Zone Resources Inc.

Zone Resources Inc.

August 29, 2011 09:00 ET

Zone Resources Inc. Has Mobilized a Drill to the Labrador Trough Iron Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2011) - Zone Resources Inc. (Zone) (TSX VENTURE:ZNR)(FRANKFURT:7ZR) announces that Discovery Diamond Drilling Ltd., of Ontario, has mobilized a drill to the Labrador Trough to begin diamond drilling on the Zone Land Package.

Zone has optioned four iron properties, totaling 41,500 hectares, in the Labrador Trough in Nunavik in Northern Quebec. Drilling in the 1950s had outlined a number of zones of iron mineralization. The properties are northwest of Adriana Resources' Lac Otelnuk project (wherein Wuhan Iron and Steel Corp. has paid $120-million for a 60-per-cent interest), and New Millennium's Kemag and Labmag projects (which have an option agreement with Tata Steel for a $4.9-billion development which includes the construction of a 750-kilometre slurry pipeline).

Logistical planning is continuing to begin diamond drilling as soon as possible. Winter drilling during the 1950s, on the current Zone properties, shows that drilling can be carried out year-round.

Zone has begun an aggressive exploration program to evaluate historic iron mineralization on the properties and will explore new targets being generated by geophysical surveys, including a recently completed airborne magnetic survey.

The company has a continuing consultation process with the Inuit of Nunavik. Work activities will be serviced out of the community of Kuujjuaq, where the company will strive to maximize the use of local businesses and local employment.

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

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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