Nevada Zinc Corporation announced that the Company and BelZinc srl (BelZinc) have agreed to enter into a strategic partnership based upon terms and conditions set forth in a letter of intent between the parties dated August 9, 2023. Final documentation is expected to be completed shortly. The primary objective of the strategic partnership is to establish Nevada Zinc, utilizing BelZinc?s proprietary production technology, as a Nevada based zinc oxide producer using feedstock from the Company?s Lone Mountain non-sulphide zinc deposit located in close proximity to Eureka, Nevada.

Zinc oxide to be produced by the Company utilizing BelZinc?s proprietary production process will be sold to zinc smelters under contract to assist the smelters in reducing harmful emissions resulting from their smelting operations. Zinc oxide produced by BelZinc from non-suphide zinc ore samples were sent to zinc smelters in Europe and the results of testing by the smelters have been positive. In exchange for providing Nevada Zinc access to its proprietary zinc oxide production technology and granting the Company a right of first refusal to participate in all future BelZinc projects in North America, BelZinc will receive 12,000,000 common shares of Nevada Zinc, representing an ownership interest of approximately 10.8%.

Additionally, BelZinc will receive a fixed licensing fee per tonne of zinc oxide to be produced by Nevada Zinc and a variable licensing fee per tonne of zinc oxide produced designed to track increases in the price of zinc oxide beyond a base level agreed to by the parties. Subject to further chemical and costing analysis the Company may have the production optionality to convert zinc oxide to zinc sulphate, a micro nutrient used in crop and animal feed production. The operational decision to convert zinc oxide to zinc sulphate would be subject to the relative market prices of zinc oxide and zinc sulphate from time to time.

The market prices for both commodities are not directly correlated thereby creating potential price arbitrage opportunities based upon underlying price cyclicality in both markets.