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Zone Resources Update

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VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/16/13 -- Zone Resources Inc. (TSX VENTURE: ZNR)(FRANKFURT: 7ZR) (the "Company') reports that due to the potential length of the legal dispute associated with certain claims within the Girard Lake property and previously reported on September 25, 2012, the Company is separating out a portion of its claims. Currently there are 226 claims totaling approximately 26,225 acres that are part of the ongoing legal dispute. The Company considers the allegations in the legal dispute to be without merit and intends to continue to vigorously defend its position. Moving forward, these claims will be referred to as Girard Lake West.

The remaining 315 claims totaling approximately 36,816 acres will be re-named the Lac Edgar claim block. Drill hole ZR11-09, the first and only hole to date on the Lac Edgar claim block, intersected iron formation with an average of 35.64% Fe over 137.00 metres. To view the airborne magnetic map with the plotted locations for drill hole ZR11-09 visit the following link: http://www.zone-resources.com/image/girard_mag_survey.png.

Drill hole ZR11-09 was drilled at -50 degrees along a 9 kilometre long airborne magnetic anomaly. It was collared in magnetite-rich iron formation at the base of casing at 3.00 metres. Iron contents of individual samples ranged up to a maximum 45.06% Fe, with the previously mentioned average of 35.64% Fe over the 137.00 metre intercept. A second, narrower zone of iron formation averaging 29.01% Fe of 10.45 metres was encountered 86 metres below the 137 metre intersection. The dip of the main iron zone in proximity to drill hole ZR11-09 is approximately vertical based on core angles. Drill hole ZR11-09 was collared in iron formation, and therefore did not intersect the full width of the main zone.

The magnetic survey previously flown over the Lac Edgar claim group outlined numerous magnetic anomalies: the aggregate length of all the magnetic anomalies, believed to be caused by magnetite iron formation (with amplitude over 1,000 nT), is approximately 50 kilometres in length and has the potential for Direct Shipping Ore ("DSO")

Historic Work:

In addition to the drilling performed by Zone in 2011, as well as the magnetic survey outlining the magnetic anomalies, there are several historic occurrences on the property discovered between 1949 and 1954 by Quebec Labrador Development Company, which have been mapped in considerable detail. Trenching and drilling on the Lac Edgar claim group was carried out, however there were only records of trench sampling and assays available for the McDonald and Ball no. 1 showing. In addition to these two showings there are three other historic showings indicated on the historic map: The Carter showing; the Carter-Steele showing; and the Gagnon no.1 showing. View all of the historic and modern showings on above magnetic survey map (http://www.zone-resources.com/image/girard_mag_survey.png)

McDonald Showing

GM2160A states that: "A showing known as the McDonald was discovered, having a rust area of over one and one half miles and widths exceeding 500 feet.

Four trenches totaling 2600 feet and 26 test pits were completed on the north end of this zone where the overburden was lightest and a minimum of water was encountered. High iron assays were secured but the silica content was also high, but as work preceded south the silica content decreases. However, in this work, quartzites were encountered and test pits were then put down to determine the strike, widths and dips, but as yet this work has not been carried through to a definite conclusion."

The following table gives a summary of the trench results.

