Mr. Keith Henderson reports

VELOCITY PROVIDES EXPLORATION AND DRILLING UPDATE, IGLIKA COPPER GOLD PROJECT, BULGARIA

Velocity Minerals Ltd. has released results from initial drilling at the Iglika copper-gold project, located in southeast Bulgaria. Exploration at Iglika is financed 100 per cent by Dundee Precious Metals Inc. (DPM) under the terms of a binding letter agreement, whereby Velocity has granted to DPM an exclusive option to acquire a 75-per-cent interest in and to the Iglika copper-gold prospecting licence (see previous news release dated June 12, 2023).

Drilling highlights

The Iglika property has potential for multiple mineral deposit types including copper-gold porphyry, copper skarn, and epithermal gold. Iglika Phase I drilling was focused on the area surrounding the historical Iglika copper skarn ("Iglika Skarn"), where historical exploration included 34,200m of drilling and 1,620 m of underground exploration adits, from which Velocity's team has developed a detailed 3D model of the known skarn deposit.

DPM has completed 3,275m of drilling in five drill holes, with four drill holes in and around the Iglika Skarn area and one drill hole at the Sitovo copper-gold occurrence to the north (Figure 1). Drilling has simultaneously focused on testing targets and establishing geological stratigraphy on the property, with drill holes reaching a maximum depth of 849m (average 655m to date). Encouraging results from Phase I drilling were received with all drill holes intersecting multiple intervals of highly anomalous copper and/or gold mineralization. Highlights include 2.5m at 2.78 % copper & 1.84 % zinc, and 14.5m at 0.89 % copper & 0.78 % zinc, including 3.0m at 2.27 % copper & 1.95 % zinc. Anomalous drill intercepts are listed in Table 1 and Table 2. Mineralization at the Iglika Skarn is represented by bornite, covellite and chalcopyrite hosted in marbles and calc-schists and is often associated with magnetite (Figure 2).

Property-Wide Exploration

Prior to DPM's involvement in the Property, Velocity's extensive exploration programs included 353 rock samples, 2,624 soil samples, 51 line km of magnetic data, and 111 line km of induced polarization, all of which has identified multiple target areas for drill testing.

DPM are applying a holistic exploration approach to the property to ensure that the best drill targets get tested. In addition to Velocity's already extensive exploration results, DPM are in the process of collecting 2,400 multi-horizon soil samples (on detailed 100m x 100m grid), 75 rock samples, 10,800 radiometric measurements (on variable 80m x 20m and 100m x 50m grids), extensive mapping and prospecting, as well as reprocessing of Velocity's extensive geophysical data set.

Next Steps

Property-wide exploration will define priority drill targets for testing through the remainder of the year. DPM have a firm commitment to complete 10,000m of drilling by 31 June 2024. With 3,275m completed to date, Velocity understands that an additional 2,500m will be completed in Q4 2023, with the remaining 4,000m minimum slated for completion in Q1 2024. Phase II drilling is expected to begin in October 2023, subject to completion of permitting.

Quality Assurance / Quality Control

The work programs in Bulgaria are designed and supervised by Daniel Marinov, MAIG RPGeo, the Company's Vice President Operations 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 laboratory in Romania (soil samples) or SGS Mineral Services laboratory in Bor, Serbia (drill core), for sample preparation and subsequent analysis. Drill core samples are prepared and analyzed by fire assay using a 50-gram pulp weight and multi-element analysis with four acid digestion using an Inductively Coupled Mass Spectrometer finish, in compliance with industry standards at SGS Mineral Services laboratory. Short-wave infrared (SWIR) spectroscopy data is collected regularly for each sample to provide details on alteration mineralogy. Soil samples are prepared in compliance with industry standards at ALS' Romanian laboratory then a sample split of the milled material (pulp) is shipped to ALS' Irish laboratory for Trace Detection Limit method for a gold plus multi-element package. Field duplicate samples, blanks and independent controlled reference material (standards) are added to every batch. Geophysical surveys are carried out by geophysical consultants using up-to-date technologies, with the results checked by a third-party independent geophysicist for quality control. Raw geophysical data is processed and corrected, and the results are interpreted by 2 independent groups of geophysicists under the direction of Company staff.

Qualified Person

The technical content of this release has been approved for disclosure by Daniel Marinov, RPGeo, a Qualified Person as defined by NI 43-101 and the Company's Vice President Operations. Mr. Marinov is not independent of the Company as he is a director, officer, shareholder, and holds incentive stock options.

About Velocity Minerals Ltd.

Velocity is a precious metals and copper explorer focused in Eastern Europe. In Bulgaria, Velocity has a 70% interest in the Tintyava property, which includes the prefeasibility-stage Rozino deposit. Velocity also has a 70% interest in the Momchil property (which includes the Obichnik project), a 70% interest in the Nadezhda property (which includes the Makedontsi project), and a 70% interest in the Dangovo property (which is contiguous with the Makedontsi project). The Company holds a 100% interest in the Iglika copper-gold exploration property and recently entered into an option agreement with DPM who have an option to earn a 75% interest in the property. The Company has also entered into agreements to acquire a 75% interest in the Zlatusha and Kalabak copper-gold exploration properties.

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