VLC.V · 2020-04-20 12:00:00

Velocity Announces Multiple Positive Drill Results from the Sedefche Gold Project, Southeast Bulgaria Highlights include:

Drill Results

Lms

NR-20-09 April 20, 2020

Velocity Announces Multiple Positive Drill Results from the

Sedefche Gold Project, Southeast Bulgaria

Highlights include:

Drill hole SDD-046; 24.3m @ 3.72 g/t gold and 51.8 g/t silver,

including 7.7m @ 9.97 g/t gold and 89.1 g/t silver

Drill hole SDD-044; 11.0m @ 5.60 g/t gold and 79.9 g/t silver

Vancouver, British Columbia – Velocity Minerals Ltd. (TSX .V: VLC) (“ Velocity” or the “ Company”)

announces that it has received results from 33 additional drill holes for the Sedefche g old project

(“Sedefche”), Bulgaria. This large batch of drill results continues to broadly confirm the grade and tenor

of historical results.

The near-surface Sedefche gold project has previously been advanced through a successful permitting

process and is permitted for near-term production. As part of project due diligence, Velocity has drilled

5,756m to date, including 3,897 m in 2020. Drilling has paused pending rec eipt of results from an

additional 23 drill holes. All drill core samples have been dispatched for analysis . An additional 3,000m

of drilling is budgeted in 2020, contingent on results of the current drilling and other due diligence work.

The Company ha s been completing a range of due diligence activities including detailed metallurgical

testing and review of the mine plan.

Velocity’s results have returned better grade and tenor than historical results and continue to define a

number of higher -grade zo nes within the existing resource envelope, which were not identified by

historical exploration (Figures 1 and 2).

Highlights include:

• SDD-046 returned 24.3m @ 5.55 g/t gold (3.72 g/t gold using a 20 g/t top cut) and 51.8 g/t silver

including 7.7m grading 15.74 g/t gold (9.97 g/t gold using a 20 g/t top cut) and 89.1 g/t silver

(Figure 1). Top cutting is done when samples return analysis in excess of 20 g/t gold; in this hole

two samples were top cut from a grade of 48.10 g/t and 37.40 g/t gold.

• SDD-044 returned 11.0m @ 5.79 g/t gold (5.60 g/t gold using a 20 g/t top cut) and 79.9 g/t silver,

with one 1.0m sample top cut from 22.00 g/t gold (Figure 2).

NR-20-09 Continued April 20, 2020

Figure 1: Cross Section XV at Sedefche Gold Project showing results for drill hole ODD-046 and locations for drill

holes for which results are pending. Drill hole locations are shown on Figure 3 below.

Figure 2: Cross Section XIV at Sedefche Gold Project showing results for drill hole ODD-044, -45 and -47. Drill

hole locations are shown on Figure 3 below.

Quality Assurance / Quality Control

Velocity have not assessed the Quality Assurance / Quality Control (QAQC) of historical results and as such

historical results are not consistent with the standards of disclosure defined by NI 43 -101 and may not

necessarily be consistent with CIM best practice with respect to reporting.

The work program at Sedefche was designed and is supervised by Stuart A. 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 laboratory in Romania. Samples used for the

results described herein are prepared and analyzed by fire assay using a 30 -gram charge in compliance

with industry standards at ALS’ Romanian laboratory. A sample split of the milled material is shipped to

ALS’ Irish laboratory for multi- element analysis using an inductively coupled Mass Spectrometer. Field

duplicate samples, blanks and independent controlled reference material (standards) are added to every

NR-20-09 Continued April 20, 2020

batch. Drill intersections in this news release are calculated using a 0. 3 g/t gold trigger, a minimum 0. 7

g/t gold composite, and a maximum of 1.5 metres consecutive waste.

Qualified Person

The technical content of this release has been approved for disclosure by Stuart A. Mills, BSc, MSc, CGeol,

a Qualified Person as defined by NI 43-101 and the Company’s Vice President Exploration. Mr. Mills is not

independent of the Company.

