Risk Management

SUMMARY OF RISK MANAGEMENT POLICY

NEW TALISMAN GOLD MINES LIMITED (“COMPANY”)

The Board has adopted a Risk Management Policy. Under the Policy, the Board delegates day to day management of risk to the Chief Executive Officer (or equivalent).

The Policy sets out the role of the Chief Executive Officer (or equivalent) and accountabilities.

It also contains the Company’s risk profile and describes some of the policies and practices the Company has in place to manage specific business risks.