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Zimtu Capital Corp.

Suite 1450 - 789 West Pender St.
Vancouver, BC V6C 1H2
Phone: 604.681.1568
Fax: 604.681.8240
Toll Free: 1.877.377.6222
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News Releases

 April 10, 2012
Zimtu Capital Corp. Announces Transaction with First Graphite Corp. for Henry Graphite Property in Saskatchewan

 Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) (the "Company" or "Zimtu") is pleased to announce that the Company and one of its prospecting partners have signed an agreement with First Graphite Corp. (TSXv: FGR) ("First Graphite") whereby First Graphite can earn a 100%-interest in the Henry Graphite Property located in north-east Saskatchewan.

For its participation in the transaction, Zimtu will receive staged cash and share payments from First Graphite as follows: (i) $38,750 on signing; (ii) $38,750 and 350,000 common shares on acceptance by the TSX Venture Exchange ("TSXv"); (iii) 150,000 common shares six months from the date of TSXv acceptance; (iv) 250,000 common shares 12 months from the date of TSXv acceptance; (v) 250,000 common shares of 24 months from the date of TSXv acceptance. Zimtu's partner will receive cash and share consideration equal to that of Zimtu. The vendors will collectively retain a 2% Net Smelter Returns Royalty on the property. The transaction is subject to acceptance by the TSXv.

Henry Graphite Property:
The Henry Property (the "Property") consists of six mineral claims, covering approximately 22,853 hectares and is located approximately 150 kilometres northeast of the community of La Ronge, Saskatchewan and approximately 10 kilometres west of the community of Southend, Saskatchewan. The Property is transected by highways 102 and 905.

The Property is noted for its potential to host a near-surface graphite deposit comprised of scarce, large-flake, high-purity graphite and is situated within high-grade metamorphic rocks of a sedimentary origin which is an ideal setting for the development of these types of deposits.

The Property was explored by Hudson Bay Exploration and Development Company Ltd. ("HBEDC") in 1974 looking for base metal mineralization. At that time, airborne and ground electromagnetic ("EM") surveys were conducted in the project area. Following the EM surveys, the targets which had the best potential for base-metal mineralization were drill tested. Many of the conductive targets were not drill tested due to the low potential for base-metal mineralization, which was attributed to a high graphite-to-sulphide ratio observed in outcrop. The historic EM surveys and ground-checking, indicate that there are several long (up to 10 km), sub-parallel conductive horizons on the Property, indicating the potential for multiple zones of graphite mineralization.

In total, the HBEDC drilled 20 holes on the Property. This drilling intersected graphitic gneisses in several holes on the Property, despite the targeting efforts to avoid graphite. Graphite is described in the historic drill logs over intervals of up to 30 metres.

The Property is located 20 kilometres southwest of the Deep Bay Graphite Mine, which is currently being advanced towards production and is host to a historic non-NI 43-101 compliant resource of "1.8 million tons grading 10.32% C to a depth of 60 metres" (Saskatchewan Mineral Deposit Index Report #0480). The geologic setting of parts of the Henry Property appear similar to the Deep Bay Mine's deposit where recent graphite testing achieved >95% carbon content for all flake sizes +32+50+80+100 and -100. Further treatment was able to achieve >99% purity (Noble Bay Mining Development Inc.).

The technical information in this news release has been reviewed on behalf of the Company by Neil McCallum, of Dahrouge Geological Consulting Ltd., a Qualified Person pursuant to National Instrument 43-101.

Graphite Market:

• Natural graphite comes in several forms, broadly: flake, amorphous and lump.

• The total worldwide graphite market is currently estimated to be US$12 Billion dollars (Ashbury Carbons, Industrial Mineral Graphite Conference, Dec 2011) including: graphite electrodes, carbon fibers, specialty graphite, granular and powder and all other graphite products.

• Of the 1.2 million tonnes of graphite produced annually, approximately 40 per cent is of the most desirable flake type.

• The price for flake graphite is USD$2000-$3000 per tonne depending on flake size, purity and other characteristics.

• Graphite prices have been increasing in recent months and over the last couple of years prices for large flake, high purity graphite (+80 mesh, 94-97%C) have more than doubled.

• The largest end use markets for graphite are currently the steel and automotive markets. Graphite also has many important new applications such as lithium-ion batteries, fuel cells, nuclear and solar power, vanadium-redox batteries, etc. that have the potential to create significant new incremental demand growth.

• China, which produces about 80 per cent of the world's graphite, is seeing production and export growth leveling, and export taxes and a licensing system have been instituted.

• A recent European Commission study regarding the criticality of 41 different materials to the European economy included graphite among the 14 materials high in both economic importance and supply risk (Critical Raw Materials for the EU, July 2010).

The optioned claims were acquired by the Company and its partner by staking. Zimtu, along with its prospecting partners, continue to evaluate and acquire prospective resource properties to make available for sale or joint venture. As part of the Company's business, Zimtu provides mineral property advisory services and helps to connect companies with mineral properties of interest.

About Zimtu Capital Corp.
Zimtu Capital Corp. invests in, creates and grows natural resource companies thereby providing a way for shareholders to indirectly participate and profit in the public company building process. The Company also provides mineral property advisory services helping to connect companies to properties of interest.

Zimtu Capital trades on the TSX Venture Exchange under the symbol "ZC" and the Frankfurt Stock Exchange under the symbol "ZCT1". For more information contact:

Kevin Bottomley
Shareholder Services
Toll Free: 1.877.377.6222
Phone: 604.681.1568
Email: info@zimtu.com

On Behalf of the Board of Directors
ZIMTU CAPITAL CORP.


David Hodge
President & Director
Phone: 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 any statements regarding beliefs, plans, expectations or intentions regarding the future.

Forward-looking statements in this news release include that First Graphite can earn a 100%-interest in the Henry Graphite Property located in northern Saskatchewan; that in consideration for its interest, Zimtu will receive staged cash and share payments from First Graphite, that Zimtu's partner will receive cash and share consideration equal to that of Zimtu; that the vendors will collectively retain a 2% NSR on the Property; and that Zimtu, along with its prospecting partners, continue to evaluate and acquire prospective resource properties to make available for sale or joint venture.

It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include, but are not limited to, economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Readers should refer to the risk disclosures outlined in the Company's Management Discussion and Analysis of its audited financial statements filed with the British Columbia Securities Commission.
 
 

You can view the Next News Releases item: Wed Apr 11, 2012, Zimtu Capital Corp. Announces Transaction With Big North For Grand Lac Du Nord Graphite Property In Quebec

You can view the Previous News Releases item: Tue Apr 3, 2012, Zimtu Capital Corp. (TSXv: ZC) Announces $3.0 Million Non-Brokered Private Placement

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