Zambezi Resources Limited (“the Company”) has entered into a legally binding Heads of Agreement with Zambezi Nickel Limited (“ZNI”) (AIM:ZNI) to so that ZNI may acquire uranium rights to ZRL’s highly prospective Oryx uranium prospect plus another 11 high priority radiometric anomalies identified within 4 Zambian mineral licences covering 6,800 km. Under the Heads of Agreement, ZNI may earn an equity interest in the uranium rights on the Company’s Mpande, Rufunsa, Mulungushi and Chumbwe licences. ZNI has a commitment to pay a minimum exploration expenditure of US$3 million, of which US$2 million must be applied to Chumbwe and may earn a 51% interest in the uranium rights by spending US$5 million. ZNI may increase its interest at Chumbwe to 75% by completing a Bankable Feasibility Study at Chumbwe and a 75% interest in the other projects by completing an additional Bankable Feasibility Study. ZRL will retain all rights to other minerals on the Mpande, Rufunsa, Mulungushi and Chumbwe licences.

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