TREK METALS LIMITED — Capital/Financing Update 2007

Oct 1, 2007

ASX Announcement 2 October 2007

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Substantial extension of mineralised strike at Cheowa Copper-Gold Project

• RC Drilling returns excellent results from the CC2 prospect at Cheowa Copper-Gold project, including 4m at 4.31% copper and 0.99 g/t gold, 6m at 1.87% copper and 0.25 g/t gold, 6m at 1.76% copper and 0.20 g/t gold, 5m at 1.78% copper and 0.23 g/t gold, 4m at 2.14% copper and 2.01 g/t gold, 6m at 1.41% copper and 0.40 g/t gold, and 7m at 1.14% copper and 0.07 g/t gold.

• Diamond Drilling returns excellent results from the CC2 prospect including 4m at 3.00% copper and 0.40 g/t gold, and 7m at 1.70% copper and 0.40 g/t gold.

• Mineralised strike at CC2 prospect extended to 2,100 metres, a 300% increase from the strike of the previously defined resource.

• Further mineralised zone identified by drilling to the east of CC2 at conductors CC3, CC4 and CC6, comprising 800m of strike length, open to the east and at depth.

• Scout Diamond Drilling defines further mineralisation over 600m of strike at conductors CC11, CC12, CC13 and CC15.

• Four drilling rigs operational at Cheowa, 27,000 metres of drilling completed to date this season.

• Revised Resource Estimate due in November.

• Pre-feasibility work underway, engineering and geotechnical consultants appointed.

Zambezi Resources Limited (“Zambezi” or “the Company”) (AIM: ZRL, ASX: ZRL) today announces encouraging progress on its priority Cheowa Copper-Gold Project in southern Zambia.

Infill and extension Reverse Circulation (“RC”) drilling at the CC2 prospect has returned excellent results including 4m at 4.31% copper and 0.99 g/t gold, 6m at 1.87% copper and 0.25 g/t gold, 6m at 1.76% copper and 0.20 g/t gold, 5m at 1.78% copper and 0.23 g/t gold, 4m at 2.14% copper and 2.01 g/t gold, 6m at 1.41% copper and 0.40 g/t gold, and 7m at 1.14% copper and 0.07 g/t gold (see Table 1, Figure 1).

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ARBN 124 462 826 Bermuda: Canon’s Court 22 Victoria Street Hamilton HM12 Australia: 17 Ord Street West Perth PO Box 1796 WA 6872 Tel: (+61-8) 9216 9000 Fax: (+61-8) 9216 9090 Zambia: Mwembeshi Resources Limited Plot 5777N Great East Road Kalundu Lusaka Tel: (+26) (021) 1291 645 Fax: (+26) (021) 1292 411 Stock Exchange Listings: ASX: ZRL AIM: ZRL Issued Capital: 187,985,279 ordinary shares 10,600,000 options Directors: Non-Executive Chairman: Brian Rear Managing Director: Julian Ford Exploration Director: Geoff Johnson Non-Executive Director: Jeremy Wrathall Chief Financial Officer: Lloyd Flint

Diamond drilling at the CC2 prospect has also returned excellent results including 4m at 3.00% copper and 0.40 g/t gold, and 7m at 1.70% copper and 0.40 g/t gold (see Table 1, Figure 1).

At the CC2 prospect - where an initial Inferred Mineral Resource estimate prepared in accordance with the 2004 JORC Code of 1.7 million tonnes at 1.5% copper and 0.5g/t gold was reported earlier this year - a total of 80 RC holes for 12,700 metres and 6 diamond holes for 1,050 metres have been completed so far this field season. The drilling is designed to infill and extend the area incorporated in the resource estimate. The results received and reported to date are from 42 of the 80 RC holes and 2 of the 6 diamond holes.

Based on assays received and visual estimates, the strike length of mineralisation at CC2 has been extended to 2,100 metres. CC2 remains open to the west and at depth, with drill testing only to 200m vertical to date. A new phase of diamond drilling to test to 400m vertical and then to 600m vertical has now commenced at CC02 with the arrival of a deeper capacity drilling rig.

A revised resource estimation exercise is now underway for CC2, with results expected in November. Prefeasibility work is underway, with expert consultants now appointed in the following areas: process design; mine design; comminution testwork and design; power, water and transport infrastructure; geotechnical engineering; environmental management; and resource estimation. The pre-feasibility study remains on track for completion in May 2008.

In addition to the mineralised strike at CC2, a further mineralised zone has been identified to the east of CC2, commencing 300m to the east of CC2 and extending an additional 800m along strike to the east at conductors CC3, CC4 and CC6. This zone remains open to the east and at depth. Assays results are awaited.

