Yukon Zinc Corporation

CCAA filing

^{Page last updated: March 26, 2016}

This page is for information purposes only and you should consult your professional adviser if you have any questions or are uncertain as to your rights or obligations.

Status of the file as of March 17, 2016

In February 2016, Yukon Zinc attended to hearings in the Whitehorse Court to seek a decision on the validity of the Yukon Miners Lien Act as it relates to the 2 remaining disputed claims (P.S. Sidhu Trucking Ltd. and Hy's North Transportation Inc.). The Whitehorse Court reserved on its decision for the time being.

Status of the file as of December 8, 2015

At the December 4, 2015 hearing, the Court granted the Orders sought by the Company, disallowing the claim of Aardwolf Contracting Ltd. ("Aardwolf"), partially disallowing the claim of Wide Sky Disposals (1989) Ltd., and declaring the liens of Aardwolf and Komie 317 Ventures Inc. to be of no force and effect. Entered copies of the Orders can be found under the 'Court Orders' tab.

Status of the file as of November 19, 2015

The Company has filed various application materials in preparation of the December 4, 2015 hearing, at which the Company will be seeking Orders:

• Disallowing, in part, the claim of Wide Sky Disposals (1989) Ltd.;
• Disallowing the claim of Aardwolf Contracting Ltd. ("Aardwolf"); and
• Declaring the liens of Aardwolf and Komie 317 Ventures Inc. to be of no force and effect.

Status of the file as of November 10, 2015

As previously noted in the status update posted on October 8, 2015, there remains a small number of creditors whose claims remain in dispute. The Company will seek a determination of the disputed claims of two such creditors, Wide Sky Disposal 1989 Ltd. and Aardwolf Contracting Ltd., at a hearing on Friday, December 4, 2015 at 10:00 am.

Status of the file as of October 8, 2015

The Monitor has filed its Eleventh Report to Court, an informational report regarding the claim of Transamine Trading S.A., an unsecured creditor, and the funding received by the Monitor from JDC Canada, the Plan Funder. The report is now available under the 'Monitor's Reports' tab.

Further to the status update posted on October 2, 2015, the Monitor is now in the process of implementing the Plan. The majority of Affected Creditors (including the former employees) have now been sent distribution cheques. There remains a small number of creditors whose claims remain in dispute and/or subject to change, either in quantum or in nature, for whom the Monitor has withheld payment pursuant to the Plan.

Status of the file as of October 2, 2015

The Monitor is now in receipt of the Distribution Funds from JDC Canada, the Plan Funder. The Monitor will now proceed to issue and send the distribution cheques to the Affected Creditors via ordinary mail on Monday, October 5, 2015.

Any questions regarding the distribution should be directed to the Monitor via email at yzc.claims@ca.pwc.com.

Status of the file as of September 28, 2015

Further to the status updated posted on September 23, 2015, the application of MinQuest was adjourned generally.

Status of the file as of September 23, 2015

At the September 23, 2015 hearing, the Court granted the Sanction Order sought by the Company, an entered copy of which can be found under the 'Court Orders' tab. The Company will now proceed to implement the Plan. It is expected that the distribution (payment) to creditors will occur on October 2, 2015.

The application sought by MinQuest is also being heard today (this afternoon). The results of MinQuest's application will be posted to this website tomorrow.

Status of the file as of September 22, 2015

The Company has filed an Application Response to the Application of MinQuest Limited("MinQuest"), who is seeking an Order from the Court directing and authorizing the Monitor to execute an Asset Purchase Agreement (the "APA"), to be used as a 'back-up' in the event that the Company's Plan fail to be implemented.

The Company, in its Application Response, opposes MinQuest's application.

The Monitor understands that the matter may be heard tomorrow. All relevant materials have now been posted to this website under the 'Motion Materials' tab. The Monitor notes that MinQuest's materials were not served upon the service list and, therefore, were not immediately posted to this website. MinQuest's materials now posted to the website include:

• Notice of Application dated August 20, 2015
• Affidavit #1 - Jeremy Read dated August 12, 2015
• Affidavit #2 - Jeremy Read dated August 14, 2015
• Affidavit #1 - Deborah Hamann-Trou dated August 19, 2015

A further update will be posted to this website with the results of the application(s) being heard tomorrow.

