value is not everything, page-6

Merrill Lynch EXTRACT (20/6/06) re ZFX bottoming out around A$6 over the next 2-3mths...

Zinifex

�� We believe that the market is pricing ZFX on the cash flows to shareholders of 2yrs at spot prices, the trend zinc prices of 64c/lb. As a result, we have set our Scenario valuations equal to the respective NPVs
of each scenario. The Bull Trend case matches the current share price,with a Peak Bull Scenario valuation of $12/sh and a Bear Scenario valuation of $5.50.

�� In our view, the down side risks over the next 4 months, and over the next year out weigh the upside risks, and we retain our sell recommendation.

We believe this stock will trade between $6-8/sh over the next 12mths, once the initial sell off is over.