Zone Resources Inc.

Zone Resources Inc.

January 19, 2010 18:20 ET

Zone Resources Inc. Closes First Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 19, 2010) - Zone Resources Inc. (TSX VENTURE:ZNR) (Zone) announces that the first tranche, with respect to the non-brokered private placement announced on December 23rd 2009, has closed. The Company raised $332,000 at a price of $0.20 per share.

A total of 1,660,000 units were issued as non-flow-through units consisting of one common share and one non-transferable share purchase warrant. One warrant will entitle the holder to purchase one additional common share of the company at a price of 25 cents per share for the first year and 30 cents until expiration on the second year.

Shares, warrants and any shares issued upon exercise of the warrants are subject to a hold period of four months expiring May 20, 2010. The proceeds of the private placement will be used for general working capital and the payment of certain debts.

Finders' fees: PI Financial Corp. receives $31,000 and 155,000 share purchase warrants, where each warrant is exercisable at a price of 25 cents per share for the first year and 30 cents until expiration on the second year.

About Zone Resource Inc.

Zone Resources Inc. is in the business of evaluating and acquiring oil and natural gas properties for exploration and development. The Company's shares trade on the TSX Venture Exchange under the symbol ZNR.

Cautionary note:

This report contains forward looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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