Mr. Loren Komperdo reports

ZEPHYR ANNOUNCES PRIVATE PLACEMENT

Zephyr Minerals Ltd. intends to issue, by way of a non-brokered private placement financing, up to four million units at a price of five cents per unit, for gross proceeds of up to $200,000. Each unit will consist of one common share and one common share purchase warrant of the company. Each warrant will entitle the holder to acquire one additional share at a price of 10 cents per share for a period of two years from the date of issuance.

Zephyr has successfully completed the first quarter of a comprehensive groundwater monitoring and analytical program at and surrounding the Dawson gold deposit. The company remains on schedule to complete the five-quarter program by the end of 2026. Upon receipt of all analytical data, the company intends to resubmit a mining permit application to the Colorado division of Reclamation, Mining and Safety for its 100-per-cent-controlled Dawson gold property in Colorado, United States.

The Zimbabwean government has recently appointed a new Minister of Mines. Loren Komperdo, president and chief executive officer, stated, "The appointment is cause for cautious optimism regarding the granting of two exclusive prospecting orders, covering 124,000 hectares, for which applications were submitted in 2021."

Proceeds received from the private placement will be used for general working capital purposes and to advance permitting on the Dawson gold project. It is anticipated that certain insiders of the company will participate in the private placement.

Finders' fees, consisting of cash and warrants issued on the same terms as noted above, may be paid to qualified parties. All securities issued in connection with the private placement will be subject to a statutory hold period of four months and one day. The private placement remains subject to customary closing conditions, including approval of the TSX Venture Exchange.

About Dawson gold property

The Dawson gold deposit hosts an inferred mineral resource1 prepared in accordance with National Instrument 43-101 of 343,000 tonnes grading 12.11 grams per tonne for 133,500 ounces of gold at a five g/t cut-off with no top cut, and 116,300 ounces of gold at 10.55 g/t with a 40 g/t top cut. The estimate has an effective date of July 19, 2013. No updates to the resource estimate have been made to incorporate the results from drilling programs completed between 2017 and 2020. The deposit is open at depth, with exploration potential to the east and west. A preliminary economic assessment (PEA) was prepared in accordance with NI 43-101 with an effective date of March 21, 2017. Utilizing a gold price of $1,250/ounce, the PEA showed robust economics with an all-in sustaining cost (AISC) per ounce of $692. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Given the substantial increase in the gold price since 2017, the attractiveness of the Dawson project has been significantly enhanced. The potential to expand resources is excellent at depth on the Dawson gold deposit, along strike to the east in the 700-metre-long Sentinel zone, which has not been drill tested, and through follow-up drilling of promising targets in the Windy Gulch and Windy Point zones to the west. The Dawson project features key attributes, including a small footprint associated with the proposed underground mine, ownership or control of all necessary lands by Zephyr, a climate that supports year-round operations, and nearby infrastructure and industrial support.

About Zephyr Minerals Ltd.

Zephyr Minerals is mission focused on obtaining a mining permit for its 100-per-cent-owned Dawson gold property in Colorado. The company continues to wait for the Zimbabwean government to grant two exclusive prospecting orders (EPO), covering 124,000 hectares applied for in 2021. The areas covered by the EPO applications are prospective for gold and lithium.

Qualified person

Brian Arkell, BS, geology, and MS, economic geology, SME (registered member), AusIMM (fellow) and SEG (fellow), a director of the company, and a qualified person as the term is defined under National Instrument 43-101, has reviewed and approved the scientific and technical disclosure contained in this press release.