News Release: Orocan Resource Corp. Graphite Transaction

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Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) (the “Company” or …

Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) (the “Company” or
“Zimtu”) is pleased to announce that the Company and two of its prospecting partners
have signed an agreement with Orocan Resource Corp. (TSXv: OR) (“Orocan”)
whereby Orocan can earn a 100%-interest in the three graphite properties in Ontario,
Canada including the Black Donald and Little Bryan Properties

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  • 1. ZIMTU CAPITAL CORP. ANNOUNCES GRAPHITE PROPERTY TRANSACTION WITH OROCAN RESOURCE CORP.November 7, 2011 - Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) (the “Company” or“Zimtu”) is pleased to announce that the Company and two of its prospecting partnershave signed an agreement with Orocan Resource Corp. (TSXv: OR) (“Orocan”)whereby Orocan can earn a 100%-interest in the three graphite properties in Ontario,Canada including the Black Donald and Little Bryan Properties.For its participation in the transaction, Zimtu will receive staged payments totallingC$12,500 and 1,000,000 common shares over a 24-month period. Zimtu’s partners, BillBrereton and Paul Sobie, will collectively receive cash and share consideration equal tothat of Zimtu. The vendors will retain a 2% Net Smelter Returns Royalty on theproperties; which can be purchased by Orocan for C$1 million. The transaction issubject to acceptance by the TSX Venture Exchange (“TSXV”). A finder’s fee will bepayable with respect to the transaction pursuant to the policies of the TSXV.Black Donald PropertyStrategically surrounding the past producing Black Donald Graphite Mine (1896-1954),this very large property (~9000 ha) encompasses a substantial area of favourablemarble +/- paragneiss geology and contains or adjoins numerous historical graphiteoccurrences. The Black Donald Graphite Mine was one of the largest and richestgraphite deposits in North America and was extremely high grade with historic oregrades of up to 80% graphitic carbon (“Cg”). During the last 10 years of mine life theaverage reported grade was 25-30% Cg. Some 94% of the total value of Ontariographite production came from the Black Donald Mine. The graphite was in both highquality flake and amorphous form. A number of historical occurrences are recorded invarious Ontario government reports on and adjacent to the present property.Little Bryan PropertyThis ~3000 ha. property located in central Lyndoch Township includes the historic Little-Bryan graphite prospect and a considerable amount of unexplored favourableparagneiss/marble geology to the north and west of the known occurrence.
  • 2. The immediate area of the graphite prospect was last explored in 1989 by consultingfirm Derry, Michener, Booth and Wahl (DMBW) on behalf of Harrington SoundResources Inc. in a comprehensive program including geological mapping andprospecting, trenching, channel sampling and ground geophysics. This work showedthe Little-Bryan graphite mineralization to be hosted by pyritic gneisses.For additional geologic information on the Black Donald and Little Bryan Properties seethe Orocan news release announced today Nov 7, 2011.Graphite MarketGlobal consumption of natural graphite has increased from ~600,000 t in 2000 to 1.1MM t in 2010. Demand for graphite has been increasing by approximately 5% per yearsince 2000 due to the ongoing modernization of China, India and other emergingeconomies, resulting in strong demand from traditional end uses such as the steel andautomotive industries. Graphite also has many important new applications such aslithium ion batteries, fuel cells and nuclear and solar power that have the potential tocreate significant incremental demand growth. There is roughly 10 times more graphitein a lithium ion battery than there is lithium. Demand for graphite is expected to rise aselectric vehicles and lithium battery technology are adopted as well as increasing usesin new technology applications.Natural graphite comes in several forms: flake, amorphous and lump. Of the one milliontonnes of graphite produced annually, approximately 40% is of the most desirable flaketype. China, which produces about 73% of the worlds graphite, is seeing productionand export growth leveling and export taxes and a licensing system have beeninstituted. A recent European Commission study regarding the criticality of 41 differentmaterials to the European economy included graphite among the 14 materials high inboth economic importance and supply risk (Critical Raw Materials for the EU, July2010).The optioned claims were acquired by the Company and its partners by staking andwere acquired for project generation. Zimtu will continue to evaluate and acquireprospective resource properties to make available for sale or joint venture. As part ofthe Companys business, Zimtu provides mineral property advisory services and helpsto connect companies with mineral properties of interest.NI 43-101 Disclosure
  • 3. Mr. Bill Brereton, P.Eng., a qualified person as defined by National Instrument 43-101,supervised the preparation of the technical information in this news release.About Zimtu Capital Corp.Zimtu Capital Corp. invests in, creates and grows natural resource companies therebyproviding a way for shareholders to indirectly participate and profit in the publiccompany building process. The Company also provides mineral property advisoryservices helping to connect companies to properties of interest.Zimtu Capital trades on the TSX Venture Exchange under the symbol “ZC” and theFrankfurt Stock Exchange under the symbol “ZCT1.” For more information please visitthe corporate website at http://www.zimtu.com or contact:Kevin BottomleyShareholder ServicesToll Free: 1.877.377.6222Phone: 604.681.1568Email: kevin@zimtu.comOn Behalf of the Board of DirectorsZIMTU CAPITAL CORP.“David Hodge”David HodgePresident & DirectorPhone: 604.681.1568 Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.Statements in this document which are not purely historical are forward-looking statements, including anystatements regarding beliefs, plans, expectations or intentions regarding the future.Forward-looking statements in this news release include that Orocan can earn a 100% interest in threegraphite properties in Ontario, Canada including the Black Donald and Little Bryan Properties; that inconsideration for its interest, Zimtu will receive staged cash and share payments from Orocan, thatZimtu’s partners Bill Brereton and Paul Sobie will receive cash and share consideration equal to that ofZimtu; that the vendors will collectively retain a 2% NSR on the property which can be purchased byOrocan for C$1 million; and that Zimtu will continue to evaluate and acquire prospective resourceproperties to make available for sale or joint venture.
  • 4. It is important to note that actual outcomes and the Company’s actual results could differ materially fromthose in such forward-looking statements. Risks and uncertainties include, but are not limited to,economic, competitive, governmental, environmental and technological factors that may affect theCompanys operations, markets, products and prices. Readers should refer to the risk disclosuresoutlined in the Company’s Management Discussion and Analysis of its audited financial statements filedwith the British Columbia Securities Commission.