VLC.V · 2020-05-26 12:00:00

Velocity Discovers New Zone of High‐Grade Gold at the Rozino South Target, Grading up to 5.23 g/t Gold

Drill Results

Lms

NR‐20‐11 May 26, 2020

Velocity Discovers New Zone of High‐Grade Gold at the

Rozino South Target, Grading up to 5.23 g/t Gold

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

announces that it has received results from its ongoing discovery exploration program at the Rozino

Project (“Rozino”), Bulgaria.

Highlights:

 Expands currently defined mineralization at Rozino gold deposit – results pending for 3 drill holes

and a further 5 drill holes planned.

 Discovers new zone of mineralization at Rozino South, grading u p to 5.23 g/t gold, with multi‐

element geochemical signature as seen at Rozino deposit.

 Identifies several new gold targets at Kazak.

Velocity is actively exploring, with a program of drill‐focused resource expansion and development of new

target areas to the south of the currently defined, open‐pittable Rozino gold deposit. Drilling at the Rozino

South target (“Rozino South”), located 800m south of Rozino, has resulted in the discovery o f a n e w

mineralized zone grading up to 5.2 3 g/t gold. Surface explorat ion at the Kazak target (“ Kazak”), located

approximately 2km south of Rozino, is similarly producing positive exploration results. Velocity is actively

exploring the exploration licence surrounding Rozino with the a im of generating targets for ongoing drill

testing.

Rozino South Drilling

The Rozino South target is situated 800m south of the deposit and initial exploration drilling (Figure 1 and

2) has resulted in the discovery of high‐grade gold mineralizati on: Drill hole RDD‐177 returned 6.15m

grading 1.18 g/t gold, including 1.15m grading 5.23 g/t gold from 203m.

The mineralization occurs in the same permissive sedimentary hos t r o c k s a s t h e R o z i n o d e p o s i t a n d

displays a similar multi‐element geochemical fingerprint. Mineralization is open in all directions. Velocity

is immediately commencing Phase II drilling on 50m step‐outs to potentially expand this emerging new

zone. To the south, the Rozino h o s t r o c k s a r e c o v e r e d b y r e c e nt sediments and represent blind drill

targets.

Rozino Deposit Expansion Drilling

The Company has identified several target areas immediately sou th of the current Rozino gold deposit

(Figure 3). Drill results from the first 50‐metre step‐out (RDD‐176) re turned two significant intersections

of 4.0m grading 1.12 g/t gold, and 18.0m grading 0.56 g/t gold, including 4.0m grading 1.81 g/t gold. Three

additional follow‐up drill holes have been completed to date and results are pending.

NR‐20‐11 Continued May 26, 2020

Kazak Exploration Target

Soil sample results from the Kazak target area, located 2km sou th of the Rozino deposit, identified two

high priority gold in soil anomalies with silver support, coinc ident with areas where permissive Rozino

host rock has been mapped (Figure 1). Follow‐up mapping and sampling has subsequently returned rock

chip sample grades of 1.23 g/t and 0.33 g/t gold, indicating th at the host rock is mineralized in this new

target area. A program of detailed mapping and trenching is in progress with initial results expected in

the coming weeks. The Company hopes to generate drill targets in Q3.

Figure 1: Exploration Targets at the Rozino Gold Project. Gold and silver in‐soil anomalies at for Rozino,

Rozino South and Kazak, plus anomalous rock chip samples for Kazak area.

Table 1: Significant Drill Results at Rozino 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

RDD‐172 10.20 12.20 2.00 0.58

RDD‐173

RDD‐174

RDD‐175

RDD‐176 21.70 25.70 4.00 1.12

RDD‐176 42.70 60.70 18.00 0.56

including 52.70 56.70 4.00 1.81

RDD‐177 203.00 209.15 6.15 1.18

including 208.00 209.15 1.15 5.23

No significant intercepts

Drill hole ID From (m) To (m) Interval (m) Gold (g/t)

NR‐20‐11 Continued May 26, 2020

close to perpendicular. Drill intersections are calculated using a 0.2 g/t gold trigger, a minimum 0.5 g/t gold

composite, and a maximum of 3 metres consecutive waste.

Figure 2: Geological map of Rozino South target, with gold in soil results and drill hole locations plus planned

follow up drilling.

NR‐20‐11 Continued May 26, 2020

Figure 3: Resource expansion step‐out drilling at Rozino.

Quality Assurance / Quality Control

The work program at Rozino 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 labora t o r y . A s a m p l e s p l i t o f t h e m illed material is shipped to ALS’ Irish

NR‐20‐11 Continued May 26, 2020

laboratory for multi‐element analysis using an inductively coup led Mass Spectrometer. Field duplicate

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

Drill intersections in this news release are calculated using a 0.2 g/t gold trigger, a minimum 0.5 g/t gold

composite, and a maximum of 3 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.

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 concentrates for trucki n g t o a c e n t r a l p r o c e s s i n g p l a n t f o r

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

in a currently operating carbon‐in‐leach (CIL) plant. Velocity h a s a 7 0 % j o i n t v e n t u r e i n t e r e s t i n t h e

Tintyava prospecting licence, whic h includes the Rozino gold pr o j e c t , a n d h a s e n t e r e d i n t o o p t i o n

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

an established and respected mining company in Bulgaria. 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 w ell as a track record in managing publicly

listed companies.

About Bulgaria

Bulgaria is a member of NATO (2004) and a member of the Europea n 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

NR‐20‐11 Continued May 26, 2020

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 and

testing carried out on the Tintyava property; use of funds; and the future business and operations of Velocity. Often,

but not always, forward looking statements can be identified by w o r d s s u c h a s “ p r o f o r m a ” , “ p l a n s ” , “ e x p e c t s ” ,

“may”, “should”, “budget”, “scheduled”, “estimates”, “forecasts ”, “intends”, “anticipates”, “believes”, “potential”

or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or

results that may, could, would, might or will occur or be taken or achieved. Forward looking information involves

k n o w n a n d u n k n o w n r i s k s , u n c e r t a i n t i e s a n d o t h e r f a c t o r s w h i c h 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 a nd development and mine development activities for

the Tintyava property, including the geological mapping, prospe cting and sampling programs for the projects, the

fact that the Company’s interests in the Tintyava property is only an option and there is no guarantee that the

interest, if earned, will be certain, actual results of explorat i o n a c t i v i t i e s , i n c l u d i n g t h e p r o g r a m , e s t i m a t i o n o r

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

of production, capital expenditu res, the costs and timing of th e development of new deposits, the availability of a

sufficient supply of water and other materials, requirements fo r 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 TSX Venture Exchange),

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 pendi ng litigation, environmental issues and liabilities,

risks related to joint venture operations, and risks related to the integration of acquisitions, as well as those factors

discussed under the heading. "R isk Factors" in the Company's a nnual 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 lo oking 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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