Zephyr closes private placement

Trading Symbol:TSX-V: ZFR OTC:ZPHYF
Shares Outstanding: 37,982,620

HALIFAX, Aug. 1, 2017 /CNW/ - Zephyr Minerals Ltd. ("Zephyr" or the "Company") (TSX-V: ZFR) (OTC: ZPHYF), announces the closing of a second and final tranche of the previously announced non-brokered private placement. In addition to the initial $596,400 amount closed in the first tranche, the Company issued 817,859 units at a price of $0.28 per unit for gross proceeds of $229,000.52. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at an exercise price of $0.42 per common share at any time on or before August 1, 2019. There are no commissions or finder's fees in connection with the private placement.

OakRun Precious Metals Fund Ltd. ("OakRun"), subscribed for 360,716 units, resulting in an ownership of 11,375,000 shares or 29.9% of the Company. Mr. Scott Rhodenizer is Investment Manager for OakRun, and a Director of Zephyr. Certain additional officers, directors and insiders of the Company subscribed for an aggregate of 357,143 units.

All securities issued in connection with the private placement are subject to a four-month hold period that expires on December 2, 2017. Net proceeds from the funds raised are expected to be used to advance the Dawson Gold Project, and for general working capital purposes. The private placement and issuance of stock options remain subject to final approval of the TSX Venture Exchange ("TSX-V").

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 with a plan to develop a high grade, low cost underground gold mine.

To be included in the Zephyr email database for Company updates please contact info@zephyrminerals.com, or visit our website www.zephyrminerals.com for more information.

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. More particularly, this press release contains statements concerning the use of funds from the private placement.

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 the private placement, 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.

SOURCEZephyr Minerals Ltd.

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