Status of the file as of September 18, 2015

The Company will be making an application to the Court on Wednesday, September 23, 2015 at 10:00 am for an Order:

• Authorizing an amendment to the interim loan agreement;
• Approving certain amendments to the Meeting Order and the Plan; and
• Sanctioning the Plan.

In support of the application, the Company's Notice of Application dated September 18, 2015 is available under the Motion Materials tab.

The Monitor has filed its Supplemental Report to the Monitor's Tenth Report to Court which is now available under the Monitor's Reports tab. The Report provides commentary as to the Order sought by the Company with respect to the Meeting Order and Plan.

Status of the file as of September 10, 2015

The Monitor's Tenth Report to Court is now available under the Monitor's Reports tab. The Report summarizes the results of the vote and provides an overview of the next steps in the CCAA process.

As previously noted, the Company's application for an Order approving and sanctioning the Plan is scheduled for September 23, 2015. The Company's application materials, to be circulated in advance of the application, will be posted to this website once available.

Status of the file as of September 2, 2015

The creditor meeting to consider and vote on the Plan was held today. The Plan received approval from the required majorities and, therefore, the Company will proceed to make a Sanction Application for Court approval.

In accordance with the Court Order made on August 14, 2015, stakeholders are advised of the following anticipated key dates:

• September 10, 2015: Monitor to issue report on the vote.
• September 23, 2015: Company to bring Sanction Application for an Order approving and sanctioning the Plan.
• October 2, 2015: Effective Date and distribution (payment) to Affected Creditors in accordance with the Plan.

All materials will be posted to this website in due course. Updates will also be posted regularly as we approach the Effective Date.

Status of the file as of September 1, 2015

The town-hall meeting was held in Whitehorse yesterday. As previously noted, representatives from Yukon Zinc and PwC (the Monitor) were in attendance to provide information and answer questions regarding the Plan and the Company's strategic objectives going forward. A presentation was made to those in attendance. A copy of that presentation is now available under the Creditor Meeting and Voting Process tab.

Creditors are reminded that the creditor meeting is scheduled to take place this Wednesday, September 2, 2015. Details of the creditor meeting are as follows:

Date: September 2, 2015
Time: 10:00 am
Location: Fasken Martineau DuMoulin LLP
Address: 2900 - 550 Burrard Street, Vancouver, BC

A further update will be posted to this website with the results of the meeting.

Status of the file as of August 27, 2015

Further to the status posted yesterday, any interested party wishing to attend the town-hall meeting, who may be unable to do so in person, may dial-in by telephone. Interested parties should contact the Monitor via email at yzc.claims@ca.pwc.com to obtain the dial-in information.

Status of the file as of August 26, 2015

Yukon Zinc Corporation has issued a press release setting out details of a town- hall meeting they will hold in Whitehorse on Monday, August 31, 2015 at 1:30 pm local time. The town-hall meeting has been called to allow creditors and other stakeholders the opportunity to ask questions and obtain further information regarding the Plan and the Company's strategic objectives going forward. Representatives from Yukon Zinc and PwC (the Monitor) will be in attendance to answer questions. The press release is available on this website under the Company Press Releases tab.

Details of the town-hall meeting are as follows:

Date: Monday, August 31, 2015
Time: 1:30 pm
Location: Westmark Whitehorse Hotel
Address: 201 Wood Street, Whitehorse, YT

Creditors are advised that the deadline to submit the Cash Election Notice, the Assignment Election Notice, and/or the Proxy to the Monitor remains August 31, 2015 at 5:00 pm. Furthermore, the creditor meeting, to consider and vote on the Plan, remains scheduled for September 2, 2015.

All questions should be directed to the Monitor via email at yzc.claims@ca.pwc.com.

