Excellent report out dated 16 August. Highlights, with direct...

Excellent report out dated 16 August. Highlights, with direct quotes prefaced by '

'We have spoken with ..new CEO David Russell and thought highly of his conservative approach to move the company forward.'

With funding in place the company will move forward on two fronts.

Kanaluwi Copper Project - resource of 21.8 m tonnes @ 0.89% copper; many assays not yet received from deeper drill holes and company says resource likely to be increased significantly; only 255 of potential strike explored and good chance that resource will be increased to at least 60m tonnes to support production of ~20,000 tpa

Due diligence still being completed on Chingola Dumps project. 4000 samples collected for assay and when results to hand and dd completed, results will be announded to market.

Plan is to mine the dumps for the cash flow and use the funds to further develop Kangaluwi, which is potentially a very big project. Current resource based on only 20% of samples, the other 80% in process of being assayed.

'After all the assays have been returned we anticipate a significant increase in the current resource'

'We think now is a good time to increase exposure to the company ahead of expected good news.'

ZRL has rights under an MOU to purchase the dumps on confirmation of their worth, and has the cash in the bank to make the necessary $4.5m payments if a commercial project is developed.

'Soon after exploration begins in earnest we expect the company to report good drilling results. We are anticipating a favourable due diligence study for the rock dumps, and encouraging asays from the samples that were not assayed after the company ran out of money in late 2008.'

' The company will be recapitalised with A$8m and thus well placed to add value to shareholders... Zambesi is still very speculative in nature but is expected to emerge as a good junior copper play.'

Fat Prophets recommend ZRL as a BUY on the risk to reward ratio.