Velocity to Acquire Certain Mineral Property Interests in Bulgaria - Seite 2

To view Figure 1: Location of Ekuzya and Rozino Projects, please visit the following link: http://media3.marketwire.com/docs/1084911-F1.pdf

Velocity cautions that the historical resource at the neighbouring Chala Gold Mine is derived from private mining company records that are historical in nature and that the historical resource is located outside of Ekuzya. The historical Soviet resources are not compliant with National Instrument 43-101 and are not being treated as a mineral reserve or mineral resource by Velocity. Readers are cautioned that the Chala Gold Mine is an adjacent property and that, except as set out below, Velocity has no interest in or right to acquire any interest in the Chala Gold Mine, and that mineral deposits on adjacent or similar properties, and any production therefrom or economics with respect thereto, are not in any way indicative of mineral deposits on Velocity's properties or the potential production from, or cost or economics of, any future mining of any of Velocity's mineral properties.

The belief of early explorers that Ekuzya was a base-metal only deposit was never systematically tested but minor sampling undertaken in the last 20 years has proven the existence of gold in the system. However, the limited information on gold was never systematically followed-up because Gorubso was fully occupied mining the adjacent Chala Gold Mine. Gold analysis available from what is now understood to be a gold-base metal system has been very encouraging. A total of three gold-bearing targets have been defined, including the formerly base-metal producing Target Zone 5a, as well as Target Zone 5 and the Ekuzyata Target. Ekuzya represents the southern half of the Chala Intermediate Sulphidation Epithermal gold deposit. Base metal and precious metal mineralisation is present as vein swarms related to an intrusion-centred hydrothermal system that is zoned both vertically and horizontally away from a porphyry Molybdenum-Gold-Copper deposit at Chuka, located 1.5km to the west.

As part of the Ekuzya option agreement with Gorubso, TargetCo has negotiated a 12-month exclusivity period, during which time TargetCo shall have an exclusive right to negotiate an interest in the Chala Gold Mine. Since purchasing the Chala mining concession Gorubso has carried out no underground or surface drilling at the deposit and all exploration and mine planning has been undertaken via underground development and stope sampling. In order to evaluate the future potential of the Chala Gold Mine, TargetCo plans to compile all historical exploration and production data related to the property.