consolidated tin mines limited

Registered Office:

395 Lake Street,

Cairns North, QLD, 4870

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Consolidated Tin Mines Limited ABN: 57 126 634 606

Phone: +61 (7) 4032 3319

[email protected]

Snapshot:

Detailed information at

www.csdtin.com.au

Consolidated Tin Mines Limited (ASX: CSD) is a tin focused company developing a large

scale tin project at Mt Garnet in the lower Herberton Tinfield in north Queensland

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Consolidated Tin’s objective is to become Australia’s premier tin producing company. Our goals are:

To confirm an initial JORC Resource base of 8Mt-10Mt

To develop a centrally located mill capable of 1Mtpa producing 5,000t of tin metal in concentrate pa

To develop a major low cost, open pit tin mining operation

To explore other known mineralisation in current tenement holding to increase expansion and provide additional mine life

18th of December 2012

Consolidated Tin Mines Major Shareholder

acquires Kagara Central Region Project

Acquisition includes existing Mill at Mt Garnet

Snow Peak Mining Pty Ltd has entered into an Asset Sale

Agreement to acquire the Kagara Central Region Project in

northern Queensland.

Total consideration for the acquisition is $40 million and is

anticipated to be completed in late January 2013.

Consolidated Tin Mines Limited has a 10% free carry interest in

Snow Peak Mining Pty Ltd.

Acquisition by Snow Peak Mining Pty Ltd is considered to be of

strategic value and importance for Consolidated Tin Mines

Limited.

Project includes a 1Mtpa capacity Mill which is in good

operating condition.

Project area includes Mt Garnet, Balcooma, Maitland, Einasleigh

and Baal Gammon Projects.

Mill will initially be utilised to process copper and poly metallic

ore from mines within the newly acquired project area.

CSD will enter into to discussions with SPM regarding the

potential to process production from CSD’s Mt Garnet Tin

resources.

Australian tin exploration and development company Consolidated Tin

Mines Limited (ASX: CSD) (Consolidated Tin, the Company) is pleased to

announce that Snow Peak Mining Pty Ltd (SPM), a company in which CSD

holds a 10% interest, has entered into an Asset Sale Agreement (Agreement)

for the acquisition of the Kagara Central Region Project (Kagara Project) at

Mt Garnet, near Cairns in northern Queensland.

SPM is a subsidiary of Hong Kong-based investment group Snow Peak

International Investment Pty Ltd, which is Consolidated Tin’s major

shareholder.

Current CSD Share Price: $0.05

Current LME Tin Price: $22,850

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Consolidated Tin holds a 10% interest in the share capital of SPM on a ‘free carry’ basis.

It is proposed that Consolidated Tin will manage and operate the Kagara Project on behalf of SPM.

Consolidated Tin Managing Director Ralph De Lacey will also be appointed Managing Director of

SPM.

The total consideration for the acquisition is $40 million (including the assumption of $10.7 million of

environmental bonds). Completion of the acquisition is conditional on FIRB approval and indicative

approvals to transfer certain mining tenements. It is currently anticipated that completion of the sale

will occur in late January 2013.

The Kagara Project comprises a highly prospective and proven package of copper and base metal

assets plus an existing operating, 1,000,000 tonne per annum-capacity mill. The mill currently has a

copper circuit and a poly metallic circuit, with each circuit having 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 mill at the Kagara Project is located just nine kilometres (by sealed road, on the

Kennedy Highway) from Consolidated Tin’s flagship Gillian Tin Deposit, which has a near-surface

open pit mineable JORC Resource of 3Mt @ 0.78% Tin (Sn). Refer to the table below for a further

breakdown of those JORC resources.

SPM plans to initially operate the Kagara mill in its current configuration to process ore from the Baal

Gammon and Balcooma/Surveyor Mines within the newly acquired project area.

The longer term goal is to enter into discussions with SPM to process production from the Company’s

Mt Garnet Tin Project. This would entail SPM progressively introducing tin processing equipment over

the next twelve months, and developing a third recovery circuit, in preparation for the

commencement of production from Consolidated Tin’s Mt Garnet Tin Project. Production is currently

scheduled to commence in 2014.

Consolidated Tin Managing Director Ralph De Lacey said: “The signing of this Sale Agreement by our

major shareholder is a considerable 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.”

ENDS

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For further information please contact:

Ralph De Lacey Darryl Harris

Managing Director Non-Executive Director

Consolidated Tin Mines Consolidated Tin Mines Limited

P: 07 4032 3319 Ph: (07) 4032 3319

E: [email protected] E: [email protected]

W: www.csdtin.com.au W: www.csdtin.com.au

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 from its three deposits, to feed a proposed centralised mill and process about 1Mt per

annum to produce about 5,000 tonnes of tin 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.

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Table 1 - JORC Resource Table

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.

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Figure 1 - Mt Garnet Key Projects Map

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Figure 2 – Gillian CSD Project and Kagara Mt Garnet Mill

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Figure 3 – Close up of Kagara Mt Garnet Mill Site

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