Status of the file as of August 14, 2015

At the August 14, 2015 hearing, the Court granted an Order:

• Authorizing the Company to file its Plan of Compromise and Arrangement (the "Plan");
• Authorizing the Company to present its Plan to the creditors;
• Authorizing the Company to convene a creditors meeting for the purposes of considering and voting on the Plan;
• Authorizing the release of inventory proceeds held by the Monitor;
• Authorizing the Company to withdraw certain notices of disclaimer; and
• Extending the stay of proceedings to October 15, 2015.

In accordance with the Order, the Meeting Materials have now been posed to the website under the Creditor Meeting and Voting Process tab. The Meeting Materials will also be distributed by the Monitor directly to the creditors.

As previously noted, details of the Plan, including a description of the proposed payments to creditors and voting eligibility thereunder, are contained in the Monitor's Ninth Report to Court. Creditors are urged to review the Monitor's Ninth Report and the Meeting Materials to understand what elections are available to them, and what they can expect to receive in a distribution should the Plan be passed by the creditors and sanctioned by the Court. Creditors may find the Plan Information Letter particularly useful in their understanding.

Creditors are advised that the deadline to submit the Cash Election Notice, the Assignment Election Notice, and/or the Proxy to the Monitor is August 31, 2015 at 5:00 pm.

Any questions regarding the meeting and voting process should be directed to the Monitor via email at yzc.claims@ca.pwc.com.

Status of the file as of August 13, 2015

The Monitor's Ninth Report to Court is now available under the Monitor's Reports tab.

The report contains details of the Company's proposed Plan of Compromise and Arrangement (the "Plan") and, more specifically, a description of the proposed payments to creditors thereunder. The report also contains the Monitor's views on the proposed Plan. The Monitor, as outlined in the report, is supportive of the Company's proposed Plan and, therefore, is supportive of the relief sought by the Company.

Should the Court grant the Order sought by the Company at the Friday, August 14, 2015 hearing, the Monitor will, soon thereafter, post additional materials to this website, including further instructions for the creditors and notice of the creditor meeting.

Status of the file as of August 12, 2015

The Company will be making an application to the Court on Friday, August 14, 2015 at 9:00 am for an Order:

• Authorizing the Company to file its Plan of Compromise and Arrangement (the "Plan");
• Authorizing the Company to present its Plan to the creditors;
• Authorizing the Company to convene a creditors meeting for the purposes of considering and voting on the Plan; and
• Extending the stay of proceedings to October 15, 2015.

In support of the Company's application, Affidavit #6 of Jing You Lu, Affidavit #6 of Sandy Wang and the Company's Notice of Application, all dated August 11, 2015, are available under the Motion Materials tab. The Company's proposed Plan is appended to the Company's Notice of Application as part of Schedule B.

The Monitor is completing its independent review of the Company's Plan and intends to issue its ninth report thereon. The report will be posted to this website once available.

Status of the file as of August 4, 2015

The Monitor's Eighth Report to Court is now available under the Monitor's Reports tab.

The report sets out the the preliminary outcome of the Claims Process and the Executory Contract Identification Process. Appended to the report is a list of all claims received and an updated Executory Contract List. In accordance with the Claims and Contract Process Order (the "CCPO") made June 26, 2015, any creditor or contract party who requires further information regarding the preliminary results of the Claims Process or the Executory Contract Identification Process should notify the Monitor within seven days, that being August 11, 2015.

The report also confirms the Company's intention to file a Plan with its creditors. In accordance with the CCPO, the Company now has until August 14, 2015 to bring an application to the Court seeking an Order authorizing the distribution of a Plan to its creditors. The Company is expected to file materials shortly before this deadline. All documents will be posted to this website once available.

Status of the file as of July 31, 2015

At the July 30, 2015 hearing, the Court granted an Order authorizing the disposal of leased equipment. A copy of the Order can be found under the Court Orders tab.

The applications of Hy's North Transportation Inc. and P.S. Sidhu Trucking Ltd. were adjourned generally.

