Mr. Keith Henderson reports

VELOCITY RECEIVES US $16.5 MILLION FIRST TRANCHE PAYMENT FROM TÜRKER GLOBAL MADENCILIK SANAYI VE TICARET A.S.

Further to Velocity Minerals Ltd.'s previous news releases (Oct. 1, Nov. 29, Dec. 17, 2024, Feb. 28, 2025, and April 16, 2025), and pursuant to a definitive share purchase and option agreement made as of Feb. 24, 2025 (the definitive agreement), with Turker Global Madencilik Sanayi Ve Ticaret AS (Turker Mining), whereby Velocity agreed to, inter alia, sell its 70-per-cent interest in the Rozino project, together with certain licences, licence applications, and associated tenures and rights to Turker Mining (the transaction), it has received the initial payment from Turker Mining in the amount of $16.5-million (U.S.) (the first tranche payment).

In connection with Velocity's receipt of the first tranche payment, the company has arranged a standby letter of credit in the amount of $16.5-million (U.S.) to be issued to Gorubso-Kardzhali AD, which holds a 30-per-cent interest in the Rozino project. The standby letter of credit will secure Velocity's obligations regarding (i) the return to Gorubso of the share certificates Gorubso deposited into escrow in the event the transaction does not close, and (ii) the payment to Gorubso of 30 per cent of the Rozino project purchase price if the transaction does close. The first tranche payment is being held as collateral for the standby letter of credit and therefore is considered restricted cash and is unavailable to Velocity for working capital purposes.

We seek Safe Harbor.