Norzinc (NORZF) 6-K Current report (foreign)

Exhibit 99.1

AMENDEDANDRESTATEDINVESTORAGREEMENT

THISAGREEMENTmade asofthe10th day of July, 2018

AMONG:

CANADIANZINCCORPORATION, acorporation organizedand existing underthelawsofBritishColumbia

(hereinafterreferredto asthe “Company”)

AND:

RCFVICADLLC

(hereinafterreferredto asthe “Investor”)

AND:

RESOURCECAPITALFUNDVIL.P.

(hereinafterreferredto as“RCF”)

WHEREASRCF, anAffiliate oftheInvestor,andtheCompany had previously enteredintothat certain

InvestorAgreement datedDecember 21, 2017(the“OriginalInvestorAgreement”);

AND WHEREAStheInvestorandtheCompany have enteredinto asubscription agreementwithrespectto aC$20million placement of unitsoftheCompanytotheInvestor datedMay 14, 2018(the “SubscriptionAgreement”);

AND WHEREAS aconditiontotheInvestor’s obligations underthe SubscriptionAgreementisthattheCompany andtheInvestor enterintothisAgreement,whichamends,restates,replaces andsupercedestheOriginalInvestorAgreement;

NOWTHEREFORETHISAGREEMENT WITNESSESthatforgoodandvaluableconsideration,thereceipt and sufficiency ofwhichareacknowledged by each ofthe parties,the parties agreeasfollows:

1. Definitions andInterpretation

InthisAgreement,unlessthereissomethinginthesubjectmatter or contextinconsistenttherewith:

“Affiliate” hasthemeaninggiventheretointhe SecuritiesAct;

“ApplicableLaw”means,at anytime,withrespectto any Person,property,transaction, event or othermatter, as applicable,alllaws,rules,statutes,regulations,treaties, orders,judgments and decrees,andall officialrequests, directives,rules,guidelines,orders, policies, practices and otherrequirements ofanyGovernmentalAuthorityrelating orapplicableatsuchtimetosuch Person, property,transaction, event orothermatter,andalsoincludesanyinterpretationthereof by any Person havingjurisdiction overitorchargedwithitsadministrationorinterpretation;

“Board”meanstheboardof directorsoftheCompany, as dulyappointedfromtimetotime;

“Budget”meansthe annualcost budget detailingthe hard andsoft costsassociatedwiththe development andconstruction oftheProject(as applicable) andallrelatedimprovements;

“BusinessDay”meansany day otherthan Saturday, Sunday or astatutory holidaywhen banks arenot openinDenver,Colorado orVancouver,BritishColumbia;

“CreditAgreement”meansthe credit agreement datedDecember 21, 2017 betweentheInvestor, aslender, andtheCompany, as borrower,inrespectof aU.S. $10,000,000seniorsecured bridgefacility;

“Director”means a director oftheCompanyforthetime beingandreferencetoaction bytheDirectorsmeansaction bythe directorsas a boardoraction by a committee oftheBoard as a committee;

“EquityFinancing”meansany proposedissuance of Equity Securities, directly orindirectly,for cashorcashequivalents,bytheCompanyafterthedate ofthisAgreement;

“Equity Securities”means,withrespecttotheCompany,any andallshares,interests, participations,rightsin,or otherequivalents(however designated andwhethervotingand non-voting) of,theCompany’s capital,whether outstanding onthe date hereoforissuedafterthedate hereof,includinganyrights,warrants,optionsor otherrightsexchangeableforor convertibleinto any oftheforegoing;

“Exchange”meanstheTorontoStock Exchangeandeachsuccessorthereto;

“GovernmentalAuthority”means eachnational,state, provincial, county,municipal or othersuchgovernmental or public authority,includingtheir authorized administrative bodies, courts,tribunals, commissionsand agents,which havelegaljurisdiction over a Person or amatterrelevanttothisAgreement;

“Investor’s Percentage”meansthepercentage calculated bymultiplying 100 by afraction,the numerator ofwhichisthetotal amountofthe outstanding commonshares oftheCompany held bytheInvestor,itsAffiliates anditsRelatedParties,andthedenominatorofwhichisthetotal outstanding commonshares ofthe Company;

“Person”meansanyindividual, partnership,limited partnership,jointventure,syndicate,sole proprietorship, orcorporationwith orwithoutsharecapital, body corporate, unincorporated association,trust,trustee,executor,administrator or otherlegal personalrepresentative,government orGovernmentalAuthorityor entity, however designatedor constituted;

