Company Information for Zincox Resources Plc

AIM-ZOX

www.zincox.com

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AIM; ZOX

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Company Statement

Statement by the managing director, Andrew Woollett:

ZincOx has been established with the objective of becoming a major low cost zinc producing company.

ZincOx has developed hydrometallurgical processes that enable the profitable treatment of primary zinc oxide deposits and waste material, such as electric arc furnace dust (EAFD). The senior management team at ZincOx were formerly executive directors at Reunion Mining plc, where they established a successful track record in mineral exploration, processing and project development, and in particular the design of the flow sheet for the Skorpion zinc oxide project in Namibia.

ZincOx is also developing other technologies for the recycling of zinc bearing materials.

Current Operations

JABALI PROJECT, YEMEN
The Jabali zinc deposit is located 110 km northeast of Sana'a, the capital city of Yemen. It contains a geological resource, calculated in accordance with the JORC code, of 12.6 million tonnes of oxide ore, grading 8.9% zinc, 1.2% lead and 68g/t silver.

An update to the Feasibility was completed in early 2007 and new design, engineering and cost estimates completed by SNC Lavalin Europe, MDM Engineering and ZincOx. An audit of the updated study has been carried out by Saint Barbara Consulting Services in London, onbehalf of Exotix Limited, who have been mandated by the project company to assist in the provision of finance for the project. The updated study concluded that the total funding requirement to finance the capital cost of plant and equipment, including contingencies and all financing costs needed to construct the mine and associated facilities, and working capital sufficient to finance operations until such time as positive cash flow is forecast to be generated in the first quarter of 2009, is currently estimated to be $186 million.

Discussions have commenced with certain financial institutions with respect to the provision of debt finance for development of the project. It is assumed that the Exploitation Contract will be ratified as a law during the second quarter of 2007, and that financing will be completed at the same time. Construction will then commence immediately, with production scheduled for the first half of 2009.

SHAIMERDEN PROJECT, KAZAKHSTAN
The Shaimerden mine commenced production on 17th September 2006 and by the end of the year the mine had to make a payment based on production of 11,616 tonnes of contained zinc. The first deferred consideration payment amounted to U$9.04 million and was paid to ZincOx in January 2007. During the first quarter of 2007, Kazzinc mined almost 30,000 tonnes of contained zinc,
indicating that this year the deemed maximum of 60,000 tonnes of zinc should be applicable for the deferred consideration. If the zinc price were to continue to average $3,548 during the course of the year, an amount of U$39 million would be paid to ZincOx in January 2008.

The Shaimerden deposit cost ZincOx a total of $1.7 million being $50,000 in cash, $150,000 worth of ZincOx shares (issued at 71.2p in October 2003) and $1.5 million spent on progressing a feasibility study and the costs of the sale transaction.

Shaimerden is the second example of how the ZincOx management team can bring to account zinc oxide deposits hitherto considered to be uneconomic. The first example was when the team managed Reunion Mining plc and they successfully proved the viability of the Skorpion zinc oxide deposit in Namibia. Reunion Mining was subsequently purchased by Anglo American plc in a transaction worth in excess of $80 million. The ZincOx team will continue to look for similar opportunities elsewhere in the world.

OHIO RECYCLING PROJECT, USA
ZincOx is planning to treat EAFD in Ohio using a rotary hearth furnace (RHF) for the production of impure zinc concentrate (HZO) and pig iron. The HZO will be treated at ZincOx's Big River Zinc smelter in the USA for the production of zinc metal and the pig iron will be used for steel production in Ohio. The RHF produces no waste so it has very significant environmental advantages over current practices.

Preliminary capital and operating cost estimate has been made and an economic model has been generated for a furnace treating 200,000 tpa of EAFD for the production of over 45,000 tpa zinc contained in the HZO.

As a result of this appraisal, the company has decided to proceed with a RHF development in Ohio to complement the sister project in Turkey. The development programme envisages production commencing in Q3 2008.