Figure 3: Map of the Sedefche Gold Project, showing Phase 1 drill traces. Drill hole locations are displayed on a

geological map including positions of historic drill collars (section locations included for Figures 1 & 2).

NR-20-09 Continued April 20, 2020

Table 1: Significant Drill Results at Sedefche Gold Project

The drill intersections disclosed here have not yet been included in a resource model and true thickness of

mineralization has not yet been determined. Drill holes are designed to intersect mineralization perpendicular or

close to perpendicular. Drill intersections are calculated using a top-cut of 20 g/t gold, a 0.3 g/t gold trigger, a

minimum 0.7 g/t gold composite, and a maximum of 1.5 metres consecutive waste.

SDD-020

SDD-021 2.9 24.9 22 1.85 47.74

including 12.8 19.8 7.0 3.17 86.53

SDD-022 24.7 32.8 8.1 1.51 83.59

SDD-022 34.9 40.8 5.9 1.20 30.92

SDD-023 1.7 12.2 10.5 0.74 54.54

SDD-024 18.6 24.6 6 1.18 4.95

SDD-025 1.3 10.6 9.3 0.90 34.90

SDD-026

SDD-027 1.5 4.9 3.4 1.06 49.54

SDD-027 13.6 22.7 9.1 1.73 67.23

SDD-028

SDD-029 4.6 13.8 9.2 0.83 24.89

SDD-030

SDD-031 47.5 56 8.5 1.98 45.47

SDD-031 63 72.2 9.2 2.21 46.95

SDD-032 12.2 25.6 13.4 1.18 36.75

including 16.2 22 5.8 2.04 59.17

SDD-032 30.4 41.5 11.1 1.69 33.63

SDD-033 46.8 52.4 5.6 1.31 24.66

SDD-033 56.9 66.1 9.2 1.50 44.55

SDD-034

SDD-035 52.2 61.3 9.1 1.85 39.71

SDD-036 15.5 24 8.5 3.00 22.29

SDD-037

SDD-038 7.2 10.2 3 0.79 37.07

SDD-038 12.2 16.2 4 0.73 40.50

SDD-039 3.9 7.2 3.3 0.79 19.67

SDD-039 13.3 20.6 7.3 2.68 18.92

SDD-040 5.7 12 6.3 0.70 62.89

SDD-041

SDD-042

SDD-043

SDD-044 2.6 13.6 11 5.79 5.60 79.86

SDD-045 4 6.6 2.6 1.91 15.02

SDD-046 20.1 44.4 24.3 5.55 3.72 51.76

including 23.3 31.0 7.7 15.74 9.97 89.08

SDD-047 19.5 27 7.5 0.84 45.26

SDD-048

SDD-049

SDD-050

SDD-051 4.3 9.3 5 0.84 26.70

SDD-052

SDD-053

SDD-054 52.4 73.4 21 1.46 45.23

Drill hole

ID From (m) To (m) Interval

(m)

Gold (g/t) Un-

cut

Silver

(g/t)

Gold (g/t)

20g/t Top-cut

No Significant Intercept

Results Pending

No Significant Intercept

Results Pending

NR-20-09 Continued April 20, 2020

About Velocity Minerals Ltd.

Velocity is a gold exploration and development company focused on southeastern Bulgaria. Velocity’s

strategy is to develop a low cost centralized “Hub and Spoke” operation whereby multiple projects within

this emerging gold district produce gold concentra tes for trucking to a central processing plant for

production of doré. The Company envisions staged open pit mining of satellite deposits and processing

in a currently operating carbon -in-leach ( CIL) plant. Velocity has a 70% joint venture interest in th e

Tintyava prospecting licence, which includes the Rozino gold project , and has entered into option

agreements to earn a 70% interest in the Obichnik, Makedontsi and Sedefche gold projects, with Gorubso,

an established and respected mining company in Bulga ria. Velocity’s management and board includes

mining industry professionals with 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 track record in managing publicly

listed companies.