“Project”meansthe PrairieCreekadvanced-stagedzinc-lead-silvermineoftheCompanylocatedintheNorthwestTerritoriesofCanada;

“Project Financing”meansindebtednessor otherfinancinginrespectofthe construction, development orimprovement ofthe Project;

“RelatedParty”means,withrespecttotheInvestor, anyfund or Personthatis a directorindirectinvestorintheInvestororitsAffiliates,any Personthatismanaged bythesameinvestmentadvisor(s)astheInvestor oritsAffiliates, anytrustofwhichtheInvestoror any ofitsAffiliatesis atrustee, any partnership ofwhichtheInvestor or any ofitsAffiliatesis a partner and anytrust,fundorother entitywhichismanaged by, orisunderthe control of,theInvestoror any ofitsAffiliates;

“SecuritiesAct”meanstheSecurities Act(British Columbia); and

“Subsidiary” hasthemeaning attributedtosuchtermintheBusinessCorporationsAct(British

Columbia).

2.         Headings

The divisionofthisAgreementintoarticles,sections,subsectionsandparagraphs,the provision of atable of contents andtheinsertionof headingsarefor convenienceofreference onlyand shall notaffecttheconstruction orinterpretationofthisAgreement.

3.         Representations and WarrantiesoftheCompany

TheCompany herebyrepresents andwarrantstotheInvestoras ofthe date hereofthat:

(a) Power andCapacity:ithasfull power and capacitytoenterintothisAgreement andto doall actsandthings andexecuteanddeliverall documentsas arerequiredhereunderto be done, observed, performed or executedand delivered byitin accordancewiththeterms hereof, andit hastakenall necessary corporateactionto dulyauthorizethe creation,execution,delivery and performanceofthisAgreementandto observe and performtheprovisionsofthisAgreementinaccordancewiththeprovisions hereof;

(b)        Enforceability:thisAgreementwillcreatevalid andlegally binding obligations ofthe

Company, enforceableagainsttheCompanyin accordancewithitsterms;

(c)       Due Performance:theentryinto andthe performance ofits obligations underthis

Agreementisinits bestinterestsandfor a proper purpose;and

(d) Non-Conflict: otherthanapproval oftheExchangeand,ifrequired bythe Exchange,shareholder approvalfortheplacement contemplated bythe SubscriptionAgreement, noneofthe execution and delivery ofthisAgreement,the compliance bytheCompanywiththe provisions ofthisAgreement ortheconsummation ofthetransactions contemplatedherein, does orwill:

(i) requirethe consent, approval, authorization,order oragreement of, orregistration or qualificationwith,anyGovernmentalAuthority,court,stockexchange,securitiesregulatoryauthority orotherPerson;

(ii)        conflictwith orresultinany breach orviolation ofany ofthe provisions of, or constitute a default under, anyindenture,mortgage, deed oftrust,lease or other agreement orinstrumenttowhichtheCompanyis a party or bywhichitor anyoftheproperties orassetsthereofis bound; or

(iii)       conflictwith orresultinany breachorviolation ofany provisionsof,or constitute a default underthearticles or by-laws oftheCompany or anyresolutionpassed bythe directors(orany committeethereof)orshareholdersoftheCompany, or anystatute or anyjudgment, decree, order,rule, policy orregulation of anycourt,GovernmentalAuthority, any arbitrator,stock exchange orsecuritiesregulatoryauthority applicabletotheCompany or any ofthe propertiesorassetsthereof.

4.         Participation bythe InvestorinEquityFinancing

SubjecttocompliancewithApplicableLaw,including,ifrequired,the approvalofthe Exchange,fromandafterthedate ofthisAgreementandforsolong astheInvestor’sPercentageisatleast

10%,theInvestor shall havethefollowingrightsinrespect ofanyEquity Financing:

(a) theright, but notthe obligation,to participate,insuchEquity Financing uptotheextentrequiredto allowtheInvestortomaintainthesameInvestor’s Percentagethatit possessedimmediately priortothe announcementofsuch Equity Financingsuchthat,iffully exercised,theInvestor doesnotsufferanyequity dilution(the“ParticipationRight”);and

(b) theright, but notthe obligation,tosubscribefor any Equity Securitiesissuedin connectionwithsuch Equity Financing nottaken upby otherinvestors orsubscribersto enabletheInvestortoincreaseits equity ownership percentageintheCompany(the “Top-upRight”).

