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Page 4 CANADA ZINC METALS CORP. Condensed Consolidated Interim Statements of Financial Position As at March 31, 2014 and June 30, 2013 (Expressed in Canadian Dollars - Unaudited) Note March 31, 2014 June 30, 2013 (unaudited) (audited) Assets Current assets Cash and cash equivalents $ 12,382,937 $ 13,028,707 Receivables 3 39,040 42,809 METC recoverable 9 296,846 826,103 Prepaid expenses 9,706 10,255 Marketable securities 4 366,944 1,078,980 13,095,473 14,986,854 Other assets 5 332,500 332,500 Equipment and leasehold improvements 8 343,720 358,005 Long-term prepaid expenses 121,858 145,287 Exploration and evaluation assets 9 65,856,942 63,045,377 $ 79,750,493 $ 78,868,023 Liabilities and Equity Current liabilities Trade payables and accrued liabilities 6 $ 244,837 $ 342,818 Due to related parties 12 226 18,310 Flow-through premium liability 7 257,228 276,493 502,291 637,621 Deferred income tax liability 1,761,000 1,761,000 Equity Capital stock 10 95,385,179 92,555,610 Reserves 10 12,171,826 11,931,251 Deficit (28,771,607) (27,418,595) Accumulated other comprehensive loss 4 (1,298,196) (598,864) 77,487,202 76,469,402 $ 79,750,493 $ 78,868,023 Nature and continuance of operations (Note 1) The accompanying notes form an integral part of these condensed consolidated interim financial statements. Approved on behalf of the Board of Directors: “Peeyush Varshney” “Henry Giegerich” Director Director |