Mr. Keith Henderson reports

VELOCITY INITIATES PHASE I DRILLING AT ADVANCED ROZINO GOLD PROJECT, SOUTHEAST BULGARIA

Velocity Minerals Ltd. has initiated diamond drilling at the company's advanced Rozino gold project. The company has also filed on SEDAR a National Instrument 43-101 technical report for the Rozino deposit, located within the Tintyava prospecting and exploration licence in southeast Bulgaria. The technical report summarizes historical exploration at Rozino, including 142 diamond drill holes, totalling approximately 22,500 metres.

Drill program

A total of nine diamond drill holes (approximately 2,000 metres) are planned for phase I at the Rozino project, which are described in more detail herein. The program is part of a larger drill program of up to 65 drill holes (approximately 12,000 metres) that is planned to be continuing through the remainder of 2017 and early 2018.

A total of 142 historical drill holes have been drilled on the project, either vertically or oriented to the northeast, parallel to the predominant structural trends seen in outcrop. The last hole drilled on the project (2006) was completed following a structural review, which identified a strong northwest control on mineralization.

Drill hole R-245 was drilled perpendicular to the newly interpreted northwest control on mineralization, and intersected 68 metres of 3.15 grams per tonne gold, including 11.39 metres of 8.09 grams per tonne gold. Hole R-245 confirmed that mineralization exists between the drill fences and the potential for additional broad intersects of near-surface, high-grade mineralization located between the existing drill fences is considered to be good to excellent. Velocity's current drill program is testing this interpretation.

Rozino project

Velocity (through a Bulgarian subsidiary) holds an option to acquire an undivided 70-per-cent legal and beneficial interest in the Tintyava property, free and clear of all liens and encumbrances, granted by Gorubso Kardzhali AD. The Rozino project, which is the subject of the recently filed technical report, is located within the Tintyava property, which has an area of 163 square kilometres. To exercise the option for the Tintyava property, the company must pay the $325,000 tender fee (paid) to the Ministry of Energy of the Republic of Bulgaria and deliver a National 43-101 preliminary economic assessment. The option is exercisable for a period of up to six years.

The Rozino project is located 20 kilometres east of the 850,000-ounce Ada Tepe gold deposit, currently being developed by Dundee Precious Metals Inc. and 50 kilometres southeast of the city of Kardzhali, which is host to tailings and gold processing facilities operated by Gorubso.

Cautionary note

Ada Tepe has a measured and indicated resource (2013):

• Upper zone -- five million tonnes of 2.99 grams per tonne gold (482,000 ounces, 0.6-gram-per-tonne cut-off grade);
• Wall zone -- 1.9 million tonnes of 6.13 grams per tonne gold (377,000 ounces, 0.8-gram-per-tonne cut-off grade).

Readers are cautioned that Ada Tepe is an adjacent property; that Velocity has no interest in or right to acquire any interest in the deposit; and that mineral deposits on adjacent or similar properties, and any production therefore or economics with respect thereto, are not in any way indicative of mineral deposits on Velocity's properties or the potential production from, or cost or economics of, any future mining of any of Velocity's mineral properties.

The Rozino project was first explored in the 1980s by the Bulgarian state company, Asenovgrad Geoengineering EAD, which completed 86 vertical diamond drill holes for 14,289 metres. Available drill technology was limited to vertical drill holes, which in the context of steeply dipping zones of mineralization was not a suitable approach. Hereward Ventures Ltd. and Asia Gold Corp. began exploration in 2001 and completed three phases of drilling between 2004 and 2006, completing 55 diamond drill holes for 7,995 metres. Diamond drilling was angled, but oriented to the northwest, parallel to the predominant outcropping structural trends and therefore less than optimal.

In 2005 to 2006, Asia Gold carried out a structural review and identified a strong northwest control on mineralization and completed two drill holes to test this new idea. Drill hole R-245 was drilled toward the northeast, perpendicular to the newly interpreted northwest control on mineralization, and intersected 68 metres of 3.15 grams per tonne gold, including 11.39 metres of 8.09 grams per tonne gold. Assuming steep mineralization striking 145 degrees, which is perpendicular to the azimuth of the drill hole, the true width of significant intercept is estimated to be approximately 43.5 metres; however, exact true thicknesses at Rozino are difficult to ascertain with the current level of available data.