IftheCompanyintendsor proposesto,or entersinto documentation purportingtoissueor authorizean Equity Financing,thenineachcase:

(i)        Notice of Financing:theCompanyshallfirst providewritten notice ofsuch Equity FinancingtotheInvestor,as soonas possible, butin anyevent on or priortothe earlierof 10BusinessDays priortotheexpected completiondateof suchEquity Financing, andthedate onwhichtheCompanyfiles a preliminary prospectusorother offering documentinconnectionwithsuchEquityFinancing,including a detailedsummary ofthematerialterms andconditions ofsuchEquity Financing,togetherwith any otherinformationthattheInvestormaythereafterreasonablyrequestinrespectofthesame;

(ii)        ElectionRightofInvestor:iftheInvestorwishesto exerciseitsParticipationRightorTop-upRight, asthe casemay be,theInvestormust providetheCompanywithwritten noticethatitis exercisingits ParticipationRight oritsTop-upRight,asthe casemay be, beforetheearlier of(A)five(5)BusinessDays afterthe dateofreceipt bytheInvestor of noticeofsuch Equity FinancingfromtheCompany pursuantto paragraph(i)above, and(B) 48 hours after public announcement ofsuchEquity Financingifsuch Equity Financingis a “bought deal” publicoffering(or 24 hoursintheeventthattheInvestor electstoexerciseitsTop-upRightandsuchexercisewouldrequireshareholder approval underApplicableLaw);failingwhich,theInvestorshallbe deemedto have elected notto exerciseitsrights underthis paragraph4;

(iii)      Flow-Through Shares:totheextentthatsuch Equity Financinginvolvestheissuance of common sharesintheCompanythatwillbeissued as “flow-throughshares”(as definedinsubsection 66(15) oftheIncome TaxAct(Canada)),at a price persharethatreflects a premium associatedwith aflow-through designation, andtheInvestorelectsto participateinsuch offering,theCompanyagreestonegotiateingoodfaiththe priceatwhichsuchflow-throughshareswill beissuedtotheInvestor,takingintoconsiderationthatany benefitsreceived by a purchaser offlow-throughshareswill not bereceived bytheInvestor;

(iv)       Completionof Equity Financing:iftheInvestor notifiestheCompany ofitselectionto exerciseits ParticipationRight orTop-upRight pursuantto paragraph(ii) above,theCompanyshalluseallcommerciallyreasonable efforts,including, but notlimitedto, promptlymakingallrequiredfilingswiththe Exchange orany otherapplicablesecuritiesregulator,commission orauthority andpayingallfeesinconnectiontherewith,to obtain any Exchange orregulatoryapprovalsrequiredinrespectoftheissuance of Equity SecuritiestotheInvestorinrespectofsuch Equity Financingand,subjecttoApplicableLaw,theCompanyandtheInvestorshallproceedto completethe purchaseandsale oftheEquity Securitiesthat arethesubject ofsuch Equity Financing,whichcompletionmaytake place concurrentlywithandsubjecttothe closing oftheissuanceof otherEquity Securitiesforming partofthe same EquityFinancing, providedthattheissue price offeredtotheInvestorshall,subjecttoApplicableLaw, be equivalenttotheissue price underthe Equity Financing.Inthecase ofanEquity Financingthatis a“bought deal” public offering,theEquity SecuritiesthattheInvestorelectsto purchaseshallbeissuedtotheInvestor bytheCompanyin a concurrent private placementwiththeInvestor onthesameterms as suchwiderEquityFinancing,subjecttoApplicableLaw;

(v) ProspectusOffering:withoutlimitationto any oftherightsoftheInvestors under paragraphs(i)to(iv) above,theCompanyshall use commerciallyreasonableeffortstoincludetheInvestor’s prorata entitlementinanysuchEquity Financingthatis a prospectusoffering, providedthatiftheInvestor’s proratashareisnotincludedinsuch prospectus offering,theCompanyshallensurethattheInvestoris providedwiththe opportunitytosubscribeforsuchEquity Securitieson a private placement basisassoon asreasonably possiblethereafter, andin no caselaterthanfifteen(15)BusinessDays afterthe closing ofthe prospectus offering onterms nolessfavourableasthose providedtoinvestors undersuchEquity Financing.Notwithstandingtheforegoing, any Equity SecuritiessubscribedforbytheInvestorinthe caseof a publicofferingthatis a “bought deal”shall beissued on a privateplacement basis onterms nolessfavourable asthose providedtoinvestors undersuchEquity Financing;

(vi)Shareholder Approval:iftheCompanyisrequired bythe Exchangeorotherwisetoseekshareholder approvalfortheissuanceof Equity SecuritiestotheInvestorundersuchEquity Financing,thentheCompanymay completethat portionofsuch Equity FinancingthattheExchangewillthen permitwithoutshareholderapproval,providedthattheInvestor subscribesforandisissuedatthattimethelesserof:

(A) a prorata portionofthemaximum number ofEquity SecuritiesthattheInvestorwishesto purchase as part ofsuchEquity Financing based onthesize oftheissuancethattheCompanyisentitledtocompletewithout obtaining shareholder approval; and

(B) themaximum number ofEquity Securitiesthatthe ExchangewillpermittheCompanytoissuetotheInvestoras partofsuch Equity Financingwithout obtainingshareholderapproval,

andtheCompanyshallcall andhold ameetingofitsshareholderstoconsiderthesubscription andissuance ofthe balance oftheEquity Securitiesinsuch Equity Financing assoonasreasonably practicableandinany eventwithinsixty(60)daysafterthe datethattheCompanyisadvisedthatitwillrequireshareholderapproval.In connectionwithsuchmeeting ofshareholders(orany adjournmentor postponementthereof), unlessinconsistentwiththefiduciary duties oftheBoard,management oftheCompanyshallrecommendinwritingthat shareholdersvoteinfavour ofsuchequityissuancetotheInvestorandshallvotetheircommonsharesintheCompanyinrespectofwhichmanagementisgranted adiscretionary proxyinfavour ofsuchequityissuancetotheInvestor.Ifshareholder approvalforsuchissuanceis obtained,theCompanywillissuetotheInvestortheremaining Equity Securitiesinsuch Equity Financing ontheBusinessDayfollowingreceiptofsuchshareholderapproval.If, however, shareholder approvalfortheissuanceof Equity SecuritiesinsuchEquityFinancingisnot obtainedatsuchmeeting,theCompany shall notissue anysuchEquitySecuritiestotheInvestor;and

(vii)     Continuing Right oftheCompany:iftheInvestorelects oris deemedto haveelected notto exerciseits ParticipationRight orTop-upRightinrespectofsuch Equity FinancingthentheCompanymay,at anytimewithinforty-five(45)days ofsuchelection(or deemed election),completesuch Equity Financingonsubstantiallythesametermsand conditionsasinitiallyindicatedtotheInvestor bytheCompany.

Forgreatercertaintyand notwithstandinganythingtothecontrarycontainedinthisAgreement,theparticipationrightsoftheInvestorunderthisparagraph 4 or otherwisewill notapplytotheissuance bytheCompany of Equity Securities(A) pursuanttotheCompany’sstock option plan orother compensationplansforemployees,consultants, officersordirectors oftheCompanyanditsAffiliates(includingtheissuance of options,restrictedstock,restrictedshare units,restrictedstock units,performanceshareunits,deferredshare units and anysecuritiesissued on exercise,vesting orsettlementthereof),(B)inrespectofsecuritiesissuedormadeissuablein connectionwith bonafideacquisitions bytheCompany,(C)the conversion orexchange ofany Equity Securities oftheCompanyinto commonshares oftheCompany, ortheexercise of anywarrants or otherrightsto acquirecommonsharesoftheCompany, or(D)inrespect ofsecuritiesissuedormadeissuablepursuanttoorin connectionwith arights offering orsimilartransaction.

5.         Participation bythe InvestorinDebtorRoyaltyFinancing

If, atanytimewhiletheInvestor’s Percentageis atleast 10%,theCompanyintends orproposestoissue anyconvertible debt securities,or entersinto documentation purportingto create,incuror assume anyIndebtedness(as definedintheCreditAgreement or,iftheCreditAgreementis ofnoforceandeffect,asimportedintothisAgreementfromtheCreditAgreementwiththesamemeaningasset outintheCreditAgreementimmediately priortoitstermination),includinginrespectof any ProjectFinancing, orestablish,sell,or create anyroyalty,metalstream orsimilar arrangement(in each case, otherthanPermittedIndebtedness(asdefinedintheCreditAgreement or,iftheCreditAgreementis of noforce andeffect,asimportedintothisAgreementfromtheCreditAgreementwiththesamemeaningassetoutintheCreditAgreementimmediately priortoitstermination))to any PersonotherthantheInvestor(anysuchtransaction, a“DebtorRoyaltyFinancing”),thenineachcase:

(a) NoticeofFinancing:theCompanyshallpromptly providewritten noticeofsuchDebtorRoyalty Financing,asthecasemay be,totheInvestor,including a detailedsummary ofthematerialtermsandconditionsofsuchDebt orRoyalty Financing,togetherwith any otherinformationthattheInvestormaythereafterreasonablyrequestinrespectofthesame;

