Jun 30, 2010 16:34 ET

Canadian Zinc Corporation: $2.5 Million Private Placement Completed

TORONTO, ONTARIO--(Marketwire - June 30, 2010) -

NOT FOR DISTRIBUTION IN THE UNITED STATES

Canadian Zinc Corporation (TSX:CZN)(OTCBB:CZICF) is pleased to report it has closed the previously announced financing and has raised gross proceeds of $2.5 million in Flow-Through Shares (the "Offering").

The Offering consisted of 6,250,000 Flow-Through Shares issued at $0.40 per share.

The Offering, which was led by Northern Securities Inc. on behalf of a syndicate which included Haywood Securities Inc. (collectively, the "Agents"), was placed with Canadian institutional and private client investors.

The Agents were paid a commission of 7% in cash and were issued broker warrants equal to 10% of the Flow-Through Shares sold in the Offering. Each broker warrant is exercisable into one common share at $0.40 for two years from closing.

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 1.5 kilometres north of the most northern drill hole that defines the present mineral resource at the Prairie Creek Mine. The northernmost drill hole (PC-95-125) 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.

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 securities issued in connection with the financing are subject to a hold period and may not be traded until October 31, 2010, except as permitted by Canadian securities legislation.

Following the Offering Canadian Zinc has 125,150,563 shares issued and outstanding.

About Canadian Zinc

Canadian Zinc's principal focus is to advance the Prairie Creek Mine, a zinc/lead/silver property located in the Northwest Territories of Canada, towards production. The Prairie Creek Property hosts total Measured and Indicated Resources of 5,840,329 tonnes grading 10.71% zinc, 9.90% lead, 0.326% copper, and 161.12 grams silver per tonne, a large Inferred Resource of 5,541,576 tonnes grading 13.53% zinc, 11.43% lead, 0.514% copper and 215 grams silver per tonne and additional exploration potential. [Technical Report October 2007, Minefill Services Inc Dr. David Stone and Stephen Godden, Qualified Independent Persons, in compliance with NI 43-101].

The Mine is partially developed with an existing 1,000 tonne per day mill and related infrastructure. Applications for permits to put the Mine into production are currently undergoing Environmental Assessment by the Mackenzie Valley Environmental Impact Review Board. The Company holds a Land Use Permit for exploration which is valid to September 2012.

Qualified Person

Alan Taylor, P.Geo., Chief Operating Officer, Vice President Exploration and a Director of Canadian Zinc Corporation, is a Qualified Person for the purposes of National Instrument 43-101 and has approved this press release.

Cautionary Statement - Forward Looking Information

This press release contains certain forward-looking information. This forward looking information includes, or may be based upon, estimates, forecasts, and statements as to management's expectations with respect to, among other things, the issue of permits, the size and quality of the company's mineral resources, future trends for the company, progress in development of mineral properties, future production and sales volumes of VGM, capital costs, mine production costs, demand and market outlook for metals, future metal prices and treatment and refining charges, the timing of exploration, development and mining activities and the financial results of the company. There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company does not currently hold a permit for the operation of the Prairie Creek Mine. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that mineral resources will be converted into mineral reserves.

For more information, please contact

Canadian Zinc Corporation
John F. Kearney
Chairman
(416) 362-6686
(416) 368-5344 (FAX)
or
Canadian Zinc Corporation
Alan B. Taylor
VP Exploration & Chief Operating Officer
(604) 688-2001 or Toll Free: 1-866-688-2001
(604) 688-2043 (FAX)
invest@canadianzinc.com
www.canadianzinc.com