Zone Resources Inc.

Zone Resources Inc.

January 25, 2012 11:09 ET

Zone Resources Inc. Intersects 32.54% Iron Over 167.10 Metres on Labrador Trough Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 25, 2012) - Zone Resources Inc. (Zone) (TSX VENTURE:ZNR)(FRANKFURT:7ZR) reports the results of diamond drill hole ZR11-07 on the company's Moore-Ross Mountain property in the Labrador Trough of northern Québec. The hole intersected an average of 32.54% Fe over 167.10 metres.

Drill hole ZR11-07 was drilled vertically on coincident magnetic and gravity anomalies on the North Slope Zone on the Moore-Ross Mountain property. The hole was collared in magnetite-rich iron formation at the base of casing at 13.90 metres. Various phases of iron formation, mostly magnetite-dominant, continued to 181.00 metres. Total iron contents determined by X-Ray fluorescence analysis varied from 22.20% Fe to 45.92% Fe, with an average of 32.54% Fe over the entire 167.10 metre zone. Dips, as estimated from core angles, vary from 10 to 50 degrees, averaging about 30 degrees. A previous hole on the North Slope zone, ZR11-05, intersected 29.98% Fe over 85.20 metres, 1500 metres to the southeast of ZR11-07. It also was collared in iron formation.

The grade and width of this intersection are comparable with the two recently announced diamond drill holes on the company's Girard iron property, 70 kilometres to the southeast of Moore-Ross Mountain. ZR11-08 intersected 35.77% Fe over 243.00 metres and ZR11-09 cut 35.64% Fe over 137.00 metres. Both of these holes were 50-degree inclined holes on sub-vertical magnetite iron formations, and both were collared in iron mineralization.

Technical information in this news release has been prepared and/or reviewed by Michael Magrum, P.Eng., a Qualified Person as defined in NI 43-101. Analyses were performed by Activation Laboratories Ltd. using X-Ray fluorescence.

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. 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.

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