----------------------------------------------------------------------------No. Location Fe% SiO2% Mn% P% S%----------------------------------------------------------------------------65A 1 Trench North End 41.75 40.25----------------------------------------------------------------------------64A 1 Trench 105W 63A 33.25 33.95----------------------------------------------------------------------------65A 1 Trench 20W 63A 28.37 54.85----------------------------------------------------------------------------66A 1 Trench 30W 63A 39.50 41.85----------------------------------------------------------------------------67A 1 Trench 40W 63A 40.50 40.45----------------------------------------------------------------------------68A 1 Trench 50W 63A 50.25 37.75----------------------------------------------------------------------------69A 1 Trench 60W 63A 43.25 34.70----------------------------------------------------------------------------70A 1 Trench 70W 63A 47.25 33.80----------------------------------------------------------------------------71A 1 Trench 80W 63A 44.12 35.85----------------------------------------------------------------------------52A 2 Trench North End 50.158 24.24 0.10 0.013 0.01----------------------------------------------------------------------------53A 51 S 52A 42.36 37.31 0.24 0.013 0.026----------------------------------------------------------------------------54A 68 S 52A 52.79 22.82 0.08 0.017 0.01----------------------------------------------------------------------------55A 83 S 52A 57.08 16.84 0.10 0.026 0.011----------------------------------------------------------------------------56A 83 S 52A 50.77 26.28 0.09 0.015 0.016----------------------------------------------------------------------------57A 94 S 52A 58.43 15.81 0.11 0.019 0.01----------------------------------------------------------------------------58A 100 S 52A 49.23 28.48 0.22 0.016 0.009----------------------------------------------------------------------------59A 109 S 52A 59.75 13.48 0.09 0.024 0.009----------------------------------------------------------------------------60A 116 S 52A 65.24 5.85 0.08 0.024 0.011----------------------------------------------------------------------------85A 4 Trench SW End 46.78 31.50 0.09 0.018 0.01----------------------------------------------------------------------------86A 3 NE 85A 46.86 31.32 0.16 0.02 0.009----------------------------------------------------------------------------87A 8 NE 85A 48.07 29.72 0.09 0.016 0.008----------------------------------------------------------------------------68A 13 NE 85A 44.03 35.15 0.07 0.014 0.011----------------------------------------------------------------------------89A 20 NE 85A 40.12 42.65----------------------------------------------------------------------------9QA 25 NE 85A 35.25 48.80----------------------------------------------------------------------------91A 28 NE 85A 45.50 33.60----------------------------------------------------------------------------76A Pit No 4 48.75 36.95----------------------------------------------------------------------------79A Pit No 5 50.60 28.30----------------------------------------------------------------------------72A Pit No 6 40.37 40.75----------------------------------------------------------------------------61A Pit No 7 59.26 13.59 0.10 0.016 0.01----------------------------------------------------------------------------51A Pit No 8 54.33 21.36 0.11 0.017 0.013----------------------------------------------------------------------------50A Pit No 12 51.01 25.61 0.11 0.022 0.01----------------------------------------------------------------------------85A Pit No 14 46.00 34.00----------------------------------------------------------------------------80A East End Pit 15 37.87 45.00----------------------------------------------------------------------------80 East End Pit 15 33.75 51.45----------------------------------------------------------------------------77A East End Pit 16 35.37 48.50----------------------------------------------------------------------------78A East End Pit 16 50.16 27.09 0.11 0.016 0.011----------------------------------------------------------------------------73A East End Pit 17 52.41 9.08 0.32 0.029 0.012----------------------------------------------------------------------------82A East End Pit 18 56.70 17.93 0.05 0.02 0.008----------------------------------------------------------------------------74A East End Pit 22 43.00 31.75----------------------------------------------------------------------------75A East End Pit 22 40.75 32.00----------------------------------------------------------------------------84A East End Pit 23 47.50 30.95----------------------------------------------------------------------------



Apparently, 36 drill holes of less than 100 feet were put down on the McDonald showing and surrounding area with "poor results". However, given that their objective was to find DSO, and looking at the trench assays, which averaged 44.6% Fe and ranged as high as 65.24% Fe - well within the range of DSO - and bearing in mind that finding a taconite deposit was not regarded as a success, it is quite possible that drill results would be considered "poor".