ALIAGA PROJECT, TURKEY
Turkey generates over 200,000 tonnes per annum of electric arc furnace dust (EAFD) from the recycling of galvanised steel scrap. The dust contains between 15% and 35% zinc and 20% to 32% iron.

Representative blended samples from Turkish steel mills have been tested by the suppliers of the RHF equipment. This test-work has confirmed the metal recovery and reagent consumption of the process. A preliminary capital and operating cost estimate has been made and an economic model has been generated for a furnace treating 200,000 tpa of EAFD for the production of over 45,000 tpa zinc contained in the HZO.

As a result of this appraisal, the company has decided to proceed with a RHF development in Turkey rather than the previously announced LTC project. The new project will be based inside the Heavy Industrial Zone at Aliaga, next to the steel mills and is well serviced by road, rail and utilities. The development programme envisages production commencing in mid 2008.

BIG RIVER ZINC (BRZ) PROJECT, ILLINOIS, USA
ZincOx plans to develop a state of the art zinc recycling facility at the Big River Zinc electrolytic refinery ("BRZ"), in Sauget, Illinois. ZincOx acquired Big River Zinc from its previous owner, Korea Zinc, in June 2006.

The new process will produce 90,000 tpa of zinc, mostly in the form of SHG zinc, and will be sold to existing customers of BRZ. In addition BRZ has built up a significant value added business by producing powder for alkaline batteries; such material sells at a significant premium to the value of zinc metal contained.

Since the new process will have lower emissions than the existing plant, and due to its ability to reduce hazardous waste landfill, it will offer net benefits to the environment, which combined with the creation of an envisaged 200 jobs, will mean that the project has a positive local and regional impact.

Geographical Spread

Kazakhstan - further payments from Shaimerden zinc oxide deposit
Yemen - 52% interest in Jabali zinc oxide deposit
Turkey - Aliaga - recycling of EAFD to recover zinc, lead, and iron
United States - Ohio - recycling of EAFD to recover zinc, lead, and iron
United States - St Louis – Big River Zinc refinery

Board of Directors and Key Management

Andrew Woollett	(Chairman)
Michael Foster	(Managing Director)
Peter Wynter Bee	(Director)
Simon Hall	(Finance Director)
Gilles Masson
Peter Beck
Peter Fry
John Thompson
Rod Beddows
Deborah Paxford	(Company Secretary)

Company Address

Knightway House Park Street
Bagshot, UK, Surrey, United Kingdom GU19 5AQ


Telephone:	00 44 1276 450100
Facsimile:	00 44 1276 850281
Email:	info[at]zincox.com
Website:	http://www.zincox.com

Capital

Options in issue: 4,685,121
Warrants in issue: 2,049,759

Annual General Meeting

June - in London

Year End

31 December

Nominated Brokers

Numis Securities Ltd
The London Stock Exchange Building
10 Paternoster Square
London, EC4M 7LT

Nominated Advisors

Numis Securities Ltd
The London Stock Exchange Building
10 Paternoster Square
London, EC4M 7LT

Broker/Analyst Reports

14/01/08 - Numis Securities
04/10/07 - Equity Development
16/03/07 - Equity Developments Research Note

Major Shareholders

Teck Cominco Limited	11.29%
Hoegh Capital Partners Investments Limited	9.23%
Sisu Capital	8.61%
M&G Securities Limited	6.69%
Sloane Robinson Investment Management Limited	5.91%
Fidelity Investments	4.83%
HSBC Global Custody Nominees Limited	3.76%

Most Recent Statement

11/07/08 - Result of EGM/AGM
09/07/08 - Board changes
13/06/08 - Financing the construction of the Ohio Recycling Plant
28/04/08 - Preliminary Results - Year Ended 31 December 2007
29/02/08 - OHIO RECYCLING PROJECT GRANTED CRITICAL ENVIRONMENTAL PERMIT
28/02/08 - JABALI MINE FINANCING COMPLETED

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