NorZinc Significant Corporate Update and US$3 Million Bridge Loan Announcement

US$3M Bridge Loan

The Company has signed an agreement under which RCF will provide a US$3M (C$4.2M) unsecured bridge loan (the "Bridge Loan"), carrying an interest rate of 8% per annum. The loan is payable upon the earlier of (i) the date that is six months from the closing date of the Bridge Loan and (ii) upon the completion of the RO (as defined below). RCF holds approximately 40% of the issued and outstanding shares of the Company. RCF has agreed to purchase at least sufficient value of RO shares to cover the Bridge Loan principal and interest, at the RO price per share. The US$3M funding is planned to finance all the costs of running the company and completing the Stage 1 program outlined below, subject to the restrictions and possible delays that may be experienced as a result of the COVID-19 pandemic.

The Bridge Loan contains customary negative pledges, and certain conditions during Stage 1 related to the external support of permitting, engineering and financial advisory roles. The closing of the loan and first drawdown is planned to occur upon receipt of approval of the loan from the TSX.

Under the terms of the Bridge Loan, the Company has agreed to complete a rights offering ("RO") in an amount at least equal the total amount of the Bridge Loan plus any accrued, unpaid interest thereunder. The Company intends to pursue a financing of C$15-$25M by means of the above-mentioned RO, or other financing acceptable to RCF. The proceeds from this financing will be used to repay the US$3M Bridge Loan plus interest and complete the Stage 2 program outlined below. A significant portion of the Stage 2 exploration activities may be eligible for flow-through share financing. The company will review its options for issuing flow-through shares in an RO or other financing.

This financing is a further indication - in this extremely difficult time - of RCF's significant ongoing support for the development of the Mine and for the anticipated significant value creation of the new plans for the Mine's development.

New Objectives

The Company has recently completed an internal review of its direction and goals for the Prairie Creek Mine (the "Mine") resulting in new objectives for the project. As a result of that review, the Company will be focussing its 2020 and 2021 plans for the Mine on a possible significant:

• Increase in production throughput; and
• Increase in reserves

Process to Date

During January and February, the company undertook a series of internal analyses of the effect of potential increases to annual mine production and increases in total reserves. The analysis included the possible effect of various increases in underground mining rate and the potential upgrading of the existing Main Quartz Vein (MQV) inferred resources. Current MQV inferred resources at the Mine total 5.3 million tonnes at 12.9% Zinc, 8.7% Lead and 5.8 ounces per ton Silver¹.

From the internal analyses and assumed operating and capital costs it was concluded that the company should focus on an objective of a significant increase in mine throughput and an increase in overall ore. The current reserves at the Mine are 8.1 million tonnes at 8.6% Zinc, 8.1% Lead and 3.6 ounces per ton Silver.

Under the updated objectives, the Mine will be spending more in the communities and thus would have positive economic impacts on the local communities from increased direct (and indirect) employment and business participation. In addition, based on the work to date, the two new focuses – increased throughput and increased reserves – are not expected to result in any significant increases in environmental effects or the footprint of the site operations.

Goals for Two Stage Process

Beginning in April 2020, NorZinc will commence Stage 1, a thorough planning process to define and establish the scope of all elements required to ready the project for Stage 2. In Stage 2 the actual exploration drilling program, site infrastructure redesign, mine design and economics, engineering, permitting and project execution plans will be completed. At the end of Stage 2 the company plans to have completed all the work necessary to satisfy project financing, silver stream financing and equity financing at the increased throughput and with increased reserves.

While there are no guarantees, NorZinc is optimistic that under the assumption of obtaining additional funding, Stages 1 and 2 can be achieved over the next 18-24 months. In addition to continuing discussions with the local community leaders, NorZinc will be working with all regulatory parties to ensure all environmental requirements continue to be met.

COVID-19

During these unprecedented times, management's primary focus is on the health and safety of its people and the communities in which it operates. NorZinc's Vancouver head office was closed in March with all staff working remotely. The Fort Simpson office has maintained some activities in support of the communities but strictly within the NWT guidelines for remote communities.

Since the COVID-19 global health crisis occurred prior to planned summer operations, NorZinc had limited NWT-based staff. However, restrictions on travel to NWT has prevented the regular visits to the local communities although the Company has maintained communications by other means. Should the travel restrictions in the NWT continue for some time, as seems likely, these will significantly impact access to the mine site over the coming months. As the pandemic persists, NorZinc will continue to follow the highest health and safety standards and update stakeholders on a regular basis.

Qualified Person

Unless otherwise indicated, all scientific and technical information relating to the Company's mineral projects contained in this news release has been reviewed and approved by Kerry Cupit, P. Geo., who by reason of education, membership in professional associations (as defined in NI 43-101) and past relevant work experience, fulfills the requirements of a qualified person as defined in NI 43-101. Mr. Cupit is a Project Geologist employed by the Company, with a B.Sc. in Earth Sciences (Geology).

About NorZinc

NorZinc is a TSX-listed mine development Company trading under the symbol "NZC". NorZinc is developing its key project, the 100%-owned high grade zinc-lead-silver Prairie Creek Mine, located in the Northwest Territories. NorZinc also owns projects in Newfoundland that host several zinc-lead-copper-gold-silver deposits.

Cautionary Statement – Forward-Looking Information

This press release contains forward-looking information, including, among other things, statements regarding the Company's objectives for increases in mine throughput and reserves, the economic and environmental effects of achieving such increases, and the timing for completing Stage 1 and Stage 2 of the plan. These statements reflect the Company's objectives generated for planning purposes only and are disclosed in order to explain the direction the Company intends to take in 2020 and 2021. The analyses that lead to these objectives are internal studies only and the conclusions and recommendations of such studies have not and will not be publicly disseminated. There is no assurance that production rates will ultimately increase from the rates contemplated in the Company's current feasibility study or that the production on the property will be achieved at all. There is also no assurance that further exploration on the property will result in increased reserves and the reader should not read these objectives as reflecting an economic analysis of the project based on inferred resources. Resources that are not reserves do not have demonstrated economic viability. Inferred resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as reserves. There is no certainty that resources will ever be converted into reserves.

Statements relating to closing and timing of the Bridge Loan also constitute forward-looking information, as do statements relating to the completion, timing and size of the rights offering and the use of the proceeds thereof. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the mine enhancement objectives will achieve the expected results, that additional exploration on the property will result in increases in reserves, that financing will be available to achieve these goals on acceptable terms, that regulatory approvals for the plan will be received. These statements also based on management's expectations regarding the size and quality of resources, future trends for the Company, progress in development of 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, capital market conditions, and the financial results of the Company. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Material risk factors that could cause actual results to differ materially from the forward-looking statements include risks that the assumptions and factors on which the forward-looking information is based differ from expectations, risks related to the COVID-19 global health crisis, the Company's history of losses, lack of revenue generation, and dependence on substantial financing to develop the Prairie Creek Mine, as well as all of the risk factors described in the Company's most recent Annual Information Form and Management's Discussion & Analysis filed with Canadian provincial securities regulatory authorities. The Company disclaims any intention or obligation to update or revise any forward-looking information, except as required by applicable law.

SOURCE NorZinc Ltd.



Contact
Don MacDonald, President & CEO or Ambika Srinivas both on (604) 688-2001 or Tollfree:1-866-688-2001; E-mail: IR@norzinc.com; Website: www.norzinc.com