Canadian Zinc Reports Financial Results for Second Quarter 2014

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 15, 2014) - Canadian Zinc Corporation (TSX:CZN)(OTCQB:CZICF) ("the Company" or "Canadian Zinc") announces its financial results for the three and six month periods ended June 30, 2014.

Financial Results June 30, 2014

For the three and six month periods ended June 30, 2014, the Company reported a net loss and comprehensive loss of $3,071,000 and $5,098,000 compared to a net income and comprehensive income of $2,792,000 for the three month period ended June 30, 2013 and a net loss and comprehensive loss of $1,881,000 for the six month period ended June 30, 2013.

For the three and six month periods ended June 30, 2014, the Company expensed $1,455,000 and $2,694,000 respectively on its exploration and evaluation programs at Prairie Creek compared to $660,000 and $2,105,000 for the same periods ended June 30, 2013. The overall increase in expenditures at the Prairie Creek Mine site was due to the increased mine planning and feasibility studies costs of $2,064,000 in the first two quarters of 2014 compared to $1,076,000 for the comparative period in 2013.

At June 30, 2014, the Company had a positive working capital balance of $6,210,000 including cash and cash equivalents of $4,235,000, short term investments of $2,020,000 and marketable securities of $526,000 (for a total of $6,781,000). Subsequent to the end of the quarter the Company completed a bought deal public offering of units and flow-through shares and raised gross proceeds of $15,751,000.

Prairie Creek Optimization

Canadian Zinc is currently completing various optimization studies to further build on and refine its Preliminary Feasibility Study ("PFS"). The objective is to enhance overall mine economics by augmenting what has already been completed during and after the PFS and by exploring more efficient financial ways to reduce initial capital costs.

In January 2014, the Company engaged Tetra Tech WEI Inc. ("TT") to provide technical services for basic engineering and procurement services for the development of major equipment packages, facility rehabilitation and repair work, and capital items for the Prairie Creek Mine. Specifically these technical services will develop tender packages for further advancement of engineering designs, detailing and assessing what equipment can be utilized and better determining upgrade requirements. In preparation for putting the Prairie Creek Mine into production items being addressed include mine rehabilitation and development; mill completion; power generation and distribution; heat recovery systems; dense media separation plant; paste fill plant; water treatment plant; instrumentation and control systems; camp construction and winter road construction and maintenance.