APRIL 2018 Balkan Gold Project
Forward Looking & Cautionary Statements Forward Looking and Cautionary Statements This presentation contains forward-looking statements and forward-looking information (collectively, forward-looking statements ) within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995 concerning the business, operations and financial performance and condition of Velocity Minerals Ltd. (the "Company"). All statements, other than statements of historical fact, included herein including, without limitation, statements regarding future capital expenditures and financings (including the amount and nature thereof), anticipated content, commencement, and cost of exploration programs in respect of the Company's projects and mineral properties, anticipated exploration program results from exploration activities, the discovery and delineation of mineral deposits, resources and/or reserves on the Company's projects and mineral properties, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not always, forward looking information can be identified by words such as pro forma, plans, expects, 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 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, the ability of the Company to obtain sufficient financing to fund its business activities and plans, operating and technical difficulties in connection with mineral exploration and development and mine development activities for Company's projects generally, including the geological mapping, prospecting and sampling programs for the Company's projects, actual results of exploration activities, including the estimation or realization of mineral 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, future prices of precious metals, tantalum and lithium, 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 pending 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 Risk Factors in the Company s most recent 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 statements. The Company undertakes no obligation to update any of the forward looking information in this presentation or incorporated by reference herein, except as otherwise required by law. National Instrument 43-101 Stuart Mills, the Vice President Exploration for the Company, and a Qualified Person as defined by National Instrument 43-101, has approved the scientific and technical information concerning the Company discussed in this presentation. Mr. Mills is not independent of the Company as he is an officer, a shareholder and holds incentive stock options. Cautionary Note to United States Investors As a Canadian issuer, the Company is permitted to prepare its public disclosures and this presentation in accordance with Canadian securities laws, which differ in certain respects from U.S. securities laws. In particular, this presentation uses the terms mineral resource, measured mineral resource, indicated mineral resource and inferred mineral resource. While these terms are recognized and required by Canadian securities laws, they are not recognized by the United States Securities and Exchange Commission ( SEC ) and are not normally permitted to be disclosed in SEC filings by U.S. companies. U.S. investors are cautioned not to assume that any part of a mineral resource, measured mineral resource, indicated mineral resource or an inferred mineral resource will ever be converted into a reserve. In addition, reserves reported by the Company under Canadian standards may not qualify as reserves under SEC standards. Under SEC standards, mineralization may not be classified as a reserve unless the mineralization can be economically and legally extracted or produced at the time the reserve determination is made. Accordingly, information contained or referenced in this presentation containing descriptions of the Company s mineral deposits may not be compatible to similar information made public by U.S. companies subject to the reporting and disclosure requirements of U.S. federal securities laws, rules and regulations. Inferred mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Historical results orfeasibility models presented herein are not guarantees orexpectations of future performance. Currency All amounts in this presentation are expressed in Canadiandollars, unless otherwise stated. THIS PRESENTATION IS NOT INTENDED AS, AND DOES NOT CONSTITUTE, AN OFFER TO SELL SECURITIES OF THE COMPANY. The TSX Venture Exchange has not reviewed and do not accept responsibility for the accuracy or adequacy of this presentation, which has been prepared by the Company. 2
