Consolidated Tin Mines : June 2017 Quarter Activities Report

ACTIVITIES AND CASHFLOW REPORT‌‌‌‌ 25 August 2017

ASX/MEDIA RELEASE

ASX: CSD Share Price: $0.025 (in trading halt)

ABN: 57 126 634 606

TI N M I N ES LI M I TED

JUNE 2017 QUARTER ACTIVITIES REPORT QUARTERLY ACTIVITIES OVERVIEW

• Dewatering of the Mt Garnet underground mine commenced in May 2017

• Refurbishment of the Mt Garnet processing plant was completed during the quarter

• The cased dewatering bore at the Dry River South (DRS) project was commissioned during the quarter and was completed in July 2017

• Establishment of access to the DRS portal commenced during the quarter

• Refurbishment of the Surveyor camp continued and is being used to accommodate employees and contractors in the ramp up to mining

• Purchase of the Mt Garnet Hotel and renovation of guest rooms to provide additional staff accommodation

OPERATIONS

Following the conclusion of the North Queensland wet season, the Company commenced dewatering of the Mt Garnet underground mine in May 2017 and this was completed in July 2017. Vehicles and mobile equipment were sourced and serviced to enable recommencement of underground mining operations.

Refurbishment of the Mt Garnet processing plant commenced and was completed during the quarter with commissioning commencing in July 2017. Electrical connection to the power grid was re‐established during the quarter.

The Company completed the purchase of the Mt Garnet Hotel during the quarter and commenced renovation of guest rooms to provide additional staff accommodation.

Construction of a cased dewatering bore hole at the DRS project commenced during the quarter and was completed in July 2017. A specialist submersible pump will be fitted at the bottom of the bore hole and will be used to dewater the DRS mine.

In conjunction, the Surveyor in‐pit dump is being reshaped to allow access to the historic DRS portal. When completed, this will be immediately followed by refurbishment of the DRS decline with production scheduled to commence later this year.

Refurbishment of the Surveyor camp is ongoing and is being used to accommodate employees and contractors.

CONSOLIDATED TIN MINES LIMITED Page 1 of 5

Cairns Corporate Headquarters: 395 Lake Street, Cairns Qld 4870

Phone: [phone]

Email: [e-mail] Web: www.csdtin.com.au

EXPLORATION

As reported in the ASX announcement dated 10 July 2017, the Company completed the second stage of drilling at the Mt Garnet Deeps project. The Mt Garnet Deeps Project is a conceptual target parallel to the Mt Garnet underground mine. Further drilling from underground may be conducted to increase confidence in the resource, initially in the upper section of this project.

Further drilling of the Gillian Zinc prospect, located 9 km south of Mt Garnet, is planned for the September quarter to follow up two holes drilled during the quarter. Poor drilling conditions prevented the target sulphide zone being reached for these holes, although reasonable grades of oxide zinc were intercepted. The drilling program is targeting conceptual zinc potential located at depth beneath the Gillian Tin Project.

Drilling at the Einasleigh project has commenced and will also continue for the remainder of the year. The first drilling program at the Chloe prospect commenced during the quarter.

A 14 room camp has been established at Einasleigh to reduce travel time for the exploration team.

CORPORATE

On 19 May 2017, Baal Gammon Copper Pty Ltd (BGC) initiated legal action in the Supreme Court of Queensland against Blair Pleash and Kathleen Vouris, (the former Administrators of the Company), the Company, Snow Peak Mining Pty Ltd (SPM) and Cyan Stone Pty Ltd (Cyan) seeking orders that the Deed of Company Arrangement be terminated and the Company and SPM be placed into liquidation (refer ASX announcement 6 July 2017).

The Company considers BGC's claim to be opportunistic and of doubtful foundation and will defend this action vigorously. Together with SPM and Cyan, the Company has appointed King & Wood Mallesons as solicitors in this action. The matter appeared in the Supreme Court of Queensland for directions on 20 June 2017 during which BGC were requested to file and serve a Statement of Claim by 4 July 2017. The Company filed and served an application for security of costs on 26 June 2017. The Company will keep shareholders informed of any developments.

The Company's auditors, KPMG, continued to progress their audit and review of the Company's 30 June 2016 annual financial report and 31 December 2016 half year financial report during the quarter.

SUBSEQUENT TO QUARTER END

Operations

As reported in the ASX announcement dated 14 July 2017, the Company recommenced mining operations at the Mt Garnet underground mine on 5 July 2017 with first ore delivered to the run‐of‐mine (ROM) on 6 July 2017.

The commissioning of the Mt Garnet processing plant has been completed with concentrate production commencing on 24 July 2017.

The DRS cased dewatering borehole was completed in July 2017. As at the date of this report, it is being used to transfer water from the DRS underground mine to the Balcooma pit with progress on schedule. Reshaping of the Surveyor in‐pit dump is continuing and is expected to be complete by the end of August 2017.

Exploration

Drilling is continuing at the Chloe prospect. A second drill rig commenced drilling at the Jackson prospect in July 2017 and a third drill rig commenced drilling at the Kaiser Bill prospect in August.

