Korean Recycling Plant Update

9 January 2013

ZincOx Resources plc

("ZincOx" or the "Company")

KOREAN RECYCLING PLANT UPDATE

ZincOx Resources plc (AIM: ZOX) is pleased to announce the latest progress at its wholly-owned Korean Recycling Plant ("KRP") in South Korea. Since the last full maintenance closure on Christmas Eve, from 25th December 2012 until 6th January 2013, 5,671 tonnes of Electric Arc Furnace Dust ("EAFD") were processed, equivalent to 93% of the target throughput.

Production at KRP has steadily increased since start-up at the end of April 2012. From the beginning of December in particular, there has been a marked improvement in the reliability of the plant with increasingly fewer stoppages and reduced maintenance downtime (please see link below to Throughput Graph). As previously announced, the hot briquetting circuit which takes the hot briquettes and makes them into an intermediate iron product (ZHBI), caused problems, and while many of these issues have been resolved, it is likely to be some weeks before this part of the plant will be in full continuous operation. However zinc concentrate production, which accounts for over 85% of projected revenue, should not be affected significantly by this delay. Over the next few months there will, from time to time, be short stoppages for the installation of new equipment designed to improve efficiency, but there will be an increasing focus on optimising the operating conditions to increase zinc recovery and iron metallisation and reduce costs.

In line with the original development plan, and as indicated in the announcement of 1st November 2012, for the first year of production, until May 2013, the target throughput of the plant is 15,500 tonnes per month of EAFD. Throughput remains on track to rise to the full design capacity of 17,700 tonnes per month in the last quarter of 2013 through a programme of debottlenecking and efficiency improvements. These tonnages allow for the scheduled three week annual inspection and maintenance closure.

Commenting on the announcement, Andrew Woollett, ZincOx's Chairman said:

"We are very pleased with the recent increased throughput of the plant, and we are confident that within a few months we will have demonstrated that it is routinely operating at the target level. Furthermore, we are now in a position to finalise the design for future plants, and we are looking forward to doubling the size of KRP and developing similar plants elsewhere in the world."

Background

KRP is processing EAFD, a zinc bearing hazardous waste generated by the recycling of galvanised steel scrap. At full production and based on the quality of EAFD received, KRP is expected to produce about 78,000 tonnes per annum of a high quality zinc concentrate (zinc content of approximately 62%) and, in addition, 100,000 tonnes per annum of ZHBI. The current operation at KRP is the first of a two phase development of the project that will ultimately treat 400,000 tonnes of EAFD per annum. The EAFD is being sourced from all the major steel producers in Korea under 10 year exclusive supply agreements and the zinc concentrate has been sold to Korea Zinc under a ten year offtake agreement.

The second phase of development at KRP is likely to be financed at least in part by a project finance facility being arranged by Standard Chartered Bank, subject to credit committee approval, documentation and demonstration of the process. Engineering work on the second phase is well under way and long lead time items of equipment have been identified.

http://www.rns-pdf.londonstockexchange.com/rns/1170V_-2013-1-8.pdf

For further information please contact: