Consolidated Minerals Limited ('Consmin' or the 'Company') 494 0 Kommentare Report for the Second Quarter Ending 30 June 2016 - Seite 2

It seems likely that the recent price volatility will continue throughout the remainder of 2016 as market participants adjust to improved yet fragile steel prospects in China. Supplier discipline should continue to be the key factor although it remains difficult to predict. The Company is cautiously optimistic that the price lows seen in the early months of the year will not reoccur during the remainder of 2016.

Although the Company ended 2015 with net cash and cash equivalents of $76 million, the weakness of pricing for manganese ore in Q1 2016, as well as the costs associated with placing the Woodie Woodie mine into care and maintenance put further pressure on liquidity, with the Company's net cash and cash equivalents having reduced to US$39 million at 31 March 2016. As a result of the level and speed of depletion of the Group's liquidity the Company announced on 8 March 2016 that it anticipated discussions with holders of the 8.000% Senior Secured Notes due May 15, 2020 regarding these Notes, with discussions commencing in April 2016 to implement a solution to improve the Company's liquidity.

Following the announcement of its engagement with the noteholder committee the Company announced that it had elected to utilise the 30 day coupon grace period to further discussions and would not pay the coupon payment due on 15 May 2016. In June the Company announced it had entered into the Standstill and Lock-up Agreement with Noteholders representing 83% of the outstanding Notes who had agreed to support certain amendments to the Notes through a consent solicitation process. On 8 July the Company further announced an invitation to noteholders to consent to certain modifications of the terms and conditions of the Notes.

On 15 August the Company announced that it had received consents from 96.43% of the Noteholders and as a result is pleased with the outcome of the consent solicitation process and thanks the majority of Holders for their support. These amendments will have the beneficial effect of providing the Company with significant additional liquidity during the current period of low and volatile manganese prices."

About Consolidated Minerals Limited

Consmin is a leading manganese ore producer with mining operations in Australia and Ghana. The principal activities of the Company and its subsidiaries (the "Group") are the exploration, mining, processing and sale of manganese products. The Group's operations are primarily conducted through four major operating/trading subsidiaries; Consolidated Minerals Pty Limited (Australia), Ghana Manganese Company Limited (Ghana), Manganese Trading Limited (Jersey) and Pilbara Trading Limited (Jersey).

Consolidated Minerals Limited is headquartered in Jersey and the address of its office is Commercial House, 3 Commercial Street, St Helier, Jersey, Channel Islands, JE2 3RU.