Talisman Deeps Scoping Study

HIGHLIGHTS o Talisman Deeps scoping study shows strong business case for mine expansion; o Exploration and staged development plan proposed. Overview The Talisman Mine, situated in Karangahake, New Zealand, is in the early stages of mine development. A Pre-feasibility Study on the project was completed in 2013 and updated in early 2018 following restatement of the mines mineral resource estimate in 2017 which saw an uplift in contained ounces from 204,000 ounces gold to 469,000 gold equivalent ounces. The Prefeasibility Study, the results of which were released to the market on 26 June 2018, focusses on the high confidence mineral resources accessible from the mines No 8 Level, which has been fully rehabilitated, and indicates that the project has a Net Present value exceeding $35m and will produce some 51,000 ounces over a six-year life. Below No 9 Level, the Maria vein, the largest source of gold mineralisation in the area, is estimated to hold some 338,200 gold equivalent ounces which are classified as an inferred mineral resource and have not been considered for extraction in the current plan. There is considerable future potential for extraction of these ounces and, to gain a broad understanding of the technical and financial aspects of exploiting the deeper orebody, the Company commissioned a Scoping Study which is the subject of this release. There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised. The Talisman Deeps Project has been evaluated as a standalone project as it will require significant infrastructure, equipment and resources to access and exploit the orebody over and above that installed for the Talisman Project. This Study has found that the orebody is likely capable of supporting a medium scale mine, producing on average 18,000 gold equivalent ounces a year over a nine-year life from 50,000 tonnes of ore a year. The project will require a $25m investment in equipment and installed infrastructure and is estimated to yield a Net Present Value, at a 12% discount rate, of between $11m and $89m with an expected return of $49m. Cost estimates are inclusive of a 25% contingency included to reflect the confidence level of the estimate. Matthew Hill said "This is the next step in advancement of the Talisman Deeps project having completed a JORC 2012 compliant mineral resource estimate in 2017 demonstrating one of the highest grade resources in NZ. The study shows Deeps as a standalone project has significant potential." End CA:00320006 For:NTL Type:MKTUPDTE Time:2018-06-27 13:51:17