Zephyr Minerals Announces Groundwater Monitoring Completion and Private Placement Plan

Zephyr Minerals Ltd., a company focused on obtaining a mining permit for its 100%-owned Dawson Gold Project in Colorado, has announced several updates and plans for the upcoming months. The company has successfully completed the fourth quarter of its comprehensive groundwater monitoring and analytical program at and surrounding the Dawson Gold deposit. This program, which is set to conclude in December 2026, is part of a broader effort to support the new mining permit application that Zephyr intends to submit to the Colorado Division of Reclamation, Mining and Safety (DRMS) as early as January 2027.

In parallel with the groundwater program, Zephyr is conducting additional environmental and technical studies. These studies are aimed at further enhancing the company's understanding of the proposed Dawson Gold Mine and demonstrating that the project can be developed in an environmentally responsible and technically sound manner. The Dawson Gold Deposit hosts an Inferred Mineral Resource of 343,000 tonnes grading 12.11 g/t for 133,500 ounces of gold at a 5 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 deposit is open at depth, with exploration potential to the east and west.

Zephyr has also been facing challenges in Zimbabwe, where its Exclusive Prospecting Order (EPO) applications covering approximately 124,000 hectares in the Manicaland and Mashonaland Central Mining Districts were rejected. The company submitted a formal appeal in July 2026, seeking reconsideration of the applications and clarification regarding the basis for the rejection. The EPO applications, originally submitted in 2021, were rejected following a review by the Zimbabwe Ministry of Mines and Mining Development.

To support its ongoing operations and advance permitting activities, Zephyr has announced its intention to complete a non-brokered private placement of up to 4,000,000 units (each, a "Unit") at a price of $0.05 per Unit for gross proceeds of up to $200,000 (the "Private Placement"). Each Unit will consist of one common share (each, a "Share") and one common share purchase warrant (each, a "Warrant"). Each Warrant will entitle the holder to acquire one additional Share at an exercise price of $0.10 per Share for a period of two years from the date of issuance. The company expects certain insiders to participate in the Private Placement, and finder's fees, consisting of cash and Warrants on the same terms as those issued under the Private Placement, may be paid to eligible parties in accordance with applicable securities laws and TSX Venture Exchange policies.

Proceeds from the Private Placement will be used for general working capital purposes and to advance permitting activities on the Dawson Gold Project. All securities issued pursuant to the Private Placement will be subject to a statutory hold period of four months and one day from the date of issuance. Completion of the Private Placement is subject to customary closing conditions, including acceptance by the TSX Venture Exchange.

The Dawson Gold Deposit is part of a larger project that 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. The deposit is open at depth, with exploration potential to the east and west, and through follow-up drilling of promising targets in the Windy Gulch and Windy Point zones to the west. The Dawson project also includes a Preliminary Economic Assessment (PEA) prepared in accordance with National Instrument 43-101, showing robust economics with an all-in sustaining cost (AISC) per ounce of $692. Given the substantial increase in the gold price since 2017, the attractiveness of the Dawson project has been significantly enhanced.