Velocity Provides Transaction Update

The November 4, 2025, news release provides an update on the sale of Velocity's Bulgarian assets to Türker Global Madencilik Sanayi Ve Ticaret A.S. ("Türker"). The key points are:

• Transaction Closing: The final closing for the sale of the Rozino project is expected within 18 months from June 23, 2025.
• Interim Funding: Velocity and Türker have signed a Funding and Technical Services Agreement. Under this agreement, Türker will fund 100% of the costs required to maintain the assets, complete a Feasibility Study (planned for Q2 2026), and advance the Environmental Impact Assessment (EIA), which was filed on August 8, 2025.
• Artemis Gold Agreement: An investment agreement with Artemis Gold Inc. has been amended. The changes include provisions for distributing net profits to shareholders post-transaction, capping the board at five members, and defining the board composition to include an Artemis nominee.
• Lock-Up Agreements: Key management members (Keith Henderson, Daniel Marinov, Mark Cruise) and Artemis Gold have entered into lock-up agreements, restricting the sale of their Velocity shares.

This news is a routine update on a previously announced, transformative transaction. While it confirms the deal is progressing, its impact is neutral for several reasons.

• Extended Timeline: The confirmation that the final closing and the major payment of US$38.5M could be as far out as late 2026 (18 months from June 2025) introduces a significant waiting period. This long timeline increases uncertainty and delays the ultimate value realization for shareholders. The market abhors a vacuum, and an 18-month wait is substantial.
• Positive De-risking: On a positive note, Türker's commitment to fund 100% of the interim costs, including the Feasibility Study and EIA, is a significant de-risking event. This removes a major cash drain from Velocity's balance sheet, allowing the company to preserve its capital for other corporate purposes and exploration in Greece.
• Restricted Cash Clarification: Reviewing the historical news shows a critical detail from June 9, 2025: the US$16.5M first tranche payment is held as restricted cash as collateral for a letter of credit and is unavailable for working capital. This is a crucial point that may be overlooked; the company did not get a major cash injection to its treasury for general use. The de-risking provided by Türker's funding is therefore even more important.
• Corporate Housekeeping: The amended agreement with Artemis Gold and the management lock-ups are positive signs of alignment and good governance, preparing the company for its future post-transaction. However, these are administrative matters and not material value drivers in the short term.

Overall, the news confirms the slow-moving nature of this major transaction. The positive aspect of Türker covering all Bulgarian asset costs is offset by the very long timeline to the final payment. This update does not materially change the investment thesis today but rather reinforces that this is a "wait and see" story.

Velocity Minerals is a gold exploration and development company. Its flagship asset was the Rozino gold project in Bulgaria, for which it has signed a definitive agreement to sell its 70% interest to Türker Mining. The company is now pivoting its strategy to focus on earlier-stage exploration, highlighted by its recent acquisition of the Miriofito copper-gold exploration property in Northern Greece. This marks a significant strategic shift from a de-risked developer to a high-risk, high-reward explorer.