16 March 2009

Zambezi Resources Limited 

TERMINATION OF SUBSCRIPTION AGREEMENT

Zambezi Resources Limited ('Zambezi' or the 'Company') (AIM:ZRL; ASX:ZRL) today announces that the Company today gave a notice to Astron Ltd ('Astron')  to terminate the subscription agreement dated 28 January 2009 between the Company and Astron for the issue of 171,000,000 shares at 2 cents per share, which was the subject of resolution 3 at the Company's general meeting held on 9 March 2009.  

Zambezi continues to seek options available to the Company in conjunction with its advisors and looks to continue negotiations with creditors and other parties interested in the Company's assets with a view to securing the Company's ongoing financial position.

Accordingly, Zambezi has requested the ASX grant a suspension of the Company's securities pursuant to the ASX Listing Rules whilst these discussions are being concluded. The Company requests the suspension ends on the earlier of either commencement of normal trade on 1 April 2009 or such time as the anticipated announcement regarding the above discussions is released to the market.

The Company's shares remain suspended from trading on AIM.

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