Russian Recycling Plant Joint Venture Agreement

Monday 22 October 2012

ZincOx Resources plc

("ZincOx" or the "Company")

Russian Recycling Plant Joint Venture Agreement

ZincOx Resources plc announces that it has on 19 October 2012 entered into a Joint Venture Agreement ("JV") with Ural-Recycling LLC, a wholly owned subsidiary of Magnezit Group Limited ("Magnezit"). The JV will cover the first phase of a programme to establish a waste dust recycling facility in Russia.

Magnezit is a major supplier of refractory products and thermo insulating materials with an annual production within the group in excess of 1.5 million tonnes of high quality refractory products. As part of its continuing commitment to expand its provision of services to the steel industry, it is keen to build a zinc and iron recycling plant in Russia to treat electric arc furnace dust ("EAFD"), a waste generated by the recycling of galvanised steel scrap. Magnezit, undertook a detailed evaluation of various EAFD processing technologies and visited ZincOx's Korean Recycling Plant ("KRP"), in May 2012. Magnezit concluded that the technology employed by ZincOx presented the most economically attractive and environmentally sustainable treatment process. 

The JV provides for an ownership participation of 51%:49% ZincOx:Ural-Recycling respectively, with Ural-Recycling as the operator. ZincOx will provide testwork and the knowhow of the rotary hearth furnace recycling technology, plant design and commissioning and technical support. The JV will cover all Russia and the Commonwealth of Independent States.

The JV envisages the preparation of a feasibility study over the course of the next 22 months so that by the end of 2014 the project could be ready for the commencement of construction.

There has been a rapid growth in the recycling of steel in the region in recent years and the total amount of EAFD generated in Russia alone is estimated to be over 200,000 tonnes per annum, a figure that is expected to continue to grow for the foreseeable future.

Commenting on the announcement, Andrew Woollett, ZincOx's Executive Chairman, said "The invitation to join Magnezit in the development of a plant in Russia is an exciting prospect for ZincOx and a great endorsement of our technology. It marks another step in our ambition to roll this technology out around the world and we feel Magnezit is ideally placed to leverage its considerable experience in the Russian steel industry to support this important project".

Commenting on the announcement Sergei Odegov, Chief Executive Officer of the Magnezit Group, said "We are delighted that ZincOx agreed to work with us on the development of this plant which will have huge benefits for the protection of the environment in Russia"

For further information please contact:

About ZincOx:

ZincOx treats and recycles EAFD, a hazardous waste generated by the recycling of steel scrap. The Company's long term objective is to operate a network of recycling plants covering each of the major steel recycling regions of the world.

ZincOx has carried out ten years of research and development to find the best way of processing EAFD. It has selected an existing iron making technology that has been optimized for the recovery of zinc. The Company's approach is energy efficient and with very high zinc and iron recovery into two products without the generation of any waste, as such the process it represents is a technically, economically and environmentally superior solution to the problem of EAFD.

The Company's first recycling plant has been completed in Korea where the company has 10 year EAFD supply agreements covering approximately 400,000 tonnes per annum. Phase 1 development commenced in November 2010 and it commenced production in April 2012. Ramping up to full production is progressing. The development of Phase 2 is underway.

ZincOx listed on the Alternative Investment Market (AIM) of the LSE on 10 December 2001 under the ticker ZOX.

www.zincox.com

About Magnezit:

Magnezit Group is one of the world's leading manufacturers of high-class refractory products and maintenance services. The group is based out of Russia and has production facilities located in Russia, Germany, Slovakia and China. The company provides first-class solutions in the field of complete furnishing and maintenance of heating units globally.

Offering a full range of shaped and unshaped refractory and thermo-insulating materials for various thermal devices, total production capacity of the group exceeds 1.5m tonnes per year of high-quality refractory products. Commitment to quality management systems in accordance with the ISO 9001:2000 standard ensures continual improvement of products and processes.

The Company provides a complete cycle of production and sale of refractory materials from mining of raw materials to furnishing of engineering and maintenance services.

www.magnezit.ru/en