Velocity Minerals Ltd. (TSX-V: VLC) has closed its previously announced non-brokered private placement by the issuance of 9,200,000 units of the Company priced at $0.15 per Unit for total gross proceeds of $1.38 million. Each Unit consists of one common share in the capital of the Company and one-half of one common share purchase warrant, with each Warrant entitling the holder thereof to purchase one Share at a price of $0.25 per Share for a period of 18 months.

The proceeds of the Financing are intended to fund ongoing work at the Company’s gold and copper exploration projects and for general working capital.

In connection with the Financing, the Company paid finder’s fees consisting of $70,314.28 in cash and issued 468,761 non-transferable finder’s warrants (each, a “Finder’s Warrant”) to Leede Jones Gable Inc. Each Finder’s Warrant entitles the holder thereof to purchase one Share at a price of $0.15 per Share for a period of 12 months.

All securities issued in connection with the Financing are subject to a hold period ending on September 20, 2023. The Financing is subject to final approval of the TSX Venture Exchange.

An insider of the Company subscribed for 1,385,960 Units. Such participation is considered to be a “related party transaction” as defined under Multilateral Instrument 61-101. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the Financing by the insider does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101.

This news release does not constitute an offer of sale of any of the foregoing securities in the United States. None of the foregoing securities have been and will not be registered under the U.S. 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 Act) or persons in the United States 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.

About Velocity Minerals Ltd.

Velocity is a precious metals and copper explorer focused in Eastern Europe. In Bulgaria, Velocity has a 70% interest in the Tintyava property, which includes the Prefeasibility-stage Rozino deposit. Velocity also has a 70% interest in the Momchil property (which includes the Obichnik project), a 70% interest in the Nadezhda property (which includes the Makedontsi project), a 70% interest in the Dangovo property (which is contiguous with the Makedontsi project), and a 100% interest in the Iglika copper-gold exploration property. The Company recently entered into a binding Letter Agreement to acquire a 75% interest in the Zlatusha copper-gold exploration property.