Zazu Metals Corporation
TSX : ZAZ

Zazu Metals Corporation

December 14, 2010 08:31 ET

AIDEA Renews Reimbursement Agreement for Zazu's Lik Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 14, 2010) - Zazu Metals Corporation (TSX:ZAZ) ("Zazu") is pleased to announce that the Alaska Industrial Development and Export Agency ("AIDEA") continues their commitment to assist the development of the Lik Deposit through the approval of a one year extension of the due diligence cost reimbursement agreement signed in December 2009.

Zazu recently presented AIDEA with an engineering study on the Lik Deposit, identifying its significant economic potential. This triggered the initiation of AIDEA's due diligence on the project as the first step in the funding decision process for a proposed expansion of the Delong Mountain Transportation System ("DMTS"), to accommodate both the development and future concentrate production from the Lik Deposit.

The DMTS is the haul road and port utilized by Teck's Red Dog Mine and is available for multiple users. It is owned by AIDEA, a public corporation of the State of Alaska. AIDEA will evaluate their possible role in the two parts of the proposed expansion project: the financing of a spur road connecting the Lik deposit to the DMTS, and the financing of additional storage and handling facilities at the port. Under the terms of the agreement Zazu will reimburse AIDEA for their cost of conducting certain activities as part of the evaluation process.

AIDEA is expected to put the due diligence study to tender in early 2011.

Teck is a 50% joint venture partner in the Lik deposit. However, Zazu has the exclusive right to obtain 80% of the property by meeting certain spending commitments by 2018. Zazu is in the enviable position of having a limited number of shares outstanding and no debt.

Zazu is a Canadian-based exploration company focused on acquiring and developing base metal properties in North America. Zazu's principal asset is its 50% joint venture interest with Teck in the Lik zinc – lead - silver deposit in North West Alaska.

Additional information about Zazu is available on its website at www.zazumetals.com.

Additional information about the property is on the Teck website (www.teck.com). Zazu is not responsible for the content, accuracy or timeliness of material contained on the Teck website.

ON BEHALF OF THE BOARD OF DIRECTORS

Gil Atzmon, Chairman and CEO

Some of the statements contained in this news release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

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