Broken Hill Type Targets Drilling Postponed

NOVA SCOTIA – Loren Komperdo, President and CEO of Zephyr Minerals Ltd., said,  “At this stage it is prudent to postpone any further drill testing of the Broken Hill Type silver-lead-zinc targets in the El Plomo area until assays are received and all data is further evaluated by Zephyr’s geologists and Technical Advisor, Dr. Paul Spry. In the meantime, Zephyr will recommence its activities centered on the Dawson gold deposit by working to build additional gold resources on the Dawson and Green Mountain sections of the property where multiple drill targets have been identified. The property is characterized by high grade gold which is particularly attractive in the current bull market in gold which shows every sign of continuing to grow in the medium term. The Company is well funded to continue its exploration program.”

The Company will focus exploration on the Dawson gold deposit and on the mineralized trend along strike to the east and west. The Dawson gold deposit is located on the eastern side of the Dawson-Green Mountain property and is fully permitted for drilling. The gold deposit is host to an Inferred Mineral Resource prepared in accordance with National Instrument 43-101 that totals 116,300 ounces gold (343,000 tonnes at 10.55 g/t defined at a 5 g/t cutoff and 40 g/t topcut), (uncut: 133,500 ounces grading 12.11 g/t gold), and is open at depth. This estimate has an effective date of July 19, 2013 (see Company news release dated July 23, 2013). Average width of the gold mineralized zone is approximately 3.5 m (11.5 ft.) and ranges between approximately 1 and 15 m (3.3 to 49.2 ft.). A Preliminary Economic Assessment prepared in accordance with National Instrument 43-101 and having an effective date of March 21, 2017 was subsequently completed and showed robust economics at a $1,250/oz gold price (see Company news release dated February 7, 2017). Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Management feels that current and projected gold prices support proceeding immediately with gold exploration at the Dawson and Green Mountain sections; both of which boast excellent potential for resource discovery/growth. The combined length of the gold prospective mineralized trend at Dawson and Green Mountain is approximately 8 km (5 mi).