ROZINO GOLD PROJECT

LOCATION

Trucking distance to gold processing plant

TECHNICAL REPORT

After-tax IRR of 27.4% (PFS, Aug 2020)

OPERATIONS

Conventional open pit mining and processing proposed

EXISTING PROCESSING PLANT

Reduced capital cost and permitting timelines

INFRASTRUCTURE

Compact mine footprint

The Rozino project is located within the Tintyava property owned by Tintyava Exploration AD, in which Velocity has 70% ownership with Bulgarian partner Gorubso Kardzhali A.D. holding 30%.

The Rozino project lies within the municipality of Ivaylovgrad in southeast Bulgaria, approximately 350km by road east-southeast of the capital, Sofia, and 85 km by road from Gorubso's gold processing plant.

Rozino Prefeasibility – A Core Economic Gold Asset

Velocity published an independent Prefeasibility Study (PFS) on the Rozino gold project located in southeast Bulgaria in August 2020. The PFS establishes the Rozino deposit as supporting an economic open pit mine operation with gold recovery by a combination of on-site concentration in a flotation plant and further off-site processing in an existing, operating processing plant.

The Rozino project includes on-site crushing, milling and simple flotation to produce a gold concentrate with a grade averaging 30 g/t. The concentrate will be trucked 85 km on existing roads to the currently operating processing plant located in Kardzhali where gold doré will be produced.

Prefeasibility Study¹ Highlights

AFTER-TAX FINANCIALS

After-tax NPV5% of US$123 million and after-tax IRR of 27.4% using a base case gold price of $1,500 per ounce.

LIFE OF MINE EARNINGS

US$293 million before interest, taxes, and depreciation.

CASH COST

All-in sustaining cost² of US$755 per ounce of gold and cash cost³ of US$699 per ounce of gold.

CAPITAL COSTS

Total estimated capital costs of US$94.8 million and pre-production capital costs of US$87.1 million (including an 11% contingency).

MINERAL RESOURCE

Indicated Mineral Resource at a 0.3 g/t gold cut-off grade of 20.5 Mt at 0.87 g/t gold, for contained gold of 573,000 ounces and an Inferred Mineral Resource at a 0.3 g/t cut-off of 0.38 Mt at 0.8 g/t gold for 10,000 ounces⁴.

INITIAL MINERAL RESERVE

Probable Mineral Reserve at a 0.5 g/t gold cut-off grade of 11.8 Mt at 1.22 g/t gold for 465,000 ounces.

MINING

Open pit with 0.5 g/t gold cut-off grade, low strip ratio of 2.2 and 1.22 g/t life of mine gold grade.

CONVENTIONAL PROCESS FLOW SHEET

Returns 79.3% gold recovery to doré at the operating processing plant.

PROCESSING

On-site flotation producing gold-bearing pyrite concentrate assaying from 15 to 40 g/t and transportation to the processing plant (located 85 km from the Project) for processing to produce doré.

LOW ENVIRONMENTAL RISK

Small project footprint with benign, non-acid generating and non-hazardous waste and tailings material.

Click to expand Notes

Prefeasibility Technical Report

READ

Rozino’s Interactive Video

VIEW

Velocity and the Rozino Gold Project

SEPTEMBER 2020

Significant Benefits of Off-site Processing

In addition to returning positive economic results, the PFS also outlines significant benefits, including shortened permitting timelines and capital cost efficiencies, for the following reasons:

the existing processing plant is permitted, currently operational, and has sufficient capacity to process concentrate from Rozino,
the use of the existing processing plant reduces total capital cost requirements for Rozino, and
on-site development at Rozino requires permitting for mining, flotation, and disposal of benign waste. The area of disturbance has been kept compact to facilitate reclamation and closure.

Mineral Resource Estimate

(effective date April 15, 2020)

WITHIN $1,500/OZ PIT SHELL	WITHIN $1,500/OZ PIT SHELL	WITHIN $1,500/OZ PIT SHELL	WITHIN $1,500/OZ PIT SHELL
INDICATED MINERAL RESOURCE ESTIMATE	INDICATED MINERAL RESOURCE ESTIMATE	INDICATED MINERAL RESOURCE ESTIMATE	INDICATED MINERAL RESOURCE ESTIMATE
CUT-OFF GRADE (G/T)	TONNES (MT)	GOLD GRADE (G/T)	CONTAINED GOLD (KOZ)
0.2	27.2	0.72	630
0.3	20.5	0.87	573
0.4	15.5	1.04	518
0.5	12.0	1.22	471
0.6	9.42	1.40	424

INFERRED MINERAL RESOURCE ESTIMATE	INFERRED MINERAL RESOURCE ESTIMATE	INFERRED MINERAL RESOURCE ESTIMATE	INFERRED MINERAL RESOURCE ESTIMATE
CUT-OFF GRADE (G/T)	TONNES (MT)	GOLD GRADE (G/T)	CONTAINED GOLD (KOZ)
0.2	0.49	0.7	11
0.3	0.38	0.8	10
0.4	0.29	0.9	8
0.5	0.23	1.0	7
0.6	0.17	1.2	7

Click to expand Notes

Mineral Reserves

(effective date August 20, 2020)

PROBABLE MINERAL RESERVES	PROBABLE MINERAL RESERVES	PROBABLE MINERAL RESERVES	PROBABLE MINERAL RESERVES	PROBABLE MINERAL RESERVES	PROBABLE MINERAL RESERVES	PROBABLE MINERAL RESERVES
ORE TYPE	RESERVE CATEGORY	TONNES (MT)	GOLD GRADE (G/T)	CONTAINED METAL (KOZ GOLD)	METALLURGICAL RECOVERY (%)	RECOVERABLE METAL (KOZ GOLD)
Oxide	Probable	1.9	1.07	64	67.4	43
Transitional	Probable	1.8	1.15	68	70.7	48
Sulphide	Probable	8.1	1.27	332	83.3	277
Total	Probable	11.8	1.22	465	79.3	368

Click to expand Notes

Conventional Open Pit Mining

PFS pit shell showing Velocity drill holes and highlighting drill intercepts greater than 0.5 g/t gold.

VIEW DRILL INTERSECTIONS VIEW MAPS & SECTIONS

Conventional Mineral Processing

Exploration

Exploration programs will focus on defining additional resources within trucking distance of planned infrastructure at Rozino. Any such additional ounces will have the potential to be low capital additions to the Rozino project and to be incorporated into feasibility-level studies.

Technical Reports

October 2020 ROZINO GOLD PROJECT: Pre-feasibility Technical Report

[September 2018 NI 43-101 Technical Report, Preliminary Economic Assessment - Rozino Project, Tintyava Property, Bulgaria](https://www.velocityminerals.com/site/assets/files/5993/r448_2018_vlcpea01_velocity_rozino_ni_43-101_-_final_20.pdf)

March 2018 NI 43-101 Technical Report Mineral Resource Estimation for the Rozino Gold Deposit, Republic of Bulgaria

[July 2017 National Instrument 43-101 Technical Report for the Rozino Project, Republic of Bulgaria](https://www.velocityminerals.com/site/assets/files/5993/7076-rozino-_ni-43-101.pdf)