Convertible Loan Notes

RNS Number:7958J
Zeehan Zinc Limited
12 December 2007


                              Zeehan Zinc Limited


                       Placing of Convertible Loan Notes

Zeehan Zinc Limited ('ZZL' or the 'Company') (ZZL.L) is pleased to announce that
on 12 December 2007 the Company entered into an agreement with Creat Group
Company Limited ("Creat Group") through subsidiaries of Creat Group to raise
£4,275,000 by way of a convertible loan (the "Convertible Loan"). This
investment is made following Creat Group's acquisition of 9 million ordinary
shares last week. Further information on Creat Group is provided below.

The Convertible Loan has been arranged as part of the Company's stated goal in
its recently published annual report of raising further capital to enable it to
construct a full scale flotation plant, subject to completion of the financial
feasibility study,. It will also enable the Company to bring forward the
development of the Company's lead mine at its Oceana site and accelerate its
exploration and resource development programmes in Western Tasmania.

The Convertible Loan is in the form of two convertible loan notes (the "Notes"
or, individually, the "Note") which have a term of five years and carry a coupon
of 6% per annum. Interest will be compounded if the Company opts not to meet the
interest payments on the relevant dates, such interest to be payable at
maturity. The first Note has a maturity date of 15 February 2013 and the second
Note has a maturity date of 15 April 2013.

The Convertible Loan is convertible into ordinary shares of the Company (the
"Ordinary Shares") at a conversion price per share of 15p.

Commenting on the placing, Michael Roberts, Chairman of Zeehan Zinc, said,

"This transaction and the recent series of announcements demonstrate the
progress the Company has made in the last few months and will enable it to
achieve its stated goals of becoming a major producer of lead and zinc in
Tasmania.

We are particularly pleased with Creat Group's confidence, as demonstrated by
this investment, in the resource base of the Company and its future strategy. We
look forward to developing a close working relationship with The Creat Group as
their financial support and management resources will enable the Company to
embark on a new phase of growth".

Creat have proposed that one of their senior executive directors joins the Board
of the Company in a move that will strengthen the relationship between the two
companies. A further announcement will be made shortly.



For further information, please contact:


Zeehan Zinc Limited                             c/o Bankside Consultants
Ralph Rossouw, Executive Director and CEO       Tel: [phone]

Libertas Capital
Jakob Kinde, Aamir Quraishi                     Tel: [phone]

Bankside Consultants
Simon Rothschild/Oliver Winters                 Tel: [phone]



Information on the Creat Group


Creat Group was founded in 1992 as a public-private partnership enterprise.
Creat Group is a leading member of ACFIC (All-China Federation of Industry and
Commerce). ACFIC is a business organization that acts as a bridge between the
Chinese government and private businesses engaged in industry and commerce and
acts as a facilitator for the management of the private sector of the Chinese
economy.


Recently base metals have become a major new focus for investment and Dr. Zhang,
Creat's chairman and largest shareholder has now instituted a policy for Creat
Group (reflective of China's national resource policy dictates) of acquiring oil
and gas properties and mine and mining interests. Creat Group owns a zinc-lead
mine and a molybdenum-tungsten mine in China and is now seeking to develop an
international portfolio by investing in overseas resource based companies.


The CEO of Creat Group is Mr. Ren Xiaojian. He has had a career in international
banking before becoming a joint founder of Creat Group. He gained an MBA at La
Trobe University in Melbourne in 2001. He has substantial experience in
enterprise management and development in the fields of manufacturing, real
estate and nonferrous metal mining.


The share capital and reserves of Creat Group are approximately USD 800 million
and net profits last year were nearly USD 100 million. Creat Group has interests
in agriculture, biotechnology, Electrical Switchgear manufacture and minority
interests in banking and property development.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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