(b) Election RightofInvestor:withintwenty(20)BusinessDays ofreceiptofthenoticeoftheCompany contemplatedin paragraph(a)above,theInvestormay notifytheCompanythatit haselectedto participateinsuchDebtor Royalty Financing, upto an amount equaltotheInvestor’sPercentageinrespect ofsuchDebt orRoyalty Financing on a prorata basis,atits sole discretion, andthereaftertheCompanyandtheInvestorwill(and,if applicable,theCompanywillcauseanyother applicable Personsto)takestepsto promptly completesuchDebt orRoyalty Financingontermsandconditions acceptabletotheInvestor butwhich substantiallymatchtheterms oftheDebtorRoyalty Financing proposedto be enteredinto bytheCompanywiththe other Person,ifapplicable;failingwhich,theInvestorshallbe deemedto have elected nottoexerciseitsrightsunderthis paragraph 5;and

(c) Continuing Right oftheCompany:iftheInvestordoesnot elect(oris deemedto have not elected)toexerciseitsrightofparticipationpursuantto paragraph(b)abovethentheCompanymay, at anytimewithinsixty(60)days ofsuchelection(orsuch deemed election attheendoftheabovetwenty(20)BusinessDay period),takestepstocompletesuchDebt orRoyalty Financing onsubstantiallythesameterms andconditionsasinitiallyindicatedtotheInvestor.

6.       CorporateOversight bytheInvestor

TheCompany covenantswiththeInvestorasfollows:

(a)        BoardNomination:

(i)        theCompany agreesthat:

A. forsolongastheInvestor’s Percentageisatleast 10%,theInvestormay, at anytimeandfromtimetotime, atitssole discretion, nominate one(1)DirectortotheBoard;

B. atanytimethattheInvestor’sPercentageisatleast 20%,theInvestormay, atanytime andfromtimetotime, atits sole discretion, nominate uptotwo(2)DirectorstotheBoard;and

C. fromtimetotime,theInvestorshall havetherightto appointadditionalDirectorsin proportiontotheInvestor’s PercentageintheCompany, and byway of example andforgreater certainty,forsolongastheBoardis comprised ofsevenmembers,at anytimethattheInvestor’s Percentageis atleast 43%,theInvestormay, at anytime andfromtimetotime, atitssole discretion, nominateuptothree(3)DirectorstotheBoard;

andeachDirector nominated bytheInvestor pursuanttothissection 6(a)shall be an“InvestorNominee”;

(ii)       theCompanyfurtheragreesthat, upontheInvestor exercisingitsnominationrights undersection6(a)(i) byway ofwritten noticetotheCompany, providedthat suchInvestorNominee(s) areeligible underApplicable Lawtoserveas aDirector andconsentinwritingtoserve as aDirector,theCompany(includingitsthen-current Directors and officers)shalltakeallsuchactions andstepsto promptlyappointtheInvestorNominee(s)totheBoard,including convening ameeting oftheshareholders ordirectors oftheCompany,asthe casemay be,in ordertosoeffectsuch nominationand appointment.The partiesacknowledgethatappointeestotheCompany’sBoard(includingtheInvestorNominee(s))must beratified annuallyby ashareholdervoteattheCompany’s annualgeneralmeeting ofshareholders, andtheCompany agreesthatitsmanagementshallrecommendinwritingthatshareholdersvoteinfavour oftheInvestorNominee(s) andthatitsmanagementshallvotetheir commonsharesintheCompany(andtheir commonsharesintheCompanyinrespectofwhichtheyaregranted adiscretionary proxy)infavour oftheInvestorNominee(s)ineach annualgeneralmeeting orspecialmeetingatwhichdirectorsareproposedtobe elected.

(b) Board Size:forsolong astheInvestor’s Percentageisatleast 10%,theCompanyshallmaintainthesize oftheBoardatseven(7) directors, unless otherwise consentedtoinwriting bytheInvestor;

(c) MonthlyReporting,SiteVisits,Budgets:forsolongastheInvestor’s Percentageisatleast 10%,

(i)        theCompanywill delivertotheInvestorineachcalendarmonth awrittenreport,in formand contentsatisfactorytotheInvestor,regarding(A)the permitting, constructionand operation ofthe Project,(B)a summary description ofactions takenandexpenditures made withrespect to theProject duringthe prior month,and(C)material corporatedevelopments;

(ii)        theCompanywill,inadditionto anyseparaterights oftheInvestor, permit anyrepresentatives designated bytheInvestor, uponreasonable prior notice and at areasonabletime, onceper calendar quarter,tovisitandinspectthe Project,to examine andmakeextractsfromits booksandrecords andtodiscussits affairs,financesand conditionwithits directors, officers,management, advisors and consultants, and onesuchvisit during acalendaryearshall beatthecost and expenseoftheCompanywith anyadditionalvisits beingatthe costand expense oftheInvestor; and

(iii)      theCompanywill promptly providetotheInvestor a draftcopy oftheBudget, and any updates orrevisionsthereto,and consultwiththeInvestor ontheBudget(or any updates orrevisionsthereto) priortoapproval oftheBudget(or any updatesorrevisionsthereto) bythe board ofdirectorsoftheCompany.

