Production Update

12 September 2012

ZincOx Resources plc

("ZincOx" or the "Company")

Korean Recycling Plant Production Update

Operation achieves positive EBITDA

ZincOx Resources plc (ZincOx) announces that the throughput of the rotary hearth furnace at its wholly owned Korean Recycling Plant (KRP) has been steadily increasing as the plant ramps up to full production, and latterly it has been operating at over 70% of first year's target capacity, which at today's zinc price (US$1,900/t) generates a positive EBITDA1.

As stated in the announcement of 15 August 2012, the hot briquetting circuit was found to require modification and upgrading and this work has now been successfully completed so that the equipment may be operated at design capacity. The target quality of the iron product (ZHBI) will, however, need to await the installation of additional monitoring equipment which is scheduled for delivery in October. The positive operating cash flow, announced herein, has been achieved without any contribution from the ZHBI which is, at current iron prices, expected to contribute about a further US$5.5 million of revenue per annum at full capacity. The precise value of the ZHBI is, however, awaiting the results of commercial testwork by prospective customers.

A recent routine inspection of the plant has revealed corrosion in a small part of the gas handling system. Production has therefore been suspended while the corroded part is replaced. In order to prevent corrosion in future there has been a small modification to the design of the equipment. Furthermore, stainless steel of a particularly high quality is required and this must be sourced and the part fabricated in Europe. Production is, therefore, likely to be suspended for about three weeks while the repair work is undertaken. The gas handling system was supplied by a consortium of German companies that provided process and equipment guarantees that will cover the cost of this remediation work.

Commenting on the announcement, Andrew Woollett, ZincOx's Executive Chairman, said "We are delighted that the ramp-up towards full production has now, on the basis of our zinc revenue alone, put the operation into positive EBITDA, this represents a major milestone for the development of this flagship project".

The Board expects to report half yearly results for the six months to year ending 30 June 2012 on 27 September 2012.

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1. EBITDA - Earnings before interest, tax, depreciation and amortisation