Consolidated Zinc : Resource Definition Extension Drilling Continues at Plomosas

• Resource definition drilling continues from drill cuddy 8.1 on Level 8 to identify extensions to the JORC compliant resource.
• Drilling has encountered a fault zone displacing the main mineralised zone, intercepts outside the faulting have obtained significant results up to 33.2% Zn+Pb.
• Additional adjoining tenements applied for to cover prospective ground identified by regional exploration.

Consolidated Zinc Limited (CZL:ASX) is pleased to present the following update detailing drilling progress and assay results received at the Plomosas Project resource definition drilling program.

CUEVITAS RESOURCE DEFINITION DRILLING

Underground drilling continued in Level 8 from cuddy L8.1 testing resource extensions below Level 7.

Drillholes LV8006 to LV8017 were completed since recommencement of drilling in 2017. Assays were returned for holes L8006 to LV8009 while massive mineralisation was visually identified in LV8014 (assays awaited).

Drilling aimed to extend the recently announced JORC compliant resource (14 December, 2016) to the south where mineralisation may be displaced by NE trending faults. Several of the drillholes encountered a wide fault zone rendering identification of the mineralised extension difficult. Where drilling intersected the mineralised sequence outside of the faulting, significant mineralisation was encountered, such as in LV8006 and LV8008, namely:

Figure 1. Location of Plomosas mine, Mexico

 LV8006 2.75m at 25.70% Zn, 10.52% Pb, 64.00 g/t Ag

In addition, a visual examination of LV8014 core showed an intersection of 2.95m semi‐massive and massive semi‐oxidised sulphide mineralisation.

Table 1 summarises the highlights encountered in drillholes reported above and details the assays returned and awaited. Table 2 provides additional hole details.

Significantly, the drilling to date continues to demonstrate that high grade mineralisation extends below Level 7 (Figures 3, 5‐6) which, at approximately 240m below surface, was the deepest of the main ore workings developed at Plomosas. However, fault displacement has made drilling from Cuddy

8.1 difficult and further drilling will step back to test for mine displacements and what appears to be coincident magnetic highs reflective of the mine sequence and massive sulphide mineralisation.

Cuddy 8.1

Inset shown as Figure 4

Figure 2: Plan of Level 7 Mineral Resource wireframed solid showing drillhole traces. Cuddy 8.1 on Level 8 is in the south of the image and the area outlined is presented in Figure 4.

Figure 3: Oblique view looking NW, of Level 7 Deeps Mineral Resource wire framed solids showing drillhole traces and Cuddy 8.1.

9 February 2017

Cuddy 8.1

LV8006

2.75m at 25.70% Zn

10.52% Pb

64.0 g/t Ag

LV8008

3.85m at 3.72% Zn

1.91% Pb

18.9 g/t Ag

LV8007

0.85m at 18.00% Zn

16.70% Pb

104.0 g/t Ag

Untested magnetic high

LV8014

2.95m semi-massive and massive SOX sulphides (visual)

Figure 4: Plan view of Level 8 drill cuddy 8.1, showing drillhole traces, assay results and geophysical targets.

*TW is True Width and represents the best estimate of the intercept based on the geological interpretation of the sequence.

EXPLORATION TENEMENT APPLICATION OVER ADJOINING GROUND

An initial regional exploration program reported on 2 November, 2016, identified vacant ground immediately to the north and adjoining the Plomosas concessions. This ground was considered to be prospective based on its geological setting, parallel and near to the mine sequence, and anomalous zinc and lead results from nearby reconnaissance rock chip sampling returning up to 1.06% Zn (sample 425911) and 4.41% Pb (sample 425912) from the Fenomino area.

Figure 5 illustrates the location of the area for which application was lodged this month.

9 February 2017

Figure 5: Plan view of applications lodged for tenements covering vacant ground adjoining and to the north of the existing Plomosas mine landholding. These areas were highlighted as prospective following an initial geological and geophysical survey and reconnaissance sampling.

Figure 6: Plan view of existing tenements and tenement applications superimposed on magnetic signature. The outlined areas have been prioritised as warranting exploration follow up.