Preliminary Full Year Report

_____________________________________________________ 29th June 2020 FOR IMMEDIATE RELEASE ANNOUNCEMENT BY NEW TALISMAN GOLD MINES LIMITED [ASX, NZSX: NTL] Preliminary Announcement - Full Year Results Current Reporting Period 31 March 2020 (12 months) $ Previous Reporting Period 31 March 2019 (12 months) $ Change % Revenue for ordinary activities 39,511 86,734 (54%) Loss from ordinary activities attributable to members of the listed issuer 3,710,748 1,203,327 208% Tenement expenditure 1,109,327 2,396,308 (54%) Prospecting Expenditure 8,000 8,050 (1%) Total Net Expenditure 4,828,075 3,607,685 34% No dividend attributed to this period. Loss from ordinary activities attributable to members of the listed issuer includes an impairment of prospecting costs of $2,757,313 due to uncertainty around access to the land (last year Nil). Tenement expenditure for the reporting period was $1,109,327 compared to $2,396,308 in the previous reporting period. At the end of the year the Company had a cash balance of $2,495,718. HIGHLIGHTS OF THE YEAR o First gold and concentrate produced from pilot plant o Completion of successful capital raising of $3.6m. o Refurbishment of the underground workings completed. o Completion Metallurgical testwork - Gold and precious metals recovery rates achieved.. o Design and planning of a larger volume plant commenced. o Life of mine level plan continues to be developed. o Mineral resource estimate and peer review by AMC complete SUMMARY During the year the company completed a successful capital raising of $3.6m which enabled the company to complete refurbishment of the underground workings, establish the pilot plant, complete metallurgical testwork, produce the first gold concentrate and commence planning and consenting of a larger scale processing plant. With the extraordinary circumstances of COVID-19 affecting operations in 2020, New Talisman was left, like many companies, restricted in operations while the New Zealand Government imposed complete lockdown on non-essential services by imposing COVID -19 level 4. The highly anticipated Resource Estimate update and final review was received from AMC following the reporting period. The primary focus is now on delivering a production route for the Talisman ore following completion of a majority of the testwork at the pilot plant. NOTE: a Detailed report outlining the activities during the year is included in the Annual report which will be released later today. Consolidated Statement of Comprehensive Income Reporting Period 31 March 2020 Previous Reporting Period 31 March 2019 $ $ Revenue 39,511 86,734 Total revenue 39,511 86,734 Audit fees 33,119 34,058 Depreciation 51,708 46,906 Director fees 136,426 140,000 Foreign exchange loss 4,673 11,426 Fair Value of Investments Movement 2,615 44,685 Impairment of Prospecting Costs 2,757,313 - Rent and leasing 23,414 25,508 Operating expenses 740,991 987,478 Total operating expenses 3,750,259 1,290,061 Loss from operations 3,710,748 1,203,327 Exploration Costs written off - - Other Comprehensive Income - 1,783 Net deficit attributable to members 3,710,748 1,201,544 Earnings per share Basic earnings/(loss) per share (0.15) cents (0.06) cents Diluted earnings/(loss) per share (0.15) cents (0.06) cents Consolidated Statement of Financial Position Reporting Period 31 March 2020 Reporting Period 31 March 2019 $ $ Cash 2,495,718 1,243,656 Receivables and prepayments 178,626 172,066 Advances to related parties - - Current assets 2,674,344 1,415,722 Property, plant & equipment 227,421 259,960 Assets Under Construction 13,143,901 12,034,575 Intangible assets (prospecting expenditure) 11,637 2,760,950 Investments 8,698 11,313 Non-current assets 13,391,657 15,066,798 Total assets 16,066,001 16,482,520 Payables 54,898 384,046 Other 17,613 18,000 Employee entitlements 18,240 19,997 Total Current liabilities 90,751 422,043 Total Non-Current liabilities 32,215 32,215 Total liabilities 122,966 454,258 Capital 38,216,371 34,590,849 Reserves - - Retained profit/(loss) (22,273,336) (18,562,587) Total equity 15,943,035 16,028,262 Total Equity and Liabilities 16,066,001 16,428,520 Net tangible assets per security Net tangible assets 15,931,398 13,267,312 Net tangible assets per security 0.59 cent 0.61 cent Consolidated Statement of Cash Flows Reporting Period 31 March 2020 Reporting Period 31 March 2019 $ $ Cash flows relating to operating activities Cash inflows 4,463 62,081 Cash outflows (1,236,755) (1,140,861) Net operating cash flows (1,232,292) (1,078,780) Cash flows relating to investing activities Cash inflows - - Cash outflows (1,136,495) (2,484,892) Net investing cash flows (1,136,495) (2,484,892) Cash flows relating to financial activities Cash inflows 3,625,522 - Cash outflows - - Net financing cash flows 3,625,522 - Net increase/(decrease) in cash held 1,256,735 (3,563,672) Cash at beginning of period 1,243,656 4,828,750 Exchange rate gain/(loss) (4,673) (11,422) Cash at end of period 2,495,718 1,243,656 Consolidated Statement of Changes in Equity Reporting Period 31 March 2019 Reporting Period 31 March 2018 $ $ Equity at start of period 16,028,262 17,229,806 Net profit / (loss) (3,710,748) (1,203,327) Shares issued 3,625,521 - Prior Period Adjustment - 1,783 Equity at end of period 15,943,035 16,028,262 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:00355448 For:NTL Type:FLLYR Time:2020-06-30 10:00:42