Mr. Peeyush Varshney reports

UPDATE ON TONGLING NONFERROUS METALS GROUP HOLDINGS CO. LTD. $18 MILLION PRIVATE PLACEMENT

Further to news in Stockwatch on July 26, 2010, Canada Zinc Metals Corp. has been advised by Tongling Nonferrous Metals Group Holdings Co. Ltd. that the State-Owned Assets Supervision and Administration Commission of Anhui, China, has approved Tongling's application to further invest in Canada Zinc Metals. Tongling will now apply for final approval from the Development and Reform Commission.

Tongling has subscribed, by way of a non-brokered private placement, for 31,386,224 units of Canada Zinc Metals at a price of 57.35 cents per unit for gross proceeds of $18-million. Each unit consists of one common share and one-half of a common share purchase warrant. Each whole warrant shall entitle the purchaser to purchase, at any time within 24 months from closing, one additional common share of the company at a price of 67.5 cents during the first year and at a price of 77.5 cents during the second year. Upon closing of the private placement, Tongling will own approximately a 36.5-per-cent equity interest in Canada Zinc Metals.

Tongling Nonferrous Metals Group Holdings Co. Ltd., based in Tongling, Anhui, is a state-owned holding company, and one of China's largest copper smelting companies. Tongling's principal activities are exploration, mining, ore processing, smelting and refining, and products processing of copper, lead, zinc, gold, silver, and other non-ferrous and rare metals.

The financing is subject to receiving the necessary approvals of the relevant Chinese regulatory departments and the TSX Venture Exchange.