Velocity Minerals Ltd.

Velocity Minerals Ltd.

July 31, 2012 08:00 ET

Velocity Minerals Ltd.-Update and Clarification

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 31, 2012) - Velocity Minerals Ltd. (TSX:VLC) announces that as a result of a review by the British Columbia Securities Commission, we are issuing the following news release to clarify our disclosure.

In particular, in its news release of October 3, 2011 the Company referred to several historic mineral estimates in relation to a coal project it was pursuing at that time. The Company wishes to emphasize that those historic amounts were not verified by a Qualified Person (as defined in National Instrument 43-101), sufficient work was not done to classify the historical estimates as current mineral resources or mineral reserves and the historical estimates should not be treated as current mineral resources or mineral reserves. In addition, the Company also wishes to clarify that it is not presently pursuing that particular coal project.

Further, the Company has previously announced that its plans to drill its Oro Grande gold prospect. Management confirms that it still wishes to do so; however, any drill program is subject to the Company securing sufficient financing to fund such a drill program, together with its ongoing operational obligations and any other development activities it may now or in the future wish to pursue in respect of its other mineral property interests.

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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