Scout diamond drilling is also being conducted at the eastern conductors, which occur approximately 7.5 kilometres along strike to the east of CC2. To date, 32 diamond holes have been completed for 5310 metres over 15 conductors. The holes are designed to test both copper anomalism in surface trenches and soils, and the modelled positions of the VTEM conductors. Both pyrrhotite-dominant and chalcopyrite-dominant mineralised intervals have been intersected, with mineralisation observed to date over 600m of strike at conductors CC11, CC12, CC13 and CC15. This mineralisation is open in both directions and at depth, and appears to be structurally complex, with several parallel lodes and offsets attributable to late stage faulting. Results have been received for only 3 holes from CC13 to date, including 6.7m at 0.58% copper and 0.36 g/t gold, and 2.8m at 1.38% copper and 0.16 g/t gold (see Table 2). Further results are expected in early November.

At the Cheowa Project, Glencore International AG (“Glencore”) is earning an initial 51% interest by spending US$10 million, with Zambezi managing the project.

Downloads are available from the Zambezi website at: www.zambeziresources.com

For more information contact:

Julian Ford, Managing Director Jeremy Wrathall, Non-Executive Director Zambezi Resources (Australia) Zambezi Resources (London) +61 (08) 9216 9000 Mob: +44 7712 776 100 +61 (0) 418 949 580 Fiona Owen Jane Stacey / Ed Portman Grant Thornton Corporate Finance Conduit PR +44 20 7383 5100 +44 20 7429 6666 / +44 7922 923306

Nicholas Read / Kate Bell Read Corporate +61 (08) 9388 1474 +61 (0) 419 929 046

The information in this release that relates to Exploration Results is based on information compiled by Exploration Director Geoffrey Johnson BSc (Hons), PhD, Grad Dip Env Sc. Dr Johnson is a full-time employee of Zambezi Resources, and a Fellow of the Australian Institute of Geoscientists. Dr Johnson is a Competent Person as defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, and consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

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Figure 1: Cheowa Project RC and Diamond Drill Results, VTEM Survey Outlines and Conductor Locations

Table 1: Cheowa Project, CC2 Prospect Drill Hole Assay Results

Drillhole	Coordinates N E	Coordinates N E	Collar Elevation	Dip	Azi	Total Depth (m)	From (m)	To (m)	Interval Width (m)	Cu %	Au g/t
CHERC0015	8266383	728344	1042.8	60	160	150	121	127	6	1.76	0.2
CHERC0017	8266330	728373	1048.5	60	160	77	57	62	5	0.83	0.2
CHERC0018	8266335	728422	1050.9	60	160	65	20	28	8	0.84	0.15
CHERC0020	8266489	728420	1041.7	55	160	230	189	195	6	1.87	0.25
CHERC0022	8266530	728562	1022.2	60	160	199	177	181	4	2.14	2.01
CHERC0023	8266402	728560	1043.0	60	160	87	53	60	7	1.14	0.07
CHERC0024	8266175	728045	1057.0	60	160	111	35	42	7	0.52	0.13
CHERC0028	8266190	728102	1061.0	60	160	100	69	73	4	4.31	0.99
CHERC0029	8266529	728603	1005.0	60	160	175	148	151	3	1.58	0.59
CHERC0031	8266510	728726	991.0	60	160	125	73	75	2	1.59	0.3
CHERC0032	8266564	728695	967.2	60	160	155	129	132	3	2.01	0.27
CHERC0034	8266558	728821	967.0	60	159	117	21	27	6	1.41	0.4
CHERC0035	8266479	728470	1046.4	60	160	210	169	174	5	1.08	0.15
CHERC0036	8266503	728669	993.3	60	160	150	87	93	5	1. 78	0.23
CHERC0039	8266640	728720	963.0	60	160	225	191	193	2	1.68	0.18
							198	202	4	0.84	0.09
CHEDD0026	8266548	728652	986.0	60	160	171.5	141	148	7	1.7	0.4
CHEDD0027	8266593	728740	962.0	60	160	174.5	117.7	122	4.3	3	0.4

Table 2: Cheowa Project, CC13 Prospect Drill Hole Assay Results

Drillhole	Coordinates N E	Coordinates N E	Collar Elevation	Dip	Azi	Total Depth (m)	From (m)	To (m)	Interval Width (m)	Cu %	Au g/t
CHEDD0062	8269385	735225	854.5	60	170	141.4	82	87.5	5.5	0.57	0.04
CHEDD0063	8269406	735379	821.4	60	170	180.4	44.5	51.2	6.7	0.58	0.36
CHEDD0064	8269481	735493	801.0	60	170	132.4	70	72.8	2.8	1.38	0.16

Coordinate system Arc50 UTM Zone 35S . Mineralised intervals calculated on basis of lower cutoff of 0.3% Cu, minimum mineralised interval of 1m, maximum internal waste of 1m. Mineralised intervals >3m% copper reported here. Mineralisation dipping to north at 50-55 degrees. Mineralised widths reported on downhole basis, true width approximately downhole width x 0.9 . CHERC prefix denotes RC drillholes, CHEDD prefix denotes diamond drillholes.