VLC.V · 2018-03-05 12:00:00

Velocity Reports Maiden Resource at Rozino Gold Project, Southeast Bulgaria Inferred Resource at 0.5g/t gold cut‐off grade

Drill Results Resource Estimates

NR‐18‐06 March 5, 2018

Velocity Reports Maiden Resource

at Rozino Gold Project, Southeast Bulgaria

Inferred Resource at 0.5g/t gold cut‐off grade

17Mt @ 1.15g/t gold for 629,000 ounces

Mineralization remains open for expansion

Vancouver, British Columbia – Velocity Minerals Ltd. (TSXV: VLC) (“ Velocity” o r t h e “Company”)

announces that it has received Inferred Resource estimates for the Rozino gold deposit (“ Rozino” or the

“Project”), southeast Bulgaria. The estimates based on 2m down‐hole composited gold assay grades are

reported for a range of cut off grades (Table 1). Highlights include:

 17Mt @ 1.15g/t gold for 629,000 ounces at 0.5g/t cut‐off grade; and

 8.2Mt @ 1.68g/t gold for 443,000 ounces at 0.8g/t cut‐off grade;

 Estimated resources extend to the base of mineralized drilling at around 190m depth, with

around 90% of estimates from depths of less than 110m and less than 1% from below 150m; and

 The mineralized system remains open for expansion and drill testing is ongoing.

The Company plans to publish a Preliminary Economic Assessment (“PEA”) in the second‐half of 2018,

which will include an updated Mineral Resource estimate. The c urrent resource estimate is based on

approximately 7,500 m of diamond drilling and the Company continues to drill test the system and expects

to complete approximately 5,000m of further drilling before initiating a PEA.

Table 1: Rozino Inferred Mineral Resource Estimate, effective date March 1, 2018(1)

Cut Off Grade Tonnes Gold Gold

gold g/t million g/t ,000 ounces

0.2 45 0.62 897

0.3 30 0.81 781

0.4 22 0.98 693

0.5 17 1.15 629

0.6 13 1.32 552

0.7 10 1.50 482

0.8 8.2 1.68 443

0.9 6.8 1.86 407

1.0 5.7 2.03 372

1.2 4.2 2.37 320

1.5 2.9 2.84 265

(1) Mineral resources were estimated by Jonathon Abbott, a member of the Australian Institute of

Geoscientists and employee of MPR Geological Consultants Pty Ltd of Perth, Australia. Mr. Abbott is a

Qualified Person, as defined by National Instrument 43‐101.

NR18‐06 Continued March 5, 2018

“We are a little over half‐way through our planned drilling at Rozino, which will bring us to a planned PEA

later in 2018. On completion of the PEA, the Company will earn a 70% stake in the Project. The results of

this resource are excellent and keep us on track to deliver our PEA within one year of the drill start,” stated

Stuart Mills, Velocity’s Vice‐President Exploration. “Having started drilling in late July 2017, we have

moved quickly to get to this int erim resource estimate in just over 7 months. Our stated objective has

always been to define potentially open‐pittable resources and d efining 90% of resources within 110m of

surface is consistent with that goal.”

Figure 1. Plan view of Inferred Resource extents relative to angled drill hole dataset.

Resource Estimate Methodology

Recoverable resources were estimated for Rozino using Multiple Indicator Kriging (MIK) with block

support adjustment, a method that has been demonstrated to prov ide reliable estimates of recoverable

open pit resources in gold deposits of diverse geological styles.

The Rozino sampling database includes 186 diamond holes for 29,924m of drilling, of which 86 drill holes

(14,289m) completed by Asenovgrad Geoengineering EAD are not in cluded in the resource estimation

dataset due to insufficient quality control data. Drilling use d in resource estimation total 78 (12,009m)

drill holes and comprise 44 drill holes (7,475m) completed by Velocity, 28 drill holes (3,794m) completed

by Hereward Ventures Ltd . (“Hereward”), and 6 drill holes (740m) completed by Asia Gold Inc. (“Asia

Gold”). The remaining angled drill holes from the database are located outside the mineralized envelope

and did not inform the resource estimation.

Samples from Velocity’s diamond drilling provide 63% of the est imation dataset, with angled diamond

holes drilled by Hereward and Asia Gold contributing 32% and 5% , respectively.

NR18‐06 Continued March 5, 2018

Estimated resources are constrained within a mineralized envelope interpreted from 2m down‐hole

composited gold grades and geological logging from diamond drilling and surface trenches. The envelope

captures intervals of greater than 0.1 g/t, with the lower boundary reflecting the contact between variably

mineralized sedimentary rocks a nd un‐mineralized basement. It covers an area of approximately 780m

by 600m. Estimated resources ex tend to the base of mineralized drilling at around 190m depth, with

around 90% of estimates from depths of less than 110m and less than 1% from below 150m (Figures 1 &

2).

B u l k d e n s i t i e s o f 2 . 2 , 2 . 4 a n d 2 . 6 t o n n e s p e r c u b i c m e t r e w e r e assigned to completely weathered,

transitional and fresh material, respectively, using surfaces r epresenting the base of complete oxidation

(“BOCO”) and top of fresh rock (“TOFR”) interpreted by Velocity (Figure 2). Within the resource area the

depth to BOCO averages around 7m, with fresh rock occurring at an average depth of around 18m.

Figure 2. Representative section of resource estimate scaled and coloured by

proportion above 0.5g/t gold cut off grade

Future Work

Ongoing diamond drilling and initial metallurgical test work to support an independent PEA study

scheduled for release in late 2018.