(d) Project TechnicalCommittee(“PTC”):theCompanyshallmaintain a PTC consisting of uptofive(5)members, comprisingDirectorsand otherindividuals andincludingatleast oneappointee oftheInvestor,subjectto acommittee charterthatis acceptabletotheCompany andtheInvestor,whoserolewillbetomonitorandreview,atthe costandexpenseoftheCompany,thetechnical and operational development ofthe Project anditsconstruction(including pursuanttositevisitstotheProjectfromtimetotime and upon appropriate accesstomanagement andmanagementinformation oftheCompany,asrequired),which committeewillreporttotheBoard andwill provide updated,writtenreportstotheBoardinrespect ofthetechnicaland operational developmentofthe Projectandits construction,whichreportsshall be delivered bysuchPTC totheBoard nolessthan oncepermonth, unless otherwiseagreed bytheCompany andtheInvestor;

(e) Environmental and SocialCommittee(“ESC”):theCompanyshallmaintain anESC consisting of uptofive(5)members,comprisingDirectorsand otherindividuals andincluding atleast one appointee oftheInvestor,subjectto acommittee charterthatis acceptabletotheCompany andtheInvestor,whoserolewill betomonitor, atthecostand expense oftheCompany, permitting, environmentaland socialmattersinrespect oftheProject(including pursuanttositevisitstotheProjectfromtimetotime and uponappropriate accesstomanagement andmanagementinformation oftheCompany,asrequired),which committeewillreporttotheBoard andwill provide updated,writtenreportstotheBoardinrespectofthe permitting, environmental andsocialmattersrelatingtotheProject,whichreportsshall be delivered by such ESCtotheBoardnolessthan once permonth, unless otherwise agreed bytheCompany andtheInvestor;

(f) OtherCommittees:theCompanyshallmaintain both acompensation committeeand a nomination committee,each consisting of uptofive(5)members,comprisingDirectors and,ifrequested bytheInvestor,atleast one oftheInvestorNomineesandeach subjectto acommittee charterthatisacceptabletotheCompanyandtheInvestor;

(g)        Observer Rights:inadditiontotheDirector nominationrights oftheInvestorset outin paragraph (a)above,theCompany agreesthat,forsolong astheInvestor’s Percentageis atleast 10%,theInvestormay,fromtimetotime, atitssole discretion, nominate oneormore observerstositinonthegeneralBoardmeetings oftheCompanyand on anymeetings of anytechnical,social,financial andother committeesestablished bytheBoard(includingthePTC and ESCreferencedabove), andsuchobserver(s)shallreceive allinformationandcommitteedocumentation providedtotheothermembers of each such committees,providedthatifanysuch observation or disclosureofinformationor documentation creates aconflict ofinterest,inthereasonable opinion oftheCompany ortheInvestor,thensuch observer(s)may beexcludedfromanysuchmeetings orsuchinformationor documentationmay bewithheldfromsuch observer(s),asthe casemay be.Totheextentreasonablyconsidered necessary bytheCompany,anysuch observer(s) designated bytheInvestorshall enterinto a confidentiality agreement(informandsubstanceacceptabletotheCompany andtheInvestor,each actingreasonably)andagreeto bebound bytheCompany’sdisclosure andinsidertradingpolicies;

(h) BoardInformation:withoutlimiting orimpairing(andinadditionto)any otherrightsoftheInvestor underthisparagraph 6generally,theCompanyshall ensurethatallinformation,materialsand documentationprovidedtotheBoardare concurrently providedtotheInvestor, providedthattheInvestorshall holdallsuchinformation,including, but notlimitedto,alloftheCompany’stechnicaldata,workplansand programs, permitting, environmental andsocialinformation, andresults oftheCompany’s operations,inthestrictest confidenceandshall protectandsafeguardthe confidential andproprietary naturethereof by exercisingthesame degree ofcarethattheInvestor exercises overitsown confidentialinformation; and

(i) Fees andExpenses:theCompanywillpayforall oftheInvestor’slegalfees(on asolicitor and ownclient basis)and allothercosts, chargesandexpenses oftheInvestor(including allduediligence expenses)ofandincidentaltothe preparation, execution and completion ofthisAgreement,theSubscriptionAgreement,andallamendmentsthereto,tocomplete orfacilitatethetransactions contemplatedinthe SubscriptionAgreement andthisAgreement,includingbut notlimitedtotechnicalconsulting,executive searchfees orrecruitment costsincurred bytheInvestor, andotherreasonable duediligence costs, allofwhich amountspayable bytheCompany ascontemplated bythe SubscriptionAgreement or otherwise upondemand.