A fourth drill rig has commenced drilling of a multi‐element (Pb, Zn, As, Cu) soil anomaly at the Nanyetta prospect, located three kilometres along strike to the north of the Mt Garnet mine.

Corporate

The Company's audited financial statements for the year ended 30 June 2016 were lodged with ASX on 18 July 2017 and the December 2016 half‐year financial statements were lodged on 17 August 2017. Quarterly reports for June, September & December 2016 and March 2017 were lodged on 18 August 2017. The Directors will keep shareholders informed of any developments relating to the reinstatement to trading on ASX through the issue of further Company announcements as soon as further information becomes available.

As reported in the ASX announcement dated 19 July 2017, the Company executed an agreement to acquire, subject to due diligence results, the mineral rights over the Muldiva base metals prospect located near Chillagoe in North Queensland. The mineral rights cover 4 exploration permits as well as a granted mining lease 295 Ha in area and are prospective for Zn, Cu, Pb and Ag.

The Company has commenced due diligence on the Muldiva prospect with a drill rig mobilised. Drilling commenced at the Muldiva prospect on 18 August 2017.

CASH RESERVES & LOAN FACILITIES

The Company had A$835,748 in cash reserves at the end of the June 2017 quarter.

As reported in the March 2017 Quarterly Activities Report dated 18 August 2017, Cyan Stone Pty Ltd (Cyan) has agreed to provide the Company with pre‐payments of the subscription funds to fund the Company's working capital requirements and exploration activities.

Whilst this is not a loan facility, should shareholders not approve the issue of shares to Cyan, the amounts prepaid will be converted into an interest bearing loan.

For further information, please contact: Cairns Corporate Headquarters

Phone: [phone]

Website: www.csdtin.com.au Email: [e-mail]

The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

Table 1: Schedule of Tenements as at 30 June 2017

Registered Holder	Tenement No.	Tenement Name	Interest at start of quarter	Interest at end of quarter	Status
Consolidated Tin Mines	MDL 38	Gillian	100%	100%	Granted
	MDL 381	Windermere	100%	100%	Granted
	MDL 448	Herberton Deep Lead	100%	100%	Granted
	MDL 482	Jeannie River	100%	100%	Granted
	EPM 14185	Mt Garnet	100%	100%	Granted
	EPM 15611	Lynd River	100%	100%	Granted
	EPM 17073	Mt Garnet Extended	100%	100%	Granted
	EPM 17547	Tate River Extended	100%	100%	Granted
	EPM 17623	Mt Garnet West	100%	100%	Granted
	EPM 17753	Mt Garnet Nth West	100%	100%	Granted
	EPM 17875	Lynd River Extended	100%	100%	Granted
	EPM 17917	Smith's Creek Extended	100%	100%	Granted
	EPM 18000	Mt Garnet East	100%	100%	Granted
	EPM 18118	Bolwarra	100%	100%	Granted
	EPM 18321	Mt Garnet South	100%	100%	Granted
	EPM 18795	Gillian	100%	100%	Granted
	EPM 19105	Jimbilly North	100%	100%	Granted
	EPM 19204	Nettle Creek South	100%	100%	Granted
	EPM 19323	Kangaroo Creek	100%	100%	Granted
	EPM 19468	Jeannie River Extended	100%	100%	Granted
	EPM 19603	Dinner Creek	100%	100%	Granted
	EPM 25386	Spring Creek	100%	100%	Granted
	EPM 25427	Nettle Creek	100%	100%	Granted
	EPM 25428	Reedy Creek	100%	100%	Granted
	EPM 25689	Twelve Mile	100%	100%	Granted
	EPM 25702	Soda	100%	100%	Granted
	EPM 25711	Brownville	100%	100%	Granted
	EPM 25939	Torwood	100%	100%	Granted
	EPMA 26087	Einasleigh Extended	0%	0%	Application
	EPMA 26540	Silver Valley	0%	0%	Application
	EPMA 26635	Einasleigh Upper	0%	0%	Application
	MLA 20583	Mid Battle Creek	0%	0%	Application
	MLA 20584	Nettle Creek Extended	0%	0%	Application
	MLA 20585	Upper Battle Creek	0%	0%	Application
	MLA 20693	Pinnacles	0%	0%	Application
	MLA 20694	Windermere	0%	0%	Application
	ML 20743	Gillian	100%	100%	Granted
	MLA 100022	Maitland	0%	0%	Application
Registered Holder	Tenement No.	Tenement Name	Interest at start	Interest at end	Status
CTM Alluvial Pty Ltd	EMPA 26453	Lynd Regional	0%	0%	Application
	ML 4069	Nettle Creek	100%	100%	Granted
	ML 4073	Nettle Creek	100%	100%	Granted
	ML 4074	Nettle Creek	100%	100%	Granted
	MLA 20544	Return Creek	0%	0%	Application
	MLA 20721	Kangaroo Creek	0%	0%	Application
	MLA 20722	Martins Terrace	0%	0%	Application
MLA 20723	Martins Hill	0%	0%	Application
MLA 100023	Boomerang	0%	0%	Application