Company Information for Zambezi Resources Ltd

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Company Statement

Zambezi Resources Limited (Zambezi) is exploring for and developing copper-gold resource projects in southern Zambia. The basis for the company's strategy is Zambian Mineral Endowment, London Capital and Australian expertise.

Following 2 years of exploration activity, Zambezi is now moving from an exploration phase towards development. During the 2006 exploration field campaign, Zambezi focused on its core projects, namely:

Copper:
The use of cutting edge helicopter-borne VTEM technology has defined over 20 conductors over a strike length of 8000 metres at Cheowa. Drilling which commenced in May 2006 on the CC2 conductor has intersected semi to massive copper sulphides. A resource estimation exercise carried out in February 2007 over just 700m of strike length at CC2 resulted in the definition of an Inferred Mineral Resource prepared in accordance with the 2004 JORC Code of 1.7mt at 1.5% copper and 0.5 g/t gold to a depth of 200m. The resource remains open along strike and at depth and further drilling will be conducted during 2007 on CC2 and the other conductors to determine a strategy for the development of this exciting new copper and gold project.

At the 100% owned Kangaluwi-Chisawa project, where initial RC drilling late last year returned assay results of 25m at 1.34% copper and 21m at 1.88% copper, extensive drilling and VTEM is planned for the 2007 field season.

Gold: 
A major drilling campaign in the Chakwenga region commenced in May, targeting a significant new gold camp comprising the Chakwenga and  Moiya prospects.  Zambezi is currently developing a pipeline of over five gold projects within its Zambian portfolio.

Uranium:
At Zambezi's Oryx Uranium Project, discovered in late 2005, high grade uranium-bearing material identified as davidite has returned over 6% uranium. Zambezi holds energy mineral rights over 17,300 km2 in Zambia, and has recently announced a Uranium Rights Joint Venture with sister company Zambezi Nickel Limited, who can earn 51% of the uranium rights on four of Zambezi’s tenements by spending US$5m.

Current Operations

Highlights

Diamond and RC drilling confirms massive sulphide-hosted copper-gold mineralisation at CC2 prospect at Cheowa over a strike length of at least 1,200 metres. Drill intersection highlights include 11m at 3.18% copper and 0.25 g/t gold, 8m at 2.12% copper and 2.15 g/t gold, 4m at 3.18% copper and 2.46 g/t gold, and 4.5m at 2.72% copper and 4.89 g/t gold. Twenty additional electromagnetic conductors identified by VTEM geophysical surveys at Cheowa are now being drilled.

Confirmation of Chakwenga as an emerging Gold Camp with gold results from the first phase of RC drilling including 22m @ 2.11g/t Au, 17m @ 1.66g/t Au, 3m @ 5.25g/t Au and 2m @ 6.15g/t Au. Further RC and diamond drilling is being conducted during  the 2007 field season, and results for the first 2007 RC program are awaited.

Exciting first pass RC drill results from the Kangaluwi & Chisawa copper prospects in the Chakwenga area. These include 21m @ 1.88% Cu and 25m @ 1.34% Cu. An extensive 2007 RC and diamond drilling campaign comprising approximately 30,000 metres is underway, and a regional VTEM survey aimed at defining conductors to drill test is planned for October.

US$16m Joint Venture with Glencore International AG to explore two of Zambezi’s copper projects (Cheowa & Chongwe Copper Belt).

The polymetallic tenor of Mulofwe Dome further enhanced by re-analyzing Cu-Au-Co-Bi anomalous rocks for uranium, which subsequently returned assays up to 467 ppm U3O8. A  regional VTEM survey aimed at defining conductors to drill test is planned for October.

Iron Oxide Copper-Gold±Uranium potential of Lusaka East project areas confirmed through field studies completed by world renowned IOCG consultant geologist.

