According to Clarus Securities:

Water Licence Recommended for Approval

Canadian Zinc announced that the Mackenzie Valley Land and Water Board (MVLWB) has finalized its regulatory process of the Class A Water Licence for the Prairie Creek Mine and has forwarded the Licence to the Federal Minister of Aboriginal Affairs and Northern Development Canada (AANDC), recommending that the Minster approve and sign the Licence. We maintain our BUY recommendation and $1.05 per share target price.

1. Key to Mine Development – Class A Water Licence

Upon Ministerial approval, expected in August 2013, the Class A Water Licence will permit CZN to conduct mining, milling and processing at the Prairie Creek Mine as well as de-water the underground and dispose of waste from mining and milling operations.

2. One More Permit Outstanding

In addition to Ministerial approval of the Class A Water Licence, CZN requires permits from Parks Canada for the Tetcela Transfer Facility, which we also expect to be completed in August 2013.

3. Low Capital Cost, Lower Financing Risk

While the MVLWB is the ruling authority for the area, the Federal Minister AANDC has the final say on the Water Licence. We anticipate the Licence will be approved and refurbishment of the Prairie Creek Mine will commence in 2013. With an option on a US$90 million stream transaction (See June 27th published note: Prairie Creek: Permits Advance as LME Inventories Decline), roughly 50% of the capital costs have been secured, significantly reducing the financing risk for Prairie Creek.

4. Maintain Buy Recommendation

We recommend investors start building a position in CZN prior to Ministerial approval. We maintain our BUY recommendation and $1.05 target price.