News Release: Zimtu Capital Corp. (TSXv: ZC) Graphite Transaction
ZIMTU CAPITAL CORP. COMPLETES TRANSACTION FOR GRAPHITE PROJECTSSeptember 1, 2011 - Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) (the “Company” or“Zimtu”) is pleased to announce that the Company and one of its prospecting partnershave signed an agreement with Strike Gold Corp. (TSXv: SRK) (“Strike”) whereby Strikecan earn a 100% interest in the Deep Bay East and Simon Lake Graphite Propertiesboth located in northern Saskatchewan.For its participation in the transaction, Zimtu will receive staged payments totallingC$162,500 and 1,500,000 common shares over a 14-month period. Zimtu’s partner,877384 Alberta Ltd. will receive cash and share consideration equal to that of Zimtu.The vendors will collectively retain a 3% Net Smelter Returns Royalty on the properties.The transaction is subject to acceptance by the TSX Venture Exchange (“TSXv”). Afinder’s fee will be payable with respect to the transaction pursuant to the policies of theTSXv.Deep Bay East ProjectThe Deep Bay East Project covers approximately 5,500 hectares (13,590 acres) and islocated 25 kilometres east of the community of Southend, Saskatchewan and less than15 kilometres east of the Deep Bay West Graphite Mine.The property is noted for its potential to host a near-surface graphite deposit comprisedof scarce, large-flake, high-purity graphite. The property is situated within high-grademetamorphic rocks of a sedimentary origin which is an ideal setting for the developmentof these types of deposits.The property has been explored for graphite since the 1960s, with surface trenching,mapping, electromagnetic surveys and limited diamond drilling (4 holes totalling 383metres). The historic drilling and trenching was completed on an east to northeasttrending conductor along 1,600 metres of strike length. The exploration identified highgrades of graphite across thick intervals as follows:
Deep Bay: Drilling and Trenching Highlights Hole / Trench From (m) To (m) Interval (m) %C DB 2 76.20 111.25 35.05 8.58% DB 3 7.32 20.42 13.11 8.97% 60.96 71.63 10.67 9.06% Trench B 0 9.45 9.45 17.34% 10.97 14.33 3.35 27.52% 14.33 17.37 3.05 8.75%The Deep Bay East Project was explored by Sherritt Gordon Mines Ltd. in the 1960sand later by Superior Graphite Company in the 1970s as they searched for securesources of flake graphite. The property was discovered at the same time as the DeepBay West Graphite Mine located about 15 kilometres to the west of Strike’s Property.The Deep Bay West Mine is currently being advanced towards production and is host toa historic non-NI 43-101 compliant resource of “1.8 million tonnes grading 10.32% C toa depth of 60 metres (Saskatchewan Mineral Deposit Index Report #0480). The geologyand grades of the Deep Bay East Project appear to be similar to the Deep Bay WestMine. Recent testing of graphite from Deep Bay West achieved >95% carbon contentfor all flake sizes +32+50+80+100 and -100. Further treatment was able to achieve>99% purity (Noble Bay Mining Development Inc.).Simon Lake ProjectThe Simon Lake Graphite Project covers 3,472 hectares (8,579 acres) locatedapproximately 280 kilometres northeast of La Ronge, Saskatchewan and is a shortdistance east of Highway 905. The property consists of several showings of flakegraphite mineralization in historic drill holes which were discovered during theexploration of base metals. Historic Drill Hole 2-72 encountered a graphitic, biotitegneiss with visual estimates of zones containing from a few percent up to 70 percentgraphite across a 68 metre interval. Approximately 5.5 kilometres to the southwest,along a conductive zone, Drill Hole 42-5 encountered a graphitic, biotite gneiss withvisual estimates of graphite ranging from 5 to 70 percent across a 21 metre interval.
Graphite MarketThe future for the graphite market is bright. Demand for graphite has been increasing byapproximately 5 percent per year since 2000 due to the ongoing modernization ofChina, India and other emerging economies, resulting in strong demand from traditionalend uses such as the steel and automotive industries. Graphite also has manyimportant new applications such as lithium ion batteries, fuel cells and nuclear and solarpower that have the potential to create significant incremental demand growth. There isroughly 10 times more graphite in a lithium ion battery than there is lithium. Demand forgraphite is expected to rise as electric vehicles and lithium battery technology areadopted.Natural graphite comes in several forms: flake, amorphous and lump. Of the one milliontonnes of graphite produced annually, approximately 40 percent is of the most desirableflake type. China, which produces about 70 percent of the world’s graphite, is seeingproduction and export growth leveling and export taxes and a licensing system havebeen instituted. A recent European Commission study regarding the criticality of 41different materials to the European economy included graphite among the 14 materialshigh in both economic importance and supply risk (Critical Raw Materials for the EU,July 2010).Graphite prices have been increasing in recent months and over the last couple of yearshave more than doubled. Other public companies developing graphite projects inCanada include Northern Graphite Corp. (TSXv: NGC) with their Bissett Creek Projectin Ontario and Focus Metals Inc. (TSXv: FMS) with their Lac Knife Project in Quebec.High-growth, high-value graphite applications require large-flake and/or high-puritygraphite which are the prime exploration targets at Deep Bay East and Simon Lake.The technical information in this news release has been prepared in accordance withthe Canadian regulatory requirements set out in National Instrument 43-101 andreviewed on behalf of the company by Mr. Neil McCallum, P.Geol., a qualified person.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: firstname.lastname@example.orgOn 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 Strike can earn a 100% interest in the DeepBay East and Simon Lake Graphite Properties located in northern Saskatchewan; that in consideration forits interest, Zimtu will receive staged cash and share payments from Strike, that Zimtu’s partner 877384Alberta Ltd. will receive cash and share consideration equal to that of Zimtu; and that the vendors willcollectively retain a 3% NSR on the property.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.