ZIMTU CAPITAL CORP. ANNOUNCES TRANSACTION FOR PORTFOLIO OF AUSTRALIAN GRAPHITE PROJECTSMarch 1, 2012 - Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) (the “Company” or “Zimtu”)is pleased to announce that the Company and one of its prospecting partners havesigned an agreement with Pinestar Gold Inc. (TSXv: PNS) (FSE: 3PI) (“Pinestar”)whereby Pinestar can earn a 100%-interest in a portfolio of graphite projects in Australia(the “Option”).The combined package is comprised of 11 tenements (the “Optioned Properties”) with atotal area of 533 km2 located in four different states in Australia. Of the 11 tenementssubject to the Option, three comprise the Munglinup Project in Western Australia, onecomprises the Eyre Point Project in South Australia, five cover various historicalshowings located in New South Wales, one covers the Furniss East Project in WesternAustralia, and one covers the Emu Plain project located in Queensland.For its participation in the transaction, Zimtu will receive staged cash and sharepayments from Pinestar as follows: (i) $12,500 on signing (paid); (ii) $25,000 and500,000 common shares on acceptance by the TSX Venture Exchange (“TSXv”); (iii)$37,500 and 500,000 common shares 12 months from the date of TSXv acceptance;and (iv) 375,000 common shares 18 months from the date of TSXv acceptance; (v)375,000 common shares 24 months from the date of TSXv acceptance. Zimtu’sprospecting partner will receive cash and share considerations equal to that of Zimtu.The vendors will collectively retain a 2% Net Smelter Returns Royalty on the Property;1% of which can be purchased by Pinestar for C$1 million. During the period which is 6months from the date of TSXv acceptance, Pinestar will complete a minimum of$100,000 of exploration on the properties.The Optioned Properties are located in the main known graphite provinces in Australia.This includes the Munglinup region of Western Australia (host to the Munglinup Depositof Adelaide Prospecting Pty Ltd.) and the Eyre Peninsula of South Australia (host to theUley Deposit of Strategic Energy Resources Ltd. and Mega Graphite Inc.).No recent or systematic exploration program has been carried out for the exploration ofgraphite on any of the Optioned Properties. The Optioned Properties are consideredhighly prospective for occurrences of graphite.
MUNGLINUP PROJECTThe Company considers the flagship property of the Optioned Properties to be theMunglinup Project. The Munglinup Project consists of three separate tenementscovering an area of 174 km2. The project is located along strike and contiguous with theeastern and southern sides of the Munglinup Deposit, which is held by AdelaideProspecting Pty Ltd. The Munglinup Deposit contains a reported in-situ historic non-NI43-101-compliant geologic resource of graphite of 1.47 MT at 18.2% fixed carbon. Thiswork had identified graphite mineralization of a length in excess of 500 m and to a depthof 55 m. The Munglinup Deposit is anticipated to be Western Australia’s first commercialgraphite mine. The Munglinup Deposit and the historical estimate related thereto isseparate from the Munglinup Project area which is subject to the Option, but theCompany believes that there is potential for similar style mineralization to occur withinthe Munglinup Project area.A reconnaissance field program by an independent consulting geologist has beencompleted on the Munglinup Project and samples have been taken where outcroppinggraphite and float have been observed. Review of a previously completed electro-magnetic survey (completed in connection with previous nickel exploration) shows asignificant anomaly to be coincident with the stratigraphy that hosts the MunglinupDeposit.The Company anticipates that the results from this initial program will be available in thenear future. The Company and Pinestar anticipate that future exploration programs forthe Munglinup Project will include: Mapping and sampling. Geophysical acquisition and EM ground surveys. Data compilations.EYRE POINT PROJECTThe Eyre Point project area is located 15 km to the north of the Uley Graphite Mine andcovers three prospective areas within 71 km2.The Uley Graphite Mine is an open-cut graphite mine at Uley on the Eyre Peninsula,South Australia and has recently been purchased by Mega Graphite Inc. Uley isrecognized as an area of world class graphite mineralization. The graphite deposit is
