Velox closes $3.12-million private placement

• Velox Energy Materials Inc. closed a non-brokered private placement of 89,296,272 units at C$0.035 per unit, generating approximately C$3.13 million in gross proceeds.
• Each unit consists of one common share and one common-share purchase warrant exercisable at C$0.05 for 24 months from issuance.
• A company director participated by purchasing 3,796,272 units, qualifying as a related-party transaction under MI 61-101 exemptions.
• Net proceeds will fund the evaluation of potential resource opportunities, regulatory and corporate administration costs, and general working capital. The company explicitly restricted use of proceeds for investor-relations services or non-arm’s-length payments.
• Argonaut Securities Pty. Ltd. will receive a 6% cash finder’s fee and 6% in finder’s warrants (C$0.05 exercise price, 24-month term).
• All issued securities are subject to a statutory four-month and one-day hold period.

• The financing directly addresses a critical liquidity shortfall, as the company reported only C$228,058 in cash as of September 30, 2025. Without this capital, near-term operational suspension was highly probable.
• The issuance effectively doubles the outstanding share count, representing severe and permanent dilution for existing shareholders.
• The C$0.035 issue price trades at a discount to the recent C$0.04-C$0.05 trading range, establishing a new, lower valuation baseline.
• The attached warrants at C$0.05 create immediate technical and fundamental overhead. Warrant holders will likely distribute shares into any price strength, capping near-term upside.
• This release is a direct follow-up to the February 27 and March 6, 2026 announcements. The market had already priced in the dilution and capital need, making the closing fully expected and routine.

• Velox Energy Materials Inc. is a micro-cap resource and technology company operating in Australia.
• Flagship mineral asset: Advanced NQV vanadium-molybdenum project in Queensland, featuring an indicated resource of 61.33 Mt at 0.34% V2O5 and 234.6 ppm MoO3, plus an inferred resource of 144.87 Mt at 0.33% V2O5.
• Flagship technology asset: Exclusive option to acquire 100% of the IP rights for solid-state sodium borohydride (NaBH4) hydrogen storage technology developed with Curtin University.
• The Kotai Hydrogen Project recently achieved ARENA Milestone 2, validating lab-scale synthesis and high-pressure hydrogen release, with total project funding reaching approximately A$16.5 million (A$5 million from ARENA).