Zephyr Announces Operational Update

Additional Drill Targets Identified at Keezhik Lake

/NOT FOR DISTRIBUTION TO US WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/

Trading Symbol:  TSX-V: ZFR
Shares Outstanding: 16,621,129

HALIFAX, Dec. 4, 2012 /CNW/ - Zephyr Minerals Ltd. ("Zephyr" or the "Company") (TSXV: ZFR) is pleased to announce an operational update for its Keezhik Lake and Dawson Gold properties.

Keezhik Lake, Ontario
Zephyr had a geological exploration crew active on the Keezhik Lake property in October. The main objectives of the field program were to further outline step-out potential drill targets from historic drill holes KL08-18 (22.0 g/t over 1.5m) and KL10-19 (6.04 grams per tonne (g/t) over 1.5m, 1.32 g/t over 1.0m, 3.10 g/t over 0.5m and 4.69g/t over 1.0m), to verify historic anomalous humus survey gold values, and to compare gold results obtained from humus with those from b-horizon soil samples. The geochemical survey was unsuccessful in comparing results obtained from humus sampling versus b-horizon sampling due to the thick sphagnum mosses and boggy ground which extensively mask b-horizon soils. Where soil samples were successfully collected, they were highly leached and sandy. Nonetheless the geochemical survey was successful in outlining potential step-out drill targets to the south and southwest KL10-19.

Despite poor outcrop exposure in the surveyed area, 2 of 7 rock samples collected assayed 148 g/t and 5.7 g/t gold. The 148 g/t gold value was from a 3 cm wide quartz vein with no visible gold mineralization hosted in medium grained quartz-feldspar porphyry, near the north shore of the Keezhik peninsula, approximately 1,000 metres north of hole KL10-19. The 5.7 g/t gold value was a grab sample obtained from a fine grained quartz feldspar porphyry that contained irregular stockwork (less than 1 cm wide quartz veins), with no visible gold mineralization, located 280 metres southeast of DDH KL10-19.

The rock samples were crushed and pulverized to 95% passing 105 micron mesh. Samples were split to 50 g and analyzed by Fire Assay-AA finish. The two samples that exceeded the upper limit of 3,000 ppb were subsequently reanalyzed by Fire Assay-Gravimetric finish.

Dawson Project, Colorado
Zephyr continues to work on data review and compilation since purchasing the Dawson Gold property on October 31. The next step will be to complete 3-D geological models of the previously outlined resources at the Dawson Main Zone, Windy Gulch, and Windy Point. These 3-D models are expected to be complete early in the new year. When the models are completed we will have better understanding of the geology and structure and from this, formulate a go forward exploration and development plan. It is anticipated this will include a diamond drill program in early spring 2013.

This press release was prepared under the supervision of Mr. Peter Webster, P.Geo., President of Mercator Geological Services who is a Qualified Person as defined under National Instrument 43-101. Mr. Webster has reviewed the scientific and technical information in this news release.

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 News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Zephyr, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Zephyr's expectations are exploration risks detailed herein and from time to time in the filings made by Zephyr with securities regulators.


SOURCE: ZEPHYR MINERALS LTD.

For further information:

David H. Felderhof
Director and Executive Vice President, Zephyr Minerals Ltd.
T: 902 446-4189
F: 866 941-4715

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