Zephyr Minerals Ltd. announced the Company entered into an option agreement to acquire up to a 75% interest in the MC-2 Gold Property (the "MC-2 Property"), from four arms length citizens of Zimbabwe (the "Owners"). The MC-2 Property comprises five mining claims totaling approximately 50 hectares and are strategically located within approximately 2 kilometers of the recently announced option acquired on the MC Gold Property. The two properties are on trend, sharing many of the same geological characteristics and excellent exploration potential for large scale, shear zone hosted gold deposits.

The proximity of the two claim groups with each other is a synergistic feature from a development perspective in the event of a discovery. The MC-2 Property is currently being mined by small scale miners to a shallow depth, typically to 8 to 10 meters in the easily mined weathered zone. Records show that small scale mining on the claims date back to 1986 as reported thereon by Kalbskoff, Zimbabwe Ministry of Mines.

Historic shafts and open cuts on gold mineralized structures are present on all of the five claims which collectively cover a width ranging between 200 to 400 meter and strike length of 1,500 meters. The principal focus of mining has been on the 'Main Reef' (quartz vein) which strikes 077 degrees azimuth & dips 85 degrees S-SE and occupies the fold axis of a similarly trending anticlinal fold, with splay veins and parallel vein structures being a secondary focus. Host rocks are principally silicified, sheared meta-basalts showing silicification and shearing adjacent to the reef.

Reported (Kalbskoff 1986, and Mupaya 1999), gold grades range from 0.8 g/t gold over 1.58 m to 105.52 g/t over 0.30 m. Of particular interest is Kalbskoff's report (June, 1986), of mineralized and silicified schist with limonite grading 5.4 g/t gold over 0.6 m; mineralized greenstone grading 13.4 g/t gold Over 0.40 m; mixed quartz and mineralized schist grading 8.4 g/t gold under 0.43 m, and grab samples from a stockpile showing abundant galena grading 7.6 g/t gold and 82.2 g/t silver. Grab samples of reef and sulphide mineralized material collected during a preliminary investigation by Zephyr ranged from 0.12 g/t gold to 36.28 g/t gold, and wallrock assays from 0.18 g/t gold to 1.42 g/t gold. Under the terms of the Agreement, Zephyr through its wholly own Zimbabwean subsidiary, Sutter Mining (Private) Limited ("Sutter") can acquire 75% of the Lion Property by incurring USD 665,000 in exploration expenditures and making cash payments to the Owners totaling USD 65,000 over five years.

The Owners are permitted to continue small scale mining within prescribed parameters from areas currently being mined until Sutter makes a decision to transfer the Claims into a new operating company (Newco), owned as to Sutter 75%and the Owner 25%.