Ann: Notice of General Meeting/Proxy Form, page-14

Excellent news......


PHYSICAL AND MINE SITE In terms of the mine key infrastructure is largely established and in particular I note the arrival and installation of the vent fan which will allow an increased range of underground activity. The JORC 2012 compliant resource estimate announced last year doubled both grades and resources demonstrating and reinforcing the world class attributes of the ore body at the Talisman mine. This estimate was reviewed independently both as part of the the valuation completed under the Valmin code and as a separate independent review completed in the last 2 weeks. This review confirmed the methodologies used by the Company met the JORC reporting standards and validated the robustness of the Mineral Resource estimate. Your company’s technical team have recently completed an updated pre-feasibility study on the measured and indicated portion of the resource. This study further reinforces the robust economics and low environmental impact of the project.

Highlights from PFS include  The estimated Value of Talisman project more than doubles based on updated Pre-feasibility Study, increasing value from $15m to $36m utilizing an NPV9 %  Estimated Recovered gold increases by 50% to 51,000 Gold Equivalent Ounces  Estimated Direct operating costs to produce an ounce reduced to NZ$710 per ounce ($490USD/oz)  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. Separate to the Talisman mine PFS a scoping study was completed on the Talisman Deeps Project which is predominantly comprised of inferred resources. The Scoping study meets JORC 2012 standards however further information and data which will be informed by both the bulk sampling and the longer term mine plan will provide the level of detail required to allow this project to be reach a Pre Feasibility Study. The work to date has established that we have one of the highest-grade gold mines in New Zealand (and of international significance) in a world class region which continues to provide a majority of New Zealand’s gold discoveries.