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1 ABN: Phone: +61 (7) Snapshot: Current CSD Share Price: $0.10 Current LME Tin Price: $24,475 Key Points Snow Peak Mining Pty Ltd acquisition of Kagara s Central Region Project has been finalized Detailed information at Completion of acquisition of Kagara Central Region Project The acquisition includes a 1Mtpa capacity concentrator CSD has a 10% free carry interest in Snow Peak Mining Acquisition is of major value to CSD and the Mt Garnet Tin Project development PFS now based on processing tin ore at Snow Peak Mining 1Mtpa concentrator CSD appoints new EGM to drive CSD/SPM development plan Consolidated Tin Mines major shareholder Snow Peak acquires Kagara Central Region assets including existing Concentrator at Mt Garnet Consolidated Tin Mines major shareholder Snow Peak International Investment (SPI) has completed the acquisition of Kagara s Central Region Project The acquisition has been completed via Snow Peak Mining (SPM), a subsidiary of Snow Peak International Investments Consolidated Tin Mines has a 10% free carry interest in Snow Peak Mining The acquisition includes a 1Mtpa capacity concentrator which is in good operating condition Acquisition by Snow Peak Mining is of major strategic value and importance for development of Consolidated Tin s Mt Garnet Tin Project in northern Queensland The existing concentrator will initially be utilised to process copper and poly metallic ore from mines within SPM s newly acquired Kagara project area Consolidated Tin will now finalise its PFS for the Mt Garnet Tin Project based on processing tin ore at the Kagara Mt Garnet concentrator in order to proceed to a JV with SPI, the terms of which are being negotiated Australian tin exploration and development company Consolidated Tin Mines Limited (ASX: CSD) (CSD) is pleased to announce that Snow Peak Mining Pty Ltd (SPM), a company in which CSD holds a 10% interest, has completed the acquisition of the Kagara Central Region Project at Mt Garnet, near Cairns in northern Queensland (Kagara Project). Registered Office: 395 Lake Street, Cairns North, QLD, 4870

2 SPM is a subsidiary of Hong Kong-based investment group Snow Peak International Investment Pty Ltd, which is Consolidated Tin s major shareholder. Consolidated Tin holds a 10% interest in the share capital of SPM on a free carry * basis. The total consideration for the acquisition was $29.3 million (plus the assumption of $10.7 million of environmental bonds). The Kagara Project comprises a highly prospective and proven package of copper and base metal assets plus an existing operational concentrator with a 1,000,000 tonne per annum-capacity concentrator. The concentrator currently has both copper and poly metallic circuits, with each circuit having the capacity to process about 500,000tpa. The Kagara Project is located in close proximity to Consolidated Tin s Mt Garnet Tin Project and the Company views the acquisition of the Kagara Project by the Company s major shareholder as being of significant strategic value and importance. The operating concentrator acquired by SPM is located just nine kilometres (by sealed road, on the Kennedy Highway) from CSD s flagship Gillian Tin Deposit, which has a near-surface open pit mineable JORC Resource of 0.78% Tin (Sn). Refer to table 1 below for a further breakdown of those JORC resources. It is proposed that CSD will manage and operate the Kagara Project on a reimbursable basis on behalf of SPM. * Free carry means debt free and no operating cost billed to CSD. Executive General Manager appointed to drive CSD/SPM development plan CSD has employed ex Kagara Central Regional General Manager Mr John Banning as Executive General Manager to implement the CSD/SPM development plans. He holds a Bachelor of Science, Mining Engineering obtained from the Montana School of Mines in 1999 and has also undertaken graduate studies (Mechanical Engineering) at Loyola Marymount University. Mr Banning has more than 17 years experience in the mining industry, including 3 years at BHP Billiton s Olympic Dam mine in various senior operational, technical and project positions, 2 years at Xstrata Copper in the position of Manager Mine Development and 1 year at Bluestone Mines Tasmania (Renison Tin Mine) in the position of Mining Manager. He joined Kagara in 2011 and continued through to 31st December 2012 in the position of Central Region General Manager. In his role as Executive General Manager with CSD, Mr Banning will be responsible for leading all project and operational aspects of the business to ensure their effectiveness, efficiency, sustainability and alignment with CSD s business strategy for development of the Mt Garnet Tin Project. 2

