Consolidated Zinc : Lapse of Performance Rights, App 3B and App 3Ys

7 October 2016

ASX Limited

Level 40, Central Park

152-158 St George's Terrace PERTH WA 6000

A total of 1,666,667 performance rights to acquire ordinary shares in Consolidated Zinc Limited have lapsed due to non-achievement of the performance conditions under which they were issued.

The Appendix 3B and relevant Appendix 3Ys reflecting these changes are attached.

Andrew Beigel

Level 1, 35 Havelock St, West Perth WA Australia 6005 PO Box 692, West Perth WA Australia 6872 T:+61 8 9322 3406 F: +61 8 9320 7501 E: info@conzinc.com.au

(ASX: CZL) ACN 118 554 359

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

Name of entity

Consolidated Zinc Limited

ABN

27 118 554 359

We (the entity) give ASX the following information.

You must complete the relevant sections (attach sheets if there is not enough space).

Performance Rights (30 Sept16)

1 +Class of +securities issued or to be issued

1,666,667

1. Number of +securities issued or to be issued (if known) or maximum number which may be issued

   Vesting conditions and milestone dates:

   - Operation of Stage 1 of commercial production at Plomosas by 30 Sept 16

2. Principal terms of the +securities (e.g. if options, exercise price and expiry date; if partly paid

   +securities, the amount

   outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)

   Yes once vesting and milestone conditions are met.

3. Do the +securities rank equally in all respects from the +issue date with an existing +class of quoted

   +securities?

   If the additional +securities do not rank equally, please state:

   • the date from which they do

   • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

   • the extent to which they do

     not rank equally, other than in relation to the next dividend, distribution or interest payment

     N/A

4. Issue price or consideration

   N/A

5. Purpose of the issue

(If issued as consideration for the acquisition of assets, clearly identify those assets)

Yes

6a Is the entity an +eligible entity that has obtained security holder approval under rule 7.1A?

If Yes, complete sections 6b - 6h in relation to the +securities the subject of this Appendix 3B, and comply with section 6i

25 November 2015

6b The date the security holder resolution under rule 7.1A was passed

+ See chapter 19 for defined terms.

Appendix 3B Page 2 04/03/2013

Nil

6c Number of +securities issued without security holder approval under rule 7.1

Nil

6d Number of +securities issued with security holder approval under rule 7.1A

Nil

6e Number of +securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting)

Nil

6f Number of +securities issued under an exception in rule 7.2

6g If +securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the

+issue date and both values.

Include the source of the VWAP calculation.

Not applicable

6h If +securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements

7.1 capacity - 64,473,703 7.1A capacity - 29,231,764

6i Calculate the entity's remaining issue capacity under rule 7.1 and rule 7.1A - complete Annexure 1 and release to ASX Market Announcements

Lapsed 30 September 16

7 +Issue dates

Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A.

Cross reference: item 33 of Appendix 3B.