TSX.V: VLC Advancing to Gold Production Balkan Gold Project an Exploration and Mining Alliance with an established operating Bulgarian partner Focus Gold in Bulgaria Exclusive access to operating CIL processing plant Multiple high-quality gold assets (option agreements) Near surface deposits potential open pits Rozino Project Sedefche Project Makedontsi Project Operating Chala mine Four additional exploration properties Envision staged, open pit mining of satellite gold deposits and processing in central CIL plant Plan to move towards production upcoming catalysts 3
TRACK RECORD Management & Board Experience MANAGEMENT Keith Henderson M.Sc. Director, President, CEO; Vancouver Stuart Mills M.Sc. Vice President Exploration; Bulgaria Valentin Buhov M.Sc. Exploration Manager; Bulgaria Blaine Bailey CGA Chief Financial Officer; Vancouver BOARD OF DIRECTORS Keith Henderson M.Sc. Director, President, CEO Dr. Mark Cruise Director; Vancouver Daniel Marinov M.Sc. Director; Bulgarian National Gord Doerksen B.Sc. Director; Vancouver 4
BULGARIA Favourable Operating Environment INVESTMENT IN BULGARIA EU member (since 2007) 10% corporate tax rate Mining Law established 1999, updated 2011 Mining royalties (0.8 to 4.0%) compare favourably to established mining jurisdictions like Canada, Chile and Peru Experienced mining professionals Low cost operating environment 5
GORUBSO MINING Established Operating Partner PRIVATE BULGARIAN MINING COMPANY Existing CIL Plant Gorubso CIL processing plant operating since 2011 Chala gold mine operating since 2006 Technical Expertise Abundant experience with all aspects of permitting and operation in Bulgaria Relationships Strong working relationships with municipalities, national governments and regulatory departments Cyanide Processing First (and only) company in Bulgaria to secure a cyanide operating permit Gorubso CIL Processing Plant 6
BALKAN GOLD PROJECT 2018 Catalysts & Focus Chala Mine Operating Haskovo Rozino Project 70% Option - PEA Drilling started Q3 2017 7,700m drilling completed Maiden Resource Estimate announced Q1 2018 Additional 5,000m drilling planned Preliminary Economic Assessment Q3 2018 Makedontsi Project Kardzhali Central CIL Processing Plant Sedefche Project Krumovgrad Dundee Precious Metals (TSX: DPM) Krumovgrad Project Ivaylovgrad Rozino Project Sedefche Project 70% Option Feasibility Study Complete due diligence on historical resources 3,000m drilling complete Q4 2018 Makedontsi Project 70% Option - PEA Complete due diligence on historical resources 3,000m drilling complete Q4 2018 Operating Chala Mine 50% Option - $1M Expenditure Underground drilling Q2 2018 Q3 2018 decision point 7
ROZINO PROJECT Maiden Mineral Resource Estimate INFERRED MINERAL RESOURCE ESTIMATE (MAR 1, 2018) (1) Main Zone (1) N.I. 43-101 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. East Zone 90% of estimates from less than 110m from surface Less than 1% of estimates below 150m from surface Mineralized system remains open for expansion Additional drilling underway Plan view of Inferred Resource extents relative to angled drill hole dataset. 8
ROZINO PROJECT Velocity Drill Intercepts Rozino Option Approximately 9,000m drilled to date Q3 2018 PEA including updated Resource estimate earns 70% interest Initial Metallurgy Main Zone East Zone Initial Metallurgical Test Work - Fine Agitated Leach 9
ROZINO PROJECT Near Surface Drill Intercepts MAIN ZONE EAST ZONE Section 4: Selected drilling completed in 2017. Section 8: Selected drilling completed in 2017. Drill intersections on this cross section are calculated using a 0.2 g/t gold trigger, a minimum 0.5 g/t gold composite, and a maximum of 3 meters consecutive waste. The current exploration model has not had sufficient drill testing to be able to determine the true thickness of mineralization. 10
GORUBSO PROJECTS Option Projects & Due Diligence Sedefche Project Due Diligence: 3D view, viewing NNW of $1200 Au ultimate pit within current topographic surface 25m Project Tenure (1) N.I. 43-101 inferred mineral resources at Rozino (March 2018) 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. Cautionary Statement Regarding Historical Resources Distance to Processing Plant (km) Rozino Prospecting Licence 51 Gold Resource Estimates 17Mt @ 1.15g/t gold (629,000 oz) at 0.5g/t cut-off N.I. 43-101 Inferred Mineral Resource (1) Summary of Gorubso Option Properties Velocity Option Deliverable for 70% Interest Preliminary Economic Assessment Sedefche Mining Concession 28 101,000 oz Resource (2) Feasibility Study Enyovche Mining Concession 29 N/A Resource Estimate Makedontsi Prospecting Licence 6 290,000 oz Resource (2) Preliminary Economic Assessment Kitnitsa Prospecting Licence 13 N/A Preliminary Economic Assessment Obichnik Prospecting Licence 22 N/A Resource Estimate Kaleto Prospecting Licence 23 N/A Resource Estimate (2) Historical resources at Sedefche (2006) were calculated by Gorubso using the Bulgarian classification scheme, based on manual polygonal methods