Corporate Update

RNS Number : 1566J
Zambezi Resources Ltd
28 November 2008

28 November 2008
Zambezi Resources Limited

Corporate Update

Zambezi Resources Limited ("Zambezi" or the "Company") (AIM: ZRL; ASX:ZRL) today announces that it has reached a standstill agreement
with all its major creditors. Under the terms of the standstill agreement, Zambezi has deferred the payment of debts to the Company's key
suppliers until the end of March 2009. This will allow Zambezi the opportunity to continue discussions in respect of raising additional
equity to provide ongoing working capital for its exploration projects in Southern Zambia. Zambezi securities will remain suspended from
trading on ASX and AIM whilst these discussions are ongoing.

As part of its ongoing restructuring, the Company announces today the retrenchment of 60 staff in Zambia. Following the restructuring,
the Zambian operations will retain just four of their long term senior geologists, the majority of whom are currently seconded to third
parties in the region.

Managing Director Julian Ford said today "Zambezi has been severely affected by both the global economic crisis and falling copper
prices. We are continuing discussions with various parties with a view to refinancing the Company. The current strategy is aimed at
minimising ongoing costs while retaining the intellectual property and knowledge base that we have built up over the past five years. We
retain the capacity to continue our exploration efforts in Zambia, albeit at a significantly reduced spend rate. Zambezi and its partners
have collectively spent more than US$40 million over the past five years and proven up the copper, gold and uranium potential of our Lusaka
East projects."

ADDITIONAL INFORMATION
Zambezi is listed on London's AIM market and the Australian Securities Exchange (ASX & AIM Ticker: ZRL) and currently has two main
projects, Cheowa and Kangaluwi. The Company is focused on discovering and developing large Copper-Gold projects in southern Zambia. The
Cheowa project is a joint venture with Glencore International AG, who have earned a 51% interest in the project. The Company believes that
the Kangaluwi project has the potential to be a world class open pit copper deposit. To date the Company has spent over US$ 10 million on
the project and drilled over 50,000 metres, testing 8kms of the 28kms of strike length. The Company also has entered into two Uranium Joint
Ventures on approximately 50% of its tenement area, one with Rio Tinto Plc and the other with Lithic Metals and Energy Limited.

For Further Information please contact:

Julian Ford, Managing Director Simon Edwards / Adam Lloyd
Zambezi Resources (Australia) Evolution Securities Ltd
+61 (08) 9216 9000 + 44 20 7071 4300
+61 (0) 418 949 580

Fiona Owen
Grant Thornton UK LLP
+44 20 7383 5100

This information is provided by RNS
The company news service from the London Stock Exchange

END

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