part of the Mikkira Graphite Province, one of the largest coarse flake graphite depositsin the world, containing disseminated, high-grade flake graphite.The tenement subject to the Company’s Option is located on the eastern EyrePeninsula, where numerous graphite occurrences have been recorded over a 200 kmlong zone extending from south of port Lincoln to Kimba.NEW SOUTH WALES PROJECTSThere are 14 recorded occurrences of graphite in New South Wales, all of which are inthe area covered by the five tenements subject to the Option, covering a combined areaof 228 km2. They occur in two main areas in the New England Orogen: Undercliff Falls,north of Tenterfield; and Walcha, south of Armidale.The most exciting of the projects is the Plumbago and Winterbourne occurrences. ThePlumbago occurrence is located in the Undercliff Falls area and hosts the Plumbagodeposit where a total of 3000 tonnes has been mined in the past by previous owners. Inthe Undercliff Falls area there are nine separate graphite localities which includes theGeorge Creek, Falls Creek, Nicklaus, Half Moon, Circular Quay Gully, Hutt Spuroccurrences.The Winterbourne occurrence contains the formerly operating Winterbourne graphitemine and is developed in a north-trending micropegmatite dyke that intrudes graniticstocks of the Cheyenne Complex, Hillgrove Supersuite.The dyke is 2 m to 30 m wide and is exposed over a distance of about 250 m. Itcontains abundant segregations of fine-grained graphitic material.GRAPHITE BACKGROUNDGraphite is one of three forms of naturally occurring carbon, the others being charcoaland diamond. It is a black to grey, lustrous mineral that crystallizes in a hexagonalsystem, is soft (H = 1–2) and has a specific gravity of 2.1 to 2.2. Plumbago and blacklead are old names for graphite, owing to its lead-like appearance. Graphite iscompressible and malleable, an excellent conductor of heat and electricity and is highlyrefractory — with a melting point of 3650°C. Thermal oxidation of natural graphitebegins at about 300°C, and it is commonly stable and chemically unreactive at lowertemperatures. Natural graphite is also typically resistant to chemical degradation,thermal shock, shrinkage and oxidation.
Three discrete commercial types of natural graphite are recognized: flake (also referredto as crystalline or disseminated flake); crystalline vein (or lump); and amorphous(microcrystalline). Flake graphite is the most important commercially. The name refers to graphite that occurs as thin disseminated flakes in metamorphic rocks. Crystalline vein graphite consists of coarse, platy or needle-like crystals in veins, mainly in Precambrian igneous and metamorphic rocks. Amorphous graphite is massive microcrystalline graphite, generally derived from thermally metamorphosed coal seams or carbonaceous sedimentary rocks.Graphite deposits of commercial interest occur widely in regionally or thermallymetamorphosed sedimentary rocks and in hydrothermal and metasomatic deposits.There are five identified deposit types. 1. Early magmatic deposits (rare) 2. Deposits formed by concentration and crystallization of carbon (from coal or carbonaceous sedimentary rocks) during regional or contact metamorphism 3. Vein deposits 4. Contact metasomatic (skarn) deposits 5. Residual depositsChina produces around 70-80% of the world’s graphite. Quality is declining as surfaceoxide deposits are depleted resulting in increasing costs as mines go deeper. Supplysuffers from the seasonal closure of mines in northern China over winter.The optioned claims were acquired by the Company and its partners by staking, andwere acquired for project generation. Zimtu, along with its prospecting partners,continue to evaluate and acquire prospective resource properties to make available forsale or joint venture. As part of the Company’s business, Zimtu provides mineralproperty advisory services and helps to connect companies with mineral properties ofinterest.Mr. Andrew Spinks B.App.Sc, Grad.Dip (Mining), a member of AusIMM, and anindependent consultant geologist, is a Qualified Person as defined in NationalInstrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr.Spinks is a principal shareholder of SRM, and is an arm’s length party to the Company.
Mr. Spinks has reviewed and approved the technical disclosure contained in this newsrelease.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 Pinestar can earn a 100%-interest in aportfolio of graphite assets in Australia; that in consideration for its interest, Zimtu will receive staged cashand share payments from Pinestar, that Zimtus partner will receive cash and share consideration equal tothat of Zimtu; that the vendors will collectively retain a 2% Net Smelter Royalty on the property, 1% ofwhich can be purchased by Pinestar for C$1 million; that Pinestar anticipates that the results of the initialexploration at Munlinup by a consulting geologist to the vendors will be available in the near future; thatfuture exploration programs at Munlinup will include: mapping and sampling, geophysical acquisition, EMground surveys, and data compilations; and that Zimtu with the support of its prospecting partners will
continue to evaluate and acquire prospective resource properties to make available for sale or jointventure.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.