Zazu Metals Corporation
TSX : ZAZ

Zazu Metals Corporation

May 03, 2011 10:48 ET

Zazu Metals Corporation: JDS Energy and Mining to Advance Lik Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 3, 2011) - Zazu Metals Corporation (TSX:ZAZ) ("Zazu") is pleased to announce the selection of JDS Energy and Mining, Inc. ("JDS") to engineer the Lik deposit to the feasibility study stage. Zazu's Lik deposit is located 22 km from Teck's Red Dog Mine in Northwest Alaska.

JDS has substantial experience working in the Arctic as well as in zinc mines, having developed the G-9 zinc mine for Farallon Mining Ltd. ("Farallon"). The G-9 mine went into production 4 years after discovery and was subsequently purchased by Nystar NV, one of the world's largest refiners of zinc, for approximately C$409,000,000. For more information on JDS please see their website at www.jdsmining.ca.

Over the last two years Zazu completed a suite of metallurgical, engineering and environmental studies, and secured the appropriate work permits to enable rapid project advancement. JDS and Zazu are now planning the work programs to progress the project to feasibility study level as accurately, cost effectively and quickly as possible.

Zazu previously retained JDS to evaluate potential areas of improvement in the positive Preliminary Assessment Study ("PAS") of May 2010. Their subsequent analysis suggested that the IRR of the project could be significantly increased from the original PAS estimate.

The Alaska Industrial Development and Export Agency ("AIDEA"), a public corporation of the State of Alaska and owners of the haul road and port utilized by the Red Dog Mine, is currently conducting due diligence on the JDS findings as a precursor to financing regional infrastructure modifications to support the Lik project. AIDEA selected the Behre Dolbear Group, Inc. to complete the due diligence review.

The JDS study is available on the AIDEA website. It is conceptual in nature and not NI 43-101 compliant, and accordingly cannot be relied upon. The PAS is available on SEDAR.

Zazu's recent private placement to Zebra Holdings and Investments S.À.R.L (Zebra), a company owned by a trust settled by the late Adolf H. Lundin, provided sufficient funds to complete the required work and conduct exploration drilling on the contiguous Lik North deposit. Lik North already hosts a high-grade Inferred Resource and shows high exploration potential.

The zinc market will be faced with several large mine closures over the next five years, with limited potential for replacement. Zazu offers investors the opportunity to participate in a large, high-grade sulphide and open pit-able zinc deposit, located 20kms from existing infrastructure.

Roscoe Postle Associates, Inc. ("RPA"), formerly Scott Wilson RPA, completed an updated Mineral Resource estimate in May of 2009. Their estimate of Lik South is an Indicated Mineral Resource of 18.74 million tonnes grading 8.08% zinc, 2.62% lead and 52.8 g/t silver; plus an Inferred Mineral Resource of 1.23 million tonnes grading 6.80% zinc, 2.12% lead and 35 g/t silver, at a 5% cut off grade. Lik North is an additional 5.18 million tonnes grading 9.65% zinc, 3.25% lead and 51 g/t silver of Inferred Resource at a 7% cut off grade. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The part of this news release pertaining to the Mineral Resource estimate was reviewed by Dr. William E. Roscoe, P.Eng., a Principal Consulting Geologist with RPA, and Neil N. Gow, P.Geo., Associate Consulting Geologist with RPA, both of whom are qualified person as defined by National Instrument 43-101.

About Zazu Metals:

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% interest in the Lik zinc - lead - silver deposit in North West Alaska. 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, a strong treasury and no debt.

Additional information about Zazu including a company presentation is available 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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