Chairmans Address to AGM

ANNOUNCEMENT BY NEW TALISMAN GOLD MINES LIMITED (NTL) CHAIRMAN'S ADDRESS ANNUAL MEETING 18 SEPTEMBER 2019 Introduction. The Directors' report for the year to 31 March 2019 was circulated with the Annual Report. Before I ask you to formally receive the Annual Report together with the Financial Statements and the report of the Auditors I would like to highlight several areas of recent progress. Shareholder Support. I want to start by thanking our shareholders for their continued support most recently demonstrated with the strong take up of our Share Purchase Plan offer. In reflecting upon the year since we last gathered, the Board and Management team are pleased with progress, with a number of our goals achieved, despite the uncertain regulatory environment in which we find ourselves operating. The macro economic conditions have been favorable, with the gold price over the last 12 months with prices ranging from US$1,190 per oz to US$1,550 per oz with a current price of US$1,488 per oz. In NZD dollar terms this translates to a healthy $1850 to $2410 per oz. Industry and Regulatory Environment The NZ political climate towards the minerals industry continues to be ambiguous with a bias to the negative. New Talisman however has managed to renew access arrangements for the Talisman Mine from DOC and continues to work on maintaining good working relationships with .all stakeholders. Talisman Background. As you will be aware our main asset is the Talisman mine which has over its life produced an estimated 3m plus oz's of bullion. New Talisman is in its 125th year of operating more or less continuously through various governments and differing legislative regimes. We have a 25 year mining permit and we have land access arrangements in place which we have recently renewed. PHYSICAL AND MINE SITE The mine infrastructure and underground refurbishment is now largely complete. I also note the recent consenting and installation of the pilot plant which will allow metallurgical test work to be completed. The JORC 2012 compliant resource estimate announced in 2017 demonstrates the world class attributes of the ore body at the Talisman mine. This estimate was reviewed independently both as part of the valuation completed under the Valmin code and as a separate independent review completed in 2018. In 2018 the technical team completed an updated pre-feasibility study on the measured and indicated portion of the resource. This study further reinforces the economics and low environmental impact of the project. Highlights from PFS include o The estimated Value of Talisman project more than doubles based on updated Pre-feasibility Study, increasing value from $15m to $36m utilizing an NPV9 % o Estimated Recovered gold increases by 50% to 51,000 Gold Equivalent Ounces o Estimated Direct operating costs to produce an ounce reduced to NZ$710 per ounce ($490USD/oz) o Estimated Ore Reserves increase by more than 40% from 30,500 to 44,100 Gold Equivalent Ounces The proposed mining production plan will be adjusted as we gain knowledge through the Bulk Sampling programme and will form a large part of the Bankable feasibility study which is currently underway. Financial Current Activities. All infrastructure necessary to commence mining is in place. The Pilot Plant is installed and the first amount of ore has been processed. The plant consists of a crusher, mill centrifugal concentrator and shaker table. With the Pilot Plant we aim to verify precious metal recovery and verify the quality of tailings and its use in industrial applications. Our initial results are promising and I am pleased that we have here today on show the first gold concentrate produced from the NTL mine for over two decades. Mine Safety, Community and Environment. I want to emphasize to all that we are committed to responsible, and sustainable mining and the Health and safety of our workers remains a key focus with governance oversight provided by independent experts appointed to the health and safety committee. We are engaging with local community on a regular basis and exploring ways in which we can further support the communities in which we operate. So what opportunities lie ahead? o Complete pilot plant testwork o Vary consent for commercial plant o Procure and construct the commercial plant o Connect BM37 to level 8 reef drive for vent connection o Develop decline to intersect shoot 7m below level 8 o Continue rehabilitation of the second egress o Realignment of the tramping track to provide an alternative route for trampers to Dickys flat/Karangahake mountain, providing a more natural experience and removing sharing of public road. o Completion of mine plan covering the next 5 - 7 years Conclusion: Thank you to our management team, staff and contractors who have helped make it a productive year. I note and commend their efforts in at times difficult circumstances. I also note and thank the community for their support and encouragement to continue to have "a go" at bringing activity and jobs back to the region. Most importantly I thank you our shareholders whose continued support is the foundation upon which this company is built. Thank You. End CA:00341145 For:NTL Type:MEETING Time:2019-09-18 09:47:12