Mr. Loren Komperdo reports

ZEPHYR MINERALS LTD. CLOSES GOLD PROPERTY ACQUISITION

Zephyr Minerals Ltd. has closed the previously announced purchase and sale agreement with Celtic Minerals Ltd. to purchase a 100-per-cent interest in the Dawson gold project in Colorado, United States. The acquisition was done by way of a share purchase agreement, whereby Zephyr acquired 100 per cent of Celtic Gold Ltd., a Colorado company and subsidiary of Celtic Minerals, which holds title to the Dawson project.

Zephyr made cash payments of $200,000 to Celtic and $20,000 to UUS Inc. The payment to UUS, a 100-per-cent-owned subsidiary of Cameco Corp., was to fulfill a previous purchase agreement between Celtic and UUS.

Loren Komperdo, president and chief executive officer, stated: "We are very pleased to have acquired the Dawson gold project. The 400-hectare property contains multiple historic resource estimates, which boast high grades over viable widths, including one zone of 121,000 ounces of gold with an average grade of approximately half an ounce per tonne (239,000 tonnes at 15.8 grams per tonne gold) (1). As part of our ongoing exploration, it is our intention to verify historic drill results by twinning selected drill holes and to complete a National Instrument 43-101-compliant resource estimate."

A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, and the company is not treating the historical estimate as current mineral resources.

Dawson is an advanced gold project with excellent exploration potential. It consists of 45 contiguous unpatented and eight patented mining claims, and one patented placer claim covering approximately 275 hectares. The gold mineralization was discovered by U.S. Borax Ltd. in the early 1980s and last explored by Uranerz U.S.A. Inc. in the early 1990s. During this period, a total of 142 diamond drill holes for 27,206 metres were drilled, from which several resource estimates were completed. Gold mineralization at Dawson is hosted in discrete deposits within a Proterozoic-aged exhalite unit that trends east-west for approximately 2.6 kilometres on the property. Future exploration programs will be focused on drill testing targets identified through historic programs and identifying new drill targets along this laterally extensive zone.

Please visit the Zephyr website to view a recent corporate presentation highlighting the Dawson gold project in greater detail.

(1) This information is historic in nature and is based on drilling results reported by U.S. Borax, 1982, and Uranerz, 1990.

Advisories

Peter Webster, PGeo, who is a qualified person as defined under National Instrument 43-101, has reviewed the technical contents of this news release. Mr. Webster has not verified the data disclosed, including sampling, analytical and test data underlying the information or opinions contained in the written disclosure.

We seek Safe Harbor.