7.         FurtherAssurances

TheCompanyshall(andshall ensurethatits Subsidiariesshall)fromtimetotime, asmay bereasonablyrequired bytheInvestor,execute and deliversuchfurther and otherdocumentsanddo allmattersandthingswhichare necessaryto carry outtheintention and provisionsofthisAgreement.

8.         Breach

Upon any breach bytheCompany of any ofits obligations underthisAgreement,theInvestormayenforceallrights andremediesthen availabletoitunderApplicableLaw.

9.         NoticetotheCompany

Any noticetotheCompany underthe provisions ofthisAgreementshall bevalid and effectiveif delivered personally, by courier or byemailto or,ifgivenbyregisteredmail, postage prepaid, addressedto,the Company at:

Suite 1710, 650WestGeorgia Street

POBox11644
Vancouver,BritishColumbia

CanadaV6B 4N9

Fax: 604 6882043

andshall be deemedto have beengiven onthedate of personal delivery,whensent byemailorwhensent byfacsimiletransmissionifsodeliveredorsent priorto 5:00 pm(Vancouvertime)on aBusinessDayand otherwiseonthe nextBusinessDay, or onthefifth(5th)BusinessDayaftersuchletterhas beenmailed, asthe casemay be.TheCompanymayfromtimetotime notifytheInvestor of achangeinaddresswhichthereafter, until changed byfurther notice,shall bethe addressoftheCompanyfor all purposes ofthisAgreement.

10.       NoticetotheInvestor

Any noticetotheInvestor undertheprovisionsofthisAgreementshall bevalidandeffectiveif delivered personally, bycourier or byfacsimiletransmissiontoor,ifgiven byregisteredmail, postageprepaid,addressedtotheInvestor atitsprincipalofficeat:

1400 Sixteenth Street, Suite 200

Denver,Colorado

80202United States ofAmerica

Fax: 720 9461450

andshallbe deemedtohave beengiven onthe dateofdelivery personally or byfacsimiletransmissionifso delivered priorto5:00 p.m.(Denvertime) on aBusinessDayand otherwiseonthenextBusinessDay oronthefifth(5th)BusinessDayaftersuchletter has beenmailed,asthe casemay be.TheInvestormayfromtimetotime notifytheCompany of achangein addresswhichthereafter, untilchanged byfurther notice,shall bethe address oftheInvestorforall purposesofthisAgreement.

11.       WaiverofRighttoCounsel

Eachofthe parties heretoacknowledges,agreesanddeclaresthatit:

(a) has hadthe assistanceoflegal counselinpreparing, negotiating and enteringintothisAgreement;

(b) hasmadeits own,separate andindependent decisionsasto howandwhento availitself ofsuchlegal assistance;and

(c) understandsthenature and effect ofthisAgreement andthatithas no obligationto executethisAgreement and hereby acknowledgesand declaresthatit doessofreely andvoluntarily,

and herebywaivesall claims, demands,losses,actions, causesofaction,costs,charges, expenses, damages andliabilitieswhatsoever arisinginconnectionwithsuch party’s decisionto engage or nottoengagethe assistance ofitslegalcounsel at anytimein preparing, negotiating or enteringintothisAgreement.

12.       Amendments and Waivers

No amendmenttoany provision ofthisAgreementshall beeffective unlessitisinwriting and has beensigned bytheInvestorandtheCompany,and nowaiver ofany provision ofthisAgreement, orconsenttoany departure bytheCompanytherefrom,shallbeeffectiveunlessitisinwriting and has beensigned bytheInvestor.Anysuchamendment,waiver orconsent shall be effective onlyinthespecificinstanceandforthespecific purposeforwhichgiven.

13.       No Waiver;RemediesCumulative

Nofailure onthe part oftheInvestorto exercise, and no delayin exercising, anyright,remedy, power or privilege underthisAgreementshall operate as awaiverthereof, norshall anysingleor partialexercise of anysuchright,remedy, power or privilege preclude any other orfurther exercisethereofortheexercise ofany otherright,remedy, power or privilege.

