ntl acquires newcrest new zealand

NTL
22/09/2017 09:04
MKTUPDTE
PRICE SENSITIVE
REL: 0904 HRS New Talisman Gold Mines Limited

MKTUPDTE: NTL: TALISMAN ACQUIRES 80% OF RAHU FROM NEWCREST

TALISMAN ACQUIRES 80% OF RAHU FROM NEWCREST

HIGHLIGHTS

o NTL Buys 80% interest in Rahu
o Drill ready targets and all data acquired
o Drilling to commence post SPP
New Talisman (NTL) is pleased to announce that, it has acquired 100% of
Newcrest New Zealand Exploration Pty Ltd, a subsidiary of Newcrest Mining
Limited (Newcrest) that held 80% of the highly prospective Rahu Project with
20% held by NTL. NTL has entered into a sale and purchase agreement with
Newcrest which supersedes the previous agreements with Newcrest. NTL is
evaluating options to fast track the exploration project having acquired all
geological and site targeting data and logging.

The Rahu permit lies to the north of the Karangahake Gorge, between
Mackaytown and Waikino. It covers the Rahu Ridge-White Rocks area (which is
primarily rolling farmland) and extends into Department of Conservation (DoC)
scrub and forest in the north of the permit. Access into the middle part of
the permit is via Rahu Road, with further access from farm tracks.

CEO Matthew Hill said "Following discussions with Newcrest it was agreed that
NTL could acquire Newcrest's 80% interest in the Rahu project. We are very
excited by the opportunity of this drill ready prospect and appreciate the
efforts of the Newcrest team in completing this transaction in a short space
of time".

Chairman Charbel Nader said "We are pleased to take over effective ownership
of the Rahu asset. Newcrest have been a great partner, however with our
on-ground NZ presence and expertise, and our desire to move ahead in
developing this asset expeditiously, this deal makes sense for all."

Prior to entering in joint venture discussions with Newcrest NTL had
completed a comprehensive exploration and evaluation work programme on the
permit which had delineated a 700m wide x 1.5 km long NNE trending zone of
mineralisation and hydrothermal alteration. This has been shown to be the NNE
extension of the Karangahake system recognised within the Talisman permit.

31 drill holes, totalling 4585 metres, have been completed into this
structure and have intersected highly anomalous Au and Ag values with some
high-grade gold and silver intercepts. Upon successful completion of the SPP
and conditional upon sufficient funds raised, the sites which have been
targeted by Newcrest for drilling will be finalized and applications made to
commence drilling at Rahu as soon as possible.

Resource estimation carried out based on these results has determined a JORC
2012 compliant resource of 41,590 oz. gold and 258,400 oz. silver in the
indicated and inferred categories.

Exploration Targets have been estimated at 14 million tonnes ranging between
0.5g/t and 2.0g/t Au for between 225,000 oz. and 902,000 oz. gold. This
target constitutes a global Exploration Target as defined in the 2012 JORC
Code. The potential quantity and grade is conceptual in nature and there has
been insufficient exploration to estimate a Mineral Resource. It is uncertain
if further exploration will result in the estimation of a Mineral Resource.

The resource estimate upgrade recently completed at the Talisman Mine,
culminating in a JORC 2012 compliant estimate of 427,000 Oz Gold Equivalent,
gives the company further comfort in its development of Rahu on an
accelerated basis.

The current SPP which offers existing shareholders the opportunity to
participate at a generous discount to share prices immediately prior to the
SPP:- being 2.2 cents per share with an attaching 5 year option at 5.5 cents
per share which provides a further discount at a range of NZ 1.1 to 2.1 cents
or 0.22 to 0.425 cents per share discount under a Black Scholes calculation
formula.

The offer allows the exploitation of the Rahu permit and the acceleration of
operations at Talisman which provide the company the ability to accelerate
the pathway to full production and subsequent revenues. New Talisman advises
the offer closes on Friday the 22nd September 2017 at 5pm NZT as set out in
the offer document. Applications can be emailed and directly transferred by
the above date as set out which can be found at
http://www.newtalismangoldmines.co.nz/wp-content/uploads/2017/09/SPP-Offer-Cl
arification-and-Form.pdf

Matthew Hill
Chief Executive Officer
New Talisman Gold Mines Limited
+64 217 95559
+64 27 555 7737

FOR MEDIA ENQUIRIES PLEASE CONTACT MATTHEW HILL ON +64 217 9 5559