Nevada Zinc Corporation announced that further testing of sample material from the Company's pilot plant project, using a third party proprietary production process, has resulted in the successful production of high-grade zinc oxide. Zinc oxide can be sold as a stand- alone product or alternatively it can be converted into zinc sulfate for sale as a micro nutrient fertilizer or animal feed product. The conversion of zinc oxide to zinc sulfate results in a substantial reduction in the amount of sulfuric acid and other reagents otherwise required by the Company's current pilot plant process designed to produce zinc sulfate.

The benefits of using this alternative production process are twofold; the conversion of zinc oxide to zinc sulphate can materially reduce the operating costs associated with the production of zinc sulfate by eliminating a number of costly inputs and zinc oxide itself would represent a very attractive alternative product offering for the Company. Processing Nevada Zinc's ore into zinc oxide would allow Nevada Zinc to sell zinc oxide into a market that is considerably larger than the zinc sulfate fertilizer and animal feed markets. Further testing on additional ore from Nevada Zinc's Lone Mountain site is underway in order to confirm scalability, further refine the process flowsheet and optimize the process economics.

Key results from this current test work will be available in July. Additionally, it is the Company's intention at that time to enter into joint venture talks with the owners of this proprietary zinc oxide production process.