Ann: GENERAL: NTL: Heads of Agreement signed with

• Release Date: 13/12/13 13:03
• Summary: GENERAL: NTL: Heads of Agreement signed with Chinese Investor Group
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					NTL
13/12/2013 11:03
GENERAL

REL: 1103 HRS New Talisman Gold Mines Limited

GENERAL: NTL: Heads of Agreement signed with Chinese Investor Group

13th December 2013
FOR IMMEDIATE RELEASE
ANNOUNCEMENT BY NEW TALISMAN GOLD MINES LIMITED (NTL, NTLOA or NTLO)
NEW TALISMAN SIGNS HEADS OF AGREEMENT WITH CHINESE INVESTOR GROUP

- Special Purpose Vehicle set up by Chinese investor group for purposes of
funding Talisman Mine Development
- Heads of Agreement provides for investor group to :
- Invest NZ$10.9M  in development and operation of Talisman gold mine on
basis set out in  Pre-Feasibility study
- Earn right to 65% of gold and silver produced (after costs) from reserve
identified in Pre-Feasibiity study .
- To establish at its cost gold processing and treatment plant and to treat
Talisman ore on competitive terms
- To fund potential future joint ventures with NTL

New Talisman Gold Mines announced today that is has signed a Heads of
Agreement (HOA) with St Albans Pty Ltd, a Special Purpose Vehicle (SPV) set
up by a Chinese investor group (the Investor), which contemplates the
investment of NZ$10.9m to fund the Talisman Mine development project, subject
to completion of satisfactory due diligence, entering into definitive binding
agreements and NTL shareholder approval.
The Terms of the HOA cover the funding requirements of NZ$10.9m set out in
the Talisman mine Pre-Feasibility study dated 30 March 2013 in return for 65%
of the physical gold and silver produced  (after costs) from the reserves
identified in the Pre-Feasibility study.  It also provides for the investor
to bring to the project specialist gold extraction capabilities and plant and
equipment which are intended to be set up near the Talisman site for the
processing of ore. In addition to these terms the HOA provides the incoming
investor with first option to fund any future expansion at the Talisman
Permit Area.
During due diligence the Investor will visit the Talisman mine site with a
group of metallurgical and gold extraction specialists. This site visit is
planned for the coming weeks and will enable the parties to finalise the
commercial terms of the agreement.
Executive Director Matthew Hill said, "Following our board's strategic
decision to seek a funding partner our advisors, Emerald Resources (Asia)
Limited, set out in October to secure a potential project partner. We welcome
the opportunity to work with St Albans and its ultimate parent company in
developing this project. Through the proposed funding structure existing
shareholders are not diluted and retain 100% title to the Talisman Mine and
full rights to the ore once production from the Pre-Feasibility ore reserves
is complete. Having a strong partner allows New Talisman to accelerate its
path to production and to strengthen its ability to develop its other highly
prospective tenements including Rahu, Golden Valley and Northland."
The ability to accelerate the development of the Talisman mine project
presents a significant opportunity to both parties to benefit from this
historically important mine in the most commercially productive gold region
in New Zealand.

The Gold Pyramid by Hauraki Gold Mining Company Limited
"We intend to work closely with our potential partners over the next 30 days
and to assist them in the completion of due diligence in order to enter into
a formal commercial arrangement in the timeline agreed today. We look forward
to being in a position to update the shareholders in the coming weeks," Hill
says.
Following the recent grant of its Resource Consents and Access Arrangement
over its Mining Permit, NTL intends in the near future to undertake a
metallurgical sampling program to recover bulk ore samples from the resources
targeted for early mining. This will allow for the detailed test work
required to support the design of a processing facility provided for in the
HOA.

Matthew Hill
Executive Director
New Talisman Gold Mines Limited
Direct +64 27 5557737
[email protected]

Media Enquiries contact Jillian Talbot at Reach Consulting on +64 21 493820
or at [email protected]

For more information on New Talisman Gold Mines go to www.newtalisman.co.nz
_____________________________________________________________________________
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About New Talisman Gold Mines Ltd
New Talisman Gold is a dual listed (NZSX & ASX: NTL) with 1800 shareholders
who are mainly from Australia and New Zealand. It is a leading New Zealand
minerals development and exploration company with a portfolio of high quality
mineral interests. Its gold properties near Paeroa in the Hauraki District of
New Zealand are a granted mining permit, including a JORC compliant mineral
resource within the original Talisman underground mine, and an adjacent
exploration permit along strike from the mine. The company is now advancing
its plans to develop the mine, and advance the exploration project.
Through a subsidiary company, New Talisman Gold owns 21.7% of Broken Hill
Prospecting Limited, which is planning to develop a cobalt project at
Thackaringa, about 25 kilometres south-west of Broken Hill in Australia. BPL
is listed on both the ASX and NZSX (Code: BPL).
More about New Talisman Gold at www.newtalismangold.co.nz
End CA:00245151 For:NTL    Type:GENERAL    Time:2013-12-13 11:03:55