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 were prepared and analyzed

by fire assay using a 30‐gram charge in compliance with industry standards. Field duplicate samples,

blanks and independent controlled reference material (standards ) are included in every batch.

Hereward and Asia Gold’s diamond core from angled drilling was sampled and analyzed by industry

standard methods. The core was generally halved for analysis w ith a diamond saw over generally 1m

NR18‐06 Continued March 5, 2018

i n t e r v a l s , a n d s a m p l e s w e r e a n a l y z e d f o r g o l d b y f i r e a s s a y b y commercial laboratories. Information

available to demonstrate the reliability of these results inclu des duplicates and blanks for both data sets

and certified reference standards for Asia Gold’s drill results.

General Notes with Respect to Technical Information

The mineral resource disclosed herein has been estimated in acc ordance with the Canadian Institute of

Mining, Metallurgy and Petroleum “CIM Definition Standards for Mineral Resources and Mineral

Reserves” (CIM, 2014).

Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Any known legal, political, environmental, or other risks that could materially affect the potential

development of the Mineral Reserves are detailed below in the s ection entitled “Cautionary Statement

Regarding Forward‐Looking Information”.

Qualified Person

The technical content of this news release has been approved for disclosure by Jonathon Abbott, a

member of the Australian Institute of Geoscientists and employee of MPR Geological Consultants Pty Ltd.

Mr. Abbott is a Qualified Person, as defined by National Instru ment 43‐101. Mr. Abbo tt is independent

of the Company.

About Velocity Minerals Ltd.

Velocity is a gold exploration and development company focused on eastern Europe. The Company’s

management and board includes mining industry professionals wit h over 100 years of 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.

The Company’s portfolio of advanced gold exploration assets is currently in Bulgaria, which is a member

of the European Union (2007) and an attractive destination for mining investment. 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 like Canada, Peru and Chile. Bulgaria also boasts a corporate tax rate

of only 10% and the country’s education system has yielded a go od availability of experienced mining

professionals in a favourable cost environment. Foreign mining companies are successfully operating in

Bulgaria.

Velocity Minerals has entered into an Exploration and Mining Alliance (the "Alliance") with Gorubso

Kardzhali A.D. ("Gorubso"), an established and respected mining company in Bulgaria. Gorubso currently

operates the underground Chala Gold Mine (2006) and the Kardzhali Carbon In Leach (CIL) processing

plant (2011), which produces gold dore. The Alliance outlines t h e s c o p e o f a b r o a d p a r t n e r s h i p t h a t

includes an option to earn a 50% beneficial interest in the Chala Mine, access to Gorubso’s gold processing

plant in Kardzhali, and the ability for Velocity to option any or all of Gorubso’s exploration properties.

On Behalf of the Board of Directors

"Keith Henderson"

President & CEO

NR18‐06 Continued March 5, 2018

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.

This news release does not constitute an offer of sale of any o f the above‐mentioned securities in the

United States. None of the foregoing securities have been and will not be registered under the United

States Securities Act of 1933, as amended (the "1933 Act") or any applicable state securities laws and may

not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined

in Regulation S under the 1933 Ac t) or persons in the United St ates absent registration or an applicable

exemption from such registration requirements. This news release does not constitute an offer to sell or

the solicitation of an offer to buy nor will there be any sale of the foregoing securities in any jurisdiction

in which such offer, solicitation or sale would be unlawful.

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: statements related to proposed exploration and development

programs at Rozino, grade and tonnage of material and resource estimates and the Alliance. Often, but not always,

forward looking statements can b e identified by words such as " pro forma", "plans", "expe cts", "may", "should",

"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "potential" or variations of such

words including negative variati ons thereof, and phrases that r efer to 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

r e l e a s e , t h e C o m p a n y h a s a p p l i e d several material assumptions, including without limit ation, that market

fundamentals will result in sustained gold demand and prices, t he receipt of any necessary permits, licenses and

regulatory approvals in connection with the future development of Rozino in a timely manner, the availability of

financing on suitable terms for the development, construction a nd continued operation of Rozino, and the

Company’s ability to comply with environmental, health and safety laws.

Forward looking information involves known and unknown risks, u ncertainties 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 Rozino, including the geolo gical mapping, prospecting and sampling programs

for the project, the fact that the Company’s interests in Rozino (Tintyava property) is only an option and there is no

guarantee that the interest, if earned, will be certain, actual results of exploration activities, variations to the

geological and metallurgical assumptions (including with respect t o t h e s i z e , g r a d e a n d r e c o v e r a b i l i t y o f m i n e r a l

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

expenditures, the costs and timing of the development of new deposits, the availability 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, change s 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 a ctivities, 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 integrati on of acquisitions, as well as those factors discussed

under the heading "Risk Factors" in the Company's annual manage ment's discussion and anal ysis and other filings

of the Company with the Canadian Securities Authorities, copies of which can be found under the Company's profile

NR18‐06 Continued March 5, 2018

on the SEDAR website at www.sedar.com. Information concerning mineral reserve and mineral resource estimates

also may be considered forward‐l ooking statements, as such info rmation constitutes a prediction of what

mineralization might be found to be present if and when a proje ct is actually developed a nd / or is in production.

The actual results or performance by the Company could differ m aterially from those expressed in, or implied by,

any forward‐looking statements relating to those matters.

Readers are cautioned not to place undue reliance on forward‐lo oking statements. The Company undertakes no

obligation to update any of the forward‐looking statements in this news release or incorporated by reference herein,

except as otherwise required by law.

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