Mr. Sean Charland reports

ZIMTU CAPITAL CORP. ANNOUNCES CLOSING OF ITS ACQUISITION OF THE EAGLE LAKE, GROVE LAKE, AND WHITEFISH LAKE MINING CLAIMS IN THE PROVINCE OF ONTARIO

Zimtu Capital Corp., further to its news release dated June 16, 2023, has closed its previously announced acquisition of 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.

Northwest Ontario lithium prospects

The claims comprise a large-scale land package consisting of 89,120 hectares (891.2 square kilometres) 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-kilometre 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 (more than 50,000 lake sediment samples analyzed for lithium in the Ontario provincial database). Geophysical (airborne magnetic) anomalies crosscut the properties, which is evidence of structural pathways that may have provided room for lithium-bearing pegmatites to form.

Whitefish Lake claims

The Whitefish Lake claims comprise 1,484 claims (instead of the 1,584 claims noted in the June 16 news release) covering 30,791 hectares.

This claim group lies directly northeast of Dryden, Ont., a city with population 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 Li, Cs and Rb (lithium, cesium and rubidium). Each claim block contains more than 99th percentile samples for Li. East-west- and east-northeast-trending lineaments crosscut the properties.

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:

• Thirty of 75 of lake sediment samples in the properties are more than 99th percentile for Li (more than 28.1 parts per million, max 43.7).
• Twenty-two of 75 of lake sediment samples in the properties are more than 99th percentile for Cs (more than 2.4 parts per million, max 84.05).
• Twenty-eight of 75 of lake sediment samples in the properties are more than 99th percentile for Cs (more than 37.1 parts per million, max 63.07).

Grove Lake claims

The Grove Lake claims comprise 1,620 claims (instead of the 1,520 claims noted in the June 16 news release) covering 25,027 hectares.

This claim group lies directly north of Sioux Lookout in Ontario, a town with population 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 more 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:

• Fourteen of 102 of lake sediment samples in the properties are more 99th percentile for Li (more than 28.1 parts per million, max 40.12).
• Three of 102 of lake sediment samples in the properties are more than 99th percentile for Cs (more than 2.4 ppm, max 2.48).
• Twenty-one of 102 of lake sediment samples in the properties are more than 99th percentile for Cs (more than 37.1 ppm, max 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 more 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, and 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:

• Twenty-one of 165 of lake sediment samples in the properties are more than 99th percentile for Li (more than 28.1 parts per million, max 35.92).
• Sixty-six of 165 of lake sediment samples in the properties are more than 99th percentile for Cs (more than 2.4 parts per million, max 6.48).
• Four of 165 of lake sediment samples in the properties are more than 99th percentile for Cs (more than 37.1 ppm, max 43.6).

Terms of the acquisition

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

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

As additional consideration for the acquisition, the company also granted 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.

About Zimtu Capital Corp.

Zimtu is a public investment issuer that aspires to achieve long-term capital appreciation for its shareholders. Zimtu companies may operate in the fields of mineral exploration, mining, technology, life sciences or investment. The company trades on the TSX Venture Exchange under the symbol ZC and Frankfurt under symbol ZCT1.

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