Preliminary Full Year Result

_____________________________________________________ 30 May 2019 FOR IMMEDIATE RELEASE ANNOUNCEMENT BY NEW TALISMAN GOLD MINES LIMITED [ASX, NZSX: NTL] Preliminary Announcement - Full Year Results Current Reporting Period 31 March 2019 (12 months) $ Previous Reporting Period 31 March 2018 (12 months) $ Change % Revenue for ordinary activities 86,734 128,597 (33%) Loss from ordinary activities attributable to members of the listed issuer 1,203,327 1,002,157 20% Tenement expenditure 2,396,308 1,794,386 34% Prospecting Expenditure 8,050 10,575 (24%) Total Net Expenditure 3,607,685 2,807,118 29% No dividend attributed to this period. Tenement expenditure for the reporting period was $2,396,308 compared to $1,794,386 in the previous reporting period. No exploration expenditure was written off during the current reporting period (last year Nil). The higher overall expenditure in the period represents the high level of activity undertaken at the Talisman mine to complete the development phase resulting in all services installed at the mine and upgrades allowing access to both the Mystery and Maria veins for extraction and ore transport. At the end of the year the Company had a cash balance of $1,243,656 HIGHLIGHTS OF THE YEAR o During the year NTL completed all the necessary refurbishment and upgrades of over 1.5km of the No 8 Level tunnel network connecting the portal with the Dubbo and Mystery vein zones; o Completed the installation and commissioning of the primary and secondary ventilation systems and all associated engineering and communications infrastructure required for the mine plan; o Commenced blasting of the Mystery vein north drive and proved the extension of mineralisation which has greatly improved our confidence in pushing forward with planned developments on this vein. Testwork on the blast design and mining method for this vein system is complete; o Reopened the BM37 crosscut to allow clear access to the uppermost areas of the highly mineralized ore body in the Dubbo zone for the first time since 1993; o Blasted extracted and stockpiled some 500 tonnes of ore in preparation for commissioning of the gold processing plant; o Imported and constructed a gravity-based pilot gold processing plant which uses no hazardous chemicals for gold extraction and applied for resource consent for this activity; o Released an updated Pre-Feasibility study demonstrating robust project economics; o Completed preparation for resource consent application to support full mining on completion of the bulk sampling programme. SUMMARY During the year the company completed the final steps in cementing the transition to developer with upgrades to the entire level 8 area. The mine now has full access through to both the Mystery and Dubbo veins for extraction of ore and has over 500 tonnes stockpiled ready for processing. The metallurgical route for processing of ore was developed during the year, the plant is in place and the application for resource consent has been lodged. It is important to note that the resource consent requirements for the pilot plant are much less complex than those for bulk sampling consent and are expected to be processed expediently. Ore for processing continues to be stockpiled while the consenting process is complete. Once the pilot plant has received consent and processed sufficient ore to confirm recovery rates and other data, the plant can be scaled up to match planned extraction volumes from the mine. The company has recently advanced discussions for 3rd party processing of Talisman ore and has received an indicative proposal by a company that has expressed interest in operating, constructing and financing the processing plant for the Talisman mine. The company has commenced discussions with a NZ based end buyer of concentrate. Should a formal agreement be reached the plant will be constructed to the end specifications of the customer. The next phase will see the company will commence extraction and processing of ore with high grade batches being selected for processing through the pilot plant while other ROM ore will be stockpiled for processing once upgrades to increase volumes are completed. This will allow for gold and concentrate to be produced in small batches from high grade ore delivering the first revenues from production. From a financial perspective the last year has seen an increased investment in the mine development as the rehabilitation phase was completed The company ended the financial year in a position that, with the ongoing support of its shareholders will complete the final stage toward gold