ZNI Zambezi Nickel

RNS Number:2221E
Zambezi Nickel Ltd
08 June 2006

8 June 2006

                             Zambezi Nickel Limited


                       Discovery of Mitaba West Extension


Zambezi Nickel Limited ("Zambezi" or the "Company") (AIM Codes: ZNI and ZNIO),
the AIM-quoted African nickel exploration and development company, today
announces the discovery of a significant extension to its Mitaba West Prospect.
Several exposures of dunite have been identified over a 3km strike length
southwest of the Mitaba West Prospect. Last season's exploration had delineated
a strike length of 2.4km at Mitaba West, with an additional 2.7km strike length
at Mitaba Hill, so this discovery extends Mitaba West to a strike length of
5.4km.

"Mitaba West Extension" is currently being evaluated using surface mapping and
gradient-array IP surveys. This work will delineate the distribution of dunite
and directly indicate any targets for disseminated nickel sulphide
mineralisation. Identified targets will be included in an ongoing
diamond-drilling programme, currently underway at the Mitaba Project.

Commenting on the announcement, Paul Rankine, CEO of Zambezi said, "The
discovery of the Mitaba West Extension highlights the prospectivity of the
region. We are currently undertaking an extensive exploration programme in
Zambia. Drilling is progressing very well, with drill rates of up to 68m per
shift being achieved, compared to our budget of 30m per shift. Six of the 28
planned diamond drill holes are complete and the first core has been sent for
assaying. Shareholders will be informed once we have the results for all the
first priority holes. We believe that there is the potential to generate a
JORC-compliant nickel resource on this property by the fourth quarter of 2006,
should results prove positive."


For more information, please contact:


Paul Rankine                                Laurence Read
Zambezi Nickel Limited                      Conduit PR
Tel:       +44 20 7193 3728                 Tel:       +44 20 7429 6666
Mob:    +44 795 280 7110                    Mob:    +44 797 995 5923


A PDF version of this release is available on the Zambezi website at
www.zambezinickel.com


ADDITIONAL INFORMATION

*   African focused pure nickel exploration/development company

*   Admitted to AIM in October 2005, raising #1.6 million

*   Exploration rights over 3 prospects on 2 project areas (Mitaba &
    Paulwi) in Zambia

*   Identified a major nickel sulphide-bearing structure which has been
    trenched & is currently being drilled (Mitaba)

*   Strategy to aggressively explore and evaluate currently identified
    mineralisation

*   Strong position from which to evaluate and possibly acquire nickel
    prospects in the region

*   4,540 metres diamond drill programme commenced on 28 April 2006

*   First stage target - JORC Resource - Q4 2006

*   Exploiting shared cost/infrastructure opportunities with AIM quoted
    Zambezi Resources


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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