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Zephyr Expands Potential Strike Length of Dawson Shear Zone

Drill Results

Zephyr Expands Potential Strike Length of Dawson Shear Zone

Trading Symbol: TSX-V: ZFR OTC: ZPHYF

Shares Outstanding: 37,982,620

HALIFAX

,

Jan. 30, 2018

/CNW/ - Zephyr Minerals Ltd. ("Zephyr" or the "Company") (TSXV: ZFR) (OTC: ZPHYF) is pleased to announce

the staking of 10 additional claims on the eastern boundary of the

Dawson

property. These new claims cover an area directly east of the Sentinel

Zone and expands the property to a length of 4.2 km (2.6 miles). Geological mapping, trenching, sampling and geophysics have demonstrated the

Dawson Shear Structure continues easterly into the Sentinel Zone and remains open in this direction. This new staking expands the potential length

of the Sentinel Zone to

1500 m

(5,000 feet). This area is highly prospective and has never been drilled. By comparison, the current length of the

Dawson Zone which is host to the current gold resource (See news release No. 02-17), is approximately 500 meters (1,600 feet) in length. As

such, gold discovery in this newly staked area could be a transformative event significantly boosting the gold potential of the

Dawson

property.

Results from the newly excavated trenches demonstrate that the hanging wall copper gold zone is present at Sentinel. Trenching and geological

mapping has also confirmed the presence of a thick (20 to

25 m

) interval of the favourable biotite aplite unit which is the principal gold host at the

Dawson Zone. Importantly, the biotite aplite at

Dawson

is characterized by a very distinctive magnetic low signature. This same signature is present

over the biotite aplite at Sentinel and remains open to the east.

Trench one has well developed mineralization with

13.7 m

at 0.9 g/t gold and 0.25% copper, including

8.3 m

at 1.2 g/t gold and 0.28% copper.

Trenches 2 to 4 have anomalous copper and gold in the hanging wall zone. Trench 5 encountered a thick section of overburden and did not reach

bed rock. Surface exploration results at Sentinel are very similar to the Dawson Zone located directly and contiguous to the east where the copper

zone near surface varies from well-developed to anomalous. It is noteworthy that the Dawson Zone which is characterized by an average cut grade

of 10.5 g/t gold (5 g/t cutoff and 40 g/t topcut) and average widths of 3.5 to

4 m

and many intercepts over

10 m

was a blind discovery starting at

about

100 m

(330 feet) below surface.

Loren Komperdo

, President & CEO stated: "The Sentinel Zone geology and magnetics point to a potential tripling in length of the high grade gold

resource located directly to the west in the Dawson Zone. Combined with the gold potential of the Dawson Shear Zone in the western regions of

the claims and at depth, I believe the Dawson Property has the attributes consistent with the plus one million ounce potential typical of

mesothermal, shear zone hosted gold deposits."

Three new trenches were excavated at the more geologically complex

Windy Point Zone

in the western area of the

Dawson

property to provide a

better understanding of the geology prior to commencing a follow up drill program on significant results obtained in a reconnaissance drill

program undertaken by UUS Ltd. in 1990 (See news release No. 02-16). All three trenches were anomalous in gold and copper with the best

results were 4.1 g/t over

0.9 m

and 0.55% copper over

0.9 m

.

Zephyr Minerals Channel Sampling Protocols

Standard sampling procedures were followed whereby 3 foot channel samples were chipped from trench walls using a rock pick and collected in 8

mil polyethylene bags. Sample bags were closed using plastic cable ties. The sample weight delivered to the laboratory varied from 2.0 to 3.0 kg.

An analytical standard, replicate or blank was inserted at 10 sample intervals. The samples were shipped in sealed 5 gal. plastic buckets by Fedex

Ltd.,

Canon City, CO

to a Bureau Veritas holding facility in Blaine, WS and then to their laboratory in

Vancouver, BC

.

All samples were prepared by the Bureau Veritas PRP70-1KG method. Samples were analyzed using their FA430 fire assay for gold followed by

the FA652-1KG method of screen metallic for all samples that previously assayed over 2 ppm. The samples were also analyzed by the 59 multi-

element MA250 method. General details of these analytical procedures can be found on the Bureau Veritas website.

About Zephyr Minerals Ltd.

Zephyr Minerals Ltd. is a gold exploration and development company focused on advancing its flagship Dawson Gold Project in

Colorado, USA

.

After completing a positive PEA, Zephyr is continuing to advance the project though permitting, additional exploration as well as further

engineering work. The Company's objective is to expand resources and obtain a mining permit to support a potential production decision.

To be included in the Zephyr email database for Company updates please contact

[email protected]

, or visit our website

www.zephyrminerals.com

for more information.

Mr.

Mark Graves

, P.Geo. registered with the Association of Professional Geoscientists of

Nova Scotia

(APGNS), has prepared the scientific and

technical information in this news release.

CAUTIONARY STATEMENT:

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange)

accepts responsibility for the adequacy or accuracy of this release. This press release contains forward-looking statements.

The forward-looking statements contained in this document are based on certain key expectations and assumptions made by the

Company, including, with respect to the use of funds from private placements, expectations and assumptions concerning timing of

receipt of required regulatory approvals and third party consents and the satisfaction of other conditions to the completion of the

exploration work on the Dawson Gold Property.

The forward-looking statements contained in this document are made as of the date hereof and the Company undertakes no obligation

to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or

otherwise, unless so required by applicable securities laws.

SOURCE

Zephyr Minerals Ltd.

View original content: http://www.newswire.ca/en/releases/archive/January2018/30/c4105.html

%SEDAR: 00030509E

For further information:

David H. Felderhof, Executive VP & Director Or Sean Tufford, VP, Corporate Development, Zephyr Minerals Ltd.,

T: 902 446-4189, F: 866 941-4715

CO: Zephyr Minerals Ltd.

CNW 11:00e 30-JAN-18