself in the Environment Court.

The Company has established a Procedure for the Selection,

Appointment and Rotation of its External Auditor, which is disclosed

on the Company’s website. The Board is responsible for the initial

appointment of the external auditor and the appointment of a new

external auditor when any vacancy arises, as recommended by the

Audit Committee (or its equivalent). Candidates for the position of

external auditor must demonstrate complete independence from

the Company through the engagement period. The Board may

otherwise select an external auditor based on criteria relevant to

the Company’s business and circumstances. The performance of

the external auditor is reviewed on an annual basis by the Audit

Committee (or its equivalent) and any recommendations are made

to the Board.

NOMINATION AND REMUNERATION

COMMITTEE

The Nomination and Remuneration Committee (N&R) as at the

end of the reporting period consists of the following non-executive

independent directors: John Upperton, Samantha Sharif, Victor

Rabone and Michael Stiassny. The responsibilities of the N&R

Committee were also addressed by the full Board at Board and

Strategy meetings during the reporting period. The Board

has adopted, and the N&R Committee applies a Nomination

Committee Charter and a Remuneration Policy which is available

on the Company’s website.

Duties of the N&R Committee includes reviewing remuneration

of executive and non-executive directors, incentive schemes and

reviewing the Remuneration Committee Policy (disclosed on the

Company’s website).

The Board has adopted, and the Remuneration Committee

applies, a Remuneration Committee Charter which is available on

the Company’s website.

HEALTH SAFETY SECURITY AND

ENVIRONMENT COMMITTEE

The Health Safety Security and Environment Committee (HSSE) as

at the end of the reporting period consists of the following directors:

Samantha Sharif, John Upperton and Victor Rabone. Some

responsibilities of the HSSE Committee were also addressed by

the full Board at Board and Strategy meetings during the reporting

period. The Board has adopted, and the HSSE Committee applies

a HSSE Committee Charter which is available on the Company’s

website

The Company’s Policy for Trading, which is disclosed on the

Company’s website, states that key management personnel must

not enter into transactions or arrangements which operate to

limit the economic risk of their security holding in the Company

without first seeking and obtaining written acknowledgement

from the Chair, Audit Committee Chair or Executive Director; and

Key Management Personnel are prohibited from entering into

transactions or arrangements which limit the economic risk of

participating in unvested entitlements.

MEETING ATTENDANCE

Director/ConsultantBoardAuditHSSE

M Hill7/81/3

M Stevens8/83/3

C Nader8/83/3

J Upperton18/181/11/1

V Rabone15/151/11/1

C McKenzie1/1

M Stiassny14/141/1

S Sharif14/141/11/1

*M Stevens directorship ceased effective 6 October 2021

*M Hill directorship ceased effective 8 October 2021

*C Nader directorship ceased effective 8 October 2021

*V Rabone directorship commenced effective 13 Sept 2021

*J Upperton directorship commenced effective 29 Sept 2021

*C McKenzie directorship commenced effective 11 Oct 2021 and

ceased effective 1 Nov 2021

*M Stiassny directorship commenced effective 1 Nov 2021

*S Sharif directorship commenced effective 1 Nov 2021

RISK MANAGEMENT

The Company has continued to develop its strategies for managing

risk during the reporting period, particularly where internal controls

are concerned. The Company’s internal controls are reviewed by

the external auditor twice a year, and are monitored regularly by

the independent directors. The Board relies on the sign-off of its

contracted CFO with respect to the financial reports, which sign-off

has been provided in respect of the Company’s 2021/2022 financial

statements.

The Company has adopted a Risk Management Policy (a summary

is available on the Company’s website). Under the Policy, the

Board delegates day-to-day management of risk to the Chief

Executive Officer and in the absence of a Chief Executive Officer

the responsibility falls to the Chairman of the Board. The Policy

sets out the role of the Chief Executive Officer and accountabilities.

It also contains the Company’s risk profile and describes some of

the policies and practices the Company has in place to manage

specific business risks.

The process of management of material business risks is allocated

to the relevant business risk owners within the management team

or its contracted suppliers. The Board relies on risk controls being

implemented effectively and the primary risk controls reviewed

monthly through a standing item on the Board agenda. The

Company is in the process of updating its Risk Management Policy

to include formal processes to identify, manage and mitigate risk,

using a risk register. As the mine was not operational during the

period there were no operational risk reports prepared. Certain

risks pertinent to the sector in which the Company operates are

not able to be managed at this time, for example the price of gold.

Material business risks reported on during the reporting period

included statutory compliance, health and safety in the operational

environment, sustainability of the company’s ore resources,

environmental risk working in a conservation estate, internal audit

compliance, adequacy of computer systems, ethical conduct and

business practice, retention of key staff, financial reporting and

liquidity risk.

The Board has required management to design, implement and

maintain risk management and internal control systems to manage

the Company’s material business risks. The Board also requires

management to report to it confirming that those risks are being

CORPORATE GOVERNANCE

ANNUAL REPORT 2022NEW TALISMAN GOLD
35

managed effectively. The Board receives on a regular basis reports

from management as to the effectiveness of the Company’s

management of its material business risks, risk evaluation, analysis

and treatment. Risk management is a standing item on the Board

agenda, giving opportunity for Board discussion. The Audit

Committee and the full Board addresses areas of risk and evaluates

the effectiveness of controls.

