Mr. Keith Henderson reports

VELOCITY REPORTS MAIDEN RESOURCE AT ROZINO GOLD PROJECT, SOUTHEAST BULGARIA

Velocity Minerals Ltd. has received inferred resource estimates for the Rozino gold deposit in southeast Bulgaria. The estimates based on two-metre downhole composited gold assay grades are reported for a range of cut-off grades. Highlights include:

• 17 million tonnes at 1.15 grams per tonne gold for 629,000 ounces at 0.5 g/t cut-off grade;
• 8.2 million tonnes at 1.68 g/t gold for 443,000 ounces at 0.8 g/t cut-off grade;
• Estimated resources extend to the base of mineralized drilling at around 190 metres depth, with around 90 per cent of estimates from depths of less than 110 m and less than 1 per cent from below 150 m;
• The mineralized system remains open for expansion and drill testing is continuing.

The company plans to publish a preliminary economic assessment in the second half of 2018, which will include an updated mineral resource estimate. The current resource estimate is based on approximately 7,500 metres of diamond drilling and the company continues to drill test the system and expects to complete approximately 5,000 m of further drilling before initiating a PEA.

ROZINO INFERRED MINERAL RESOURCE ESTIMATE, 
      EFFECTIVE DATE MARCH 1, 2018 (1)

Cut-off grade     Tonnes    Gold         Gold       
(g/t Au)        (million)   (g/t) (000 ounces)

0.2                   45    0.62          897        
0.3                   30    0.81          781        
0.4                   22    0.98          693        
0.5                   17    1.15          629        
0.6                   13    1.32          552        
0.7                   10    1.50          482        
0.8                  8.2    1.68          443        
0.9                  6.8    1.86          407        
1.0                  5.7    2.03          372        
1.2                  4.2    2.37          320        
1.5                  2.9    2.84          265        


(1)  Mineral resources were estimated by Jonathon Abbott, a member of the 
Australian Institute of Geoscientists and employee of MPR Geological 
Consultants Pty. Ltd. of Perth, Australia.  Mr. Abbott is a qualified 
person, as defined by National Instrument 43-101.

"We are a little over halfway through our planned drilling at Rozino, which will bring us to a planned PEA later in 2018. On completion of the PEA, the company will earn a 70-per-cent stake in the project. The results of this resource are excellent and keep us on track to deliver our PEA within one year of the drill start," stated Stuart Mills, Velocity's vice-president, exploration. "Having started drilling in late July, 2017, we have moved quickly to get to this interim resource estimate in just over seven months. Our stated objective has always been to define potentially open-pittable resources and defining 90 per cent of resources within 110 m of surface is consistent with that goal."

Resource estimate methodology

Recoverable resources were estimated for Rozino using multiple indicator kriging (MIK) with block-support adjustment, a method that has been demonstrated to provide reliable estimates of recoverable open-pit resources in gold deposits of diverse geological styles.

The Rozino sampling database includes 186 diamond holes for 29,924 m of drilling, of which 86 drill holes (14,289 m) completed by Asenovgrad Geoengineering EAD are not included in the resource estimation data set due to insufficient quality control data. Drilling used in resource estimation total 78 (12,009 m) drill holes and comprise 44 drill holes (7,475 m) completed by Velocity, 28 drill holes (3,794 m) completed by Hereward Ventures Ltd. and six drill holes (740 m) completed by Asia Gold Inc. The remaining angled drill holes from the database are located outside the mineralized envelope and did not inform the resource estimation.

Samples from Velocity's diamond drilling provide 63 per cent of the estimation dataset, with angled diamond holes drilled by Hereward and Asia Gold contributing 32 per cent and 5 per cent, respectively.

Estimated resources are constrained within a mineralized envelope interpreted from two-metre downhole composited gold grades and geological logging from diamond drilling and surface trenches. The envelope captures intervals of greater than 0.1 g/t, with the lower boundary reflecting the contact between variably mineralized sedimentary rocks and un-mineralized basement. It covers an area of approximately 780 m by 600 m. Estimated resources extend to the base of mineralized drilling at around 190 m depth, with around 90 per cent of estimates from depths of less than 110 m and less than 1 per cent from below 150 m.

Bulk densities of 2.2 tonnes, 2.4 tonnes and 2.6 tonnes per cubic metre were assigned to completely weathered, transitional and fresh material, respectively, using surfaces representing the base of complete oxidation (BOCO) and top of fresh rock (TOFR) interpreted by Velocity. Within the resource area the depth to BOCO averages around seven m, with fresh rock occurring at an average depth of around 18 m.

Future work

Continuing diamond drilling and initial metallurgical testwork to support an independent PEA study scheduled for release in late 2018.

Quality assurance/quality control

The work program at Rozino was designed and is supervised by Mr. Mills, CGeol, the company's vice-president, exploration, who is responsible for all aspects of the work, including the quality control/quality assurance program. On-site personnel at the project rigorously collect and track samples which are then security sealed and shipped to ALS Global's laboratory in Romania. Samples were prepared and analyzed by fire assay using a 30-gram charge in compliance with industry standards. Field duplicate samples, blanks and independent controlled reference material (standards) are included in every batch.

Hereward and Asia Gold's diamond core from angled drilling was sampled and analyzed by industry-standard methods. The core was generally halved for analysis with a diamond saw over generally one-metre intervals, and samples were analyzed for gold by fire assay by commercial laboratories. Information available to demonstrate the reliability of these results includes duplicates and blanks for both data sets and certified reference standards for Asia Gold's drill results.

General motes with respect to technical information

The mineral resource disclosed herein has been estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum's CIM Definition Standards for Mineral Resources and Mineral Reserves (CIM, 2014).

Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Any known legal, political, environmental, or other risks that could materially affect the potential development of the mineral reserves are presented in the section of the original news release entitled, "Cautionary Statement Regarding Forward-Looking Information."

Qualified person

The technical content of this news release has been approved for disclosure by Mr. Abbott, a member of the Australian Institute of Geoscientists and employee of MPR Geological Consultants Pty. Ltd. Mr. Abbott is a qualified person as defined by National Instrument 43-101. Mr. Abbott is independent of the company.

About Velocity Minerals Ltd.

Velocity is a gold exploration and development company focused on eastern Europe. The company's management and board include mining industry professionals with over 100 years of combined experience spanning Europe, Asia and the Americas as employees of major mining companies as well as founders and senior executives of junior to mid-tier public companies. The team's experience includes all aspects of mineral exploration, resource definition, feasibility, finance, mine construction and mine operation as well as a record in managing publicly listed companies.

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