NTL 2020 Annual Report

Report to the Shareholders of New Talisman Gold Mines Ltd Annual Report 2020 Dear Shareholders 2019 marked the 125th year of the Talisman mine. Even after 125 years the Talisman mine continues to delight and surprise its operators. Despite various challenges over the life of the mine its resilience has shone through and the opportunities still abound. The market climate for the minerals industry in New Zealand during 2020 has been less than optimal with a looming election, Covid 19 and a Labour coalition government that has failed to deliver in a number of key policy areas. Your Company however, has been able to operate the Talisman Mine project successfully in the Karangahake Gorge in a manner that recognizes the values of environmental sustainability. While the year has been a challenging one, but never the less one which marks the achievement of several milestones in the development of your company. Of the numerous accomplishments during the year some require particular mention : ? Completion of rehabilitation works opening up both Mystery and Dubbo veins ? Completion of Phase 1 Metallurgical testwork -Gold and precious metals recovery rates achieved. ? Phase 2 metallurgical testwork commenced ? Commencement of extraction activities ? Completion of successful capital raising of 3.6M ? Commencement of design and planning for larger volume plant ? Completion of an updated Mineral Resource estimate for the Maria and Mystery veins ? Completion of peer review of the Resource estimate by AMC Consultants The second half of the year was heavily influenced by the completely unforeseen effects of the COVID pandemic. Restrictions began with implementing distancing controls, which are more difficult in the close confines underground at Talisman, and eventually led to the halting of almost all commercial activities in New Zealand and across the globe. Many economies remain in various levels of lockdown. The uncertainty caused widespread panic and volatility across the world's capital markets with the US markets crashing leading the US government to inject billions of dollars into the equity markets. The resulting rally did not reflect the widespread damage growing exponentially across many states in the US causing volatility and uncertainty. With uncertainly, investors fled to the safety of gold with both Reserve Banks increasing their gold reserves as well as major institutions. This has resulted in gold reaching new highs in NZD terms further driven by supply interruptions caused by the impact of lockdowns on mining operations across the globe. The lockdowns and restrictions had a significant impact on the implementation of the mine plan and international supply chains ultimately resulting in the decision to focus the team on two key areas least impacted, being, the completion of the Mineral Resource estimate and peer review, and the processing plant design and equipment specification. The primary focus remains on delivering a production route for the Talisman ore following the completion of a majority of the testwork at the pilot plant as set out in the following report. End CA:00355453 For:NTL Type:ANNREP Time:2020-06-30 11:55:08