production over the coming months cementing New Talisman as the newest underground producer in NZ. Consolidated Statement of Comprehensive Income Reporting Period 31 March 2019 Previous Reporting Period 31 March 2018 $ $ Revenue 86,734 128,597 Total revenue 86,734 128,597 Audit fees 34,058 33,846 Capital Loss on Disposal of Investments - - Depreciation 46,906 23,084 Director fees 140,000 170,000 Foreign exchange loss/(gain) 11,426 10,274 Fair Value of Investments Movement 44,685 (38,461) Rent and leasing 25,508 24,248 Operating expenses 987,478 907,763 Total operating expenses 1,290,061 1,130,754 Loss from operations 1,203,327 1,002,157 Exploration Costs written off - - Other Comprehensive Income 1,783 8,137 Net deficit attributable to members 1,201,544 (994,020) Earnings per share Basic earnings/(loss) per share (0.06) cents (0.05) cents Diluted earnings/(loss) per share (0.06) cents (0.05) cents Consolidated Statement of Financial Position Reporting Period 31 March 2019 Reporting Period 31 March 2018 $ $ Cash 1,243,656 4,828,750 Receivables and prepayments 172,066 116,922 Advances to related parties - - Current assets 1,415,722 4,945,672 Property, plant & equipment 259,960 89,677 Assets Under Construction 12,034,575 9,638,268 Intangible assets (prospecting expenditure) 2,760,950 2,752,900 Investments 11,313 55,998 Non-current assets 15,066,798 12,536,843 Total assets 16,482,520 17,482,515 Payables 384,046 192,966 Other 18,000 20,618 Employee entitlements 19,997 21,330 Total Current liabilities 422,043 234,914 Total Non-Current liabilities 32,215 17,795 Total liabilities 454,258 252,709 Capital 34,590,849 34,590,849 Reserves - - Retained profit/(loss) (18,562,587) (17,361,043) Total equity 16,028,262 17,229,806 Total Equity and Liabilities 16,482,520 17,482,515 Net tangible assets per security Net tangible assets 13,267,312 14,473,595 Net tangible assets per security 0.61 cent 0.67 cent Consolidated Statement of Cash Flows Reporting Period 31 March 2019 Reporting Period 31 March 2018 $ $ Cash flows relating to operating activities Cash inflows 62,081 128,597 Cash outflows (1,140,861) (1,085,291) Net operating cash flows (1,078,780) (956,694) Cash flows relating to investing activities Cash inflows - - Cash outflows (2,484,892) (1,884,590) Net investing cash flows (2,484,892) (1,884,590) Cash flows relating to financial activities Cash inflows - 1,925,910 Cash outflows - - Net financing cash flows - 1,925,910 Net increase/(decrease) in cash held (3,563,672) (915,374) Cash at beginning of period 4,828,750 5,754,398 Exchange rate gain/(loss) (11,422) (10,274) Cash at end of period 1,243,656 4,828,750 Consolidated Statement of Changes in Equity Reporting Period 31 March 2019 Reporting Period 31 March 2018 $ $ Equity at start of period 17,229,806 13,559,993 Net profit / (loss) (1,203,327) 1,739,243 Shares issued - 1,925,910 Prior Period Adjustment 1,783 4,660 Equity at end of period 16,028,262 17,229,806 These annual financial statements are subject to completion of the audit. No dividends or distributions were paid or are planned. All statements are prepared in accordance with New Zealand equivalents to International Financial Reporting Standards. There are no accounting policies which the directors believe are critical to the portrayal of New Talisman's financial condition and results which require the directors to make judgements and estimates about matters that are inherently uncertain. All accounting policies have been applied on bases consistent with those used in previous years. About New Talisman Gold Mines Ltd New Talisman Gold is a dual listed (NZX & ASX: NTL) leading New Zealand minerals development company with approximately 2,800 shareholders who are mainly from Australia and New Zealand. The company's flagship asset the Talisman mine holds a JORC compliant mineral resource, a JORC compliant reserve and has been granted resource consents and access arrangements for the initial phase of the project. The company is currently initiating bulk sampling at Talisman and continues to advance the development of the mine. New Talisman's wholly owned subsidiary Coromandel Gold Limited holds a portfolio of highly prospective mineral interests and gold properties in the Hauraki District of New Zealand. New Talisman Gold Mines Limited purchased an Australian subsidiary company which held the exploration permit for the Rahu tenement. New Talisman Gold Mines Limited now has control and direction over the mining activities relating to the Rahu tenement. More about New Talisman Gold at www.newtalisman.co.nz End CA:00335321 For:NTL Type:FLLYR Time:2019-05-30 16:34:01