Mr. David Felderhof reports

ZEPHYR CLOSES TRANCHE OF PRIVATE PLACEMENT

Zephyr Minerals Ltd. has closed a tranche of the previously announced private placement and issued 1,733,333 units at a price of 15 cents per unit for aggregate proceeds of $260,000. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at an exercise price of 20 cents per common share at any time on or before July 23, 2015. The company may consider closing a second tranche of up to 266,667 units for additional gross proceeds of up to $40,000 subject to timing and demand.

Net proceeds from the funds raised will be used to advance the Dawson gold project and for general working capital purposes. The private placement remains subject to compliance with the requirements of the TSX Venture Exchange.

In connection with the closing, the company paid cash finders' fees of $2,712 and issued 18,080 finders' warrants to finders acting on behalf of the company in connection with the private placement. Each finder's fee warrant is exercisable into one common share of the company at 20 cents per share, for a period of 12 months from the closing date.

All securities issued in connection with the private placement, including the shares and warrants comprising the units and the finders' warrants, are subject to a four-month hold period that expires on Nov. 24, 2014. Certain insiders, and other officers and directors of the company subscribed for an aggregate of 1,082,333 units.