TREK METALS LIMITED — Capital/Financing Update 2007

Jul 4, 2007

ASX Announcement

5 July 2007

Exploration Update - Zambia Copper Projects

• Five drilling rigs operational at three copper projects in Zambia.
• Targeting progressive ramp-up to eight rigs by October 2007.
• Pre-feasibility work underway on Cheowa Project.
• Drilling successfully targeting VTEM conductors at Cheowa, with assay results expected from August onwards.

Zambezi Resources Limited ("Zambezi" or "the Company") (AIM: ZRL, ASX: ZRL) today announces an update on its 2007 field season exploration activities at its portfolio of copper projects in southern Zambia.

Zambezi, which was admitted to the Australian Stock Exchange on Tuesday 3 July 2007, commenced its 2007 field season at the beginning of April following the end of the seasonal Zambian rains.

At the Cheowa Project, where Glencore International AG ("Glencore") is earning an initial 51% interest by spending US\$10 million, the Company now has all four planned drill rigs operating and has commenced prefeasibility work which includes an environmental base line study.

In addition, consultants for the mine planning and geotechnical components of the project have been appointed, while the plant design consultants are expected to be appointed in July. The pre-feasibility study remains on track for completion in May 2008.

At the CC2 prospect at Cheowa - where an initial JORC compliant resource estimate of 1.7 million tonnes at 1.5% copper and 0.5q/t gold was reported earlier this year $-$ a total of 2,833 metres of reverse circulation ("RC") drilling and 1,395 metres of diamond core drilling has been completed by the end of the first month of exploration activities.

Significantly, the targeting of 3D modelled VTEM conductors at Cheowa has been successful to date, with mineralisation so far defined to depths of 200m over a strike length of 1,000 metres. This mineralisation remains open at depth and along strike. Further step-out holes are now being drilled beyond the modelled CC2 VTEM conductors.

The application of modern geophysical techniques such as VTEM has proved to be an important exploration tool for Zambezi.

Scout diamond drilling of conductors CC13, CC14 and CC15, which occur approximately 7.5 kilometres along strike to the east of CC2, has also

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: 185,005,279 ordinary shares 9,500,000 options 1,900,000 warrants

Directors: Non-Executive Chairman: Brian Rear Managing Director: Julian Ford Exploration Director: Geoff Johnson Non-Executive Director: Jeremy Wrathall

Chief Financial Officer: Lloyd Flint

commenced. Assay results from the drilling are expected from August onwards.

At the 100%-owned Chakwenga Gold Project, 1,800 metres RC drilling has been completed to date, while drilling of the Kangaluwi-Chisawa Copper Project, where Zambezi announced a new copper discovery last year, is planned to commence in August.

Field work has also commenced aimed at generating drilling targets at the Mulofwe Project, where a new polymetallic copper, lead & gold project has been identified from rock outcrops just north of the Mulofwe Shear.

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

For more information contact:

Julian Ford, Managing Director Zambezi Resources (Australia) +61 (08) 9216 9000 +61 (0) 418 949 580

Fiona Owen Grant Thornton Corporate Finance +44 20 7383 5100

Jeremy Wrathall, Non-Executive Director Zambezi Resources (London) Mob: +44 7712 776 100

Jane Stacey / Ed Portman Conduit PR +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 Member 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.