Yukon Zinc Corp fka YZC

[NYBob]

Yukon Zinc Closes Second Tranche of Unit and Flow-Through Financing -
Vancouver, BC, December 21, 2007 –

Yukon Zinc Corporation -
(YZC.TSX-V) is pleased to announce
that it has closed the second tranche of the brokered
private placement financing (the “Offering”),
announced December 7, 2007.

The closing consisted of 10,833,334 Units at a price of
$0.12 per Unit for gross proceeds of $1,300,000, and
9,635,715 Flow-Through Common Shares at a price
of $0.14 per share for gross proceeds of $1,349,000.

Each Unit consists of one common share and one-half share
purchase warrant.
Each full warrant entitles the holder to purchase one
common share for $0.16 for a
two year period that expires on December 21, 2009.

The financing was offered by a syndicate led by
Haywood Securities Inc., co-led by Paradigm Capital Inc.,
and including Blackmont Capital Inc. (“the Agents”).

The securities sold have a hold period that expires on
April 22, 2008.
The Agents received a cash commission equal to 6% of
the gross proceeds.
In addition, the Agents received Compensation
Options entitling the Agents for a 12 month period
expiring December 21, 2008, to acquire up to 650,000
common shares of Yukon Zinc at C$0.12 per share.

The gross proceeds of this tranche, plus the previous tranche
of the Offering on December 20, totals
approximately $6.9 million.

The net proceeds will be used for maintaining the development
and engineering activities associated with the advancement
of the Wolverine Project, and provides working
capital while Yukon Zinc evaluates alternative sources of
the equity portion of the funds required to
finance construction of the Wolverine Project
and other forms of transactions that
enhance shareholder value.

Yukon Zinc is focused on the development of the Wolverine
deposit as the Yukon’s next significant
zincsilver mine and the exploration of
the Finlayson District as Canada’s newest Volcanogenic
Massive Sulphide District.

The securities comprising the Offering have not been and will
not be registered under the United States
Securities Act of 1933, as amended (the “U.S. Securities Act”)
or any state securities laws, and may not
be offered or sold within the United States or to a U.S.
Person unless registered under the U.S. Securities
Act and applicable state securities laws or an exemption
from such registration is available.
This news release contains forward-looking statements based
on assumptions and judgments of
management regarding future events or results that may prove
to be inaccurate as a result of failure to
complete the proposed financing, failure to obtain
necessary regulatory or shareholder approvals, and
other risk factors beyond its control and actual results
may differ materially from the expected results.
- 30 -

For more information contact:
Dr. Harlan Meade, President and CEO
Shae Dalphond Manager,
Investor Communications
Telephone: [phone]
Toll-free: 1-877-682-5474
Facsimile: [phone]
[e-mail] www.yukonzinc.com

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT
ACCEPT RESPONSIBILITY FOR THE ADEQUACY OF THIS NEWS RELEASE.

http://www.yukonzinc.com/documents/YZC-NR-2007-12-21-Closes-Second-Tranche-8M_Financing.pdf

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