Zeehan Zinc floated on AIM on 6th March 2007 raising 8m after expenses.

Resource Update in March 2009

Zeehan Zinc announces that it has received an updated Resource Report from
Hellman & Schofield Pty Ltd for several deposits from the Comstock Zinc Project
in West Tasmania that were initially reported in December 2007.


The updated Resource Report was completed in November 2008, and details a new
geological model for the Comstock mineralisation adopted as a result of a
substantial rethink by Company geologists on the 2006-7 drilling results. This
work identified a new suite of deposits with coherent resources, including the
Boss Lower and Upper Sulphide bodies, Watson's Lode and Main Lode, which were
initially announced on 7th December 2007. In addition another two new resources
are also reported here, namely the Boss Oxide and the Main Lode Surface
material. The estimates have been reported using the JORC Code and Guidelines
and the author, Simon Tear, has the requisite experience to act as a Competent
Person under the JORC Code.


The Boss Lower, Boss Upper and Boss Oxide deposits are now recognised as
strata-bound features, and account for the largest deposits at Comstock. This
change in geological thinking has given rise to the recognition of a new
geological concept and style of mineralisation for West Tasmania.




New Inferred Resources, Comstock Deposit, West Tasmania


The estimated resources are tabulated below using a set of mineralisation shapes
with variable cut off grades and the Ordinary Kriging resource estimation
method. The estimates exclude any likely oxide portion of the deposits except
for the Boss Oxide Deposit. Zeehan Zinc proposes to mine the resources reported
here via an open pit operation and the estimates have been classified according
to this mining strategy.




+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+
| | | | Grade | Contained Metal |
+--------------------+---------+-----------+----------------------+-----------------------------+
| Lode | Cut Off | Tonnes | Zinc | Lead | Silver | Zinc | Lead | Silver |
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+
| | | | % | % | g/t | Mt | Mt | Ozs |
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+
| Boss Lower * | 1% Zn | 1,266,343 | 2.95 | 3.48 | 73.6 | 37,357 | 44,069 | 2,998,098 |
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+
| Boss Upper | 1% Pb | 125,724 | 1.32 | 2.48 | 23.8 | 1,660 | 3,118 | 96,011 |
| Sulphide * | | | | | | | | |
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+
| Boss Oxide | 0.5%Pb | 1,585,186 | 0.23 | 0.99 | 25.7 | 3,646 | 15,693 | 1,309,945 |
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+
| Watson's Lode * | 1% Zn | 28,823 | 3.93 | 1.77 | 21.6 | 1,133 | 510 | 20,019 |
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+
| Main Lode * | 1% Zn | 36,210 | 4.05 | 2.02 | 42.9 | 1,467 | 731 | 49,937 |
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+
| Main Lode Surface | None | 19,512 | 0.92 | 1.41 | 42.6 | 180 | 275 | 26,708 |
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+
| Total | | 3,061,798 | 1.48 | 2.10 | 45.7 | 45,441 | 64,397 | 4,500,717 |
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+
Source: Hellman & Schofield Pty Ltd (2007, 2008)
Note:* Previously reported in RNS 07/12/07
Zeehan Zinc Limited owns 100% of the above resources and is the operator
Minor rounding errors may occur; use of significant figures does not imply
precision




Remaining Resources Allison's Lode, West Tasmania


An updated resource estimate has also been completed for the Allison's Lode
based on additional drilling from 2006-2007, and using a more accurate resource
estimation method. This drilling indicates lower grade material for narrower
widths at the northern end of the resource and has thus slightly reduced the
original size of the resource and caused a slight drop in zinc grade. The 2008
mining of the Allison's Lode has left a remaining resource detailed below.


