Consolidated Zinc : High Grade Maiden Zn-Pb JORC Mineral Resource

• Independent Indicated and Inferred Mineral Resource estimate completed containing 568,000 tonnes @ 16.9% Zn+Pb undiluted for 96,000t of contained Zn+Pb metal
• Indicated Resource of 99,000 tonnes @ 28.0% Zn+Pb below Level 7
• Resource is split approximately 60% Level 7 and 40% Tres Amigos
• Resource remains open and is limited only by the extent of drilling to the south and to the north
• Extensions to mineralisation already confirmed in ongoing drilling
• Prospective for additional pinch and swell mineralisation down dip
• All Resource tonnes immediately accessible from within current mine infrastructure
• Aggressive drilling program planned to extend the resource during Q1 and Q2 2017

CONSOLIDATED Zinc Limited (ASX:CZL; "Consolidated Zinc" or "the Company") is pleased to announce its maiden Mineral Resource reported in compliance with the JORC code for its Plomosas zinc-lead-silver project in northern Mexico.

The resource estimate, independently completed by Runge Pincock Minarco Limited (RPM), is reported in accordance with the JORC (2012) reporting guidelines, contains 568,000 tonnes @ 16.9% Zn+Pb and 28.4g/t Ag for 96,000t of contained Zn+Pb metal in both Indicated and Inferred categories. The Mineral Resource comes from the extensions both down dip and down plunge from existing mine development at Level 7 and the 2015 discovery of mineralisation at Tres Amigos. Table A breaks down the resource by area and category.

Managing Director Will Dix said the initial resource estimate is in accordance with historical mining performance and the Company is delighted with this first stage result that is based on drill targets within the existing mine at Plomosas.

Figure 1. Location of Plomosas mine, Mexico

"As planned this Stage 1 Mineral Resource provides an outstanding platform from which to expand the company's resource base and commence mining studies in 2017 with a view to recommencing mining operatons. The grade is outstanding compared to our peers, the mineralogy attractive and the geological model we have developed appears to be robust. On-going drilling subsequent to completing the estimate has continued to intersect sulphide mineralisation outside the limits of the Mineral Resource to the south and at depth which will be included in future updates (as assays are pending). This provides further evidence that we have a project with the potential to grow quickly. In addition our pipeline of regional drill targets for Q1 2017 will mean strong news flow next year." Mr Dix said.

Since completion of the estimate, additional drilling 20m to the south west of the Level 7 resource outline has intersected up to 2.5m of massive sulphides comprising sphalerite and galena. These are not currently included in the Mineral Resource and details will be made available as assays are received.

The greater understanding of geological controls and the geometry of the mineralisation established during the resource definition studies have led to the identification of numerous immediate drill targets when compared with the results of recent geophysical surveys and historical drillings. Figure 2 highlights these features which are discussed further below but these drill targets aim to identify resource extensions and additions and focus regional exploration.

Figure 2: Compilation plan of geological, mineralisation and geophysical features identifying immediate drill targets for testing resource extensions. Mineral Resources shown in yellow block outline

Results of the independent Mineral Resource estimate by RungePincockMinarco Limited ("RPM") for the Project are tabulated in the Statement of Mineral Resources in Table A. The Statement of Mineral Resources is reported in line with the requirements of the 2012 JORC Code and is therefore suitable for public reporting.

The Mineral Resource is reported above a cut-off grade of 3% Zn which was based on estimated mining and processing costs and recovery factors of similar projects in the region as discussed below.

A detailed discussion of the methodology and parameters used in estimating the Level 7 and Tres Amigos Mineral Resources is provided in sections below along with an analysis of drilling, sampling and laboratory procedures and QA/QC protocols.

In summary:

• Ordinary Kriging (OK) was used to estimate average block grades using Surpac software and parameters derived from modelled variograms. Parent block sizes were 10m x 5m x 2.5m.

• Linear grade estimation was deemed suitable due to the geological control on mineralisation. Maximum extrapolation of wireframes from drilling was 40m along strike and down-dip.

• The Mineral Resource estimate has been constrained by the wireframed mineralised envelope, is undiluted by external waste and reported above a Zn cut-off grade of 3%.

• The Mineral Resource was classified as Indicated and Inferred Mineral Resource based on data quality, sample spacing, and lode continuity. The Indicated Mineral Resource was defined within areas of close spaced drilling of less than 20m by 20m, and where the continuity and predictability of the lode positions was good. The Inferred Mineral Resource was assigned to areas where drill hole spacing was greater than 20m by 20m and less than 40m by 40m, where small isolated pods of mineralisation occur outside the main mineralised zones, and to geologically complex zones.

Note:

All Mineral Resources figures reported in the table above represent estimates at December, 2016. Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited information on the location, shape and continuity of the occurrence and on the available sampling results. The totals contained in the above table have been rounded to reflect the relative uncertainty of the estimate. Rounding may cause some computational discrepancies.

The Mineral Resource has been estimated in accordance with the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' prepared by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Geoscientists and Minerals Council of Australia (The JORC Code 2012).

Figure 3. Plan view of the Plomosas mine showing location of the cross section in Figure 4 (trace A-A') and resource definition work areas referred to in the text including Level 7 and Tres Amigos.

Figure 4. Section view of the Plomosas mine through Cuevitas area (A-A') showing the Tres Amigos zone,

historical drilling and the drilling planned for Main Manto Horizon below Level 7.