Velocity Minerals Ltd.

Velocity Minerals Ltd.

April 18, 2012 12:16 ET

Velocity Minerals Ltd. Reports 46.75 M of 9.86% Graphite in Non 43-101 Historic Hole

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 18, 2012) - Velocity Minerals Ltd. (TSX:VLC) is pleased to provide further details of historic exploration of its three newly-acquired graphite properties located in the Central Metasedimentary Belt of the Grenville Geologic Province of southwestern Quebec. The following information is from sources that are believed to be reliable but does not meet requirements of National Instrument 43-101 and is provided for information purposes only. The Company's management and Qualified Persons are conducting due diligence studies to confirm the historic data.

Ascension Property

Graphite occurrences on the 11.23 sq. km Ascension property were explored in 1989 and 1990. Three mineralized zones, the A, B and C zones, were partially defined by geophysical surveys and diamond drilling. A multi-frequency/multi-coil separation Maxmin II geophysical ground survey identified a complex pattern of multiple zoned conductors some of which were subsequently investigated to about 75 meters depth by 49 reconnaissance diamond drill holes. Twenty-two of the first 40 drill holes returned significant graphite mineralized sections. Of particular note is angle hole T90-44 (drilled at -45º) which returned a weighted average grade of 9.86% Cgf over 46.75 meters.

Table 1.
Summary of significant drill results from the Ascension Property
Hole # Grade (% Cgf) Width (meters) Zone
T89-04 15.88 2.14 A
T89-13 10.14 6.0 A
T90-20 12.46 3.0 A
T90-21 7.76 8.9 B
T90-43 5.94 10.9 C
T90-44 9.86 46.75 C

Lac Vert Property

The Lac Vert property, located 4 km from the Ascension property, is underlain by the very prospective Central Metasedimentary Belt of the Grenville Geologic Province. This package of marble, impure quartzites, quartzofeldspathic gneiss, biotite gneiss, biotite schist and associated pyroxenite and/or amphibolites stocks are generally flat-lying and dip gently to the south-southwest at 8 to 20 degrees. Graphite occurs in crystalline marble: 12 selected grab samples taken by Graphicor returned concentrations ranging from 1.69% Cgf to 23.00% Cgf with the average being 15.66% Cgf. Historic exploration consisted of limited prospecting and geological mapping followed by line-cutting, and a geophysical survey which identified a cluster of numerous east-west conductors interpreted at the time to represent a hinge or warp zone. An 11 hole 584 meter program of diamond drilling produced results from 2.64% Cgf over 1 meter in hole V90-04 to 3.20% Cgf over 6.1 meters in hole V90-10. Best results came from hole V90-06 which intersected a calcareous unit with 5.79% Cgf over 12.25 meters and included a 3.35 m interval with 9.25% Cgf.

Buckingham Property

The 4.81 km² Buckingham property is situated close to Buckingham, Quebec, near the historic Walker Graphite Mine. Available exploration/production information is limited to a production reference from 1900 which states "Up to 500t of refined flakes were mined including 100t of "chunk" graphite".

CAUTION: The above-detailed assays and analyses have not been verified in any way by Velocity Minerals Ltd. or its Qualified Persons.

Gerald Diakow, President of Velocity Minerals Ltd., said, "Given the current appetite for graphite, particularly the larger flake graphite, we are very excited to be able to secure for the Company such prospective properties. The record of historic work gives the Company a significant head start in the exploration process. We are conducting due diligence and data compilation of geophysical and diamond drilling information that will enable design of an exploration model for each property. We hope to resume property work, including diamond drilling, without delay."

This News Release is based upon information prepared under the supervision of Erik A. Ostensoe, P. Geo., a Qualified Person (as defined in NI 43-101). However, the specific data referred to herein was obtained from government files and other historical sources believed to be reliable but which have not and cannot be verified.

Velocity Minerals Ltd. is a public company dedicated to the acquisition, exploration and development of molybdenum and other mineral resources. In addition to the Company's two Cassiar, B. C. area properties, several other opportunities in the mining industry in North America and elsewhere are actively being pursued.

On behalf of the Board of Directors,

Kenneth R. Holmes, Chairman

The TSX has neither approved nor disapproved of the information contained herein.

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