Silvermet Inc. Signs a Heads of Agreement with Korea Zinc Co. Ltd.

Toronto-based Silvermet Inc. a producer of zinc, lead, and other by-products from the recently acquired assets of Metox A.S. in Turkey, announced the signing of a Heads of Agreement with Korea Zinc Company Ltd., a zinc smelting and processing company. Under the agreement, Korea Zinc will complete a private placement into Silvermet of $3.0 million at $0.10/share and the companies will form a technical committee for current and future operations. Korea Zinc has agreed to finance and construct a second and third kiln in Turkey, subject to a final feasibility study ,and will purchase 100% of Silvermet’s zinc concentrate output from all plants for a period of 10 years. Korea Zinc will also nominate a member to the board of directors of Silvermet.