3 Proposed two-stage CSD/SPM strategy Stage 1 Under Stage 1, CSD will manage the Kagara Project on behalf of SPI as a separate entity. CSD will receive 10% (free carried) on any short term profit from all revenue from the Kagara Project. CSD will complete a PFS on its Mt Garnet Tin Project, with ore to be processed through a reconfigured Kagara Mt Garnet concentrator. Any short term tin processing from CSD areas will be processed by SPM on a cost plus margin basis. Stage 2 In Stage 2, based on completion of a positive PFS, it is proposed that a 50/50 JV partnership will be formed between the two parties, whereby SPM provides the concentrator and CSD provides the Hard Rock tin project. The terms of the proposed JV partnership are still to be formalised in a new Heads of Agreement, the terms of which will be subject to shareholder approval at a General Meeting of CSD shareholders to be held in due course. On completion of Stage 2, the SPM/CSD JV will install tin processing equipment as required in preparation for the commencement of production from CSD s Mt Garnet Tin Project. Any project costs for installation of additional equipment required to treat the tin ore will be split 50/50. Production is currently scheduled to commence in SPM plans to initially operate the Kagara concentrator in its current configuration to process ore from the Baal Gammon Project and possibly Balcooma/Surveyor Mines. Short term tin processing opportunities from CSD non-skarn tin deposits in the region are currently under investigation. Consolidated Tin Managing Director Ralph De Lacey said: This deal is a major step forward for Consolidated Tin. The acquisition of an operating processing plant by our major shareholder provides us with the opportunity for a clear path to production for our Mt Garnet Tin Project. The company s JORC Resource review completion is being extended to incorporate the latest round of drilling results from September 2012 and allow management to review the work completed to date. The company will inform shareholders of the anticipated completion date for the review in the near future. ENDS For further information please contact: Ralph De Lacey Darryl Harris Managing Director Non-Executive Director Consolidated Tin Mines P: Ph: (07) E: ralph@csdtin.com.au E: dh@csdtin.com.au W: W: 3

4 About Consolidated Tin Mines: Consolidated Tin Mines is an emerging ASX-listed (ASX: CSD) tin explorer and developer. Its major project is the Mt Garnet Tin Project near Cairns in northern Queensland. The project is located in an established mining area close to infrastructure. Consolidated Tin s objective is to develop the project into a major low cost, open pit tin mining operation. The Company s strategy is to confirm an initial JORC Resource base of 8Mt-10Mt of tin ore from its three deposits, to feed a centralised mill and process about 1Mt per annum to produce about 5,000 tonnes of tin in concentrate per annum. About Snow Peak: Snow Peak Mining Pty Ltd (SPM) is part of Hong Kong-based Investment Company, Snow Peak International Investment Pty Ltd (Snow Peak), which is Consolidated Tin s largest shareholder, with a 19.9% holding. Table 1 - JORC Resource Table 4

5 Photo 1 of 3: Jim Halloran of Kagara Ltd hands the Mt Garnet concentrator keys to Mr Tong, principal of Snow Peak International Investments, the largest shareholder of Snow Peak Mining Pty Ltd 5

6 Photo 2 of 3: Mr Tong of Snow Peak International Investments hands the Mt Garnet concentrator keys to Ralph De Lacey, Managing Director of both Snow Peak Mining and Consolidated Tin Mines 6

7 Photo 3 of 3: Snow Peak Mining Pty Ltd Board of Directors (left to right: Ralph De Lacey (MD), Ze Huang (Martin) Cai (CFO), Kwok Ching (Alex) Tsoi (Chair) The information contained in this report that relates to assay results of rock samples and drill chips, to mineral resource estimates and to ore reserve estimates of mineralisation is based on information compiled by John Sainsbury (BSc, AusIMM). John Sainsbury is a geologist of 30 years experience and has sufficient experience in the type of mineralisation under consideration to qualify as a Competent Person as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves - JORC Code, 2004 Edition. John Sainsbury has consented to the inclusion of this information in the form and context in which it appears. 7