News Release

Zone Receives Motion to Institute Proceedings Regarding Dispute over Labrador Trough Claims

September 25, 2012: Zone Resources Inc. (TSX-V symbol: ZNR) (the "Company") reports that it has been served with, and named as one of the defendants in, a Motion to Institute Proceedings (the "Motion") in the Superior Court (Civil Division) of the Province of Quebec, District of Montreal regarding a dispute concerning its interest in its Labrador Trough iron properties. In the Motion, the plaintiff, Nord Mines Inc. ("Nord"),.alleges that the Company does not have any legal basis or right to be listed as the registered or recorded owner of the claims. Nord also alleges that the Company has engaged in conspiracy, conversion and unjust enrichment. The Motion seeks an order that Nord is the registered and owner of the claims, rectification to remove the Company as the registered owner of the mining claims and list Nord as the registered and recorded owner and damages of $3,000,000. The Company previously reported on August 29th 2012 that it was notified by a third party of a potential dispute over certain claims pertaining to its Labrador Trough iron properties in the Nunivik region of northern Quebec.

The claims being disputed are all fully registered in the name of the Company with the Ministere des Ressources naturelles et de la Faune. The Company has also re-confirmed with the vendor and the staker of the claims that the agreements pertaining to the claims in question remain in full force and effect. The Company considers Nord's allegations against the Company in the Motion to be without merit and the Company intends to vigorously defend its position.

The Motion to Institute Proceedings number is S.C.M.: 500-17-073817-127.

The Company also reports that it has arranged a non-brokered private placement of up to 10,000,000 units at a price of $0.02 per unit for total proceeds of up to $200,000, subject to the approval of the TSX Venture Exchange. Up to 10,000,000 units will be issued as non flow-through units consisting of one common share and one half of one non- transferable warrant. Each whole warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.05 per share in the first year and $0.10 per share in the second and final year from the date of closing.

The proceeds of the private placement will be used to maintain and preserve the Company's assets and operations. Finder's fees, as allowed pursuant to the policies of the TSX Venture Exchange, may be payable in connection with the offering.

About Zone Resources Inc. Zone Resources Inc. is a Canadian Iron ore exploration and development company with 4 major projects situated in the Labrador Trough of Quebec, Canada.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary note:
This report contains forward looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

FOR FURTHER INFORMATION ABOUT THE COMPANY, PLEASE CONTACT:

Zone Resources Inc.
Vancouver Office
Email: info@zone-resources.com
Telephone: (604) 683 5445