Zephyr completes initial NI 43-101 Resource estimate for the Dawson Gold Property in Colorado

Zephyr Minerals Ltd. ("Zephyr" or the "Company") (TSXV:ZFR.V ) is pleased to announce the first independent Resource estimate undertaken at its 400 hectare, 100% owned Dawson Property located in Fremont County, Colorado, USA. The gold (Au) deposit is comprised of three mineralized areas, the Dawson segment, the Windy Gulch segment and the Windy Point segment. The National Instrument 43-101 ("NI 43-101") Resource estimate was completed on the Dawson and Windy Gulch segments only.

The Resource estimate was prepared by Mercator Geological Services Limited ("Mercator") of Dartmouth Nova Scotia, who examined the Resource from an underground Resource potential.

The Resource estimate was prepared under the supervision of Mr. Andrew Hilchey, P.Geo., of Mercator. Mr. Hilchey, is an independent Qualified Person in accordance with NI 43-101 and has reviewed and approved the information regarding the Resource estimate in this News Release. A NI 43-101 Technical Report supporting the Resource estimate will be filed on SEDAR within 45 days of this News Release.

Table 1: Dawson Property Mineral Resource Estimate Effective July 19th, 2013

*Resource statement cut-off value of 5.0 g/t is highlighted by bolding 
**Ounces may not sum due to rounding

Notes:

Geological Potential

Loren Komperdo, President and CEO of Zephyr stated "In addition to the above referenced inferred resource estimate, the Dawson segment is open at depth and to the west, the Windy Gulch segment is open to the east and at depth and the Windy Point segment, which is not included in this resource estimate, is open along strike and at depth.  Importantly, the capped  deposit gold grade of 10.50 g/t (and uncapped grade of 11.97g/t) gold is high compared to most gold deposits around the world and is key advantage at a time of challenging gold prices. Our objective now is to demonstrate the economic viability of the project and move towards development."

Zephyr has posted a photo on its website www.zephyrminerals.com that shows the location of the existing NI 43-101 Resource Estimate and the peripheral targets.

Mineral Resource Estimate Methodology

The Dawson Segment and Windy Gulch Segment gold deposits were assessed as part of a sedimentary-exhalative style setting. The mineralization is stratabound, hosted by a sequence of amphibolite-grade Proterozoic felsic gneisses and lesser sulphide-rich zones, and occurs in multiple horizons. The gold can be nuggety and has been identified as grains up to 3 millimeters in size. The gold mineralization is usually accompanied by 1 - 5% disseminated pyrite +/- chalcopyrite.

The mineral resource estimate is based on 2 three-dimensional block models developed using Gemcom Surpac® 6.1.4 modeling software and validated results of 23,923 metres (78,487.6 ft) of diamond drilling from 131 drill holes, and 58.6 metres (192.31 ft) of trench sampling in 3 road-cuts and 3 small pits carried-out between 1981 and 2013 on the Dawson Segment and Windy Gulch Segment deposits.  Block model grades were interpolated using inverse distance squared (ID2) methodology. ID2 interpolations used 5 ft downhole gold assay composites that were capped at 40 g/t gold. Block size for both models was 5 feet (y) by 16.5 feet * by 16.5 feet (z) with no sub-blocking.

All 2013 Zephyr drill core and channel samples from the Windy Gulch Segment were analyzed by ALS Chemex and included both (1) screen metallics (SM) analyses with atomic absorption finish (FA-AA) and (2) regular fire assay analyses with an atomic absorption finish (FA-AA). The average of 59 SM gold determinations from Zephyr samples falling within the confines of the Windy Gulch Segment resource estimate is approximately 9.4% higher than the average of corresponding  regular FA-AA values.  Historic core samples from Dawson and Windy Gulch were commonly analyzed by regular fire assay with a gravimetric finish (FA-GRAV), and to a lesser extent FA-AA, although the reports to not always specify which finish was used. A total of 10 historic SM gold results were also used for the Dawson Segment resource estimate when regular FA results were not available. The current Windy Gulch Segment resource estimate incorporated the recent 2013 SM gold results.

The resource statement cut-off grade of 5.00 g/t gold reflects reasonable potential for underground development based on a gold price of  $US 1,200/ounce.

A National Instrument 43-101 compliant technical report on the Dawson Property that details, among other things, the resource estimate, QA/QC results, database validation and geologic model will be forthcoming to meet disclosure and SEDAR filing requirements.

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.

SOURCE: ZEPHYR MINERALS LTD.