Zone Resources Inc.

Zone Resources Inc.

April 27, 2011 09:00 ET

Zone Resources Inc. Adds Significantly to its Land Package in the Labrador Trough, Quebec

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 27, 2011) - Zone Resources Inc. (Zone) (TSX VENTURE:ZNR) announces that it has acquired an option to earn a 100% interest in the Moore-Ross Iron property, consisting of approximately 4,000 hectares, located in Nunavik, northern Quebec. The terms of the agreement are subject to regulatory approval of the TSX Venture Exchange. The property, located in the Labrador Trough, covers historic Iron Formation mineralization, known as the Moore, Ross Mountain, Ross Mountain West, Eagle's Nest and Jasper Lake showings and several other unnamed areas of Iron Formation mineralization.

The Moore-Ross Iron property is northwest of Adriana Resources' Lac Otelnuk Project (wherein Wuhan Iron and Steel Corp. has paid $120 million for a 60% interest), and New Millenium's Kémag and Labmag projects (who have an option agreement with Tata Steel for a $4.9 billion development which includes the construction of a 750 km slurry pipeline). The property has not been subjected to modern exploration methods.

The property covers historic iron showings, initially discovered in 1948, with exploration carried out by Fenimore Iron Mines Ltd., up to the mid-1950's. Several samples, from different areas within the present property area, returned values ranging from 21.84% to 56.5% Fe.

The Ross Mountain showings were described by Lucien Eaton in 1949 as "... two hills of Iron Formation with overlying slate more than two miles long... these hills stand 100 to 200 ft., above the plains... There are many outcrops of iron formation for two miles west of Ross Mountain, some of them showing considerable oxidation and enrichment." Reviewing the Ross Mountain-Ross Mountain West areas of the project, on Google Earth, clearly shows abundant iron oxidation. To view the map, click here:

The Moore showings, located a further approximate 2 miles NW of the Ross Mountain West area, were described in a 1948 report, by Corking, who summarized the visit to the Moore showings "... to examine what appeared, on aerial reconnaissance, to be a sizable area of oxidization... ". The report describes the Moore Showing area as, "The showing consists of iron formation of the 'hard-ore jasper' type which has been oxidized to an advanced degree, to form a... hematite... in one or two places, beds of hard, blue hematite are exposed..." Several grab samples from the Moore showings are tabulated in this report and range from 29.67% Fe to 67.35% Fe. Corking goes on to report "... The oxidized iron formation is exposed for perhaps 2000 feet along the flanks of a sharply V-shaped ravine which almost parallels the structure, and cuts it in such a way that the north side shows mostly oxidized iron formation and the south side, mostly red sandstone with some oxidized iron formation. The thickness of the exposed oxidized material is obscured by talus debris, but it probably exceeds 50 feet; if the structure has been interpreted correctly, there must be several hundred feet lying above which does not outcrop..."

The property is located approximately 115 kilometers southwest of Kuujjaaqq Port in Northern Quebec.

Pursuant to the terms of the option agreement, Zone will pay a cumulative amount of $235,000 cash and issue 2,150,000 common shares over a three year period. The Moore-Ross Iron Property will also be subject to a 2.0% Net Smelter Royalty ("NSR") and Zone shall have an option to purchase 1% of the NSR for the sum of $1,000,000 at any time up to when a production decision is made.

Technical information in this news release has been reviewed by Mike Magrum, PEng, a qualified person as defined in NI 43-101.

About Zone Resources Inc.

Zone Resources Inc. is in the business of evaluating and acquiring mineral ,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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