Zephyr Provides Dawson Gold Update

Rhea-AI Summary

Zephyr Minerals (OTC: ZPHYF) completed the second quarter of its five-quarter groundwater monitoring program at and around the Dawson Gold deposit and plans a third-quarter program in mid-June 2026.

Zephyr intends to resubmit a mining permit application to the Colorado DRMS after receipt of all analytical data. An exploratory trenching program at the Judith claim is postponed to Q2 2026 due to equipment and participant delays; historical trench results at Windy Gulch include 5.8 g/t Au over 31.7 m and 7.6 g/t Au over 11.9 m.

Halifax, Nova Scotia--(Newsfile Corp. - March 18, 2026) - Zephyr Minerals Ltd. (TSXV: ZFR) (OTC Pink: ZPHYF) ("Zephyr" or the "Company") is pleased to report the successful completion of the second quarter of its comprehensive groundwater monitoring and analytical program at and surrounding the Dawson Gold deposit. The third-quarter program is scheduled for mid-June, 2026 keeping the Company on track to complete the full five-quarter program by year-end. Upon receipt of all analytical of all analytical data, Zephyr intends to resubmit a mining permit application to the Colorado Division of Reclamation, Mining and Safety (DRMS) for its 100%-controlled Dawson Gold property in Colorado, USA.

Due to a delay in the availability of a key participant and recovery equipment, the exploratory trenching program at its 100%-owned Judith Patented Placer Claim has been postponed until the second quarter of 2026. The trenching program will target the gulch that directly drains from the Windy Gulch gold deposit and Windy Point gold showings. The Windy Gulch deposit, in particular, contains significant gold at surface that is eroding downslope into the gulch. Previous bedrock trenching conducted in 2017 at Windy Gulch returned 5.8 grams per tonne (g/t) gold over 31.7 meters, while a trench located approximately 40 meters downslope returned 7.6 g/t gold over 11.9 meters.

About Dawson Gold Property

The Dawson Gold Deposit hosts an Inferred Mineral Resource¹ prepared in accordance with National Instrument 43-101 ("NI 43-101") 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 estimate has an effective date of July 19, 2013. No updates to the resource estimate have been made to incorporate the results from drilling programs completed between 2017 and 2020.The deposit is open at depth, with exploration potential to the east and west. A Preliminary Economic Assessment² ("PEA") was prepared in accordance with NI 43-101 with an effective date of March 21, 2017. Utilizing a gold price of $1,250/oz, the PEA showed robust economics with an all-in sustaining cost ("AISC") per ounce of $692. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Given the substantial increase in the gold price since 2017, the attractiveness of the Dawson project has been significantly enhanced. The potential to expand resources is excellent at depth on the Dawson Gold Deposit, along strike to the east in the 700-metre-long Sentinel zone, which has not been drill tested, and through follow-up drilling of promising targets in the Windy Gulch and Windy Point zones to the west. The Dawson project 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.

About Zephyr Minerals Ltd.

Zephyr Minerals is mission focused on obtaining a mining permit for its 100% owned Dawson Gold property in Colorado with the view to continuing to advance this project to the next stage of development. The Company continues to wait for the Zimbabwean Government to grant two Exclusive Prospecting Orders ("EPO"), covering 124,000 hectares applied for in 2021. The areas covered by the EPO applications are prospective for gold and lithium.

Notes

¹ The Report is titled Resource Estimate Technical Report for the Dawson Property Fremont County, Colorado, USA, dated September 6, 2013, and was prepared for Zephyr by Andrew Hilchey, P.Geo., Mercator Geological Services Limited, Isobel Wolfson, M.Sc., P.Geo, and Mark Graves, P.Geo..

² The report is entitled "National Instrument 43-101 Technical Report for the Dawson Property, Colorado, USA", effective March 21, 2017 (the "Technical Report"). The Technical Report was prepared by independent engineering firm, Golder Associates Ltd., with input from a number of other specialized and experienced consulting firms, and is in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects. This PEA is preliminary in nature and includes inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There has been insufficient drilling to define the inferred resources as indicted or measured mineral resource; however, it is reasonable to expect that the inferred mineral resources could be upgraded to indicated and possibly measured resources with continued drilling. There is no guarantee that any part of the mineral resources discussed herein will be converted into a mineral reserve in the future.

Qualified Person

Brian Arkell, B.S. Geology and M.S. Economic Geology, SME (Registered Member), AusIMM (Fellow) and SEG (Fellow), a Director of the Company, and a Qualified Person as the term is defined under National Instrument 43-101, has reviewed and approved the scientific and technical disclosure contained in this press release.

For further information please contact:

Loren Komperdo, President & CEO
T: 902 706-0222
info@zephyrminerals.com

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/288976

FAQ

What progress did Zephyr (ZPHYF) report for the Dawson Gold groundwater program on March 18, 2026?

Zephyr completed the program's second quarter and schedules a third-quarter sampling in mid-June 2026. According to the company, this keeps the five-quarter monitoring program on track for year-end completion and supports planned permit resubmission to Colorado DRMS after all analytical data are received.

When will Zephyr (ZPHYF) resubmit its mining permit application for Dawson Gold to Colorado DRMS?

Zephyr intends to resubmit the permit application after receiving all analytical results from the groundwater program. According to the company, permit resubmission timing depends on final lab data from the five-quarter monitoring program, expected to be complete by year-end 2026.

Why was the Judith claim trenching delayed and when will Zephyr (ZPHYF) resume work?

The trenching was delayed due to unavailability of a key participant and recovery equipment, and is now scheduled for Q2 2026. According to the company, the program will target the gulch draining Windy Gulch to test surface-erosion gold deposits.

What historical trench results did Zephyr (ZPHYF) cite for Windy Gulch and why do they matter?

Zephyr cited past trenching that returned 5.8 g/t Au over 31.7 m and 7.6 g/t Au over 11.9 m. According to the company, these results show significant surface gold at Windy Gulch and justify targeted trenching downslope toward the gulch.

How does the mid-June 2026 third-quarter program affect Zephyr's (ZPHYF) timeline for regulatory steps?

The mid-June program maintains the schedule toward completing the five-quarter monitoring program by year-end 2026. According to the company, completing all analytical work is a precondition to resubmitting the Dawson Gold mining permit to Colorado DRMS.