In accordance with the Order dated June 26, 2015, the Monitor intends to file a report regarding the outcome of the Claims and Executory Contract Identification Process on Tuesday, August 4, 2015. The report will be posted to this website once available.

Status of the file as of July 24, 2015

The Company's will proceed with its application for an Order authorizing the return of leased equipment. This application was originally scheduled for July 9, 2015, and it has now been set down for hearing on Thursday July 30, 2015.

The applications of Hy's North Transportation Inc. and P.S. Sidhu Trucking Ltd. will also be heard on July 30, 2015. The applications will be heard concurrently, at 10:00 am. The applicants are seeking an Order lifting the stay of proceedings for the purpose of determining, by way of the respective petitions filed in the Yukon Supreme Court, the validity of the claims of lien filed under the Miners' Lien Act.

Please be reminded that the Claims and Contract Identification Process has commenced and the deadline to file the Proof of Claim and/or Proof of Executory Contract forms with the Monitor is Tuesday, July 28, 2015 at 5:00 pm (Vancouver time). Both forms are available under the Claims and Contract Identification Process tab of this website. Creditors or other parties who may have questions with respect to the Claims and Contract Identification Process should contact the Monitor by email at yzc.claims@ca.pwc.com.

Status of the file as of July 8, 2015

The Company's application scheduled for tomorrow at 9:00 am has been adjourned. The Company intends to proceed with the application during the week of July 27 - 31, 2015, subject to the Court's availability. A further update will be posted to this website once a new Court date is confirmed.

Status of the file as of July 7, 2015

The Company will be making a brief application to the Court on Thursday, July 9, 2015 at 9:00 am for an Order authorizing the Company to return its leased equipment. In support of the Company's application, the Company's Notice of Application dated July 6, 2015 is available under the Motion Materials tab. In relation to the Company's application, the Monitor has prepared its Seventh Report to Court, which is now available under the Monitor's Reports tab.

Status of the file as of June 29, 2015

The claims process has now commenced. The Monitor is now in the process of mailing the Claims and Executory Contract Packages. Copies of the documents being sent can be found under the Claims and Contract Process Identification tab.

Creditors or other parties who may have a question with respect to the Claims and Contract Identification Process are asked to contact the Monitor by email at yzc.claims@ca.pwc.com.

Status of the file as of June 26, 2015

At the June 26, 2015 hearing, the Court granted an Order:

• Extending the Stay of Proceedings to August 14, 2015;
• Granting an Employee Charge for the Mine Employees in the amount of $90,000;
• Setting certain restructuring deadlines with respect to a proposed Plan of Arrangement;
• Modifying the level of authority of the Monitor; and
• Approving a Claims and Contract Process.

In accordance with the Order, a claims and contract identification process will now be commenced. An update will be posted to this website early next week with further information for creditors and contract parties.

Status of the file as of June 25, 2015

The Monitor's Sixth Report to Court is now available under the Monitor's Reports tab.

Status of the file as of June 23, 2015

The Company will be making an application to the Court on Friday, June 26, 2015 at 10:00 am for an Order:

• Granting an Employee Charge in the amount of $90,000;
• Approving a Claims and Contract Process Order; and
• Extending the stay of proceedings to August 31, 2015.

In support of the Company's application, Affidavit #4 of Jing You Lu, Affidavit #4 of Sandy Wang, and the Company's Notice of Application, all dated June 23, 2015, are available under the Motion Materials tab.

Status of the file as of June 15, 2015

At the June 12, 2015 hearing, the Court granted an Order extending the stay of proceedings to June 26, 2015. As such, the next court hearing will take place on June 26, 2015.
In advance of the June 26, 2015 hearing, the Company will be filing materials setting out the relief it intends to seek from the Court. In addition, the Monitor intends to file a report regarding the results of the solicitation process. All materials will be posted to this website once available.