At the Oryx Uranium Prospect, spectrometer readings and trench assays during 2006 confirmed the presence of extensive uranium mineralisation.  Preliminary metallurgical testwork on a bulk davidite sample collected from Oryx suggested that low intensity magnetic separation would be required to upgrade the material. Zambezi Nickel is now funding and managing exploration at Oryx under the Uranium Rights Joint Venture with Zambezi.

New uranium prospects at Nkala, Mwomboshi and Mpande Dome identified from heli-borne radiometric surveys.

Geographical Spread

Southern Zambia - Africa Extensive exploration until the early 1970's lead to the outlining of several multi-million tonne copper deposits being identified many of which have copper ore grades which could be potentially economic. The company sees Southern Zambia as a highly attractive area in which to invest due to the almost total lack of exploration on known mineral occurrences over the last 30 years. The historic focus on copper exploration in the Zambian copper belt to the north of the country has left a highly prospective area to the south of the country relatively untouched. In addition, the withdrawal of investment capital following the nationalisation of all of Zambia's mines in the 1970's exacerbated the lack of exploration in the country as a whole. With Zambia now functioning within a politically stable framework Zambezi Resources believes it can successfully develop copper and gold assets in a potentially mineral rich region.

Board of Directors and Key Management

EXECUTIVE DIRECTORS

Mr Julian Ford B.Sc Chem Eng, B.Comm, Grad.Dip.Bus.Man

Managing Director • Australian

Dr Geoffrey Johnson B.Sc.Hons, PhD (Geology), Grad.Dip.Env.Sc

Executive Director Exploration • Australian

NON-EXECUTIVE DIRECTORS

Mr Brian Rear AWASM, MSc (London), DIC-MBL (South Africa)

Non-Executive Chairman • Australian

Mr Jeremy Bruce Earl Wrathall B.Sc.Hons (Mining Engineering), ACSM

Non-Executive Director • British

Mr Lloyd Flint B.Acc, MBA, ICAA, FINSIA

Chief Financial Officer

Mr Willie Sweta M.Sc (Met), Dipl (Min. Eng)

Executive Chairman, Mwembeshi Resources

Mr Fergus Jockel B.Sc (Hons) (Geol)

Country & Business Development Manager Zambia

Mr Jay Klopper B.Sc (Hons) (Geol)

Exploration Manager Zambia

Mr Paul Weedon B.App.Sc (Geol), PGDipEconGeol, GDipAppFin, GDipManagement

Joint Venture Manager Zambia

Company Address 17 Ord Street West Perth WA, Australian Capital Territory, Australia 6872 Telephone: + 61 (08) 9216 9000 Facsimile: + 61 (08) 9216 9090 Email: info[at]zambeziresources.com Website: http://www.zambeziresources.com

Additional Address/Key Contact Mwembeshi Resources (Zambia) Limited Plot 5777N Great East Road Kalunda Lusaka Tel: +260 (0)211 291 645 Fax: +260 (0)211 292 411 Laurence Read Threadneedle Communications Tel:  +44 (0)20 7936 9696

Annual General Meeting June

Year End 31 March

Nominated Brokers WH Ireland

Nominated Advisors Grant Thornton

Broker/Analyst Reports

18/07/07 - Carmichael Research
17/01/07 - WH Ireland - Zambezi Resources

Major Shareholders

Glencore Investments BV

Teawood Nominees Limited

BBHISL Nominees Limited

Fitel Nominees Limited

Goldman Sachs Securities (Nominees) Limited

Related News

10/05/07 - Zambezi Resources Has A Useful Friend In Glencore
13/02/07 - Zambezi Resources Has A Number Of Opportunities Ahead Of It

Most Recent Statement

09/05/08 - Large VTEM Anomaly Defined at Kangaluwi Copper Project
30/04/08 - March 2008 Quarterly Report
29/04/08 - Substantial Mineralisation Intersected at Kangaluwi Copper Project
15/04/08 - Cheowa Copper-Gold Project Drilling Results Update
08/04/08 - Exploration Update – Zambia Copper Projects
31/01/08 - Quarterly Cash Flow Report