Preliminary Full Year Report to 31 Mar 2021

_____________________________________________________ 31 May 2021 FOR IMMEDIATE RELEASE ANNOUNCEMENT BY NEW TALISMAN GOLD MINES LIMITED [ASX, NZSX: NTL] Preliminary Announcement - Full Year Results Current Reporting Period 31 March 2021 (12 months) $ Previous Reporting Period 31 March 2020 (12 months) $ Change % Revenue for ordinary activities 2,973 39,511 (92%) Loss from ordinary activities attributable to members of the listed issuer 762,402 3,713,873 (79%) Tenement expenditure 523,787 1,109,327 (53%) Prospecting Expenditure - 8,000 (100%) Total Net Expenditure 1,286,189 4,831,200 (73%) No dividend attributed to this period. No further impairment of prospecting costs were recognised this period due to uncertainty around access to the land (last year $2,757,313). Tenement expenditure for the reporting period was $523,787 compared to $1,109,327 in the previous reporting period. At the end of the year the Company had a cash balance of $1,110,695 HIGHLIGHTS OF THE YEAR o With a difficult start for most companies in NZ and the rest of the world following the end of the financial year, management completed the initial strategic review and subsequently the board adopted the following key recommendations:- o 1) Priority on identifying a treatment route of the ore with existing operators and planning in the event of having to build a company owned plant. o 2) identify a secondary source of ore which following the end of the period resulted in the signing of a term sheet for the acquisition of Broken Hills Mining as outlined in the following announcement dated 17 January 2021 https://www.nzx.com/announcements/366790 o 3)The geological team focused on identifying targets within the permit area and commenced modelling on the remaining data from the Talisman deeps database. o In the first half of the year the company announced the results of the latest Mineral Resource Estimate (MRE) for the Company's Talisman Mine. The report and data were submitted for independent peer review by AMC Consultants (pty) Ltd. Details of the report and review are documented in the company announcement dated 24 June 2020 https://www.nzx.com/announcements/355173 . The technical team are completing a review of further resources within the extensive geological database of the Talisman mine which is currently being updated o Terra Firma continued to maintain the mine to the highest level of health and safety and are ready to recommence extraction activities as soon as a processing route is secured. The trigger for the 2 year extraction consent is the first 10 T truck leaving the site. o Stockpiled ore increased during the period with identified stockpiles and stopes contributing to tonnage. o Following the end of the reporting period the company identified a number of operators that would be able to process ore. One of the operators is currently processing 1 Tonne of High grade ore which will determine the efficiencies with a variety of grind sizes and no chemical treatment using gravity separation. A second processing group who had previously tested their separation methods were approached. During the year the company maintained significant financial controls reducing the annual expenditure significantly. Given the high level of costs while underground extraction activities are undertaken, the board has taken a prudent financial approach by ensuring the extracted ore is able to be transported directly for processing. Reductions in management and board continued to exceed 20% of that contracted during the period and continue from the chair to management with the exception of the virtual CFO and Terra Firma who have a regulatory obligation under the health and safety act restricting the ability to reduce costs as inspections are required on a weekly basis. From a financial perspective these reductions resulted in an overall substantial reduction in operating expenses on the previous year while the ore stockpiles and value therein increased. During the second half of the financial year the company executed a binding term sheet and completed DD on Capella Pty Ltd in Vanuatu from Canterbury resources with final agreements being executed currently. https://www.nzx.com/announcements/364819 The company also entered into a binding agreement to acquire the Broken Hills mining project which has been owned and operated by the Rabone family for over two decades. https://www.nzx.com/announcements/366790 Production data from the current mining operation, as provided by the vendor to NTL as part of the ongoing due diligence process, shows that between 2001 and 2019 a total of 6,494 oz of gold and 17,539 oz of silver from 12,102 tonnes of quartz was produced at an average grade of 16.69g/t gold and 45 g/t silver. The primary focus continues to be on delivering a production route for the Talisman ore. Note: A detailed report outlining the activities during the year will be included in the Annual Report to be released in June 2021. Consolidated Statement of Comprehensive Income Reporting Period 31 March 2021 Previous Reporting Period 31 March 2020 $ $ Revenue 2,973 39,511 Total revenue 2,973 39,511 Audit fees 37,813 33,119 Depreciation 41,769 51,708 Director fees 85,333 110,500 Foreign exchange loss/ (gain) (13,177) 4,673 Fair Value of Investments Movement (15,775) 2,615 Impairment of Prospecting Costs - 2,757,313 Rent and leasing 13,406 23,414 Operating expenses 614,523 744,116 Total operating expenses 763,892 3,727,458 Loss from operations 760,919 3,687,947 Finance Costs 1,483 Exploration Costs written off - - Other Comprehensive Income - - Net deficit attributable to members 762,402 3,687,947 Earnings per share Basic earnings/(loss) per share (0.03) cents (0.14) cents Diluted earnings/(loss) per share (0.03) cents (0.14) cents Consolidated Statement of Financial Position Reporting Period 31 March 2021 Reporting Period 31 March 2020 $ $ Cash 1,110,695 2,495,718 Receivables and prepayments 169,898 178,619 Current assets 1,280,593 2,674,337 Property, plant & equipment 191,388 227,421 Assets Under Construction 13,673,688 13,143,901 Intangible assets (prospecting expenditure) 11,637 11,637 Right of use assets 64,539 - Investments 185,828 5,581 Non-current assets 14,127,080 13,388,540 Total assets 15,407,673 16,062,877 Payables 86,253 28,972 Short Term Lease Liabilities 24,141 - Other 20,324 17,613 Employee entitlements - 18,240 Total Current liabilities 130,718 64,825 Total Non-Current liabilities 73,520 32,215 Total liabilities 204,328 97,040 Capital 38,216,371 38,216,371 Reserves - - Retained profit/(loss) (23,012,936) (22,250,534) Total equity 15,203,435 15,965,837 Total Equity and Liabilities 15,407,673 16,062,877 Net tangible assets per security Net tangible assets 15,568,058 15,931,398 Net tangible assets per security 0.56 cent 0.59 cent Consolidated Statement of Cash Flows Reporting Period 31 March 2021 Reporting Period 31 March 2020 $ $ Cash flows relating to operating activities Cash inflows 1,669 4,463 Cash outflows (697,727) (1,236,755) Net operating cash flows (696,068) (1,232,292) Cash flows relating to investing activities Cash inflows 1,304 - Cash outflows (694,259) (1,136,495) Net investing cash flows (692,955) (1,136,495) Cash flows relating to financial activities Cash inflows - 3,625,522 Cash outflows (9,177) - Net financing cash flows (9,177) 3,625,522 Net increase/(decrease) in cash held (1,398,200) 1,256,735 Cash at beginning of period 2,495,718 1,243,656 Exchange rate gain/(loss) 13,177 (4,673) Cash at end of period 1,110,695 2,495,718 Consolidated Statement of Changes in Equity Reporting Period 31 March 2021 Reporting Period 31 March 2020 $ $ Equity at start of period 15,935,837 19,653,784 Net profit / (loss) (762,402) (3,687,947) Shares issued - - Prior Period Adjustment - - Equity at end of period 15,203,435 15,965,837 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 over 1,900 shareholders a majority of whom are 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. More about New Talisman Gold at www.newtalisman.co.nz End CA:00373148 For:NTL Type:FLLYR Time:2021-05-31 16:09:26