Mr. Alan Taylor reports

CANADIAN ZINC CORPORATION - UPDATE ON RESEARCH PROGRAM TO INVESTIGATE CENTRAL MILLING FACILITY IN CENTRAL NEWFOUNDLAND

Canadian Zinc Corp. has provided an update on its collaboration project with Buchans Minerals Corp. (BMC), a wholly owned subsidiary of Minco PLC, in which the companies have agreed to jointly undertake a research program aimed at investigating the technical viability of developing their respective central Newfoundland Zn-Pb-Cu-Ag-Au (zinc-lead-copper-silver-gold) deposits through a central milling facility. This work is partially funded by the Research & Development Corp. of Newfoundland and Labrador.

Both companies have completed bench-scale dense media separation (DMS) testing and are undertaking metallurgical studies on their respective NI 43-101 defined mineral deposits. Highlights to date of the DMS and metallurgical testing include:

• Preconcentration of the ore by DMS (prior to flotation) was determined to be technically viable for semi-massive and stringer sulphide samples from the Boomerang-Domino, Lemarchant, Long Lake, Bobbys Pond and Daniels Pond deposits.
• Initial flotation tests indicate the deposits are amenable to a common flotation flowsheet with the sequential Cu-Pb-Zn flotation flowsheet providing the best overall performance for all four deposits tested. Further development of the sequential flotation by bench-scale testing is in progress.

Diamond drilling to obtain fresh metallurgical samples from four of the seven VMS deposits was completed in December, 2015. These included Canadian Zinc's Boomerang-Domino and Lemarchant deposits and Buchans Minerals' Bobbys Pond and Daniels Pond deposits.

Drilling at the Boomerang-Domino deposit included twinning historic drill hole GA05-12 twice by wedging immediately above the mineralized zone. Drilling at the Lemarchant deposit targeted the thick massive sulphide-barite zone and mineralized footwall zone intersected in historic drill hole LM10-43 with a new vertical drill hole (LM15-107). Assay results from the new drill holes are provided in the table.

Boomerang        Boomerang                       Interval 
drill hole         zone      From (m)   To (m)      (m)     Zn %   Pb %   Cu %   Ag g/t   Au g/t

GA05-12*            MS       248.25     261.3      13.05    9.58   3.52   0.73    125.5     1.4    
GA05-12A            MS       248.3      262.0      13.70    9.18   3.58   0.78     na        na     
GA05-12B            MS       248.2      262.1      13.90    9.34   3.91   0.73     na        na     

Lemarchant   Mineralized                       Interval  
drill hole      zone       From (m)   To (m)      (m)     Zn %    Pb %   Cu %   Ag g/t   Au g/t

LM10-43*       MS/Ba         205.5    226.35     20.85    12.33   3.2    1.15    77.4     1.69   
LM10-43*       FW            226.35   232.1       5.75     3.67   0.17   0.45    10.0     0.31   
LM15-107       MS/Ba         187.4    205.2      17.80    10.89   2.64   1.59      na       na     
LM15-107       FW            205.2    211.5       6.30     3.37   0.08   0.40      na       na     

Notes:

* Historic drill holes (Boomerang 2005, Lemarchant 2010); intervals estimated at near true 
  thickness.  MS: massive sulphide; Ba: barite; FW: footwall; na: not analyzed.
                                                                                                                                                                         


  

A single metallurgical sample, totalling 126 kilograms, was prepared for the Boomerang deposit from the mineralized zone intersected by GA05-12A and GA05-12B. Two composite samples, one from the massive sulphide/barite zone (104 kg) and one from the footwall zone (43 kg), were prepared for the Lemarchant deposit from the mineralized zone intersected in LM15-107.

Thibault & Associates Inc., an independent process chemical engineering firm, was engaged to carry out the bench-scale studies to be followed by the development of a process simulation and order of magnitude cost assessment model (AACE Class V) on the deposits. Twelve DMS samples and five metallurgical samples were submitted to Thibault for testing (see press release dated Jan. 25, 2016).

                         Boomerang-    Lemarchant   Tulks East   Long Lake   Bobbys Pond   Daniels Pond   Tulks Hill  
Deposit  (owner)        Domino (CZN)      (CZN)        (CZN)       (CZN)        (BMC)          (BMC)         (BMC)

DMS samples                  4              2            1           1            2              1             1
Metallurgical samples        1              2                                     1              1

The samples were selected to represent as closely as possible the characteristics of the mineralization making up each resource.

DMS testing (completed)

The bench-scale DMS testing was designed to assess the amenability of mineralized samples from the deposits to physical upgrading (preconcentration) at each site as a potential means of reducing transportation costs from mine site to the milling facility and to maximize head grade to reduce downstream processing costs.

Six samples identified as semi-massive sulphide or footwall stringer mineralization achieved a technically viable grade and recovery of base metals using bench-scale separation tests. The remaining six samples identified as massive sulphide and/or barite mineralization were not significantly improved through DMS bench-scale tests.

The highest degree of upgrading was achieved with the Lemarchant stringer sulphide sample (footwall) and Bobbys Pond composite sample with an increase in grades of copper, lead, zinc and silver by 45 per cent to 61 per cent with copper, lead, zinc and silver recoveries ranging from 87.2 per cent to 96.6 per cent.

Metallurgical testing (in progress)

The bench-scale metallurgical test work is aimed at assessing the amenability of the mineralized samples from four of the deposits (Boomerang-Domino, Bobbys Pond, Daniels Pond and Lemarchant) to a common flotation flowsheet for the production of selective zinc, lead and copper concentrate products of marketable grade at acceptable metallurgical recoveries. The test work will serve as a first-stage evaluation of whether or not a single flowsheet and reagent scheme could be used for processing multiple resources at a central mill.

Initial flotation tests were designed to compare two flowsheet options: 1) a bulk Cu/Pb-Zn flotation flowsheet and 2) a sequential Cu-Pb-Zn flotation flowsheet using various reagent schemes and a constant grind size. The performance of the two flowsheets for each deposit tested was based on selectivity of flotation and the final concentrate grades for each of the copper, lead and zinc final concentrates.

Results from the initial flotation testing indicate the sequential Cu-Pb-Zn flowsheet provided the best overall performance for the four deposits tested. Development of the flotation flowsheet using the sequential flotation of copper, lead and zinc is in progress.

Process simulation and cost assessment model (in progress)

The bench-scale testing programs will be followed up by the development of a process simulation and order of magnitude cost assessment model (AACE Class V) to evaluate and identify the key factors impacting the operating economics of a centralized milling concept for processing of the base metal deposits. Results from the modelling will be used to help optimize the exploration and development budgets, by focusing on the key factors that are critical to assessing the economic potential and viability of developing the central Newfoundland deposits through a central milling facility.

Canadian Zinc acknowledges the financial support from the Research & Development Corp. of Newfoundland and Labrador through the GeoEXPLORE Industry-led program to undertake the research program on the seven volcanogenic massive sulphide (VMS) deposits in central Newfoundland. The program is scheduled to be completed in November, 2016.

Andrew M. Hussey, PGeo, senior project geologist of Canadian Zinc, carried out the 2015 drill programs, and is a qualified person as defined by NI 43-101 and has reviewed and approved the drilling and sampling results in this press release.

J. Dean Thibault, PEng, senior process chemical engineer of Thibault & Associates Inc., is a qualified person as defined by NI 43-101 and has reviewed and approved the DMS and metallurgical test results in this press release.

We seek Safe Harbor.