Mr. Paul Larkin reports

VELOCITY MINERALS ANNOUNCES PRIVATE PLACEMENT

Velocity Minerals Ltd. intends to undertake a non-brokered private placement of up to $840,000. These funds will be raised by the company issuing up to 14 million units at a price of six cents per unit, each unit consisting of one common share and one share purchase warrant. Each warrant will entitle the holder thereof to acquire one additional common share of the company for a period of one year at a price of 7.5 cents.

The net proceeds of the private placement will be used to settle outstanding liabilities and for working capital purposes.

The private placement is subject to acceptance by the TSX Venture Exchange. All the securities issued under the private placement are subject to resale restrictions under applicable securities legislation. A finder's fee may be payable subject to regulatory approval.