Korea Recycling Project Meeting Targets (7747I)

TIDMZOX

RNS Number : 7747I

ZincOx Resources PLC

21 June 2011

ZincOx Resources plc

("ZincOx" or "the Company")

Korea Recycling Project Meeting Targets

ZincOx Resources plc ("ZincOx" or the "Company") which specialises in the recovery of zinc from steel industry waste, today announces positive progress concerning the development of its Korean Recycling Plant which remains on budget and on schedule for completion in Q1 2012. To date US$76 million has been committed towards the development of the project which represents 72% of the total capital amount (excluding the contingency provision). To date the cost of the development is within budget excluding contingency, however, exchange rate movements since the finalisation of the budget last year have led to costs increasing by US$1.3 million, to date. These costs will currently be covered in the contingency provided within the total budget for the development.

In line with the Offtake and Loan Agreements finalised with Korea Zinc Ltd in May 2011, the first draw-down, amounting to US$12 million, of the US$50 million loan package has now been made.

Progress on site is proceeding very satisfactorily. The civil works and foundations for the plant are 85% complete. The installation of equipment is scheduled to commence before the end of June. The refurbishment of the Rotary Hearth Furnace in the United States is close to completion and will be shipped to site in three batches. The first batch has arrived in Korea and erection is scheduled to commence in July. The construction of the non process buildings is nearing completion and that of the process buildings is well underway.

Construction progress at the site can be viewed in three photograph galleries, that are regularly updated on the Company's website, via the following link: http://www.zincox.com/projects/korea.asp

Commenting today, Andrew Woollett, ZincOx's Chairman, said: "We have now tied down almost three quarters of our costs and are very encouraged to be on time and budget with the start of commissioning remaining, as planned, for the first quarter of 2012".

For more information please contact:

ZincOx Resources plc Andrew Woollett, Executive Chairman [phone]

Nominated Adviser and Broker Ambrian Partners Limited Andrew Craig / Jen Boorer [phone]

Tavistock Communications Paul Youens/Simon Hudson [phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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