Zephyr Provides Dawson Gold Update

The November 4, 2025 news release provides an operational update on Zephyr's flagship Dawson Gold Property in Colorado. The key points are: - The company has completed the water well drilling program, a necessary step for resubmitting its mining permit application. - A tender has been submitted for a 15-month water monitoring program, the next step in the permitting process. - An exploratory trenching program is being planned for the Judith Patented Placer Claim to assess its potential. - The CEO, Loren Komperdo, stated that given the high gold price, the company is reviewing the drillhole database to re-evaluate the Dawson resource using a lower cut-off grade, which he expects will positively impact the resource size.

This news is a routine progress update, but it is positive. The completion of the water well drilling is a tangible milestone that demonstrates the company is executing its stated plan to advance the permitting process for the Dawson project, following its July 2025 financing.

However, the impact is not material for several reasons: - Incremental Progress: This is one small step in a very long permitting process. The company still needs to complete a 15-month water monitoring program, which has not yet started. - Funding Uncertainty: A previous news release (September 15, 2025) explicitly stated that "Additional funding is required to complete the full five-quarter analytical program for water monitoring." The recent financing of $260,000 is insufficient for the entire process, meaning more dilution is inevitable and imminent. - Speculative Statements: The CEO's comment about re-evaluating the resource with a hypothetical "$4,000-per-ounce" gold price is promotional. While lowering the cut-off grade in a strong gold market is standard practice and will likely increase the ounce count at a lower grade, it has no official bearing until a new NI 43-101 technical report is filed. The current resource is over a decade old (2013). - Placer Project is Only a Plan: The proposed trenching at the Judith claim to find a non-dilutive source of funding is still just a plan, not an action with results.

In summary, the news confirms the company is moving forward as expected, which is positive. However, it does not alter the fundamental investment case, which remains a high-risk permitting story dependent on future, dilutive financings. The stock has already priced in some of this recent progress with its run from $0.04 to $0.09 and subsequent consolidation.

Zephyr Minerals Ltd. is a Canadian-based junior exploration company focused on advancing its flagship Dawson Gold Property in Colorado, USA. The Dawson project hosts a high-grade, underground gold deposit. The most recent NI 43-101 resource estimate (effective July 19, 2013) defined an Inferred Mineral Resource of 343,000 tonnes grading 12.11 g/t gold for 133,500 ounces (using a 5 g/t cut-off). A 2017 PEA, based on $1,250/oz gold, showed an AISC of $692/oz. The company is currently focused on resubmitting its mining permit application, which is the primary value driver for the company. Parts of the property are subject to a sliding scale Net Smelter Return (NSR) of up to 3%.