Mr. David Hodge reports

ZIMTU CAPITAL CORP. OPTIONS 100% OF ITS INTEREST IN THE BLUE COPPER-COBALT PROPERTY, ATLIN B.C. AFTER POSITIVE EXPLORATION RESULTS

After receiving positive results in the 2018 field season, Zimtu Capital Corp. has entered into an agreement with Core Assets Corp., a private B.C. company, to option its 100-per-cent-owned Blue copper-cobalt property located southwest of Atlin, B.C.

The property

The initial land position of one square kilometre was acquired through a group of local prospectors; thereafter Zimtu Capital acquired an addition land area of 10.3 square kilometres by staking. The Blue property now consists of two mineral licences encompassing an area of 11.3 square kilometres located 48 km southwest of Atlin, B.C. The exploration program focused on targeting historically identified copper and cobalt in a magnetite-rich rock unit.

Sampling program

The program consisted of the collection of 28 rock grab samples: four grab samples from bed rock in the historical French adit sampled every 10 to 12 metres; six grab samples from the exterior area of the French adit (rubble from potential mine dump); and two samples from bedrock, 10 metres south of the French adit. Eleven samples were taken from bedrock in the area of the historical North adit and five samples were collected from areas of the northernmost extent of the property. All areas of sampling returned very promising assay values.

Rocks sampled from the French adit area assayed up to 1.56 grams per tonne gold, 43.3 g/t silver and 8.46 per cent copper.

Rocks sampled from the North adit area assayed up to 1.57 g/t gold, 46.5 g/t silver and 1.86 per cent copper.

Bornite sample in limestone-rich magnetite, collected from outside the French adit.

Blue property historical exploration

The Blue property has undergone multiple exploration programs over the years, focusing mainly on the Cu-Au-Ag (copper-gold-silver) mineralization in skarns. The property has had limited work completed for cobalt. In the early 1950s an academic thesis completed for the University of British Columbia examined the petrography of the rocks toward the north end of the property. Erythrite and cobaltite were identified and confirmed in thin sections (ARIS 58747). Sampling the north end of the property using an undescribed sampling method reported grades of 0.60 per cent Co over three feet. Copper was found at 3.50 per cent and silver at one ounce/tonne. Some samples were described to have an erythrite coating on the surface and have cobaltite scattered throughout the magnetite. In 1973 Rio Plata Silver Mines Ltd. commenced diamond drilling on the property yielding 175.0 metres of 0.27 per cent copper from surface, including 27.0 metres of 1.2 per cent Cu approximately 15 metres south of the French adit. Cobalt was never assayed for on this hole (ARIS 4996).

The historical information is relevant only as an indication that some mineralization occurs on the property, and no resources, reserve or estimate is inferred. A qualified person has not done sufficient work to classify the historical information as current mineral resources or mineral reserves; and Zimtu is not treating the historical information as current mineral resources or mineral reserves.

Terms of the agreement

In consideration for the transaction, Core Assets Corp. will pay Zimtu Capital $100,000 and three million common shares as follows:

1. $50,000 and one million common shares upon signing;
2. $50,000 and one million common shares one year from signing;
3. One million common shares two years from signing.

Zimtu will also retain a 2-per-cent NSR (net smelter return) with a 50-per-cent buyback for $1-million. Core Assets Corp. is a private British Columbia company.

Quality assurance and quality control

Samples were collected and processed by the field crew in appropriate sample bags, then tagged and recorded with their unique sample number. Sealed samples were placed in shipping bags which were sealed with electrical tape and dropped off personally to ALS Laboratories in Whitehorse, Yukon, for preparation to be analyzed at the main ALS laboratory in North Vancouver, B.C. One thousand grams of rock per sample were pulverized to 85 per cent less than 75 microns and subjected to aqua regia digestion using conventional ICP-AES (inductively coupled plasma atomic emission spectroscopy), 35-element analysis (ME-ICP41) with ore-grade analysis on samples reaching upper detection limits, and 50 g fire assay/ICP-AES for gold and platinum group elements (PGM-ICP24).

National Instrument 43-101 disclosure

Exploration activities by Zimtu Capital at the Blue copper-cobalt project were conducted under the supervision of Nicholas Rodway, registered professional geologist and a qualified person as defined by National Instrument 43-101. Mr. Rodway has reviewed and approved this news release.

About Zimtu Capital Corp.

Zimtu Capital is a public investment issuer that invests in, creates and grows natural resource companies. The company also provides mineral property project generation and advisory services helping to connect companies to properties of interest.

We seek Safe Harbor.