I would like to take this opportunity to welcome you to Canadian Zinc Corporation's web site and to give you a brief flavor of the new Board and Management's aims for the Company.

Following the May 26^th, 2000 AGM, the shareholders elected a Board of Directors with extensive and valuable experience in the mining industry. Their knowledge and expertise in the development and operation of mines both in Northern Canada and elsewhere in the world, brings to the Company a determination to maximise shareholder value by developing a mine on the Prairie Creek deposit.

The new Board decided that a change of emphasis was necessary to move the Company towards development of the Prairie Creek deposit and, as a consequence, I was appointed as President and CEO of the Company at a Board meeting following the AGM. I would like to join with the new Board in thanking and acknowledging the efforts of Alan Taylor, (Past President) and his colleagues, for their exceptional technical skills and tenacity in increasing the resources on the Prairie Creek deposit from some 4 million tonnes in 1994 to approximately 12 million tonnes, grading 12.5% zinc, 10.1% lead and 161 g/tonne silver today. It is their work that will allow the new Board to move forward towards the development of a mine at Prairie Creek.

In June 2000, the Directors visited the Property to see first hand the superb facilities that are the Company's legacy of the Hunt Brothers determination to build a silver mine on the site. The collapse of the silver price in 1982 bankrupted the Hunts and left a well built 1000-ton per day mill that was within 3 weeks of completion but never operated and was subsequently acquired by the Company. The equipment is in excellent shape and is capable, with modification, of treating the larger resource that exists today.

During the visit, we were able to view the extensive surface mineralisation (traced over approximately 16 km) that represents the structure hosting the Main vein deposit. Additionally we were able to go underground into the middle of three levels developed and prepared for production during the 80's to feed the current mill. Here we were able to see first hand the excellent conditions underground, with the vein structure exposed throughout the workings, demonstrating the strength, width and continuity of mineralisation. A number of trial stopes were established underground and these are standing open, with the workings as a whole having minimal support.

The mill itself is the most impressive aspect of any visit to Prairie Creek. Built to a Kilborn design and almost 95% complete, it has been well preserved due to the relatively arid climate and the stewardship of earlier management. "WET PAINT" and "DO NOT OPERATE" signs evidence the closeness to completion of the original mill design, which should be relatively easily modified to handle higher tonnages of mill feed by the addition of a dense media pre-concentrator. The power plant was similarly close to completion with four Cooper Bessimer 1.1 MW power units installed. Work is currently underway to assess the work necessary to upgrade the existing facility and add the new features that will be desirable in any revision to the mill design.

The mine and mill are serviced by a 250 man camp, an administration building and workshops, all of which are in good order and in regular use. Mobile equipment currently on site includes bulldozers, trucks, cranes, loaders, cement trucks, a concrete batching plant and innumerable pieces of support equipment. Almost all of this equipment is in good working order with low hours and will form the nucleus of the surface mobile equipment fleet of any future mine. To fuel this equipment, the operation continues to make use of the more than 400,000 gallons of diesel currently stored in the tank farm on the site. More than 100 tons of propane is also available to heat the offices and accommodation and provide hot air for winter operation underground.

Exploration on the property over the last few years has concentrated on further delineation of the stratiform mineralisation first seen in 1993. Total thickness of the stratiform zone in the area of the mine (Zone 3) reaches up to 28 meters and offers the possibility of increasing tonnage from underground due to relative ease of mining, when compared with the vein material. Because of difficulties with topography and with the mineralisation dipping into the hill, the Company's two super 38 diamond drills have been unable to easily further extend this zone, resulting in a future development plan targeted at the currently known resource of stratiform mineralisation totaling some 1.4 million tonnes. The consensus opinion of the Company's management is that this tonnage should be easily expanded following underground development and drilling.

Modern trackless mining methods and the development of an underground crusher feeding a decline equipped with a conveyor belt to the mill would reduce operating costs on site and allow an increase in tonnes mined per day by allowing mining in both vein and stratiform material at the same time. The use of long hole mining methods will increase dilution in the feed to the mill, but will significantly reduce costs. Incorporation of a dense media pre-concentrator would then reject much of the waste dilution, both from over break due to long hole mining and also internal dilution, thus allowing the mill to treat more tonnes of higher grade material through the grinding and flotation circuits. Addition of a paste backfill plant would then allow the placement of the majority of tailings underground, providing good support and reducing the requirements for surface disposal. These benefits will have to be balanced against the cost of 3-5% cement addition in the paste fill and the capital cost of a paste plant.

