NEW TALISMAN GOLD MINES LIMITED (“COMPANY”) REMUNERATION POLICY

The whole Board meets to address the responsibilities of the Remuneration Policy, at least annually and also as required.  

The Company chooses to remunerate and reward its directors, officers and employees in accordance with the following policy.

Emoluments of Directors and senior executives are set by reference to payments made by other companies of similar size and industry, and by reference to the skills and experience of the Directors and executives. Details of the nature and amount of emoluments of each Director of the Company are disclosed annually in the Company’s annual report.

Non Executive Directors

The Company’s policy is to remunerate non executive directors at a fixed fee for time, commitment and responsibilities. Remuneration for non-executive directors is not linked to individual performance.

Given the Company has financial restrictions placed on it the Company may consider it appropriate to issue unlisted options to non executive directors, subject to obtaining the relevant approvals. This Policy is subject to annual review. All of the directors’ option holdings are fully disclosed.

From time to time the Company may grant options to non-executive directors. The grant of options is designed to recognise and reward efforts as well as to provide non executive directors with additional incentive to continue those efforts for the benefit of the Company.

The maximum aggregate amount of fees (including superannuation payments) that can be paid to non executive directors is subject to approval by shareholders at General Meeting.

Executive Directors and Senior Executives

Executive pay and reward consists of a base salary. Long term performance incentives may include options granted at the discretion of the Board/Remuneration Committee and subject to obtaining the relevant approvals.

The grant of options is designed to recognise and reward efforts as well as to provide additional incentive and may be subject to the successful completion of performance hurdles.

Executives are offered a competitive level of base pay at market rates (for comparable companies) and are reviewed annually to ensure market competitiveness.

Executives are prohibited from entering into transactions or arrangements which limit the economic risk of participating in unvested entitlements.