Zimtu Capital Corp. announces property transaction with Strike Graphite Corp.

VANCOUVER, Feb. 14, 2012 /PRNewswire/ - Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) (the "Company" or "Zimtu") is pleased to announce that the Company and three prospecting partners have signed an agreement with Strike Graphite Corp. (TSXv: SRK) ("Strike") whereby Strike can earn a 100%-interest in the Wagon Graphite Property located in southwestern Quebec.

The Wagon Property consists of three separate claim blocks totaling approximately 3,000 hectares situated within the vicinity (approx. 15 km east) of Timcal's Lac des Iles Graphite Mine, 150 km northwest of Montreal. Lac des Iles is the largest of two Canadian graphite producers. It has been in production for over twenty years and produces graphite products of various sizes and purities.

For its participation in the transaction, Zimtu will receive staged cash and share payments from Strike as follows: (i) $3,750 on signing; (ii) $3,750 and 125,000 common shares on acceptance by the TSX Venture Exchange ("TSXv"); (iii) $5,000 and 125,000 common shares 6 months from the date of TSXv acceptance; and (iv) 125,000 common shares 12 months from the date of TSXv acceptance. Zimtu's three prospecting partners will each receive cash and share considerations equal to that of Zimtu. The vendors will collectively retain a 2% Net Smelter Royalty on the properties. During the period which is 12 months from the date of TSXv acceptance, Strike will complete a minimum of $100,000 of exploration on the property.

Graphite Market

Global consumption of natural graphite has increased from ~600,000 in 2000 to 1.2 MM t in 2012. Demand for graphite has been increasing by approximately 5% per year since 2000 due to the ongoing modernization of China, India and other emerging economies, resulting in strong demand from traditional end uses such as the steel and automotive industries. Graphite also has many important new applications such as lithium-ion batteries, fuel cells and nuclear and solar power that have the potential to create significant incremental demand growth. There is roughly 20-30 times more graphite required by weight to produce a lithium-ion battery than there is lithium. Demand for graphite is expected to rise as electric vehicles and lithium battery technology are adopted as well as increasing uses in new technology applications.

Natural graphite comes in several forms: flake, amorphous and lump. Of the 1.2 million tonnes of graphite produced annually, approximately 40% is of the most desirable flake type. China, which produces about 70% 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). 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.

Wagon Property

The Wagon Property was originally explored by Graphicor Resources Inc. ("Graphicor") in 1989 based on the results of a helicopter-borne EM survey. Ground exploration followed in 1990.

The geology of the property is consistent with the Central Metasedimentary Belt of the Grenville Province and includes quartzofeldspathic rocks, quartzite, biotite gneiss, marble and locally pegmatitic quartzofeldspathic rocks. Graphite is locally present in quartzite and biotite gneiss and in shear zones where the graphite content usually ranges from 3% to 7% Cg exhibiting flakes up to 3 mm in diameter. Large flake graphite is generally considered as 0.2 mm and above.

Prospecting and reconnaissance geological mapping followed by line cutting and multifrequency-coil separation Maxmin II and Mise-à-la-Masse surveys identified multiple zones of parallel conductors. According to reports by Derry, Michener, Booth & Wahl ("DMBW"), graphite is present in all lithologies on the property. DMBW wrote: "Diamond drilling is warranted to test the prospective regions of this property."

About one hundred outcrops were located on the property. 15 were sampled and returned assays of 0.57% to 18.13% Cg. The highest grades were more frequently from the paragneiss lithologies. The property covers 18 km strike length of the formations.

Wagon Property - Sampling Results

Maps are available for download on Strike's website at: http://www.strikegraphite.com/

The Company cautions that it has not verified the quality and accuracy of the historic sampling results reported in this news release which predate the introduction of National Instrument 43-101 and cautions readers not to rely upon them. The historic figures were generated from sources believed to be reliable, however, they have not been confirmed. Although the sampling results are relevant, they have not been verified.

Strike plans to mount an aggressive exploration campaign on the property commencing with a complete compilation of historic geologic work followed by surface mapping, prospecting, mineral testing and processing, and follow-up diamond drilling.

The optioned claims were acquired by the Company and its partners by staking, and were acquired for project generation. Zimtu, along with its prospecting partners, continues 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.

Jean-Sebastien Lavallée (OGQ #773), geologist, a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical content of this release.

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."

On Behalf of the Board of Directors
ZIMTU CAPITAL CORP.

"David Hodge"
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 Strike can earn a 100%-interest in the Wagon Graphite Property; that in consideration for its interest, Zimtu will receive staged cash and share payments from Strike, that Zimtu's partners will receive cash and share consideration equal to that of Zimtu; that the vendors will collectively retain a 2% NSR on the property; that Strike plans to mount an aggressive exploration campaign on the Wagon Property commencing with a complete compilation of historic geologic work followed by surface mapping, prospecting, mineral testing and processing, and follow-up diamond drilling; 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 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.

SOURCE Zimtu Capital Corp.