Ann: Completion of Acquisition of Snow Peak Mining Assets-CSD.AX, page-2

Consolidated Tin Mines completes acquisition of assets from Snow Peak

Consolidated Tin Mines Limited (ASX: CSD) advises that it has issued the 580,000,000 shares and 165,000,000 convertible notes to Snow Peak Mining Pty Ltd (Snow Peak) and 30,000,000 shares to Snow Peak International Investments Ltd (SPII) (Consideration Securities) under the terms of the Asset Sale Agreement dated 23 October 2014, as varied (ASA). The issue of the Consideration Securities is in accordance with shareholder approvals previously obtained and brings settlement under the ASA.

The effect of the issue of the Consideration Securities is to partially pay the consideration in respect of the Assets, and also to repay the Company’s $3,000,000 debt outstanding to SPII. Under the terms of the ASA, CSD is also required to pay a sum of $2,000,000 to Snow Peak in quarterly instalments commencing on the date of settlement. To date, CSD has paid a sum of $1,028,294.57 to Snow Peak with a total of $971,705.43 outstanding. It is anticipated that this amount will be paid to Snow Peak as per the terms of the ASA by 5th April 2017.

Transfer of certain of the assets (including the tenements held by Snow Peak) to CSD will occur following settlement under the ASA while the necessary approvals and consents are obtained, including approval from the Foreign Investment Review Board (FIRB) for the transfer of the tenements to CSD.

The Consideration Securities are subject to a voluntarily escrow period of two years and the parties have entered into a Buy Back Deed pursuant to which, in the unlikely event that FIRB approval is not received for the transfer of the tenements to CSD, then the Consideration Securities will, subject to shareholder approval, be bought back by the Company for nominal consideration ($2). Note FIRB approval previously received for this transaction expired on 28th January 2016

Attached to this announcement is an Appendix 3B for the issue of the securities, together with a notice given under s708A(5) of the Corporations Act.

ENDS