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

Zone Resources Inc.

August 03, 2011 18:16 ET

Zone Resources Inc. Closes Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 3, 2011) - Zone Resources Inc. (TSX VENTURE:ZNR)(FRANKFURT:7ZR) (Zone) announces that the TSX Venture Exchange has accepted the non-brokered private placement announced on July 5th 2011 and increased on July 22nd 2011.

A total of 12,158,500 units were issued as non-flow-through units consisting of one common share and one full warrant for total proceeds of CDN $1,459,020. One full warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.16 per share for the first year and at a price of $0.20 through to completion of the second year.

Shares, warrants and any shares issued upon exercise of the warrants are subject to a hold period of four months expiring Dec 3rd 2011. The proceeds of the private placement will be used for general working capital and for exploration in the Labrador Trough.

The following pro groups and insider participated in the private placement;

Pro groups: Kerry Chow 400,000 shares; Roberto Chu 100,000; Judy Chu 100,000; David Hamilton Smith 100,000; Dallas Fahy 100,000; Lorne Kwiatkowski 100,000; Shaun Chin 25,000; Brak Daem 25,000; Behzad Manavi-Tehrani 20,000; Azim Dhalla 20,000.

Insiders: Pinetree Resources Partnership 1,000,000; Gordon Jang 550,000 shares.

Finders' fees: $35,760 cash and 298,000 warrants payable to Canaccord Genuity Corp.; $32,400 cash and 270,000 warrants payable to Haywood Securities Inc.; $6,000 cash and 50,000 warrants payable to Mulu Weyesa; $5,400 cash and 45,000 warrants payable to Service de Marketing The Ask; $4,200 cash and 35,000 warrants payable to Raymond James Ltd.; $3,600 cash and 30,000 warrants payable to PI Financial Corp.; $3,000 cash and 25,000 warrants payable to EMD Financial Corp.; $2,400 cash and 20,000 warrants payable to Wolverton Securities Ltd.; $2,400 cash and 20,000 warrants to Macquarie Private Wealth Inc.; $2,346 cash and 19,550 warrants payable to Union Securities Ltd.; $1,920 cash and 16,000 warrants payable to Wellington West Capital Inc.

Terms of Finders' warrants: One finders' warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.12 per share for a period of 2 years.

About Zone Resources Inc.

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