Mr. Keith Henderson reports

VELOCITY PROVIDES UPDATE ON SALE OF BULGARIAN ASSETS

Velocity Minerals Ltd. has provided an update on its previously announced transaction with Turker Global Madencilik Sanayi ve Ticaret A.S. (Turker Mining), pursuant to a share purchase and option agreement dated Feb. 24, 2025, for the sale of the company's interest in the Rozino gold project, together with certain other licences, licence applications, and associated tenures and rights, and the grant to Turker Mining of an option to acquire the company's interests in certain other Bulgarian mineral property assets. The sale of the Tintyava exploration assets and the grant of the non-Tintyava exploration assets purchase option are collectively referred to herein as the transaction.

The company advises that it has received written notice from Turker Mining of its election to proceed to closing of the acquisition of the Tintyava exploration assets in accordance with the terms of the definitive agreement. Under the terms of the definitive agreement, closing of the sale and purchase of the Tintyava exploration assets is anticipated to occur on or about Dec. 14, 2026, subject to the satisfaction or waiver of the applicable conditions precedent to closing and the financing requirements of the definitive agreement.

The total purchase price for the Tintyava exploration assets is $55.0-million (U.S.), of which $16.5-million (U.S.) has previously been received by the company. The remaining $38.5-million (U.S.) is to be paid to the escrow agent prior to closing and released to the company at closing in accordance with the definitive agreement. Closing is to occur five business days after Turker Mining provides written notice to the company confirming that the completion payment has been paid to and received by the escrow agent, subject to the other terms and conditions of the definitive agreement. Of the $55.0-million (U.S.) purchase price, $38.5-million (U.S.) (70 per cent) will be received by Velocity at closing.

Separately, Turker Mining may exercise the non-Tintyava exploration assets purchase option for an additional $4.0-million (U.S.) in accordance with the terms of the definitive agreement. Turker Mining's Oct. 15, 2026, notice does not constitute an exercise of the non-Tintyava exploration assets purchase option, which remains exercisable in accordance with the terms of the definitive agreement. If exercised, the aggregate purchase price for the Tintyava exploration assets and the non-Tintyava exploration assets would be $59.0-million (U.S.).

Further particulars concerning the transaction and its terms are contained in the company's previous news releases dated Oct. 1, 2024, Nov. 29, 2024, and Dec. 17, 2024, Feb. 28, 2025, April 16, 2025, June 9, 2025, and Nov. 4, 2025, available under the company's profile on SEDAR+.

We seek Safe Harbor.