Mr. Sean Charland reports

ZIMTU CAPITAL CORP. ANNOUNCES THE ENTERING INTO OF A DEFINITIVE AGREEMENT TO ACQUIRE THE EAGLE LAKE, GROVE LAKE, AND WHITEFISH LAKE MINING CLAIMS IN THE PROVINCE OF ONTARIO

Zimtu Capital Corp. has entered into a definitive agreement to purchase three separate mining claims generally known as the Eagle Lake claims, the Grove Lake claims and the Whitefish Lake claims, located approximately 350 kilometres northwest of Thunder Bay, Ont.

Northwestern Ontario lithium prospects

The claims comprise a large-scale land package consisting of 89,120 hectares (891.2 square km) across 17 claim groups prospective for spodumene-bearing lithium pegmatites in an underexplored area of Northwestern Ontario with multiple existing lithium deposits within a 100 km radius. Recent digitization of historical maps from the Ontario Geological Survey shows dozens of pegmatites outcrops across the properties hosted within several rock units. Each property contains 99th percentile and above lithium in lake sediments values from the entire Ontario government database (greater than 50,000 lake sediment samples analyzed for lithium in the Ontario provincial database). Geophysical (airborne magnetic) anomalies crosscut the properties which are evidence of structural pathways that may have provided room for lithium-bearing pegmatites to form.

Whitefish Lake claims

The Whitefish Lake claims comprise 1,584 claims covering 30,791 hectares.

This claim group lies directly northeast of Dryden, Ont., a city with a population of 7,500 located on the Trans-Canada Highway. CP rail lines pass through the claim groups. All claim blocks are road accessible.

The Whitefish Lake claims were staked over several anomalous populations in lake sediment samples in lithium, cesium and rubium (each claim block contains greater than 99th percentile samples for Li). East-west and east-northeast magnetic-trending lineaments crosscut the properties.

The property is underlain by gneissic and foliated tonalite, massive granodiorite to granite, with minor mafic metavolcanic rocks. Recent digitization of historic Ontario Geological Survey maps shows dozens of mapped pegmatite occurrences in and around the properties. Historic mapping has been at low resolution (or wide spacing) as these units have been classically overlooked as prospective units for mineralization.

• 30 of 75 of lake sediment samples in the properties are greater than 99th percentile for Li (greater than 28.1 parts per million, maximum 43.7);
• 22 of 75 of lake sediment samples in the properties are greater than 99th percentile for Cs (greater than 2.4 ppm, maximum 84.05);
• 28 of 75 of lake sediment samples in the properties are greater than 99th percentile for Cs (greater than 37.1 ppm, maximum 63.07).

Grove Lake claims

The Grove Lake claims comprise 1,520 claims covering 25,027 hectares.

This claim group lies directly north of Sioux Lookout, Ont., a town with a population of 5,500. CP rail lines pass through the town. All claim blocks are road accessible.

The Grove Lake claims were staked over several anomalous populations in lake sediment samples in Li and Rb (each claim block contains greater than 99th percentile samples for Li). Dominantly east-west magnetic-trending lineaments crosscut the properties.

Property is underlain by gneissic and foliated tonalite, massive granodiorite to granite, crosscut by metasedimentary and greenstone (mafic metavolcanic) units. Recent digitization of historic Ontario Geological Survey maps shows dozens of mapped pegmatite occurrences in and around the properties within all geologic units.

• 14 of 102 of lake sediment samples in the properties are greater than 99th percentile for Li (greater than 28.1 ppm, maximum 40.12);
• Three of 102 of lake sediment samples in the properties are greater than 99th percentile for Cs (greater than 2.4 ppm, maximum 2.48);
• 21 of 102 of lake sediment samples in the properties are greater than 99th percentile for Cs (greater than 37.1 ppm, maximum 45.66).

Eagle Lake claims

The Eagle Lake claims comprise 1,439 claims covering 30,302 hectares.

This claim group lies directly southeast of Dryden, Ont., a city with a population of 7,500 located on the Trans-Canada highway. CP rail lines pass through Dryden. All claim blocks are road accessible.

The Eagle Lake claims were staked over several anomalous populations in lake sediment samples in Li and Cs (each claim block contains greater than 99th percentile samples for Li). Northwest-southeast and east-northeast magnetic-trending lineaments crosscut the properties.

Properties are underlain by mafic, intermediate and felsic volcanic rocks, gneissic and foliated tonalite, massive granodiorite to granite, with minor ultramafic rocks. On one of these properties, over 50 pegmatite occurrences have been mapped. No historical mapping data are available for most of these properties.

• 21 of 165 of lake sediment samples in the properties are greater than 99th percentile for Li (greater than 28.1 ppm, maximum 35.92);
• 66 of 165 of lake sediment samples in the properties are greater than 99th percentile for Cs (greater than 2.4 ppm, maximum 6.48);
• Four of 165 of lake sediment samples in the properties are greater than 99th percentile for Cs (greater than 37.1 ppm, maximum 43.6).

Terms of the acquisition

Pursuant to a sale agreement dated June 15, 2023, among the company and six arm's-length vendors, including prospector Shawn Ryan, the company has agreed to acquire a 100-per-cent interest in the claims for the following consideration:

• An aggregate cash payment of $315,000 to be paid to the sellers upon closing of the acquisition;
• An aggregate of nine million common shares in the capital of Zimtu to be issued to the sellers upon closing;
• An aggregate cash payment of $315,000 to be paid to the sellers within four months of closing.

As additional consideration for the acquisition, the company will grant to one of the sellers a 1-per-cent net smelter return royalty interest in the future minerals produced from the claims upon achieving commercial production.

The completion of the acquisition is subject to the approval of the TSX Venture Exchange. The Zimtu shares to be issued on closing will be subject to a hold period expiring four months and one day following closing.

About Zimtu Capital Corp.

Zimtu Capital is a public investment issuer that aspires to achieve long-term capital appreciation for its shareholders. Zimtu Capital companies may operate in the fields of mineral exploration, mining, technology, life sciences or investment.

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