About Bulgaria

Bulgaria is a member of NATO (2004) and a member of the European Union (2007). The local currency

(BGN) has been tied to the Euro since 1999 (1.956 BGN/EUR). The country is served by modern European

infrastructure including an extensive network of paved roads. Bulgaria boasts an exceptionally low

corporate tax rate of only 10%. The country’s education system is excellent with good availability of

experienced mining professionals in a favourable cost environment. Foreign mining companies are

successfully operating in Bulgaria. The country’s mining law was established in 1999 and updated in

2011. Mining royalties are low and compare favourably with more established mining countries.

On Behalf of the Board of Directors

“Keith Henderson”

President & CEO

For further information, please contact:

Keith Henderson

Phone: +1-604-484-1233

E-mail: [email protected]

Web: www.velocityminerals.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX

Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:

This news release includes certain “forward -looking statements” under applicable Canadian securities legislation.

Forward-looking statements include, but are not limited to, statements with respect to future exploration, testing

and Initial Drilling and, if applicable, the Additional Drilling carried out at the Project, the exercise of the Option, the

entry into of the Joint Venture and any payments in connection with same and the future business and operations

of Velocity. Often, but not always, forward looking statements can be identified by words such as “pro forma”,

“plans”, “expects”, “may”, “should”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”,

“believes”, “potential” or variations of s uch words including negative variations thereof, and phrases that refer to

NR-20-09 Continued April 20, 2020

certain actions, events or results that may, could, would, might or will occur or be taken or achieved. In making the

forward-looking statements in this news release, the Company h as applied several material assumptions, including

without limitation, that market fundamentals will result in sustained gold demand and prices, the receipt of any

necessary permits, licenses and regulatory approvals in connection with the future developme nt of the Company’s

Bulgarian projects, the availability of financing on suitable terms for the development, construction and continued

operation of the Company’s projects, and the Company’s ability to comply with environmental, health and safety

laws. Forward looking information involves known and unknown risks, uncertainties and other factors which may

cause the actual results, performance or achievements of the Company to differ materially from any future results,

performance or achievements expressed or implied by the forward-looking information. Such risks and other factors

include, among others, operating and technical difficulties in connection with mineral exploration and development

and mine development activities for Sedefche and the Company’s pr ojects generally, including the geological

mapping, prospecting and sampling programs for the projects, the fact that the Company’s interest in Sedefche is

only an option and there is no guarantee that such interest, if earned, will be certain, actual results of exploration

activities, including the Initial Drilling and, if applicable, the Additional Drilling, estimation or realization of mineral

reserves and mineral resources, the timing and amount of estimated future production, costs of production, capit al

expenditures, the costs and timing of the development of new deposits, the ability of the Company to obtain access

to the CIL Plant and to have ore from the Project (and the Company’s other projects) processed at the CIL Plant on

profitable terms, the a vailability of a sufficient supply of water and other materials, requirements for additional

capital to fund the Company's business plan, future prices of precious metals, changes in general economic

conditions, changes in the financial markets and in the demand and market price for commodities, possible

variations in ore grade or recovery rates, possible failures of plants, equipment or processes to operate as

anticipated, accidents, labour disputes and other risks of the mining industry, delays in obtaining governmental and

regulatory approvals (including of the TSXV), permits or financing or in the completion of development or

construction activities, changes in laws, regulations and policies affecting mining operations, hedging practices,

currency fluctuations, title disputes or claims limitations on insurance coverage and the timing and possible outcome

of pending litigation, environmental issues and liabilities, risks related to joint venture operations, and risks related

to the integration of acquisiti ons, as well as those factors discussed under the heading. "Risk Factors" in the

Company's annual management's discussion and analysis and other filings of the Company with the Canadian

Securities Authorities, copies of which can be found under the Company's profile on the SEDAR website at

www.sedar.com.

Readers are cautioned not to place undue reliance on forward looking information. The Company undertakes no

obligation to update any of the forward -looking information in this news release or incorporated by reference

herein, except as otherwise required by law.

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