Canadian Zinc Corporation: Memorandum of Understanding Signed With Parks Canada

VANCOUVER, BRITISH COLUMBIA, Jul 31 (MARKET WIRE) --
Canadian Zinc Corporation (TSX: CZN)(OTCBB: CZICF) (the "Company" or
"Canadian Zinc") is pleased to report that Canadian Zinc and the Parks
Canada Agency have entered into a Memorandum of Understanding ("MOU")
with regard to the expansion of the Nahanni National Park Reserve and the
development of the Prairie Creek Mine.

In the MOU:

- Parks Canada and Canadian Zinc agree to work collaboratively, within
their respective areas of responsibility, authority and jurisdiction, to
achieve their respective goals of an expanded Nahanni National Park
Reserve and an operating Prairie Creek Mine.

- Parks Canada recognizes and respects the right of Canadian Zinc to
develop the Prairie Creek Mine and will manage the expansion of Nahanni
National Park Reserve so that the expansion does not in its own right
negatively affect development of, or reasonable access to and from, the
Prairie Creek Mine.

- Canadian Zinc accepts and supports the proposed expansion of the
Nahanni National Park Reserve and will manage the development of the
Prairie Creek Mine so the mine does not, in its own right, negatively
affect the expansion of the Nahanni Park.

The Parties agree to make every reasonable effort to address issues of
common interest and build a strong working relationship, including
convening a Technical Team which will better identify, define and
consider issues of common interest, including, among other things, access
to and from the Prairie Creek Mine through the proposed expanded Park and
the park boundaries around the Prairie Creek Mine properties.

The Parties have also agreed to share with one another and the Technical
Team any existing technical and scientific information relevant to a
discussion and analysis of issues of common interest to the Parties.

The MOU, which is valid for three years is intended to cover the period
up to the development of the Prairie Creek Mine (Phase I) and may be
amended or renewed as agreed by the Parties and may be terminated by
either party on not less than three months written notice. It is
contemplated that the Phase I MOU will be replaced by a further MOU
(Phase II) which will address the operation of the mine and the expanded
Park.

The MOU is an expression of the mutual intentions of the parties and is
not legally binding or enforceable. The MOU does not create any new
powers or duties or alter or affect any rights, powers or duties
established by law, including by the Parks Canada Agency Act and the
Canada National Parks Act, or result in the Parties relinquishing any
right, jurisdiction, power, privilege, prerogative or immunity.

To the extent that the Prairie Creek Mine is subject to regulatory or
government processes, including hearings, Parks Canada reserves the
right, while recognizing the intent of the MOU, to participate in any
such process and take such positions as it sees fit and the MOU does not
constrain Parks Canada from doing so, subject only to the understanding
that Parks Canada has agreed not to object to or oppose, in principle,
the development of the Prairie Creek Mine.

"We are pleased to have signed this cooperation agreement with Parks
Canada which will facilitate both parties achieving our mutual
objectives." said John F. Kearney, Chairman of Canadian Zinc Corporation.

"The exclusion of the Prairie Creek Mine from the proposed Nahanni
National Park expansion area has brought clarity to the land use policy
objectives for the region. Canadian Zinc believes that the Prairie Creek
Mine and the expanded Nahanni National Park Reserve can co-exist and
that, properly planned and managed, the expanded Park will not interfere
with the operation of the Prairie Creek Mine and similarly that the
operation of the mine will not adversely impact upon the Park or its
ecological integrity," Mr. Kearney added.

Nahanni Park Expansion:

The Prairie Creek Mine is located in the Mackenzie Mountains of the
Northwest Territories, within the watershed of the South Nahanni River
and in proximity to but outside the Nahanni National Park Reserve.

In August 2007 the Prime Minister of Canada visited Fort Simpson to
announce the proposed expansion of Nahanni National Park Reserve. The
Prime Minister announced that the Government of Canada had approved an
Order in Council (PC-2007-1202 July 31, 2007), withdrawing certain lands
for the proposed park expansion. The surface lands surrounding the
Prairie Creek mine, containing approximately 367 square kilometres, are
specifically excluded and exempted from the interim land withdrawal.

Canadian Zinc has been assured by the Government of Canada and by Parks
Canada that the final boundaries of the expanded park will not include
the Prairie Creek Mine site nor preclude road access to the Prairie Creek
mine and that in the proposed expansion of the Nahanni National Park
Reserve, the existing mining and access rights of Canadian Zinc to the
Prairie Creek mine will be respected and protected.

About Canadian Zinc:

Canadian Zinc's 100% owned Prairie Creek (lead/zinc/silver) Project,
located in the Northwest Territories, includes a partially developed
underground mine with an existing 1,000 ton per day mill and related
infrastructure and equipment. The Prairie Creek Property hosts a major
mineral deposit with a Measured and Indicated mineral resource in the
Vein and Stratabound deposits of 5.2 million tonnes grading 11.4% Zn,
10.9% Pb, 176 g/t Ag and 0.3% Cu along with an open ended Inferred
resource of 5.5 million tonnes of 13.5% Zn, 11.4% Pb, 215 g/t Ag and 0.5%
Cu. (Technical Report NI 43-101 - David M. Stone, Minefill Services,
Inc., Qualified Person, October 2007 filed on SEDAR).

Cautionary Statement - Forward Looking Information

This press release contains certain forward-looking information. This
forward looking information includes, or may be based upon, estimates,
forecasts, and statements as to management's expectations with respect
to, among other things, the issue of permits, the size and quality of the
company's mineral resources, future trends for the company, progress in
development of mineral properties, future production and sales volumes,
capital costs, mine production costs, demand and market outlook for
metals, future metal prices and treatment and refining charges, the
outcome of legal proceedings, the timing of exploration, development and
mining activities and the financial results of the company. There can be
no assurances that such statements will prove to be accurate and actual
results and future events could differ materially from those anticipated
in such statements. The Company does not currently hold a permit for the
operation of the Prairie Creek Mine. Mineral resources that are not
mineral reserves do not have demonstrated economic viability. Inferred
mineral resources are considered too speculative geologically to have
economic considerations applied to them that would enable them to be
categorized as mineral reserves. There is no certainty that mineral
resources will be converted into mineral reserves.

Contacts:
Canadian Zinc Corporation
John F. Kearney
Chairman
(416) 362-6686
(416) 368-5344 (FAX)

Canadian Zinc Corporation
Alan B. Taylor
VP Exploration & Chief Operating Officer
(604) 688-2001 or Toll Free: 1-866-688-2001
(604) 688-2043 (FAX)
Email: invest@canadianzinc.com
Website: www.canadianzinc.com

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