Mr. Keith Henderson reports

VELOCITY RECEIVES POSITIVE DRILL RESULTS FROM IGLIKA COPPER-GOLD PROJECT, SOUTHEAST BULGARIA

Velocity Minerals Ltd. has received drill results from the Iglika copper-gold property, located in southeast Bulgaria. Exploration is continuing and a second drill rig has been mobilized to the property. The drill program is fully financed by Dundee Precious Metals Inc. (DPM).

Drilling highlights

Drill hole IDD-006 intercepted 4.0 metres (from 99.5-metre depth) grading 0.47 per cent copper, including 1.0 metre grading 1.77 per cent copper. This is underlain by 70.9 metres (from 430.0-metre depth) grading 0.15 per cent copper, including 24.5 metres grading 0.21 per cent copper and 6.0 metres at 0.37 per cent copper (see attached table).

In detail, copper mineralization is hosted in a potassic-altered diorite porphyry with a moderate quartz-sericite-pyrite overprint. In cross-section, the mineralized zone is located at the transition from a magnetic high to magnetic low. The drill hole IDD-006 result is viewed as geologically significant due to the presence of consistent copper mineralization over more than 70 metres and also because the drill hole intersected multiple phases of diorite porphyry intrusion, which appears to correlate well with the geophysical magnetic modelling.

Drill hole IDD-007, located one kilometre east of IDD-006, is completed, but geochemical assay results are pending. The drill hole intersected 266 metres (from 522.3 metres) of very intense phyllic alteration (quartz/sericite/pyrite plus or minus chalcopyrite) of volcaniclastic and volcanic rocks. The pyrite content is estimated at up to 10 per cent and coincides with a geophysical chargeability-high (induced polarization) anomaly, again providing confidence that blind geophysical targets across the Iglika property define priority drill targets.

Phase 2 drilling commenced in November, 2023, and is planned at approximately 7,000 metres to test 13 drill targets, with 1,735 metres drilled in two drill holes in Q4 2023. The remaining approximately 5,000 metres are scheduled to be completed in Q1 2024. A second drill rig was mobilized to the project in early January, 2024. The drilling campaign is simultaneously focused on testing geochemical and geophysical targets as well as establishing geological stratigraphy on the property.

Trenching highlights

Mapping and rock-chip sampling in the area of the 4G target returned up to 4.6 grams per tonne, gold which was followed up with channel sampling. A total of 12 channel samples (including one field duplicate) returned grades greater than 0.1 gram per tonne gold, with a best interval of 7.8 metres grading 2.37 grams per tonne gold, including 1.0 metre grading 12.3 grams per tonne gold. Mineralization is hosted within an intense quartz stockwork in subcropping andesitic volcanics and volcanoclastic rocks. Gold mineralization remains open and drill testing is planned in Q1 2024.

About Iglika

The 97-square-kilometre property has potential for multiple mineral deposit types, including copper porphyry, copper skarn and epithermal gold. Surface exploration completed at the property to date includes approximately 717 rock samples, 2,750 soil samples, 2,300 multihorizon soil samples, 600 line kilometres of magnetic data, 110 line kilometres of induced polarization and 15,000 radiometric measurements. This work, together with extensive mapping and prospecting, has identified multiple target areas for drill testing.

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's 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 30-gram charge and multielement analysis with four-acid digestion using an inductively coupled mass spectrometer in compliance with industry standards at SGS Mineral Services' laboratory. Soil samples are prepared in compliance with industry standards at ALS's Romanian laboratory, and then a sample split of the milled material (pulp) is shipped to ALS's Irish laboratory for trace detection limit method for a gold-plus-multielement package by aqua regia digestion for acid-extractable gold -- 25 grams. 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 are processed and corrected, and the results are interpreted by two 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 National Instrument 43-101 and the company's vice-president, operations. Mr. Marinov is not independent of the company as he is a director, officer and shareholder and holds incentive stock options.

About Velocity Minerals Ltd.

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

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