• VTEM survey on Rio Uranium JV highlights electromagnetic conductors in regional shear zone over 30 kms strike length

• Conductors associated with interpreted graphitic shale and uranium anomalism evident in radiometric data

• Preliminary geophysical modeling completed

• Trenching, geological mapping, PIMA survey and drilling to commence in Q3 2008

• ZRL and Rio agree to expand JV area to incorporate newly identified prospective area

Zambezi Resources Limited ('Zambezi' or the 'Company') (AIM: ZRL; ASX:ZRL) Monday announces progress on its Uranium Mineral Rights joint venture with Rio Tinto in southern Zambia.

The joint venture recently completed a major VTEM survey at Mulofwe and identified several electromagnetic conductors within a regional shear zone interpreted to form part of the continent-scale Mwembeshi Shear system. The shear zone is evident in electromagnetic and radiometric data over a strike length in excess of 30km, and continues beyond the survey boundary to the east and west. Preliminary interpretation suggests that the conductors are associated with the position of a regionally extensive graphitic shale unit. Previous radiometric surveys carried out by Zambezi have highlighted uranium anomalism believed to be associated with this unit. Geophysical modelling has been carried out on the eastern-most conductor within the shear zone. The modelling suggests the presence of a conductor of approximately 2km strike length dipping about 60o to the north and plunging gently to the east.

The joint venture plans to conduct follow up work to investigate the potential for an association between the conductive graphitic shales, the uranium radiometric anomalism and potential uranium mineralisation. This work will commence in Q3 2008 under the management of Rio as joint venture operators, and will comprise trenching, geological mapping, PIMA surveying and drilling.

In order to maximise the chances of success for the project, the joint venture partners have agreed to extend the area of the joint venture to cover the entirety of the prospective stratigraphy. This will be under the same terms of the existing Uranium Mineral Rights agreement. – Press Release