ASSURANCES TO THE BOARD

The Chief Executive Officer (CEO) and the Chief Financial officer

(CFO) are not required to provide a declaration to the Board in

accordance with section 295A of the Corporations Act (Australia)

as the Company is instead subject to the laws of New Zealand.

However, the Board requires the virtual CFO to provide a

declaration confirming that the financial reports for the reporting

period present a true and fair view, in all material respects, of the

Company’s financial condition and operational results, and are in

accordance with relevant accounting standards. Assurance is also

given that the financial statements are founded on a sound system

of risk management and internal compliance and control and that

the Company’s risk management and internal compliance and

control is operating efficiently and effectively.

CONTINUOUS DISCLOSURE

The Company has adopted a Continuous Disclosure Policy which

sets out obligations for directors, employees and consultants

in relation to continuous disclosure. The Company has also

adopted Compliance Procedures to ensure compliance with the

ASX Listing Rule requirements in relation to continuous disclosure,

and to ensure accountability at a senior executive level for that

compliance. Summaries of both these documents are available

on the Company’s website. In accordance with the NZX and ASX

Listing Rules, the Company is required to disclose to the market

matters which could be expected to have a material effect on

the price or value of the Company’s securities. Management

processes are in place to ensure that all material matters which may

potentially require disclosure are promptly reported to the Chief

Executive Officer or the Company Secretary who is responsible for

ensuring that such information is not released to any person until

the NZX and ASX have confirmed its release to the market.

SHAREHOLDER COMMUNICATION

The Board has adopted a Shareholder Communication Policy, a

copy of which is disclosed on the Company’s website.

DIRECTOR AND OFFICER LIABILITY

INSURANCE

The Company maintains director and officer liability insurance

and indemnifies directors and officers of the Company against

all liabilities which may arise out of the performance of normal

duties as directors or officers, unless the liability relates to conduct

involving a lack of good faith. This includes indemnity of costs and

expenses incurred in defending an action that falls within the scope

of the indemnity.

MATERIALITY

Independence of directors, the Board refers to the thresholds for

qualitative and quantitative materiality as adopted by the Board

and contained in the Board Charter, which is disclosed in full on

the Company’s website. Balance sheet items are material if they

have a value of more than 10% of pro-forma net asset. Profit and

loss items are material if they have an impact on the current year

operating result of 10% or more. Items are also material if they

impact on the reputation of the Company, they involve a breach

of legislation; they are outside the ordinary course of business;

they could affect the Company’s rights to its assets; if accumulated,

they would trigger the quantitative tests; they involve a contingent

liability that would have a probable effect of 10% or more on

balance sheet or profit and loss items; or they will have an effect

on operations which is likely to result in an increase or decrease

in net income or dividend distribution of more than 10%. Criteria

for determining the materiality of contracts can be found in

“Board and Management” under Corporate Governance on the

Company’s website.

SHARE TRADING

The Company has adopted a Share Trading Policy to assist with

compliance with insider trading regulations under the Securities

Market Act 1988 (New Zealand) and the Corporations Act

2001 (Australia). This policy restricts directors, employees and

consultants from trading in a number of ways and is available on

the Company’s website. Application must be made by directors,

employees and consultants to the Company for approval prior

to trading in the Company’s securities. A requirement to comply

with this policy forms part of every employment or consultancy

agreement.

SUMMARY OF WAIVERS

No waivers to the rules were requested to the Stock Exchanges

during the reporting period.

CORPORATE GOVERNANCE

www.newtalisman.co.nz
DIRECTORS

John Upperton (Chairman, Non Executive Director)

Michael Stiassny (Independent Director)

Samantha Sharif (Independent Director)

Victor Rabone (Director)

COMPANY SECRETARY

S Jane Bell

REGISTERED (HEAD) OFFICE

547 Parnell Road, Parnell

Auckland, New Zealand

Telephone (+64 9) 303-1893

Email: info@newtalisman.co.nz

Website: www.newtalisman.co.nz

PRINCIPAL OFFICE IN AUSTRALIA

1st Floor, 25 Richardson Street

West Perth

Western Australia 6005

Telephone (+61 8) 9481-2040

Facsimile (+61 8) 9481-2041

BANKERS

Westpac Bank, Auckland

National Australia Bank, West Perth

AUDITORS

Scott Bennison

c/- K S Black & Co

Level 5

350 Kent Street,

Sydney, 2000

SOLICITORS

Chapman Tripp, Auckland

Williams & Hughes, Perth

SECURITIES LISTED

New Zealand Stock Exchange

Code: Shares NTL; Options NTLOB

Australian Securities Exchange

Code: Shares NTL, Options NTLOB

SHARE REGISTRARS

New Zealand:

Computershare Investor Services Limited

Private Bag 92119

Auckland 1142

159 Hurstmere Road

Takapuna, Auckland 0622.

New Zealand

Telephone (+64 9) 488 8777

Facsimile (+64 9) 488 8787

Australia:

Computershare Investor Services Pty Limited

Yarra Falls

452 Johnston Street

Abbotsford Victoria 3067, Australia

Telephone 1300 850 505

Overseas callers (+61 3) 9415 4000

Managing your shareholding online:

To change your address, update your payment

instructions and view your investment portfolio

including transactions please visit

www.computershare.co.nz/investorcentre

General enquiries can be directed to:

enquiry@computershare.co.nz

Please assist our registrar by quoting your CSN or

shareholder number

COMPANY DIRECTORY

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.