Canadian Zinc Corporation

Canadian Zinc Corporation

March 30, 2005 20:11 ET

Canadian Zinc Reports 2004 Financial Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANADIAN ZINC CORPORATION

TSX SYMBOL: CZN

MARCH 30, 2005 - 20:11 ET

Canadian Zinc Reports 2004 Financial Results

TORONTO, ONTARIO--(CCNMatthews - March 30, 2005) - Canadian Zinc
Corporation (TSX:CZN) announced today that it has filed its audited
financial statements for the year ended December 31, 2004 and related
Management's Discussion and Analysis with Canadian security regulatory
authorities. Copies of the documents are available on SEDAR at
www.sedar.com and on the Company's website at www.canadianzinc.com

For the year ended December 31, 2004 Canadian Zinc reported a net loss
of $679,127 ($0.01 per share) compared to a loss of $904,860 ($0.02 per
share) in 2003. The lower loss in 2004 was principally the result of
higher interest income earned in 2004.

The Company is in the exploration and development stage and does not
generate any cash flow. Interest income in 2004 was $330,076 compared to
$28,318 in 2003, the increase being attributed to higher cash balances
invested throughout the full year. Administrative expenses for 2004 were
$1,005,409 compared to $928,121 in 2003, the increase being attributable
to increased corporate activity.

Canadian Zinc's cash position, including term deposits, at December 31,
2004 was $12,907,997, compared to $13,339,442 at December 31, 2003. The
Company generated $2,444,625 during 2004 from the exercise of share
purchase warrants and employee stock options. The Company is in a strong
debt free financial condition and in position to carry on its planned
exploration, development and permitting activities.

During 2004 the Company carried out a major program at the Prairie Creek
property investing a total of $2.1 million on exploration and
development. A total of 27 holes were drilled comprising 5,936 meters
directed at three different targets with very encouraging results,
especially downdip to the north outside the immediate mine development
area. At the same time the underground workings were rehabilitated in
preparation for the planned decline and underground drilling program,
whilst important site maintenance and environmental work was also
carried out.

Plans for 2005 include continuing the Company's exploration program at
the Prairie Creek property, outside the immediate currently known
resource area, and initiating the planned underground decline and
development and underground drilling program. At the same time ongoing
technical and metallurgical studies will be carried out to advance the
project towards commercial production. The Company will also continue
with its permitting activities and expects during the year to file an
application for the Land Use Permits and Water Licence for commercial
operation for the Prairie Creek mine.

The Company is also undertaking the review of a number of other new
mining investment opportunities and this activity will continue in 2005.

This press release should be read in conjunction with the Audited
Financial Statements and the Notes thereto, and Management's Discussion
and Analysis, of Canadian Zinc Corporation for the year ended December
31, 2004.

About Canadian Zinc

Canadian Zinc's 100% owned Prairie Creek Mine Project located in the
Northwest Territories includes a near complete mine, mill and
surrounding infrastructure with a large mineral resource base totaling
11.8 million tonnes, grading an average12.5% zinc, 10.1% lead, 0.4%
copper and 161 grammes of silver per tonne. The resource contains an
estimated 70 million ounces of silver, approximately 3 billion pounds of
zinc and approximately 2.2 billions pounds of lead.

A more extensive description of the Company's activities is available on
the Company's web site at www.canadianzinc.com

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Canadian Zinc Corporation
    John F. Kearney
    Chairman
    (416) 362- 6686
    (416) 368-5344 (FAX)
    or
    Canadian Zinc Corporation
    Alan Taylor
    Vice President Exploration & Chief Operating Officer
    (604) 688- 2001 or Toll free: 1-866-688-2001
    (604) 688-2043 (FAX)
    invest@canadianzinc.com
    www.canadianzinc.com