Consolidated Tin Mines : 14 Jul – CSD Interest in SPM Exploration Investment MOU

ANNOUNCEMENT

14 July 2014

ASX/MEDIA RELEASE

Consolidated Tin Mines Limited

ABN: 57 126 634 606

Phone: +61 (7) 4032 3319 info@csdtin.com.au

Snapshot:

ASX CODE: CSD

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ABOUT CSD

Consolidated Tin Mines Limited is an Australian Listed tin focused company developing a large scale tin project at Mt Garnet in the lower Herberton Tinfield in north Queensland

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CAPITAL STRUCTURE

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OBJECTIVE

To become Australia's premier tin producing company

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STRATEGY

To develop and establish tin production by 2015 and focus on increasing mine life and production profile by developing other tin production opportunities within the broader Mt Garnet Tin Project area

Current CSD Share Price: $0.05

Current LME Tin Price: US$21,990

Detailed information at www.csdtin.com.au

Through its current 9.8% shareholding in Snow Peak Mining (SPM), and the recently announced Memorandum of Understanding to acquire all SPM's assets, Consolidated Tin Mines Limited (CSD or the Company) is pleased to announce a Memorandum of Understanding (MOU) between SPM and Wanguo International Mining Group (Wanguo) outlining a substantial exploration investment into SPM tenure.

 SPM has entered into an MOU for exploration development with experienced mineral explorer and mine operator, Wanguo.

 SPM holds extensive and highly prospective exploration tenure in north

Queensland which is the subject of this exploration development MOU.

 The MOU sets out two separate exploration areas:

o Part A. Regional Project: includes the Einasleigh region, and that part of the Surveyor-Balcooma region which is outside the granted Mining Leases ML 1393 and ML 30156

o Part B. Near Mine Project: includes tenures located near Mt Garnet, the Maitland project, and that part of the Surveyor-Balcooma region which is inside the granted Mining Leases ML 1393 and ML

30156

 SPM and Wanguo have 30 days in which to formalise the MOU in a formal agreement (Agreement).

 From the date of signing the formal Agreement, Wanguo will have 30 days to commence exploration establishment activities, and 90 days to

commence ground drilling activities.

395 Lake Street,

Cairns North, QLD, 4870

Ph: +61 (0) 7 4032 3319

ANNOUNCEMENT

ASX/MEDIA RELEASE

Australian tin exploration and development company Consolidated Tin Mines Limited (ASX: CSD) holds a 9.8% shareholding in Snow Peak Mining (SPM); CSD has also recently entered into a binding MOU with SPM for the acquisition of all SPM's assets, including all tenements and mining information (reference ASX announcement 7 July
2014) under which it is intended that the Wanguo MOU will be assigned to CSD. Figure 1 shows SPM tenements, which are included in the proposed SPM/CSD asset acquisition. A formal Asset Sale Agreement is anticipated to be signed between CSD and SPM in the coming weeks. Accordingly, transactions and activities relating to SPM's assets are now of direct interest to CSD as it moves towards finalising the formal agreement with SPM and prepares for an Extraordinary General Meeting for CSD shareholders to consider the Asset Acquisition Agreement.

SPM has signed a MOU with Wanguo, a Hong Kong listed exploration and mining company with international mining and exploration experience and operating mines in China and a market capitalisation of HKG$1.8 billion. This MOU sets out the terms and conditions to progress an exploration program on SPM exploration tenures, in two distinct parts:

 Part A is referred to as the Regional Project and includes the Einasleigh region, and that part of the Surveyor- Balcooma region which is outside the granted Mining Leases ML 1393 and ML 30156 (see attached Figure 2: SPM Regional Project Tenements)

 Part B is referred to as the Near Mine Project and includes tenures located near Mt Garnet, the Maitland project, and that part of the Surveyor-Balcooma region which is inside the granted Mining Leases ML 1393 and ML 30156 (see attached Figure 3: SPM Near Mine Project Tenements)

Wanguo will fund and manage both parts of the project, as well as be responsible for all costs, environmental and reporting requirements relating to the specific tenures explored.
For Part A (the Regional Project), Wanguo will undertake a minimum of 150,000 metres of exploration drilling within three years in return for a stake in the Regional Project - earning up to a maximum 50%. SPM will enter into a 50/50
Joint Venture with Wanguo in respect of the Regional Project should Wanguo:

 successfully reach an additional JORC Measured Resource of 20 million tonnes at a minimum average grade of greater than 1% copper or greater than 10% zinc plus lead; or

 complete a minimum of 150,000 metres of exploration drilling, at the Regional Project.

For Part B (the Near Mine Project), Wanguo will develop or upgrade a minimum of 200,000 tonnes per year to JORC Reserve category in return for a Net Smelter Royalty (NSR) in respect of each separate deposit within the Near Mine Project in which a JORC Reserve is defined by Wanguo. The NSR payable will be 3% for the first one million tonnes mined and processed from each deposit, and 1.5% thereafter.
SPM and Wanguo have 30 days from the signing of the MOU in which to enter into a formal binding Agreement. From the date of signing the formal Agreement, Wanguo have 30 days to commence establishing exploration activities, and 90 days to commence ground drilling activities on each of the project areas. This SPM-Wanguo Agreement will
transfer to CSD with the mining tenements under the CSD-SPM MOU upon approval at a CSD EGM.

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CSD's managing Director John Banning said:

"SPM holds extensive and highly prospective tenure in Far North Queensland. The exploration development program, near mine and regional as outlined in the MOU, reinforces SPM's ability to garner solid project investment and further exposes CSD shareholders to the potential of short and long term value growth through CSD's interest in SPM and the proposed SPM Asset Acquisition.

For further information please contact:

Consolidated Tin Mines is an emerging ASX-listed (ASX: CSD) tin explorer and developer. Its major project is the Mt Garnet Tin Project approximately 180km south west of Cairns in northern Queensland, comprised of the Gillian, Pinnacles and Windermere deposits. The project is located in an established mining area, in close proximity to mining and concentrating infrastructure. Consolidated Tin's objective is to develop the project into a major low cost, open pit tin mining operation processing 1Mt per annum to produce approximately 5,000 tonnes p.a. of tin in concentrate, commencing with key deposits, Gillian and Pinnacles. On completion of a favourable DFS later in 2014, Consolidated Tin's strategy will be to develop and establish tin production in 2015 and focus on increasing mine life and production profile by developing other tin production opportunities within the broader Mt Garnet Tin Project area.

Wanguo International Mining Group Limited is principally engaged in the business of mining, ore processing and sale of copper and iron ore concentrates products in the China. Through its wholly-owned subsidiaries, Wanguo owns the entire equity interest in Yifeng Wanguo which in turn owns the Xinzhuang Mine in the Jiangxi Province. The Xinzhuang Mine is covered by a mining licence valid until April 2032 covering an aggregate area of 3.7692 km2. Wanguo conducts underground mining for copper, lead, zinc and iron ores at a rate of 600,000 tpa. As at 31 December 2011, Wanguo had a mining capacity of approximately 300,000 tpa and a processing capacity of approximately 400,000
tpa.

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