+-----------+--------+--------+-------+-------+--------+----------+--------+--------+
| | | | Grade | Contained Metal |
| | | | | |
+-----------+--------+--------+------------------------+----------------------------+
| Category | Volume | Tonnes | Zinc | Lead | Silver | Zinc | Lead | Silver |
| | | | | | | | | |
+-----------+--------+--------+-------+-------+--------+----------+--------+--------+
| | (m3) | | % | % | g/t | Mt | Mt | Ozs |
+-----------+--------+--------+-------+-------+--------+----------+--------+--------+
| Measured | 4,500 | 14,850 | 5.37 | 1.10 | 21.0 | 797 | 163 | 10,027 |
+-----------+--------+--------+-------+-------+--------+----------+--------+--------+
| Indicated | 6,250 | 20,625 | 4.21 | 1.24 | 34.7 | 868 | 255 | 23,012 |
+-----------+--------+--------+-------+-------+--------+----------+--------+--------+
| Inferred | 6,438 | 21,244 | 3.94 | 1.28 | 38.9 | 836 | 273 | 26,572 |
+-----------+--------+--------+-------+-------+--------+----------+--------+--------+
| Total | 17,188 | 56,719 | 4.41 | 1.22 | 32.7 | 2,501 | 690 | 59,612 |
+-----------+--------+--------+-------+-------+--------+----------+--------+--------+
| | | | | | | | | |
+-----------+--------+--------+-------+-------+--------+----------+--------+--------+
Source: Hellman & Schofield Pty Ltd (2008)
Note Zn and Pb Metal content in tonnes; silver as ounces;
Density of 3.3t/m3 was used; No top cut applied; Ordinary Kriging estimation
method


In line with the Board's focus on resource definition and exploration, all
mining and processing at the Comstock property has ceased (RNS: 18/08/08). The
Board considers it non-commercial to continue with mining and processing until a
tailored plan can be implemented at the conclusion of additional resource
definition and exploration work.


Balstrup Fault Mineralisation


The AIM Admission Document for Zeehan Zinc included a 4.6Mt Inferred Resource
estimate for the Balstrup Fault Mineralisation.The 2006-7 drilling undertaken by
Zeehan Zinc has resulted in a substantial rethink of the geology of Comstock.
Hellman & Schofield Pty Ltd has the opinion that the Balstrup Fault
Mineralisation, previously included as part of the Company's Mineral Resources
at the date of Admission to AIM, should be downgraded to Exploration Potential.


Development Properties


Oceana
There has been no development activity in the 6 months to 31 December 2008. The
Oceana DPEMP Development Proposal and Environmental Management Plan has been put
on hold in-line with the Board's current focus, and falling metal prices in
2008.


The Oceana mine lease ML 2M/2005 was renewed for 12 months with the intention of
applying for a retention licence over the area in 2009.


Mariposa
There has been no development activity in the 6 months to 31 December
2008. Retention Licence application RL1/2008 documents have been received during
January 2009 for signing, and the licence process is near completion.


Updated Resource Statement


An updated summary of the Mineral Resources contained within the tenements held
by the Company is set out below:


+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| | | Grade | Contained Metal |
+-------------------+-----------+--------------------------+---------------------------------+
| Category | Tonnes | Zinc | Lead | Silver | Zinc | Lead | Silver |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| | | % | % | g/t | Mt | Mt | Ozs |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| MEASURED | | | | | | | |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| Allison's Lode2 | 14,850 | 5.37 | 1.10 | 21.0 | 797 | 163 | 10,027 |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| | | | | | | | |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| INDICATED | | | | | | | |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| Oceana1 | 610,444 | 1.24 | 5.30 | 49.5 | 7,549 | 32,367 | 971,365 |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| Allison's Lode2 | 20,625 | 4.21 | 1.24 | 34.7 | 868 | 256 | 23,012 |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| | | | | | | | |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| INFERRED | | | | | | | |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| Boss Lower2 | 1,266,343 | 2.95 | 3.48 | 73.6 | 37,357 | 44,069 | 2,996,876 |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| Boss Upper | 125,724 | 1.32 | 2.48 | 23.8 | 1,660 | 3,118 | 96,213 |
| Sulphide2 | | | | | | | |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| Boss Oxide2 | 1,585,186 | 0.23 | 0.99 | 25.7 | 3,646 | 15,693 | 1,309,945 |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| Watson's Lode2 | 28,823 | 3.93 | 1.77 | 21.6 | 1,133 | 510 | 20,019 |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| Main Lode2 | 36,210 | 4.05 | 2.02 | 42.9 | 1,467 | 731 | 49,949 |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| Main Lode | 19,512 | 0.92 | 1.41 | 42.6 | 180 | 275 | 26,727 |
| Surface2 | | | | | | | |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| Allison's Lode2 | 21,244 | 3.94 | 1.28 | 38.9 | 837 | 272 | 26,572 |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| Oceana1 | 1,534,595 | 1.78 | 5.20 | 45.2 | 27,330 | 79,795 | 2,231,522 |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| Mariposa3 | 574,000 | 1.90 | 5.10 | 60.0 | 10,906 | 29,274 | 1,107,395 |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| | | | | | | | |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
| TOTAL | 5,837,556 | 1.61 | 3.54 | 47.25 | 93,729 | 206,524 | 8,869,622 |
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+
Source: 1Hellman & Schofield Pty Ltd 2007, 2Hellman & Schofield Pty Ltd 2008,
3SMG Consultants 2006




