Ann: Third Delivery of Phase Two Wet Plant Arrives in India-NSL.AX, page-3

THIRD DELIVERY OF PHASE TWO WET PLANT ARRIVES IN INDIA _____________________________________________________________________________ HIGHLIGHTS  Third stage delivery of equipment has arrived in India.  Phase Two wet beneficiation plant on schedule for Q3 2016 commissioning and Q4 2016 positive cash flow. ______________________________________________________________________________________ NSL Consolidated Limited (Company, ASX: NSL, NSLO), is pleased to provide an update on its Phase Two wet beneficiation plant program. As announced on 21 March 2016, the Company entered into a ground-breaking equipment supply agreement with Shandong Huate Magnet Technology Co. Ltd or Huate Magnetism (Huate), one of China’s premier global beneficiation plant suppliers (refer http://www.chinahuate.com/). Significant steps forward continue, with the third stage delivery of ball mills and other critical plant components now having arrived in India and proceeding through the customs clearance process. Managing Director, Mr Goode commented: “As the wet beneficiation plant takes shape and Chinese equipment arrives, all staff and employees are excited and invigorated to complete the wet plant project construction, commissioning and commence production. With the company now being at the pinnacle of achieving our Indian iron ore strategy, we look forward to creating further value for our stakeholders, including employees, local communities and shareholders.” Further equipment unloading at site Huate Wet Plant Agreement Details Huate is a specialised beneficiation plant supplier, and is unique in China in that it has capability in plant design, fabrication, construction, commissioning and supporting operations of entire large scale beneficiation plants. Huate also has global experience in iron ore beneficiation, including in Australia. The agreement with Huate further supports the confidence in the Company’s Indian iron ore projects and the larger scale Indian iron ore industry, an industry in Huate desires to gain a position. As highlighted in previous announcement the commercial terms as follows: Capital cost: US$1,054,000 Payment 1 Payment 2 Payment 3 Payment 4 Payment 5 Payment 6 Payment 7 On Execution - COMPLETED Stage 1 Delivery - COMPLETED Stage 2 Delivery COMPLETED Stage 3 Delivery COMPLETED Within 30 working days post Stage 3 delivery Within 120 calendar days post Stage 3 delivery Within 180 calendar days post Stage 3 delivery 25% Contract Value 25% Stage 1 equipment value 25% Stage 2 equipment value 25% Stage 3 equipment value 20% Contract Value 15% Contract Value 15% Contract Value Mar 16 Apr 16 May 16 Jun 16 Sept 16 Dec 16 Feb 17 Phase Two is a wet beneficiation process, allowing NSL to produce a high grade premium price iron ore product grading between 58-62% Fe at around 200,000 tonnes p.a. The Company has already successfully negotiated offtake agreements for Phase Two’s high grade iron ore product with the US$9 billion Indian global conglomerate, JSW Steel, also that country’s leading private sector steel producer; and BMM Ispat, a leading pellet, power and steel producer. NSL, the only Australian or foreign company to own and operate in India’s massive iron ore market, has an established dry processing plant operation for iron ore product at Kurnool and is serviced by two of its local mines nearby, Kuja and Mangal. These mines will also provide the feedstock for the Phase Two wet beneficiation plant. CONTACT: Cedric Goode NSL Consolidated +61400 408 477