Consolidated Zinc Limited announced its 100% owned subsidiary, Minera Latin American Zinc SAPI de CV has executed an agreement with Industrias Penoles S.A. de C.V. to reduce the transport costs/allowances of Plomosas concentrate delivered and sold to Penoles under an extended offtake agreement for the sale of 100% of the Plomosas zinc concentrate. As part of the agreement, MLAZ has granted Penoles an additional 1-year option to extend the zinc concentrate purchases to the end of December 2023. Zinc Treatment Charges: The Zinc concentrate sold to Penoles is utilised at Penoles' Met-Mex smelter located in Torreon, Mexico, with the zinc treatment charges linked to the annual zinc treatment charge benchmark, which is agreed annually during the first quarter of each year between the major zinc miners and smelters. The 2020 zinc treatment charge benchmark was set at USD 299.75/dmt of zinc concentrate in March 2020. From April 2020 onwards, the zinc spot zinc treatment charges for China compliant concentrate (with low silver/gold contents) have traded consistently below the 2020 zinc treatment charge benchmark and has recently reached a low of USD 82.50/dmt of zinc concentrate. Market forecasts predict the 2021 zinc treatment charge benchmark is likely to be significantly lower than 2020, due to a strong rebound in demand and limited new concentrate supply. A reduction in the zinc benchmark treatment charges will benefit MLAZ as the zinc treatment/transport costs are a major cost for the Company, with treatment/transport costs reported at USD 0.41/lb of payable zinc in for the nine months ended 30 September 2020. If the zinc treatment benchmark is reduced to USD 199.75 (more than double the current spot price) the $100/dmt decrease would result in a approximately USD 0.10/lb of payable zinc C1 treatment charges cost reduction. This is expected to result in an uplift in returns for the Company.