Mr. Loren Komperdo reports

ZEPHYR OPTIONS FOURTH GOLD PROPERTY IN ZIMBABWE

Zephyr Minerals Ltd. has entered into an option agreement to acquire up to a 75-per-cent interest in the MC-2 gold property from four arm's-length citizens of Zimbabwe. The MC-2 property comprises five mining claims totalling approximately 50 hectares and are strategically located within approximately two kilometres of the recently announced option acquired on the MC gold property (see news release dated Jan. 12, 2023). The two properties are on trend, sharing many of the same geological characteristics and excellent exploration potential for large-scale, shear-zone-hosted gold deposits. The proximity of the two claim groups with each other is a synergistic feature from a development perspective in the event of a discovery.

Loren Komperdo, president and chief executive officer, stated: "The MC-2 property is characterized by favourable rock types such as iron-rich metabasalts, strong evidence of pervasive structural preparation providing abundant loci for gold deposition, widespread small-scale mining activity and strong synergies with Zephyr's nearby MC gold property. The geological characteristics look very similar to the Red Lake gold camp in Northern Ontario. To the best of our knowledge, this property with numerous drill targets has never been drilled. We remain focused on identifying and optioning mining properties in Zimbabwe that show high discovery potential for large gold deposits."

The MC-2 property is currently being mined by small-scale miners to a shallow depth, typically to eight to 10 metres in the easily mined weathered zone. Records show that small-scale mining on the claims date back to 1986 as reported thereon by Kalbskoff, Zimbabwe Ministry of Mines. Historic shafts and open cuts on gold-mineralized structures are present on all of the five claims, which collectively cover a width ranging between 200 metres to 400 metres and strike length of 1,500 metres. The principal focus of mining has been on the Main reef (quartz vein), which strikes 77 degrees azimuth and dips 85 degrees south-southeast and occupies the fold axis of a similarly trending anticlinal fold, with splay veins and parallel vein structures being a secondary focus.

Host rocks are principally silicified, sheared metabasalts showing silicification and shearing adjacent to the reef. Reported (Kalbskoff 1986, and Mupaya, 1999) gold grades range from 0.8 gram per tonne gold over 1.58 metres to 105.52 grams per tonne over 0.30 metre. Of particular interest is Kalbskoff's report (June, 1986) of mineralized and silicified schist with limonite grading 5.4 grams per tonne gold over 0.6 metre; mineralized greenstone grading 13.4 grams per tonne gold over 0.40 metre; mixed quartz and mineralized schist grading 8.4 grams per tonne gold over 0.43 metre; and grab samples from a stockpile showing abundant galena grading 7.6 grams per tonne gold and 82.2 grams per tonne silver. Grab samples of reef and sulphide mineralized material collected during a preliminary investigation by Zephyr ranged from 0.12 gram per tonne gold to 36.28 grams per tonne gold and wallrock assays from 0.18 gram per tonne gold to 1.42 grams per tonne gold.

Under the terms of the agreement, Zephyr, through its wholly owned Zimbabwean subsidiary, Sutter Mining Pvt. Ltd., can acquire 75 per cent of the Lion property by incurring $665,000 (U.S.) in exploration expenditures and making cash payments to the owners totalling $65,000 (U.S.) over five years. The owners are permitted to continue small-scale mining within prescribed parameters from areas currently being mined until Sutter makes a decision to transfer the claims into a new operating company (Newco), owned as to Sutter 75 per cent and the owner 25 per cent.

Quality assurance/quality control (QA/QC)

Grab samples were bagged, sealed and sent to the facility of Zimlabs in Harare, Zimbabwe, where each sample was dried, crushed and pulverized before being fire assayed (lab method code G703). Gold analyses were obtained by 30-gram fire assay, lead collection and AAS finish. As part of its QA/QC program, the company inserted blank and duplicate samples into its sample batch.

Qualified person

Arimon Ngilazi, an independent consultant to the company and a qualified person as the term is defined under National Instrument 43-101, has reviewed and approved the scientific and technical information in this news release. Mr. Ngilazi has not visited the property.

About Zephyr Minerals Ltd.

Zephyr Minerals is active in mineral exploration in Colorado, United States, and in Zimbabwe. In Colorado, Zephyr has been focused on mine permitting activities at its 100-per-cent-owned Dawson gold property, which is presently in hiatus pending the collection and submission of additional water well data and satisfying certain other environmental-related questions. The additional required water wells are still in the planning stage and will be drilled once available funds are in hand. Upon collection of the additional data, the company plans to reapply for a mining permit at Dawson.

In Zimbabwe, the company is working to build a mineral property portfolio and, to this end, has applied for two exclusive prospecting orders covering 124,000 hectares. Zephyr is actively assessing additional mineral opportunities in Zimbabwe on a continuing basis. Zimbabwe boasts favourable foreign ownership rules for mineral properties as well as prospective, underexplored Archean greenstone belts.

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