Ball No. 1 Showing

This showing is described as having heavy rust over an area of 1400 feet by 900 feet. According to GM2160A, there is a fold in the iron formation:

"The country rock at the Ball showing is iron formation of the Hard-Ore Jasper type, consisting of finely oolitic jasper, magnetite and hematite with minor amounts of iron carbonate and silicates. Oxidization of this rock has produced a soft, crusty-textured, blood-red material in which most of the iron minerals have been converted to hematite and some of the silica has been leached out. Analysis of nine samples (http://www.zone-resources.com/projects/girard/) showed iron content ranging from 28% to 43% and silica from 24% to 59%; a composite sample of these nine specimens assayed 0.22% sulphur and 0.0107% phosphorus. Prospecting is made difficult by overburden which ranges in depth to at least 25 feet and testing must be done by digging pits through it to bedrock. The work done to date consists of 15 test-pits, covering a length of 800 feet and a width in one place of 600 feet. The actual dimensions of the oxidized zone are not known because of the glacial covering; on the evidence of the soil colouration however, it is estimated that not more than 10% of the zone has been test-pitted. Five short diamond drill holes were driven to confirm the general character of the oxidized formation.

----------------------------------------------------------------------------Drill Hole Footage Iron% Silica%----------------------------------------------------------------------------1 0-6.0 51.48 1.32----------------------------------------------------------------------------1 6.0-10.0 36.88 42.80----------------------------------------------------------------------------2 0-8.0 33.04 51.00----------------------------------------------------------------------------3 0-2.0 33.52 52.52----------------------------------------------------------------------------3 2.0-5.0 35.88 37.68----------------------------------------------------------------------------3 5.0-8.0 20.88 51.60----------------------------------------------------------------------------3 8.0-12.0 28.56 28.88----------------------------------------------------------------------------3 12.0-16.0 29.08 53.80----------------------------------------------------------------------------3 16.0-18.0 29.18 44.04----------------------------------------------------------------------------3 18.0-21.0 34.64 27.76----------------------------------------------------------------------------4 0-2.0 23.80 62.16----------------------------------------------------------------------------4 2.0-4.0 24.84 62.50----------------------------------------------------------------------------4 4.0-8.0 29.60 57.23----------------------------------------------------------------------------4 8.0-11.0 40.84 41.44----------------------------------------------------------------------------4 8.0-17.0 26.84 57.44----------------------------------------------------------------------------



Eight drill holes in 1948, maximum depth 50 feet intersected limonite-slate-chert. No logs were available. All diamond drilling was done by a small X-Ray drill. Very soft low grade hematite was encountered to depths of 40 feet increasing in depth as work progressed to the east. However, due to heavy boulders, overburden and a capping of green slates, the drill was not of sufficient strength to operate further and drilling was discontinued but not before an area exceeding 600 feet in width and 1000 feet in length was explored." Note: historical information is not National Instrument 43-101 compliant and cannot be relied upon.

Zone Resources is currently reviewing potential joint venture opportunities in order to initiate a work program for the Lac Edgar claim block in the spring of 2013.

"Prior to the legal dispute, the Company reviewed potential joint venture opportunities," stated Charles Desjardins, President and CEO. "By segregating the claims associated with the legal dispute, the Company is excited about being able to move forward with further exploration of the Lac Edgar claim block."

The Company further reports that it is proceeding with the private placement originally announced on September 25, 2012. The Company previously announced a non-brokered private placement of up to 10,000,000 units at a price of $0.02 per unit for total proceeds of up to $200,000, subject to the approval of the TSX Venture Exchange. Up to 10,000,000 units will be issued as non flow-through units consisting of one common share and one half of one non-transferable warrant. Each whole warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.05 per share in the first year and $0.10 per share in the second and final year from the date of closing.

The proceeds of the private placement will be used to maintain and preserve the Company's assets and operations. Finder's fees, as allowed pursuant to the policies of the TSX Venture Exchange, may be payable in connection with the offering.

About Zone Resources Inc.

Zone Resources Inc. is a Canadian Iron ore exploration and development company with projects situated in the Labrador Trough of Quebec, Canada.

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.

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.



Contacts:
Zone Resources Inc.
Archie Boyce
Director
(604) 683 5445
(604) 687-9631 (FAX)
info@zone-resources.com
www.zone-resources.com



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