Zone Resources Inc.
TSX VENTURE : ZNR
FRANKFURT : 7ZR

Zone Resources Inc.

November 02, 2011 17:31 ET

Zone Resources Inc. Closes First Tranche of the Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 2, 2011) - Zone Resources Inc. (Zone) (TSX VENTURE:ZNR)(FRANKFURT:7ZR) announces that the first tranche, with respect to the non-brokered private placement announced on October 11th 2011, has closed. The Company raised $578,800.

A total of 2,860,000 units at a price of $0.08 per unit were issued as non-flow-through units consisting of one common share and one share purchase warrant. One warrant will entitle the holder to purchase one additional common share of the company at a price of 12 cents per share for the first year and 15 cents until expiration on the second year.

A total of 3,500,000 units at a price of $0.10 per unit were issued as non-flow-through units consisting of one common share and one half (1/2) share purchase warrant. One whole warrant will entitle the holder to purchase one additional common share of the company at a price of 12 cents per share for the first year and 15 cents until expiration on the second year.

Shares, warrants and any shares issued upon exercise of the warrants are subject to a hold period of four months expiring March 2, 2012. The proceeds of the private placement will be used for exploration activities and general working capital.

Finders' fees: Haywood Securities Inc. receives $20,000 and 250,000 share purchase warrants, where each warrant is exercisable at a price of $0.08 per share until expiration November 1, 2013.

About Zone Resources Inc.

Zone Resources Inc. is a Canadian Iron exploration and development company with 4 major projects situated in the Labrador Trough of Quebec, Canada. The properties are near Adriana Resources' Lac Otelnuk Project and New Millennium's Kemag and Labmag Projects. Historical drilling on the Moore-Ross property includes a significant hole grading 42.9% iron over 197 feet. Over 37 drill holes, the primary iron mineral is hematite and iron grades ranged from 17.25% to 44.8%. The Company's shares trade on the TSX Venture Exchange under the symbol ZNR and on the Frankfurt Exchange under the symbol 7ZR.

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.

Contact Information