Canadian Zinc Signs Memorandum of Understanding with Northwest Territories Power Corporation

14 February 2017

• Use of LNG as Alternative Energy Source for the Prairie Creek Mine

Vancouver, British Columbia, February 14, 2017 – Canadian Zinc Corporation (TSX: CZN; OTCQB: CZICF) (“the Company” or“Canadian Zinc”)is pleased toannounce the signing of Memorandum of Understanding (“MOU”) with Northwest Territories Power Corporation (“NTPC”) to examine the supply of electrical power for the development and operation of the Prairie Creek Mine in the Northwest Territories, Canada.
In the MOU, NTPC has agreed to work with Canadian Zinc to assess (a) how NTPC could supply the primary electrical energy source to the mine and (b) how NTPC could install generating and connection facilities or other infrastructure assets to provide such electricity supply.
CZN and NTPC have also agreed to evaluate the integration of other energy alternatives, and specifically Liquefied Natural Gas (“LNG”), as part of the energy supply for the mine.
Emanuel DaRosa, President and CEO of NTPC, stated“NTPC is pleased to be working with Canadian Zinc to investigate how we can provide energy for the Prairie Creek Mine.  A successful partnership would benefit all Power Corporation customers and contribute to economic development in the Northwest Territories.”
NTPC is currently investigating the potential to supply LNG for the generation of electricity in local communities to reduce dependency on diesel fuel, including Fort Simpson, where the LNG would be delivered along the same existing highway network that would be used to supply the Prairie Creek Mine.
Alan Taylor, Chief Operating Officer for Canadian Zinc, stated “The Prairie Creek Mine would gain environmental and economic benefits from use of LNG as an alternative source of energy. This would reduce the dependency on diesel fuel by replacing it with LNG, which is a lower cost and much more environmentally friendly source of fuel for power generation.”
LNG has been a dependable fuel for decades and continues to demonstrate a strong track record of safe usage, transportation and storage, which are important considerations for the Prairie Creek Mine.  
“The development of LNG production facilities in northern BC and the recent discovery of natural gas in the Liard/Horn River Basins of the NWT, which are located adjacent to the existing highway haulage route, has made the potential use of LNG to be delivered to the Mine by the proposed all season road, currently in the advanced phase of the Environmental Assessment permitting process, a viable alternative energy source for the Prairie Creek Mine” added Alan Taylor.
Use of LNG for power generation has significant benefits for the environment as typical emissions are much lower than diesel fuel sources, with greenhouse gas reduction of between 11% and 20%, NOx emissions reduced by 80% and particulate emissions reduced by 75%. Furthermore, in the unlikely event of any spill, LNG would evaporate immediately and dissipate quickly into the atmosphere without causing any environmental impact to soil, groundwater or surface waters.

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