Mr. Mark Cruise of Cruise Geoservices reports

EARLY WARNING NEWS RELEASE

Cruise Geoservices Ltd. is making an announcement in accordance with National Instrument 62-103 (the early warning system and related takeover bids) and National Instrument 62-104 (takeover bids and issuer bids). Cruise Geoservices is controlled by Mark Cruise, a director of Velocity Minerals Ltd.

Cruise Geoservices advises that on July 21, 2017, it acquired ownership and control of 5.85 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 5.85 million subject shares, Cruise Geoservices acquired 4.5 million shares at a deemed issuance price of 25 cents per share, and 1.35 million shares 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, Cruise Geoservices did not beneficially own or control any Velocity shares. As a result of the transaction, Cruise Geoservices beneficially owns or controls 5.85 million Velocity shares, representing approximately 10.19 per cent of the currently issued and outstanding Velocity shares.

Cruise Geoservices acquired the Velocity shares for investment purposes. However, Cruise Geoservices will review its holdings from time to time and may, in the future, increase or decrease its 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.