Exploration


Exploration licences EL20/2002 and EL30/2002 were scheduled for renewal in early
2009 by the government regulatory authority.Significant time and resources were
put into establishing a solid case to support the application for extensions of
EL20/2002 and EL30/2002. As part of the application procedure, an exploration
strategy and expenditure commitment acceptable to Mineral Resources Tasmania
("MRT") had to be formulated. Following meetings with MRT representatives, and a
formal application being submitted, the company was informed in December 2008
that 12-month extensions of EL20/2002 and EL30/2002 would be recommended to the
Minister. Licence documents have been received by the Company for signing in
January 2009.


Exploration field activities for the period were centred on the Melba Flats
region of EL20/2002, to the west of Mount Razorback. Five gridlines were cut and
the lines have been soil sampled and traversed using a ground magnetometer.


This field work is being followed up in 2009 with an airborne geophysics program
over The Company's tenements.
Ground geophysics, soil geochemistry and
geological mapping activities are planned over any areas of interest which may
arise following the results of the airborne geophysics survey.




A comprehensive resource definition and exploration program was adopted by the
board and commenced in or around July 2008. The commencement of this plan is
consistent with the board's newly developed focus on substantiating and
clarifying its resource position in order to subsequently develop and implement
a tailored mining and processing plan. The exploration plan and estimated budget
have been discussed with MRT as part of the Company's commitment to the
Government in applying for extensions of the exploration licences.

March 2009 - Cash Situation

As previously announced, following a request from Creat Group, the Board of
Zeehan Zinc agreed, in January 2009, to the early repayment of GBP1,250,000
principal (plus accrued interest) provided under the Convertible Loan. The
early repayment has been made from funds received by the Company from Creat
Group, pursuant to the share subscription approved at the AGM of 14 November
2008. The independent directors have determined that the Company has sufficient
cash to complete its exploration program and the part repayment of the
Convertible Loan will reduce the ongoing interest expense of the Company. The
independent directors have also received indications from the Creat Group of its
intention to provide financial support to the Company should it be required.

1 YEAR CHART



2 YEAR CHART

License News in 2009:-

'The Oceana mine lease ML 2M/2005 was renewed for 12 months with the intention of
applying for a retention licence over the area in 2009'

Mariposa
'There has been no development activity in the 6 months to 31 December
2008. Retention Licence application RL1/2008 documents have been received during
January 2009 for signing, and the licence process is near completion'.

Exploration

'Exploration licences EL20/2002 and EL30/2002 were scheduled for renewal in early
2009 by the government regulatory authority.Significant time and resources were
put into establishing a solid case to support the application for extensions of
EL20/2002 and EL30/2002. As part of the application procedure, an exploration
strategy and expenditure commitment acceptable to Mineral Resources Tasmania
("MRT") had to be formulated. Following meetings with MRT representatives, and a
formal application being submitted, the company was informed in December 2008
that 12-month extensions of EL20/2002 and EL30/2002 would be recommended to the
Minister. Licence documents have been received by the Company for signing in
January 2009'.

http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=2122768&source=RNS

The new metal 'Nickel' on the rise since early April.