Zephyr Announces Increase in Private Placement

Zephyr Minerals Ltd. (ZFR) has increased its previously announced non-brokered private placement from 4,000,000 to 6,000,000 units at $0.05 per unit, raising gross proceeds to up to $300,000. Each unit comprises one common share and one common share purchase warrant, with warrants exercisable at $0.10 per share for a period of two years from issuance.

The proceeds are designated for general working capital and advancing permitting activities on the Dawson Gold Project. Certain insiders are expected to contribute $80,000. All securities carry a statutory hold period of four months and one day. Completion is subject to customary closing conditions and TSX Venture Exchange acceptance.

Zephyr Minerals Ltd. (ZFR) announced an increase in its private placement, a routine follow-up to the September 23, 2026 announcement. The financing addresses the company's immediate operational need for working capital to fund the final stages of the Dawson groundwater monitoring program and prepare the mining permit resubmission targeted for January 2027.

The financing is dilutive, issued at the lower end of the recent trading range of $0.04 to $0.09, which typically exerts downward pressure on the share price. Insider participation of $80,000 provides minor alignment but does not offset the dilution from the additional 2,000,000 units issued.

The news does not alter the fundamental development timeline or resolve the Zimbabwe regulatory rejection. It merely extends the cash runway by a few months, consistent with the company's explicit going concern warning and historical pattern of sequential financings. The market likely anticipated the need for additional capital given the pre-revenue status and permitting costs.

Zephyr Minerals Ltd. (ZFR) is a pre-revenue gold exploration and development company focused on its flagship Dawson Gold Project in Fremont County, Colorado. The company holds a 100% interest in the property, which includes a proposed underground mine.

The project hosts an inferred mineral resource of 343,000 tonnes grading 12.11 g/t Au for 133,500 oz Au at a 5 g/t cutoff. A 2017 preliminary economic assessment indicated an all-in sustaining cost of $692/oz at a $1,250/oz gold price.

Development activities are currently underway with the completion of a 15-month groundwater monitoring program. The company is awaiting analytical data to resubmit a mining permit application in January 2027.

Zephyr also holds prospective land in Zimbabwe covering 124,000 hectares. These assets are currently facing regulatory rejection and an active appeal process.

Management includes Loren Komperdo as President and CEO, and Brian Arkell as Director and Qualified Person.