Mr. Keith Henderson reports

VELOCITY CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT FOR GROSS PROCEEDS OF $1.3 MILLION

Velocity Minerals Ltd. has closed the first tranche of its non-brokered private placement announced on March 22, 2018.

The first tranche of the financing raised aggregate gross proceeds of $1,324,365 through the issuance of 6,621,824 units at a price of 20 cents per unit. All securities issued in connection with the financing are subject to a hold period of four months and one day in Canada. Each unit consists of one common share in the capital of the company and one-half of one common share purchase warrant, with each whole warrant entitling the holder to purchase one share at a price of 30 cents per share for a period of 12 months from the issue date. The expiry of the warrants will be accelerated if the closing price of the shares on a stock exchange in Canada is at least 50 cents for a minimum of 10 consecutive trading days during the term commencing after four months and one day from the issue date (the triggering event). The expiry of the warrants will be automatically accelerated upon the occurrence of the triggering event and the holders' rights to exercise their warrants will automatically expire and terminate at 4 p.m. Vancouver time 30 days following notice by the company to the holders of the occurrence of the triggering event.

In connection with the financing, the company paid aggregate finders' fees consisting of $21,350 in cash and 106,750 non-transferable finder warrants. Each finder warrant entitles the holder thereof to purchase one share at a price of 20 cents per share for a period of 12 months from the issue date. Leede Jones Gable Inc. received a finder's fee consisting of $10,850 cash and 54,250 finder warrants and PI Financial Corp. received a finder's fee consisting of $10,500 cash and 52,500 finder warrants.

The company intends to use the net proceeds from the financing to finance continuing work at its Balkan gold project, the cornerstone of which is the recently announced exploration and mining alliance with Bulgarian mining company Gorubso Kardzhali AD (see news release dated Feb. 22, 2018). In addition to exclusive access to an operating carbon-in-leach (CIL) processing plant, the company has negotiated option agreements on multiple exploration projects and an operating gold mine within an approximately 10,000-square-kilometre alliance area in southeast Bulgaria.

Stock option grant

The company also announces that it has granted 1.3 million common share stock options to various employees and consultants of the company and its affiliates. The options entitle the holder to purchase shares at a price of 18 cents per share for a period of 24 months from the issue date. With this issuance, the company has granted a total of 5.75 million options.

About Velocity Minerals Ltd.

Velocity is a gold exploration and development company focused on projects in Bulgaria.

We seek Safe Harbor.