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ZFR.V ·

Zephyr provides update on Dawson Gold Project, Colorado

Corporate Updates

Zephyr provides update on Dawson Gold Project, Colorado

Trading Symbol: TSX-V: ZFR OTC: ZPHYF

Shares Outstanding: 37,982,620

HALIFAX

,

Jan. 9, 2018

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

geological mapping, trenching and channel sampling program has recently been completed with a focus on identifying additional drill targets and

confirming the continuation of the Dawson gold bearing structure in both east and west directions. The geological mapping program combined with

a strong, geophysical magnetic low signature was successful in indicating that the gold mineralized Dawson Shear Structure at the Sentinel Zone

continues for a minimum of

300 m

to the east of the Dawson Zone and remains open. The Sentinel Zone geology has all the attributes for the

continuation of the high grade gold resource directly to the west in the Dawson Zone. Sentinel has never been drilled. Analytical results for channel

samples collected at Windy Point, Windy Gulch and Sentinel are expected by the end of

January 2018

.

The strong magnetic low at Sentinel is the easterly continuation of the magnetic anomaly coincident with the Dawson Zone which hosts the principal

gold resource on the Dawson Property (See News Release No. 02-17). Trenching and geological mapping has 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. Both the magnetic anomaly and the

biotite aplite unit are open to the east. This area is viewed as having high potential to contain significant additional gold mineralization on the

Dawson Property and will be drilled in the next drill campaign.

Important findings were also made in the western portion of the property where geological mapping suggests the Dawson Shear Structure is

continuous between the Windy Gulch Zone and the Windy Point Zone, and not fault offset as had been previously believed. In addition, the gold

mineralization discovered in shallow historic drill holes at the Windy Point Zone was determined to be hosted in a north-northwest striking cross-

cutting structure (the "North Structure"), distinct from the east - west Dawson Shear Structure (See Table 1 with highlights of historic drill results at

Windy Point). This is potentially an important new development as the intersection of the newly recognized North Structure with the Dawson Shear

Structure represents a highly attractive drill target given that both structures are gold mineralized. It is anticipated this target will also be drilled in the

next drill program along with a host of additional drill targets along the entire strike length of the Dawson Shear Structure on the Dawson Property.

Table 1 – Highlights of a historic drill program by Uranerz

USA

Inc. in 1990

Drill Hole ID

From (m)

To (m)

Intercept (m)*

Gold (g/t)

DWP-9002

30.8

36.9

6.1

9.0

including

30.8

32.3

1.5

34.8

DWP-9003

18.6

24.7

6.1

15.0

including

18.6

20.1

1.5

57.5

DWP-9004

1.8

5.2

3.4

6.8

DWP-9007

7.3

25.3

18.0

4.0

including

7.3

16.2

8.8

7.2

including

7.3

7.9

0.6

69.2

1)

This information is historic in nature and is based on drilling results reported by Uranerz USA Inc. 1990.

2)

The company believes this information is reliable and relevant as it was completed by a reputable company

using industry standard drilling and sampling practices.

3)

The company or its qualified person has not done sufficient work to verify this information.

4)

The company plans to complete verification sampling of historic drill core and will complete twinning of

selected drill holes as part of its ongoing exploration.

5)

*Intercepts are lengths downhole lengths for drill holes and true widths for channel samples.

Activities pertaining to completion of a mine permitting application continued, which included surveying all the claims relevant to the mine permit

and the drilling of three geotechnical holes at the proposed dry stack tailings site. The remaining principal task to be undertaken with respect to the

permit application is the completion of a large diameter drill hole in the Dawson Zone to provide technical information relevant to the proposed dry

stack tailings site.

Loren Komperdo

stated, "Zephyr made significant progress in advancing the Dawson Gold Project on all fronts. Our technical team in

Colorado

have been busy with trenching, geological mapping, relogging historical drill core to incorporate into our new geological model, as well as new road

and drill pad construction. Subject to funding, we are confident of significantly growing the gold resources through planned extensive drill programs

and submitting the mine permit application upon receipt of final drill generated process related technical data. We wish to thank our shareholders

for their continued support and remain confident their patience will be rewarded."

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

http://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/January2018/09/c3357.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 09:10e 09-JAN-18