Zephyr Provides Dawson Gold Update

Executive Summary

• Zephyr Minerals announced the start of a water‑monitoring drill program to support resubmission of its mining permit application for the Dawson gold property in Colorado.
• The company highlighted high inferred resources (343,000 t @ 12.11 g/t Au) and plans additional funding to complete a five‑quarter analytical monitoring program.
• Management is also evaluating placer‑gold exploration on the wholly owned Judith Patented Placer Claim, with historic trench results of up to 7.6 g/t Au over 11.9 m.

Key Details

• Water Monitoring Program: Commences immediately; samples from quarters 5 and final quarter will be analyzed before year‑end. Results are required to resubmit the permit application with Colorado DRMS.
• Funding Requirement: Additional capital needed to finish the full five‑quarter water‑sample analytics program (amount not disclosed).
• Dawson Gold Property – Inferred Resource: 343,000 t grading 12.11 g/t Au for 133,500 oz at a 5 g/t cut‑off; 116,300 oz at 10.55 g/t with a 40 g/t top cut (effective date July 19 2013). No recent resource updates incorporating 2017‑2020 drilling.
• PEA Highlights (as of March 21 2017): Based on $1,250/oz gold price, all‑in sustaining cost (AISC) of $692 per ounce; economics considered robust at that time.
• Exploration Potential: Open at depth; eastward strike potential in the 700 m Sentinel Zone (undrilled); westward follow‑up targets in Windy Gulch and Windy Point zones.
• Placer Gold Evaluation: Management reviewing Judith Patented Placer Claim; historic trenching returned 5.8 g/t Au over 31.7 m and 7.6 g/t Au over 11.9 m. Planned trenching to estimate gravel volume, grade, and distribution.
• Use of Potential Placer Gold: Revenues would fund further Dawson exploration, development, and permitting, minimizing shareholder dilution.
• Environmental Note: Low sulphide content and absence of deleterious elements cited as supporting an environmentally benign mining operation.

Notable Quotes

• “What sets Dawson apart is its high gold grades… the Company is excited to begin the final step needed to resubmit the Application.” – Loren Komperdo, President & CEO
• “Obtaining a mining permit would be a key milestone in the project's development and should be instrumental in delivering shareholder value.” – Loren Komperdo, President & CEO