Status of the file as of June 11, 2015

The Company will be making an application to the Court on Friday, June 12, 2015 at 10:00 am for an Order:

• Authorizing the Company to draw on the Interim Lending Facility up to $3 million; and
• Extending the stay of proceedings to June 26, 2015

In support of the Company's application, Affidavit #3 of Jing You Lu, Affidavit #3 of Sandy Wang, and the Company's Notice of Application, are under the Motion Materials tab.

The Monitor has prepared its Fifth Report to Court which is now available under the Monitor's Reports tab. The report provides an update of the Company's mine operations, restructuring activities, and a summary of the work that was undertaken to solicit the assets of the Company to investors and potential purchasers. The stay extension sought by the Company will allow for additional time needed to properly evaluate the offers received.

Status of the file as of June 9, 2015

The deadline for final offers under the solicitation process was Monday, June 8, 2015. All submissions received are now in review. The Monitor, in advance of June 12, 2015 (the expiry of the stay of proceedings), is preparing a report to Court which will be posted to this website once available. All other motion materials relating to the Friday, June 12, 2015 application will also be posted to this website once available.

Status of the file as of April 28, 2015

At the April 24, 2015 hearing, the Court ruled that certain zinc concentrate, as disputed between Transamine Trading ("Transamine") and Procon Mining & Tunnelling Ltd., belongs to Transamine. The Court's Reasons for Judgment will follow in due course. Remaining issues relating to this matter will be heard on Monday, May 4, 2015.

Status of the file as of April 24, 2015

The Monitor's Fourth Report to Court, prepared for the purpose of disclosing the Solicitation Plan, is now available under the Monitor's Reports tab.

The Monitor and PricewaterhouseCoopers Corporate Finance LLC are now soliciting offers for an investment in the Company or a purchase of its assets. The Request for Offers is available under the Solicitation Process tab. Interested parties can obtain further information on the Solicitation process via the Request for Offers document and the Monitor's Fourth Report to Court.

Status of the file as of April 17, 2015

Following the April 17, 2015 hearing, the Court granted Orders:

• increasing the borrowing limit under the Interim Lending Facility and the related Interim Lender's Charge to $5 million;
• authorizing the immediate commencement of the Solicitation Process, to be run by the Monitor, for the solicitation of offers to purchase all or any part of the Company's assets;
• engaging PricewaterhouseCoopers Corporate Finance Inc. as the Company's financial advisor together with the creation of a Financial Advisor Charge in the amount of $300,000;
• authorizing the Company, with the approval of the Monitor, to dispose of its inventory, subject to certain limitations, free and clear of all charges and encumbrances, and pay the proceeds to the Monitor; and
• extending the current stay of proceedings to June 12, 2015.

Copies of the Orders can be found under the Court Orders tab.

Status of the file as of April 16, 2015

The Monitor's Third Report to Court is now available under the Monitor's Reports tab.

In advance of the April 17, 2015 hearing, additional materials have been filed by Procon Mining & Tunnelling Ltd. and Transamine Trading, all of which have now been posted to the website under the Motion Materials tab.

Status of the file as of April 14, 2015

The Company will be making an application to the Court on Friday, April 17, 2015 at 10:00 am for an Order:

• Increasing the total amount the Company is authorized to borrow under the Interim Lending Facility to $5 million;
• Approving a Solicitation Process, to be run by the Monitor, for the solicitation of offers to purchase all or any part of the Company's assets;
• Authorizing the Company to engage a Financial Advisor and create a charge in favour of the Financial Advisor;
• Authorizing the Company to dispose of certain unsold concentrate and ore inventory; and
• Extending the stay of proceedings to June 12, 2015.

In support of the Company's application, Affidavit #2 of Jing You Lu, Affidavit #2 of Sandy Wang, and the Company's Notice of Application, all dated April 14, 2015, are available under the Motion Materials tab.

The application of Transamine Trading will also be heard on Friday, April 17, 2015.

The Monitor intends to file its comprehensive report to Court which will be posted to this website once available.

Status of the file as of April 10, 2015

At the April 10, 2015 hearing, the Court granted an Order extending the stay of proceedings to April 17, 2015. As such, the next hearing will take place on April 17, 2015.

