Yukon Zinc Corporation

Yukon Zinc Corporation

June 13, 2008 14:28 ET

Yukon Zinc Corporation: ISS Canada Recommends that Yukon Zinc Shareholders Vote for the Arrangement with YZC Acquisition Corp.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 13, 2008) - Yukon Zinc Corporation (TSX VENTURE:YZC) ("Yukon Zinc") today announced that RiskMetrics Group - ISS Governance Services ("ISS"), Canada's leading independent proxy advisory firm, published a report recommending that shareholders of Yukon Zinc support the proposed Arrangement with YZC Acquisition Corp. Pursuant to the Arrangement, YZC Acquisition Corp. will acquire all of the issued common shares, warrants and options of Yukon Zinc. The ISS recommendation was based on a review of the rationale for the transaction described in the Management Information Circular (the "Circular") of Yukon Zinc dated May 26, 2008, including the fact that the transaction is a cash sale with a premium in the offer price. ISS is widely-recognized as the leading independent proxy voting and corporate governance advisory firm in both Canada and the United States. Its analyses and recommendations are relied upon by hundreds of major institutional investment firms, mutual funds and fiduciaries throughout North America.

A resolution approving the Arrangement will be considered at the annual and special meeting (the "Meeting") of shareholders to be held on June 25, 2008. Yukon Zinc's Board of Directors has determined that the Arrangement is fair to the Yukon Zinc shareholders and that it is in the best interests of Yukon Zinc and recommends that Yukon Zinc Shareholders vote in favour of the Arrangement at the Meeting.

Shareholders can vote by phone, internet or mail, and instructions can be found in the Circular which is available under Yukon Zinc's profile on SEDAR at www.sedar.com. If shareholders have questions about voting, they can contact Yukon Zinc's proxy solicitor, Laurel Hill Advisory Group, LLC, toll-free at (888) 268-4302. Proxies must be received no later than 11:00 a.m. (PST) on June 23, 2008.

About Yukon Zinc

Yukon Zinc is a TSX Venture Exchange listed company based in Vancouver. It is focused on development of its silver-rich Wolverine Project in southeast Yukon and its large exploration land holdings in the Finlayson and Rancheria Districts. A bankable feasibility study was completed for the Wolverine Project by Wardrop Engineering in January 2007 indicating favourable project economics. The Project has all of its main development permits and enjoys strong support from the Yukon Government and its local First Nations communities.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of applicable Canadian securities laws concerning the business, operations and financial performance and condition of Yukon Zinc. Forward-looking statements include, but are not limited to, statements with respect to the future price of metals, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, hedging practices, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, timing and possible outcome of pending litigation, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Yukon Zinc to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the integration of acquisitions; risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although Yukon Zinc has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Yukon Zinc does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

12G: 82-4603

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.

Contact Information

  • Yukon Zinc Corporation
    Dr. Harlan Meade
    President and CEO
    (604) 682-5474 or Toll Free: 1-877-682-5474
    Yukon Zinc Corporation
    Shae Dalphond
    Manager, Investor Communications
    (604) 682-5474 or Toll Free: 1-877-682-5474
    (604) 682-5404 (FAX)
    International Toll Free: 1-800-8682-5474
    Email: info@yukonzinc.com / Website: www.yukonzinc.com