Canada Zinc Metals Corp. Announces C$5.0 Million Best Efforts Financing and C$1.0 Million Non-Brokered Financing

TORONTO, ONTARIO--(Marketwired - Nov. 23, 2016) -

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Canada Zinc Metals Corp. (TSX VENTURE:CZX) ("Canada Zinc Metals" or the "Company") is pleased to announce that it has entered into an agreement with a syndicate of agents, led by Cormark Securities Inc. and including Echelon Wealth Partners (the "Agents"), pursuant to which the Agents have agreed to offer for sale up to 7,500,000 units ("Units") of the Company at a price of C$0.40 per Unit and up to 3,850,000 flow-through common shares of the Company ("Flow-Through Shares") at a price of C$0.52 per Flow-Through Share on a best efforts private placement basis, for aggregate gross proceeds to the Company of up to C$5.0 million (the "Offering"). Each Unit shall consist of one common share of the Company ("Common Share") and one-half of one Common Share purchase warrant (each whole warrant a "Warrant"). Each Warrant shall be exercisable into one Common Share at a price of C$0.55 for 24 months following the Closing of the Offering.

The Company has also granted the Agents an option to sell up to 15% of the number of Units and Flow-Through Shares sold pursuant to the Offering, exercisable at any time up to 48 hours prior to the Closing Date.

The net proceeds from the sale of the Units will be used to fund the exploration and development of the Company's mineral properties in British Columbia, Canada and for general corporate and working capital purposes. The gross proceeds received by the Company from the sale of the Flow-Through Shares will be used to incur Canadian Exploration Expenses ("CEE") that are "flow-through mining expenditures" (as such terms are defined in the Income Tax Act (Canada)) on the Company's properties in British Columbia which will be renounced to the subscribers with an effective date no later than December 31, 2016, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of Flow-Through Shares.

The Offering is scheduled to close on or about December 15, 2016 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities.

The Company is also pleased to announce a concurrent non-brokered financing of up to 1,250,000 Units and 960,000 Flow-Through Shares for aggregate gross proceeds of up to $1.0 million (the "Non-Brokered Offering"). The Units and Flow-Through Shares issuable under the Non-Brokered Offering shall be on the same terms as the Offering. A finder's fee may be payable on a portion of the Non-Brokered Offering, in accordance with the policies of the TSX Venture Exchange. The use of proceeds of the Non-Brokered Offering shall be the same as the proceeds as the Offering.