Mr. John Kearney reports

CANADIAN ZINC SIGNS AGREEMENTS WITH KOREA ZINC AND BOLIDEN FOR PRAIRIE CREEK MINE ZINC AND LEAD CONCENTRATE PRODUCTION

Canadian Zinc Corp. has signed agreements with Korea Zinc and Boliden for the sale of zinc and lead concentrates to be produced at Canadian Zinc's 100-per-cent-owned Prairie Creek mine.

Canadian Zinc has entered into a memorandum of understanding with Korea Zinc for the sale of approximately 20,000 wet tonnes to 30,000 wet tonnes of zinc sulphide concentrates, approximately 15,000 wet tonnes to 20,000 wet tonnes of lead sulphide concentrates and approximately 5,000 tonnes of lead oxide concentrates, per year, for a minimum period of five years from the date of start-up of the Prairie Creek mine, with exact annual quantities to be mutually agreed.

The company has also entered into a memorandum of understanding with Boliden for the sale of a minimum of 20,000 dry tonnes and up to 40,000 dry tonnes of zinc sulphide concentrates, per year, for a minimum of five years from the start of regular deliveries, with exact annual quantities to be mutually agreed.

"These off-take arrangements with two of the pre-eminent smelting companies in the world, confirming the marketability of Prairie Creek's zinc and lead concentrates, represent a major step forward in the development of the Prairie Creek mine and move Canadian Zinc closer to production," stated John Kearney, chairman and chief executive officer of Canadian Zinc.

The MOUs with each of Korea Zinc and Boliden set out the intentions of Canadian Zinc and each of Korea Zinc and Boliden to enter into concentrate sales agreements for the concentrates to be produced from the Prairie Creek mine on the general terms set out in the MOUs, including commercial terms, which are to be kept confidential.

These sale agreements will represent all of the planned production of zinc concentrate and about half of the planned production of lead concentrate for the first five years of operation at the Prairie Creek mine. It is expected that shipments will be made from the port of Vancouver with the exact shipping schedule and lot sizes in each delivery to be mutually agreed within the project's shipping season.

The sales agreements will provide that treatment charges will be set annually at the annual benchmark treatment charges and scales, as agreed between major smelters and major miners.

Payables, penalties and quotational periods will be negotiated in good faith annually during the fourth quarter of the preceding year, including industry-standard penalties for mercury contained in the zinc concentrate based on indicative terms and agreed limits specified in each MOU.

"In negotiating these arrangements for the future sale of Prairie Creek concentrates, Canadian Zinc has secured the annual off-take and sale of a minimum of 40,000, and potentially up to 70,000 metric tonnes, of zinc concentrates and 20,000 to 25,000 tonnes of lead concentrates, per year, and with the flexibility for any remaining unallocated concentrate being available for third party or spot market sales," concluded Mr. Kearney.

Alan Taylor, PGeo, vice-president, exploration, a director of Canadian Zinc, is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the contents of this news release.

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