Zone Resources Inc.

Zone Resources Inc.

July 11, 2011 09:00 ET

Zone Resources Inc. Signs Drilling Contract for Quebec Iron Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 11, 2011) - Zone Resources Inc. (Zone) (TSX VENTURE:ZNR)(FRANKFURT:7ZR) reports announce that it has signed a contract to carry out diamond drilling on its Labrador Trough iron properties, in the Nunavik district of Northern Quebec. The property is 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 has an option agreement with Tata Steel for a $4.9-billion development which includes the construction of a 750-kilometre slurry pipeline).

The recent granting of a drill permit by the Quebec government has allowed the company to enter into a drilling contract with Discovery Diamond Drilling Limited, a company with extensive experience in drilling under Arctic conditions. Winter drilling during the 1950's, on the current Zone properties, shows that drilling can be carried out year round. It is anticipated that drilling will commence in August of 2011.

Zone is planning an aggressive exploration program this summer to evaluate historic iron-ore zones on the properties, and to further explore new target being generated by geophysical surveys.

Technical information in this news release has been reviewed by Mike Magrum, P.Eng., 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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