Norzinc Ltd. (NORZF)

[Pro-Life]

The primary contribution to Canadian Zinc’s reported net income for the period ended September 30, 2010 was the increase (since December 31, 2009) in the quoted market value of the Company’s investment in Vatukoula Gold Mines Plc (“VGM”). VGM is a United Kingdom AIM (London Stock Exchange) listed company which owns and operates the Vatukoula Gold Mine in Fiji. For its financial year ended August 31, 2010, VGM reported that it had produced 59,658 ounces of gold of which 54,642 ounces were shipped and sold. For the fourth quarter ended August 31, 2010, VGM reported that 21,107 ounces of gold were produced and 19,251 ounces were shipped and sold.

On October 21, 2010, VGM announced a proposal to carry out a share consolidation on a one for fifty basis in order to enhance the marketability of the company's shares. VGM also stated its intention to explore the listing of its shares on a North American exchange.

Canadian Zinc acquired its investment in VGM during 2009 at an original cost of $10.142 million. The quoted market value of the Company’s investment in VGM increased from $14.038 million at December 31, 2009 to $30.753 million at September 30, 2010, resulting in a recorded gain of $16.715 million for the nine months.


Excerpted from this press release:

http://www.canadianzinc.com/docs/NR110810Q3.pdf

• CANADIAN ZINC REPORTS NET INCOME OF $10.9 MILLION FOR NINE MONTHS
• Gain of $16.7 million recorded on investment in Vatukoula Gold Mines
• Working Capital of $36.5 million at September 30, 2010