Transamine Trading circulated motion materials which have now been posted to this website. Transamine's application was adjourned and will be heard on April 17, 2015.

In advance of the April 17, 2015 hearing, the Company will be filing further materials setting out the relief it intends to seek from the Court. In addition the Monitor intends to file a comprehensive report. All materials will be posted to the website once available.

Status of the file as of April 8, 2015

The Company will be making an application to the Court on Friday, April 10, 2015. The time of the hearing has now been set for 10:00 am. The Company will be seeking an Order extending the stay of proceedings to April 17, 2015. In support of the application, the Company's Notice of Applicationdated April 7, 2015 is available under the Motion Materials tab. The Monitor has prepared its Second Report to Court which is now available under the Monitor's Reports tab.

The Monitor has been advised that Transamine Trading ("Transamine") may be bringing an application on Friday, April 10, 2015. The application, subject to the discretion of the Court, is expected to be heard immediately following the Company's application for an extension of the stay of proceedings. At present, motion materials have not been circulated by Transamine, however, they will be posted to this website as they become available.

Status of the file as of April 2, 2015

Pursuant to the Initial Order, the Comeback Hearing was scheduled for 9:00 am on Friday, April 10, 2015. The Company, with the support of the Monitor, is seeking to reschedule the Comeback Hearing to Friday, April 17, 2015. As an administrative procedure required to reschedule the Comeback Hearing, the Company will be making a brief Court application on April 10, 2015 at 9:30 am to have the stay of proceedings extended through to April 17, 2015. No other matters will be heard at this application. All materials related to the Company's application for a one week extension of the stay of proceedings including a short Monitor's report in support of the Company's application will be posted on this website once available.

The Monitor is currently working on a comprehensive report in preparation for the Comeback Hearing and anticipates that its report will be available on or around Tuesday, April 14.

Status of the file as of March 31, 2015

The date for the hearing for the extension of the stay period is now confirmed for Friday, April 10, 2015 at 9:00 am. Details regarding the relief sought by the Company and the application materials will be posted to this website as they become available.

Status of the file as of March 19, 2015

At the March 19, 2015 hearing, the Court granted an Order that authorized the interim lending facility and created a priority charge for the interim lender. The Order has been posted under the Court Orders tab.

The hearing for the extension of the stay period remains tentatively scheduled for Friday, April 10, 2015 at 9:00 am.

Status of file as of March 18, 2015

The Company will be making an application to the Court on Thursday, March 19 for an Order approving an interim financing facility, an initial draw on the interim financing facility, and a priority charge for the interim financing lender. In support of the application, Affidavit #1 of Suzanne Volkowand the Company's Notice of Application, both dated March 18, 2015 are available under the Motion Materials tab. The Monitor has also prepared its First Report to Court which has also been posted to this website under the Monitor's Reports tab.

Status of file as of March 18, 2015

On Thursday March 19, 2015, the Company will be seeking an order approving an initial draw on an interim financing facility, and a priority charge for the interim financing lender. At the present time, it is expected that this application will be unopposed. The Company expects to file all relevant application material today. These materials will be posted to this website as they become available. The Monitor will also file its First Report to Court in advance of the hearing and post it to this website.

Status of file as of March 16, 2015

On March 13, 2015, Yukon Zinc Corporation ("the Company") applied for, and received, an initial order pursuant to the CCAA from the Supreme Court of British Columbia which includes, among other points, a stay of proceedings against the Company. A further application is tentatively scheduled for Wednesday, March 18, 2015 at which the Company will be seeking an order approving an interim financing facility and a priority charge for the interim financing lender. A hearing for the extension of the stay period is tentatively scheduled for Friday, April 10, 2015 at 9:00 am.

Status of file as of March 13, 2015

We will update this website with further information as it becomes available.

This Web site will be updated as information becomes available.

For more information, please contact: Jing Shi, Telephone: +1 604 806 7780 ext 4078, Fax: +1 604 806 7806, or via Email.