In summary, over 20 kilometres of diamond drilling have been completed to date, and yet the Rozino deposit is still not well defined. Asia Gold's drill hole R-245 confirmed that mineralization exists between the drill fences and the potential for additional wide intersects at high grades located between the existing drill fences is considered to be very good.

Exploration upside at Rozino is good. The area surrounding the drilled Rozino mineralization has historically been soil sampled and trenched, with both methods providing coherent anomalies for follow-up. Historical trench results in particular are compelling (see attached table), and although only two historical drill holes (from 142 total) tested the trench anomalies, the results were positive. Due to the limited amount of available data and variable orientation of trenches following irregular forest tracks and clearings, true thicknesses are at present difficult to ascertain.

        HIGHLIGHTS FROM HISTORICAL 
    TRENCH SAMPLES SURROUNDING ROZINO

Trench                          Interval

K59                     17 m of 3.39 g/t 
K56re                   11 m of 3.09 g/t  
K56                     12 m of 5.80 g/t
K55re                   11 m of 4.20 g/t  
K118                    14 m of 4.29 g/t 
K109                    12 m of 3.46 g/t  
K114                    27 m of 2.07 g/t
K113                    13 m of 1.84 g/t
K117                    48 m of 1.41 g/t 
K52                  20.20 m of 1.53 g/t

The Rozino project is a typical low-sulphidation epithermal gold deposit hosted within Palaeogene sediments as disseminations, replacement and vein mineralization. The mineralogy of the Rozino deposit is simple, consisting mainly of pyrite.

Several historical metallurgical tests were completed at Rozino. The most recent was reported by Wardell Armstrong on a single series of agitated cyanide extraction tests, and the results returned average recoveries from three samples based on cyanide-in-pulp and cyanide-in-leach extraction of 94.7 per cent and 97.7 per cent, respectively.

The technical report includes recommendations for the first year of exploration, including the purchase of satellite imagery and high-resolution topographic data, reprocessing of historical airborne and ground geophysics, survey of historical drill collars, additional systematic trenching, including over untested soil anomalies, heel-to-toe drilling oriented to the northeast (perpendicular to the northwest control on mineralization), additional metallurgical testing in preparation for further resource drilling and preliminary economic assessment, as well as implementation of appropriate quality assurance/quality control procedures and set-up of standard operating procedures.

Readers are encouraged to review the technical report filed on SEDAR. It can be found on SEDAR by searching for Velocity Minerals Ltd. and by selecting "Technical Reports NI 43-101" under document type. The report was filed on July 27, 2017. A further NI 43-101 technical report describing the company's Ekuzya project was filed on July 20, 2017.

Option grant

The company also announces that it has granted stock options to certain officers, employees and consultants of the company and its affiliates to purchase up to 3.5 million common shares of the company in accordance with the terms of the company's stock option plan. The stock options are exercisable on or before July 31, 2022, and each option is exercisable for one common share of the company at a price of 31 cents per share.

Qualified person

James Hogg, MSc, BSc, MAIG, is the author of the technical report and an independent qualified person within the meaning of NI 43-101. Mr. Hogg has reviewed the scientific and technical information from the technical report included in this news release and has approved the disclosure herein.

Stuart A. Mills, Msc, BSc, CGeol, the company's vice-president of exploration and a qualified person as defined by NI 43-101, has reviewed the scientific and technical information related to the drill program included in this news release and has approved the disclosure herein. Mr. Mills is not independent of the company.

About Velocity Minerals Ltd.

Velocity is a gold exploration and development company focused on eastern Europe.

The company's portfolio of advanced gold exploration assets is currently in Bulgaria, which is a member of the European Union (2007) and an attractive destination for mining investment.

We seek Safe Harbor.