• Drilling extends massive sulphide intercept located northwest of the Lemarchant deposit.
   
• Drillhole LM13-73, located 40 metres up-dip of drillhole LM08-37, intersected 5.82% zinc, 1.48% lead, 0.75% copper, 65.4 g/t silver and 1.63 g/t gold over 22.2 metres.
   
• Drillhole LM13-74, located 35 metres up-dip of drillhole LM13-73, intersected 5.33% zinc, 1.01% lead, 0.75% copper, 44.72 g/t silver and 0.26 g/t gold over 5.50 metres.

The newly extended zone remains open along strike with no drilling immediately north or south of the new drillholes.

Michael Vande Guchte, Vice President Exploration commented �?oWe are very encouraged with the drilling progress at the Lemarchant deposit. The thick mineralized intervals intersected in the first two drillholes contain significant precious metal-rich massive sulphide zones and mineralized massive barite. These new mineralized intervals are 250 metres northwest of the Lemarchant Main Zone Deposit and highlight the potential to expand the Lemarchant massive sulphide deposit beyond the current NI 43-101 resource�?�.

The initial two drillholes of the 2013 drilling program targeted geology up-dip (east) of a  base metal sulphide zone intersected in a 2008 drillhole (LM08-37; refer to table below for assays). LM08-37 is located about 300 metres to the northwest of the Lemarchant Deposit, and was not included in the initial NI 43-101 mineral resource. 

Drillhole LM13-73 intersected a well mineralized interval between 302.2-350.2 metres downhole (48.0 m) containing semi-massive to massive base metal sulphide zones and massive barite zones. The mineralized interval is located 40 metres east of LM08-37 and includes high grade intercept of 27.60% zinc, 1.12% lead, 2.71% copper, 89.01 g/t silver and 3.80 g/t gold over 2.70 metres. 

Drillhole LM13-74 targeted the geology 35 metres up dip of the mineralization intersected in LM13-73. The drillhole cored a similar, well mineralized interval between 296.2-352.0 metres downhole (55.8 m) that contains semi-massive to massive base metal sulphide zones and mineralized barite zone. 

Significant assay results to date:

  * Previously reported Paragon Minerals drillhole completed in 2008
** All lengths are core lengths and interpreted to be near true widths

Drillhole LM08-27EXT extended a 2008 drill hole (LM08-27) from a drilled depth of 262 metres to 485 metres to test the lower felsic block stratigraphy. The drillhole extension intersected 94 metres of altered felsic volcanic rocks with disseminated and stringer base metal mineralization.

Drillhole LM13-75 was completed 400 metres to the east on the same section test for the lower felsic block stratigraphy. The drillhole did not intercept the target at the end of hole depth of 539 metres and is interpreted to be structurally displaced below the drillhole.

Drilling is continuing at the South Tally Pond project. The planned Phase 1 drill program includes 4,800 metres (in at least 17 holes) of core drilling focused on expanding Lemarchant mineral resource (see Press Release dated January 15, 2013).  A total of 1,552 metres in four drillholes has now been completed.

South Tally Pond Project

The South Tally Pond project is a significant, 100%-owned land position covering 214 km² of a highly prospective volcanogenic massive sulphide (�?oVMS�?�) geological belt in central Newfoundland. The Lemarchant Deposit, the most advanced target on the South Tally Pond property, is situated 20 km southwest of Teck Resources Limited�?Ts Duck Pond copper-zinc mine in the same geological belt.

Previous drilling by Paragon Minerals Corporation (now a 100% owned subsidiary of Canadian Zinc) at the Lemarchant Deposit has outlined a significant precious metal-rich copper-lead-zinc VMS deposit with excellent potential to develop into a viable economic resource. An initial National Instrument (�?oNI�?�) 43-101 mineral resource estimate was completed in January 2012 on the Lemarchant Deposit and includes the following mineral resources:

• Indicated Mineral Resource: 1.24 million tonnes grading 5.38% zinc, 0.58% copper, 1.19% lead, 1.01 g/t gold and 59.17 g/t silver (15.40% ZnEQ) using a 7.5% zinc equivalent grade cut-off.
   
• Inferred Mineral Resource: 1.34 million tonnes grading 3.70% zinc, 0.41% copper, 0.86% lead, 1.00 g/t gold and 50.41 g/t silver (11.97% ZnEQ) using a 7.5% zinc equivalent grade cut-off.

(See Technical Report and Mineral Resource Estimate on the Lemarchant Deposit, South Tally Pond VMS Project, central Newfoundland, dated March 2, 2012 filed on SEDAR under Paragon Minerals Corporation)

Canadian Zinc is a Toronto-listed exploration and development company. The Company�?Ts key project is the 100%-owned Prairie Creek zinc, silver and lead project located in the Northwest Territories, Canada. The Prairie Creek Project contains a Mineral Reserve of 5.2 million tonnes averaging 9.4% zinc, 9.5% lead and 151 g/t silver. In addition, Prairie Creek hosts an Inferred Resource of 6.2 million tonnes averaging 14.5% zinc, 11.5% lead, 0.57% copper and 229 g/t silver. (AMC Mining Consultants (Canada) Ltd. J M Shannon and D Nussipakynova, Qualified Persons, June 2012).

A Pre-Feasibility study completed by SNC Lavalin in June 2012 indicates a pre-tax net present value (�?oNPV�?�) of $253 million using an 8% discount, with an internal rate of return (�?oIRR�?�) of 40.4% and payback period of 3 years using long-term metal price projections of $1.00/lb zinc, $1.00/lb lead and $26.00/oz. silver, based on the Mineral Reserve alone.

Canadian Zinc holds a 100% interest in the South Tally Pond VMS project, along with other property interests in central Newfoundland, through the Company�?Ts acquisition of Paragon Minerals Corporation in September 2012.