Canadian Zinc Announces $2 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 17, 2010) - Canadian Zinc Corporation (TSX: CZN.TO)(OTCBB: CZICF.OB) is pleased to announce it has entered into an engagement agreement with Northern Securities Inc. ("Northern"), as lead agent on behalf of a syndicate which includes Haywood Securities Inc. (collectively, the "Agents"), to raise gross proceeds of $2,000,000 in Flow-Through Shares, (the "Offering").

The Flow-Through Shares are priced at $0.40 per share. Completion of the Offering is subject to certain conditions, including approval by the Toronto Stock Exchange and other regulatory agencies. The Offering is expected to be completed on or about, July 9, 2010.

The Agents will be paid a commission fee of 7% in cash and 10% in broker warrants exercisable for common shares at $0.40 per share for a period of two years from closing.

Deep Drill Hole Exploration Program

The proceeds from the Offering will be used for exploration on the Prairie Creek Project and specifically to undertake a deep-hole diamond drill exploration program starting this summer. The proposed deep-hole diamond drill, to be located 1.5 kilometres north of the most northern drill hole that defines the present mineral resource, will test for possible at depth continuation of similar mineralization within the same geological structure as at the Mine. The vein target is projected to occur at a depth of approximately 900 metres below the 870 level (presently the lowest developed underground level) and 1,100 metres below surface. It is planned to also drill off a number of wedges from the initial deep-hole in order to further explore the target area.

The northernmost drill hole (PC-95-125) within the presently defined mineral resource at the Prairie Creek Mine returned multiple significant mineralized vein intersections 750 metres down the hole, including a 6.3 metre core intercept grading 18.7% zinc, 8.5% lead and 239 grams per tonne silver. Similar continuous surface geology, along with the presence of surface geochemical metal anomalies in soil and the existence of the high grade Rico Showing at surface 2.4 kilometres further north of the planned drill hole, all indicate excellent potential that mineralization may continue at depth north from the existing defined mineral resource.