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 exploitation and development rights to the Jabali zinc deposit are owned by Jabal Salab Company (Yemen) Limited (“Jabal Salab”), in which ZincOx holds a 52% interest. The balance of 48% is held by Ansan Wikfs Investments Limited. The Jabali zinc oxide deposit is located 110 km north east of Sana’a, Yemen’s capital city.

Major advances with the development of the deposit were achieved during 2007 which culminated in a $216 million financing package for Jabal Salab in February 2008. This included equity and financial security guarantees from the shareholders and a $120 million loan facility provided by a group of emerging market specialist hedge funds.

The term of the loan facility is six years with an interest rate of 11.5% and a three year grace period on principal repayments. In addition, the facility carries an additional coupon linked to the zinc price (“the ZIPPO” or Zinc Price Related Payment Obligation) which is calculated at US$0.16 for each dollar that the average annual international zinc price is above US$1,300 per tonne on every tonne of zinc sold by Jabal Salab over a period of 12 years from close of the financing. The ZIPPO notes are tradable instruments and are believed to be the first such instruments to be launched for a metal related transaction and the first Yemen project bond.

The Government of Yemen is extremely supportive of the Jabali project. It is the first large scale mining project to be developed in Yemen and the Government recognises that mining is a way of diversifying away from its dependence on the oil sector. Jabal Salab has a 20-year Exploitation Agreement with the Ministry of Oil and Minerals that sets out all the terms and conditions for development of the deposit. The Contract has been approved by the Yemen parliament and ratified as law by the President.

The Company has fostered a close relationship with local communities and stakeholders’ training programmes, employment and improved infrastructure, especially road and water, are benefits to the nearby communities that should prove to be sustainable well beyond the life of the mine.

The Jabali deposit contains a mineable reserve of 8.7 million tonnes of ore at an average grade of 9.2% zinc. The deposit will be mined at the rate of 800,000 tonnes per annum by open pit with a strip ratio of 2:1. Ore will be crushed and calcined prior to milling and leaching using ammonia based solutions. Following purification, zinc carbonate will be precipitated and calcined for the production of 70,000 tonnes per annum of very high quality zinc oxide (>79% zinc). The zinc oxide will be bagged and shipped to customers in the rubber, paint and ceramics industries.

Construction of the mine and associated facilities is scheduled to take 22 months, such that production of a high quality zinc oxide should commence at the end of 2009. A site camp sufficient for 300 people is under construction.

SHAIMERDEN PROJECT, KAZAKHSTAN
The Shaimerden zinc oxide deposit is situated in northern Kazakhstan, some 300km south west of the city of Kostanai. ZincOx sold its 95% interest in the deposit in December 2003 to Kazzinc, Kazakhstan's largest producer of zinc. The consideration for the sale was $7.5 million in cash and a deferred payment to ZincOx, details of which are set out below.

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.

Kazzinc's mining schedule envisages the first 200,000 tonnes of zinc in ore, on which our deferred consideration is due, being mined before the end of 2007. The payments, however, will be spread over the next four years due to the deemed maximum rate of mining as described above.

Kazzinc has moved ahead with the development of the Shaimerden open pit mine (see photo gallery, and photo, right). The company is transporting crushed ore from Shaimerden to processing facilities at Ust-Kamenogorsk in the east of the country, where it is treated in waelz kilns and by electrolysis for the production of zinc metal.

Under certain conditions, the deferred payment may be suspended by Kazzinc. Firstly, if the in-situ resource at a 5% cut-off is more than 25% below that reported to Kazzinc of 4.55 Mt at 21.14% zinc; and secondly, if there are certain events, largely of a force majeure nature, that prevent Kazzinc from mining the deposit.

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.

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)
Peter Wynter Bee	(Managing Director)
Simon Hall	(Finance Director)
Jacques Dewalens	(Technical and Production Director)
Simon Mulholland	(Project Development Director)
Jeff Hewitt	(Non-Executive Deputy Chairman)
Jerry Saville	(Non-Executive Director)
Rod Beddows	(Non-Executive Director)
Gilles Masson	(Non-Executive Director)
John Thompson	(Non-Executive Director)
Deborah Paxford	(Company Secretary)

Company Address

Knightway House
Park Street
Bagshot, 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

No. of shares issued: 77,576,620

Annual General Meeting

June

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

Major Shareholders

	% of issued share capital
Hoegh Capital Partners	12.7
JP Morgan	9.99
Sloane Robinson Investment	9.6
M&G Securities	8.0
Teck Cominco	7.1
UBS	4.9
Scottish Widows	4.988
Aldersgate Investment	4.125

Most Recent Statement

24/09/08 - Interim Results
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

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