Canadian Zinc Reports Financial Results for 2016

CNW GroupMarch 22, 2017

• Continued Progress on Prairie Creek Project

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CZN-TSX
CZICF-OTCQB

VANCOUVER, March 22, 2017 /CNW/ - Canadian Zinc Corporation (TSX: CZN; OTCQB: CZICF) ("the Company" or "Canadian Zinc") reports its financial results for the year ended December 31, 2016.

This press release should be read in conjunction with CZN's Management's Discussion and Analysis (MD&A) and Annual Consolidated Financial Statements for the year ended December 31, 2016, which are available on the Company's website at www.canadianzinc.com, or under the Company's profile on SEDAR (www.sedar.com).

Financial Results

For the year ended December 31, 2016, Canadian Zinc reported a net loss and comprehensive loss of $5,077,000 compared to a net loss and comprehensive loss of $8,262,000 for the year ended December 31, 2015.

Included in the loss for the year ended December 31, 2016, were exploration and evaluation expenditures of $2,428,000 compared to $7,650,000 for the previous year and share-based compensation charges of $1,104,000 in the current year versus $124,000 in the comparable year.

At December 31, 2016, the Company had a positive working capital balance of $9,513,000 including cash and cash equivalents of $9,817,000 and short term investments of $28,000.

Prairie Creek Project

Initiation of Definitive Feasibility Study

Canadian Zinc has initiated a Definitive Feasibility Study ("DFS") to follow up on the recommendations contained in previous prefeasibility studies and to facilitate the raising of project debt financing for the Prairie Creek Project. AMC Mining Consultants (Canada) Ltd. ("AMC") and Ausenco Engineering Canada Inc. ("Ausenco") have been engaged to complete the DFS.

Ausenco will assess all surface infrastructure needs to bring the Project into operation and undertake project development/execution planning services for the Prairie Creek Mine and deliver a robust optimized project development plan that can be used to advance the project to production. At the same time this will provide a critical link to the project financing plan by providing potential providers of debt or equity with a clear path to profitable production.

Ausenco will also complete required engineering utilizing a cost-effective project design methodology to support the development of a high-level execution plan that will define the approach to constructing the Prairie Creek project. This will include the development of a contracting and procurement strategy for further stages of work, which will align with the project execution schedule and will serve to support the capital cost estimate and make provision for the identified execution risks and opportunities. The plan will be developed with the objective of converting it to an Engineering Procurement and Construction Management ("EPCM") contract at the appropriate time.

The DFS is expected to be completed by mid-2017.

Engagement of HCF as Debt Financing Advisors

Concurrently, the Company has also retained HCF International Advisers ("HCF") as financial advisers to arrange debt financing for the project.