BOB LAKE IRON PROPERTY

Zone Resources Inc. has a 100% interest in the Bob Lake Iron Property, consisting of approximately 5,080 acres, located in Nunavik, northern Quebec. The Property is situated between the Moore-Ross Mountain Property to the north and the Girard Lake Property to the south.

The Property covers a historic Iron Formation occurrence, called Bob Lake, which was described in a 1952 Frobisher Limited report as a new showing associated with a syncline structure. In addition to this, a 1952 Fort Chimo Mines map outlines the Bob Lake occurrence as Enriched Iron Formation within an Upper Iron Formation.

Pursuant to the terms of the option agreement, Zone will pay a cumulative amount of $150,000 cash and issue 1,500,000 common shares over a three year period. The Bob Lake Iron Property is subject to a 2.0% Net Smelter Royalty ("NSR"). Zone shall have an option to purchase 1% of the NSR for the sum of $1,000,000 at any time up to when a production decision is made. The terms of the agreement are subject to regulatory approval of the TSX Venture Exchange.