Mr. Keith Henderson reports

EARLY WARNING NEWS RELEASE

Keith Henderson, the chief executive officer, president and director of Velocity Minerals Inc., on July 21, 2017, acquired ownership and control of 7.2 million common shares in the capital of the issuer pursuant to a purchase and sale agreement dated Jan. 24, 2017, whereby the issuer acquired all of the issued and outstanding common shares in the capital of 1077076 B.C. Ltd., in consideration and in exchange for common shares of the issuer. Of the 7.2 million subject shares, Mr. Henderson acquired 4.5 million at a deemed issuance price of 25 cents per share and 2.7 million through common share purchase warrants, which were each exercised for one common share in the capital of the issuer at 7.5 cents per share. Effective July 25, 2017, the Velocity shares will be listed for trading on the TSX Venture Exchange; however, the transaction did not occur on a stock exchange or other market that represents a published market for securities.

Immediately before the completion of the transaction, Mr. Henderson did not beneficially own or control any Velocity shares. As a result of the transaction, Mr. Henderson beneficially owns or controls 7.2 million Velocity shares representing approximately 12.55 per cent of the currently issued and outstanding Velocity shares.

Mr. Henderson acquired the Velocity shares for investment purposes. However, Mr. Henderson will review his holdings from time to time, and may, in the future, increase or decrease his ownership or control over securities of the issuer as circumstances dictate.

An early warning report will be filed under the issuer's profile on the SEDAR website. A copy of the early warning report can also be obtained from Mr. Henderson by contacting 604-484-1233.

Mr. Henderson makes this announcement in accordance with National Instrument 62-103 -- The Early Warning System and Related Take Over Bids and National Instrument 62-104 -- Take-Over Bids and Issuer Bids.

The issuer's head office is located at Suite 2300, 1177 West Hastings St., Vancouver, B.C., V6E 2K3.