14.       Termination

ThisAgreementshall continueinfullforceand effect untilthefirst date onwhichtheInvestor’s

Percentageislessthan 10%.

15.       BindingEffect;Assignment;Syndication

ThisAgreement shallbecome effectivewhenitshallhave been executed bythepartiesheretoandthereaftershallbe binding upon,inuretothe benefit ofand beenforceable bythe parties hereto andtheirrespectivesuccessorsand assigns.TheCompanyshall not havetherighttoassignitsrights and obligations hereunderoranyinterest hereinwithoutthe priorwrittenconsent oftheInvestor,whichmay bewithheldintheInvestor’ssole discretion.TheInvestorshall not havetherightto sell,assign ortransferall or any portionoftheInvestor’sinterests,rightsand obligations hereunder oranyinteresthereinwithoutthe priorwritten consent oftheCompany,savethattheInvestormaysell, assign ortransferall or any portion ofitsinterests,rightsand obligations hereunder at anytimeto anyAffiliate or Related Party oftheInvestor, upon noticeto, butwithouttheconsentof,theCompany;theCompanyshall,fromtimetotime uponrequest oftheInvestor, enterintosuchamendmentstothisAgreementandexecute and deliversuch other documentsasshall be necessarytoeffectanysuch assignment andtheCompany acknowledges andagreesthattheInvestoris authorizedto discloseto any permitted assigneeorprospective permitted assignee hereunder any andallfinancialand otherinformation concerningtheCompanyanditsassets and any othertransactionscontemplated herein,whetherreceived bytheInvestor or derivativethereof,inconnectionwiththisAgreement,solong astherecipientthereof agrees nottodisclose anyconfidential, non-publicinformationtoany person otherthanitsemployees,accountants,legal counselor otherrepresentatives, unlessrequired byApplicableLaw.

16.       GoverningLaw

ThisAgreement shall begoverned by,construed and enforcedinaccordancewiththelawsofthe ProvinceofBritishColumbiaandthefederallawsofCanada applicablethereinandshallbetreatedin allrespects as aBritishColumbia contract.TheCompany herebyirrevocablyattornstothe non-exclusivejurisdiction oftheCourtsoftheProvinceofBritishColumbiaintheCity ofVancouverand herebyirrevocably and unconditionallywaives,tothefullestextentitmaylegally and effectively doso, any objectionwhichitmay now or hereafter havetothelaying ofvenue of anysuit, action orproceedingarising out oforrelatingtothisAgreementinanyCourt ofthe ProvinceofBritishColumbia.

17.       Enurement

ThisAgreementshall bebinding upon andshallenuretothe benefitoftheCompany andtheInvestor andtheirrespective permittedsuccessors andassigns.

18.       EntireAgreement

ThisAgreementreflectthe entire agreement betweenthe parties heretowithrespecttothematterssetforth hereinandthereinandsupersedeany prioragreements, commitments, drafts, communication, discussionsand understandings, oral orwritten,withrespectthereto,including but notlimitedto anyterm sheet enteredinto between any ofthe partiesthereto.

19.       Severability

Whenever possible,eachprovision ofthisAgreementshall beinterpretedinsuchmannerasto be effectiveandvalid underallApplicableLaws.If, however, any provision ofthisAgreementshall be prohibited by orinvalid underanysuchlawinanyjurisdiction,itshall,astosuchjurisdiction, be deemedmodifiedto conformtotheminimumrequirements of suchlaw,or,iffor anyreasonitis not deemedsomodified,itshallbeineffective andinvalid onlytothe extent ofsuch prohibition orinvaliditywithoutaffectingtheremaining provisions ofthisAgreement, orthevalidity or effectiveness ofsuch provisioninany otherjurisdiction.

20.       Counterparts andfacsimile

ThisAgreementmay be executedin counterparts and by electronictransmission ofanauthorizedsignatureand eachsuch counterpartshallbe deemedtoform part of oneandthesame document.

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IN WITNESSWHEREOFthe parties heretohaveexecutedthisAgreementunderthe handsoftheir proper officers dulyauthorizedinthatbehalf.

RCFVICADLLC

By:	"SIGNED"
	Authorized Signatory

CANADIANZINCCORPORATION

Per:	"SIGNED"
	Authorized Signatory

RESOURCECAPITALFUNDVIL.P.

ByRESOURCECAPITALASSOCIATESVIL.P.,General Partner,

ByRCAVIGPLtd.,General Partner

By:	"SIGNED"
	Authorized Signatory