31 March 2009

Zambezi Resources Limited 

Corporate Update

Zambezi Resources Limited ('Zambezi' or the 'Company') (AIM: ZRL; ASX:ZRL) today announces that it has reached agreement with all its major creditors to extend the standstill arrangement (announced 28 November 2008) to 30 April 2009. Under the terms of the standstill agreement, Zambezi has deferred the payment of debts to the Company's key suppliers until the end of April 2009.  

The extended moratorium will allow Zambezi the opportunity to raise additional funds for its projects in Zambia. Zambezi securities will remain suspended from trading on ASX and AIM whilst these discussions are ongoing.

The Company is continuing discussions with various parties with a view to refinancing the Company. This includes discussions being led by the Company itself and also discussions through intermediaries acting on the Company's behalf. The current strategy is aimed at minimising ongoing costs while retaining the intellectual property, knowledge base and management team that the Company has built up over the past five years.  

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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 8km's of the 28km's of strike length. The Company also has a Uranium Joint Venture on approximately 50% of its tenement area with Lithic Metals and Energy.