Consolidated Zinc : Resource Definition Drilling Update

• Resource definition drilling continues to intersect massive sulphide mineralisation below existing mine
• Assay results confirm grades up to 50 per cent zinc and lead over significant widths
• Hole LV7030 returns 13.8m at 24.97% Zn, 14.07% Pb and 1.08g/t Ag
• Additional drill positions prepared, another underground rig to commence and drill crews mobilised back to site
• Detailed gravity surveys and regional mapping first pass program completed; further aeromagnetic survey planned to identify regional and near-mine exploration targets

Assay results from recent resource definition drilling at Consolidated Zinc Limited's (ASX: CZL; "Consolidated Zinc" or "the Company") Plomosas project in Mexico have continued to infill and extend massive sulphide mineralisation.

Focused approximately 230m below surface, these additional high-grade intercepts come from drilling immediately below the Company's existing level 7 mine workings in Cuddy L7.2 (Figures 1 to 3).

High-grade samples returning over 30 per cent from LV7030 were re-assayed by ore concentrate analysis methods due to their very high zinc grades.

Table 1 summarises the latest assay results with full details of all drillholes are provided in Table 2. Table 1 highlights the strong assay results returned including the intercept in hole LV7030 of 13.8m at 39.4% combined zinc plus lead with 71.8 g/t silver.

Location of Plomosas mine, northern Mexico

Managing director Will Dix said the mineralisation encountered in drilling from Cuddy L7.2 occurred in the typical mine sequence of leached hanging wall shales.

"Mineralised intervals occur along the hangingwall contact to the Main Manto," Mr Dix said. "It also displays collapse breccias, into a zone of leached and vuggy marble with jarosite staining, through a massive brecciated marble and into the footwall shale units."

The Company has been improving drill access and positions for resource definition infill and extension, with underground development accelerated to provide three extra cuddy sites (see Figure 3).

Mr Dix said Cuddy L7.3 was now ready and Cuddy L8.1 would be within the week followed by the extension from Cuddy L7.2.

"These extra positions will enable drilling to target mineralisation along strike and down dip of the current known positions. A second underground drill rig will be mobilised to assist this program," he said.

"By extending the drive from the Cuddy L7.2 future drilling can intersect mineralisation deeper and at a higher angle, extending the known zone of mineralisation down dip below Level 7."

In parallel with the in-mine resource and exploration drilling, a detailed gravity survey and geological mapping have been completed over the interpreted mineralised corridor hosting the Plomosas mineralisation.

In addition, an aeromagnetic survey over the project is due to commence in the coming days.

The data from the gravity survey is currently being processed and interpreted alongside the geological mapping and further information will be made available once this is complete.

Mr Dix said in addition to infill and extensional drilling continuing to provide encouraging results, it was an exciting step for the Company to have commenced regional exploration within the corridor that was clearly prospective for additional base metal occurrences.

"We look forward to updating the market further on the outcomes from the additional extensional drilling from drill position L7.3 and L8.1 once it is complete and on the target generation work that will come from newly acquired data sets." Mr Dix said.

--ENDS-

Investor inquiries: Media Inquiries:

Managing Director Director

Consolidated Zinc Limited Spoke Public Relations

Ph +61 8 9322 3406 Ph +61 488 664 246

The information in this report that relates to exploration results, data collection and geological interpretation is based on information compiled by Steve Boda BSc (Hons), MAIG, MGSA, MSEG and Andrew Richards BSc (Hons), Dip Ed, MAusIMM, MAIG, MSEG, GAICD. Messrs Boda and Richards are both Members of Australian Institute of Geoscientists (AIG) and Mr Richards is also a Member of the Australasian Institute of Mining and Metallurgy (AusIMM).

Both Messrs Boda and Richards have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being undertaken to qualify as Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves' (JORC Code). Messrs Boda and Richards consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Consolidated Zinc Limited (ASX:CZL) is a minerals exploration company listed on the Australian Securities Exchange. The Company's major focus is in Mexico where it recently acquired 51% of the exciting high grade Plomosas Zinc Lead Silver Project through its majority owned subsidiary, Minera Latin American Zinc CV SAPI. Historical mining at Plomosas between 1945 and 1974 extracted over 2 million tonnes of ore grading 22% Zn+Pb and over 80g/t Ag. Only small scale mining continued to the present day and the mineralised zones remain open at depth and along strike. The Company's main focus is to identify and explore new zones of mineralisation within and adjacent to the known mineralisation at Plomosas with a view to identifying new mineral resources that are exploitable.

Figure 1. Drilling completed from Cuddy 7.2 with drilling results to date