Metallurgically, there has been significant test work carried out to demonstrate the likely response of the different ore types to floatation. Work has now commenced on a review of this test work, leading to a future program of testing. The new program will be designed to examine the effects of treating a dense media concentrated ore stream containing both vein and stratiform mineralisation. This work will be combined with a detailed review of possible mining methods, mill expansion, project logistics and capital and operating cost studies, to produce a scoping study to guide the project towards a production decision.

The project is not without it's challenges, principally in the fields of metallurgy, tailings disposal and logistics of supply. All these areas will be extensively studied within the period of the scoping study to aid the Board with its development proposals. Permitting will also form a major part of any development at Prairie Creek. Our Development Co-operation Agreement with the Nahanni Butte Dene Band of the Deh Cho First Nations will also form a cornerstone of our plans for the project. With this in mind, we welcome a new Vice-President of Project Affairs, Peter Campbell to the project team. He brings his extensive experience in dealing fairly and equitably with both government and regulatory authorities and stakeholders on mining projects in BC and the North.

Like any other development company, Canadian Zinc's strength lies in its employees, professional management and Board. The Company is lucky in that it has attracted a number of highly professional individuals with good project building skills. In house, Alan Taylor as VP - Exploration provides an unparalleled knowledge of the geology of the Prairie Creek Embayment and the history and operation of the project and the Company over the last five years.

The Board consists of seasoned professionals who have been and indeed are currently involved in development and operation of mines in the North and elsewhere in the world. Dr. Hugh Morris, a geologist of international reputation, received his B.Sc. and PhD in Mining Geology from the University of the Witwatersrand, Johannesburg, South Africa and has 47 years experience in the mineral industry. He spent 18 years with Cominco Ltd., ending up as Director of Exploration. He is currently Chairman of the Board of Eldorado Gold Corporation, a Canadian gold company with operations in Brazil, Mexico and Turkey; Chairman of the Board of Winspear Diamonds Inc., a Canadian company developing a major diamond mine in Northern Canada, and is a director of three other Canadian public companies.

Wayne Lenton brings 40 plus years of metallurgical and management experience to the Board. In 1985 he was appointed President, CEO and Director of Canada Tungsten Mining Corporation Limited, as well as President of AMAX of Canada Limited and President of AMAX Northwest Mining Company Limited. In 1989 he was appointed Chairman of the Board of Minerex Resources Ltd. In 1993, Mr. Lenton was appointed President and Chief Executive Officer of Canada Tungsten Inc., as a result of the amalgamation of Canada Tungsten Mining Corporation Limited, Canamax Resources Inc. and Minerex Resources Ltd. He is a past Chairman of the Mining Association of British Columbia, was a Director of the Mining Association of Canada and is a director of several public companies including Eldorado Gold Corporation.

Dr. Bob Gayton, as VP Finance and CFO, brings his many years of financial experience to the new Board. He is also financial consultant and VP Finance to Western Copper Holdings, Quattera Resources, Eaglecrest Exploration, and four other companies. His career as an accountant and CFA brings a breadth of financial experience to the Company.

Dr. David Shaw has over 25 years experience as a structural geologist and minerals industry investment consultant and his strengths along with those of our Chairman, John MacPherson, are of significant benefit, both from a geological and an investor relations point of view.

The Board thus represents all aspects of mining and corporate finance, from exploration through construction, mining and milling, into banking, fund raising and investor relations. Our staff is ably supported by consultants, each of whom is expert in his or her own field. Vancouver is a center of excellence for such people and we are fortunate to be able to select from the best the industry has to offer.

Away from the project, exciting developments in the search for oil and gas are taking place in the Mackenzie Valley north of Fort Liard. Here the discovery of major gas reserves are leading to further exploration work within 100 km of the mine site. The possibility of the development of cheap power from gas, within a reasonable distance of the mine, significantly alters the economics of the project. Similarly improvements to the infrastructure of the Northwest Territories brought about by the current gas field developments will provide significant help to the project.

Hopefully this letter has given you some insight into aspects of the Company and the Prairie Creek mine that attracted me. My recent visit to the Project, coupled with the current long-term projections for the price of zinc, has reinforced my desire to turn this project into a mine. I hope through the use of updates to this web page to be able to keep you up to date on our efforts in that regard.

Thank you for taking the time and trouble to become more familiar with our project. Your comments and suggestions for the further development of this web page can be passed to us directly by email to czn@canadianzinc.com. Please register to receive regular updates on the project on the Information request page of this site.

Should you want to know more about the project, please do not hesitate to contact us and talk to John MacPherson, who as Chairman has taken on the task of Investor Relations to ensure that you really can get "THE WORD FROM THE TOP".

Yours sincerely,

Malcolm J.A. Swallow
President and CEO