of resource estimation. Resources were submitted to and accepted by the Bulgarian government, Dragiev, H, 2006, Momchil Prospecting License, Report at the Zvezdel - Pcheloyad Ore Field, Geological Report with Resource And Reserve Recalculation of Au-Ag Ores at the Sedefche Deposit. Historical resources at Makedontsi (2013) were calculated by Gorubso using the Bulgarian classification scheme, based on manual polygonal methods of resource classification. Resources were submitted to and accepted by the Bulgarian government, Dragiev H, 2013 "Mlechino Prospecting License, Geological Report at the Nadezhda Prospect, with Resource and Reserve Recalculations of Au Ores at the Makedontsi, Dangovo and Kalina deposits. Sedefche Project Due Diligence: Oblique view of nested pit shells for $1200 Au base case In order to verify the potential existence ofadditional unmined mineralization atsedefche and Makedontsi, significant drilling will be required. The Company is not treating the historical resources referenced above as current mineral resources or mineral reserves. Historical resources 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 mineral resources and reserves. Historical resources are included in this presentation because they are considered relevant by the Company as they form additional support for the potential optioning of the Gorubso Properties by Velocity. 11
CHALA MINE Chala Mine Planned Drilling Historical resources reported as 1.5Mt @ 9.83g/t gold (450,000oz). Digitally capture and integrate all Chala mine data into a Micromine model 20,000m surface trench samples 55 historical surface drill holes Samples from 30,000m of underground development Face sample data from 650 stopes Definition of priority drill targets Cautionary Statement Historical resources at the Chala Mine are reported as 1.5Mt @ 9.83 g/t gold (450,000oz). The historical resources were published by Kestebekov C, 1998, in Chala gold-polymetallic deposit, Spahievo ore field. Results of 1983-1997 geological exploration with estimated resources of gold and gold-polymetallic ores as of 01/01/1998. Total historical production at the Chala Mine is estimated to be approximately 120,000 oz. The historical resource estimate was produced using the Bulgarian classification scheme, based on manual polygonal methods of resource classification. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. In order to verify the potential existence of additional unmined mineralization atthe Chala Mine, significant drilling will be required. The Company is not treating the historical resources as current mineral resources or mineral reserves. Historical resources are not consistent with the standards of disclosure defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ( NI 43-101 ) and may not necessarily be consistent with CIM (Canadian Institute of Mining, Metallurgy and Petroleum) best practice with respect to reporting mineral resources and reserves. Historical resources are included because they are considered relevant by the Company as they provide additional support forthe potential exploration drilling atthe Chala Mine by Velocity. 3D View of the Chala Gold Mine Exploration Model, viewing northeast. Development in blue, with stope sampling shown in red. Vein wireframes are represented in transparent colours. 12
BALKAN GOLD PROJECT Multiple High-Quality Gold Assets Kaleto Chala Gold Mine Operating Mine Option for 50% Equity $1 million expenditure Decision Q4 2018 10km EXPOSURE TO HIGH QUALITY GOLD ASSETS Operating CIL Plant exclusive access Operating Mine - 50% option Enyovche Kitnitsa Makedontsi Exploration Concession Option for 70% Sedefche Mining Concession Option for 70% Processing Plant Operating CIL Plant Cost Plus Obichnik Rozino Ongoing Drilling Option for 70% PEA Q3 2018 Exploration Projects - 70% option 13
VELOCITY MINERALS Capital Structure Issued & Outstanding Warrants 4,428,500 @ $0.40, expire Jul 21/18 1,901,588 @ $0.50, expire Sep 26/18 211,400 @ $0.34, expire Sep 26/18 377,790 @ $0.25, expire Jul 21/19 Options Fully Diluted 61,188,413 6,919,278 4,200,000 72,307,691 Alliance With Local Bulgarian Miner Assets Multiple Advanced Gold Experienced Management and Board Discovery Track Record Share Price (Mar 21/18) Market Capitalization $0.22 $14 M Delivering on Project Milestones Results Excellent to Date Management & Board 44% Drilling Ongoing & Planned 14
TSX.V: VLC Velocity Minerals Ltd. Alliance With Local Bulgarian Miner Focus Gold in Bulgaria Assets Multiple Advanced Gold Experienced Management and Board Discovery Track Record Delivering on Project Milestones Results Excellent to Date Drilling Ongoing & Planned 15
Velocity Minerals Ltd. 2300 1177 West Hastings Street Vancouver BC, V6E 2K3 Phone: 604 484 1233 E-mail: info@velocityminerals.com 16