Velox Drilling Identifies High-grade Vanadium Zone within the Cambridge Deposit in Queensland, Australia

TORONTO, January 23, 2024 - Velox Energy Materials Inc. (TSXV:VLX) ("Velox" or "the Company") is pleased to announce the drilling results from its Phase 1 diamond drill program at the Company's flagship Cambridge Vanadium deposit, its 100% owned North Queensland Vanadium Project ("NQVP") located in Queensland, Australia (Figure 1).

Highlights

Assay results received are very encouraging, with the mineralized zone identified at shallow depths, uniform thicknesses throughout the drilled area and consistent grades across the drilled area. Results include:

• Hole NQVP23_008 - 4.7 m @ 0.44% V₂O₅ from 8.6 m (0.30%V₂O₅ cut-off) including 1.1 m @ 0.84% V₂O₅ from 10.5 m;
• Hole NQVP23_005 - 5.4 m @ 0.41% V₂O₅ from 19.5 m (0.30%V₂O₅ cut-off) including 0.8 m @ 0.77% V₂O₅ from 12.9 m; and
• Hole NQVP23_004 - 4.7 m @ 0.47% V₂O₅ from 9.5 m (0.30%V₂O₅ cut-off) including1.1 m @ 0.72% V₂O₅ from 20.5 m.
• The mineralized zone at a cut-off grade of 0.30 % V₂O₅ is typically 4.2 m thick at 0.41 % V₂O₅.
• Drilling indicates a laterally continuous high-grading layer within the mineralized zone, with V₂O₅ grades commonly exceeding 0.60 % V₂O₅ over a 1.5 m thick interval.
• Assay results have also identified a 0.5 m -1.0 m layer demonstrating a mild rare earth element enrichment thought to be associated with the vanadium mineralized zone, with TREO grades commonly between 400 - 500 ppm.

The overall Cambridge Deposit understanding has been enhanced due to:

• Improved lithological understanding;
• Improved stratigraphic correlation with the addition of downhole geophysics (Gamma and Density plots);
• Identification of higher-grade units within the mineralized zone;
• Strong correlation to historical aircore assays; and
• Potential to apply new parameters across the entire deposit and regional targets.

Velox's President and CEO, Simon Coyle, commented:

"The drill program completed last year has significantly increased our understanding of the Cambridge Deposit. The latest diamond core assay results have exceeded our expectations and support our initial confidence in the deposit. The recent assay results also suggest that we have a laterally continuous high-grading layer within the mineralized zone, with V₂O₅ grades up to 0.60 % V₂O₅ over a 1.5 m thick interval.

"As our understanding of the deposit develops, we are seeing signs Cambridge is shallower and thicker than previous explorers had initially anticipated. Additionally, the potential in a newly identified high-grade zone and a REE enrichment zone has provided a welcomed upside, that will be further investigated.

"These encouraging assay results validate our planned next steps for the NQVP, which include metallurgical studies, a potential update to the existing resource and application of new geological knowledge over the entire project area to prioritize our target generation and development."

Figure 1: North Queensland Vanadium Project - Location

Exploration Summary

A total of ten (10) infill large diameter (100mm) 4C diamond core drill holes totaling 333 m were completed at the Cambridge Vanadium deposit on EPM26494 located in central northern Queensland, Australia (Table 1). The drilling was designed to increase overall stratigraphic knowledge for the deposit and provide ample representative material for metallurgical testwork as well as additional data for future mineral resource definition.

The Cambridge Vanadium Deposit currently hosts a CIM compliant Mineral Resource Estimate (MRE) consisting of an Indicated Mineral Resource of 61.33 Mt @ 0.34% V₂O₅ and 234.6 ppm MoO₃ along with an Inferred Mineral Resource of 144.87 Mt @ 0.33% V₂O₅(cut-off grade of 0.25% V₂O₅) and 241.9 ppm MoO₃ (Dufresne et al., 2022) and the recent program covered a representative portion of the currently defined deposit (Figure 2).

Drilling was undertaken by J&S Drilling Pty Ltd (Queensland) using a Fraste FS400 drill rig. Downhole gamma and density geophysical logs were completed by Weatherford International PLC using equipment to the American Petroleum Institute (API) standards Q1 and 14A, and logs recorded to international Logging Ascii Standards (LAS).

A detailed geological assessment, sample selection and Toolebuc Formation correlation was completed by John T Boyd Company. A total of 201 samples were selected for testing. Sample intervals were determined by stratigraphic lithological changes with sample intervals ranging from 0.10 m to 2.7 m thick (averaging 1.0 m).

Drill cores were dispatched to Mitra PTS Laboratory in Gladstone, Queensland for sample preparation and dispatched to Bureau Veritas, Perth, Australia, for analysis.

Table 1: 4C Core Holes Location

Figure 2: Drill Hole Location Plan

Assay Results Summary

Assay results for 201 samples have been received from the 10 diamond core drillholes drilled within the defined Cambridge deposit with the overburden depth ranging from 2.5 m to 21.0 m. Drillhole NQVP23_010 returned no significant vanadium results. The hole was collared in the basal section of the Toolebuc Formation and drilled into the underlying (barren) Willumbimba Formation.

In summary, the results are very encouraging and analysis of grade cut-offs at 0.40% V₂O₅ (current MRE used a 0.25% V₂O₅ cutoff) below demonstrates the potential for higher grade material to be selected from the overall mineralized unit (Table 2) and as shown in the cross-section below (Figure 3).

Table 2: Mineralized Zone with a 0.40% V₂O₅ cut-off grade

Figure 3: Cross Section

Sample Analysis and QA/QC Program

Velox uses a quality assurance/quality control (QA/QC) program that monitors the chain of custody of samples and includes the insertion of blanks, duplicates, and reference standards in each batch of samples sent for analysis. The drill core is photographed, logged, and longitudinally cut, then ¼ core sampled and shipped for analysis. The ¾ retained sample is held in a secured location for verification purposes. Sample preparation (drying, crushing and pulverizing) is performed at Mitra PTS Laboratory, an independent (NATA Accreditation No 14525) laboratory, in Gladstone, Queensland, Australia. The entire sample is crushed to 70% passing -6 mm, and a riffle split of 250 grams is taken and pulverized to 75 microns. Pulps are sent to Bureau Veritas, in Perth, Australia (and other independent Laboratories) for analysis with the sample and pulp rejects stored as reserve.

Mitra PTS also complete density, moisture, carbon and sulfur testing on all samples.

Samples are analysed for vanadium and 50 other trace elements using Laser Ablation ICP-MS (LA101) from a 30-gram pulp. All samples are also subject the assay by XRF (XF202), testing 13 major element oxides with Umpire laboratory checks completed by ALS in Brisbane using lithium-borate fused digest ICP-MS (ME-MS81) at 1:10 sample ratio.

Blind duplicates were included in the (LA101/XF202) at a 1:10 sample ratio and certified reference standards (CRSs) and blanks were included in the assay program, including CRSs selected to represent the expected vanadium assay grades.

No QA/QC issues were noted with the results reported herein.

About Velox Energy Materials

Velox Energy Materials is a publicly traded energy materials company developing and progressing high-value assets in resource and research-friendly jurisdictions. The Company's priority focus is the advanced NQV Project in Queensland, Australia. The NQV Project hosts the Cambridge Deposit with an CIM compliant Indicated Mineral Resource of 61.33 Mt @ 0.34% V₂O₅ and 234.6 ppm MoO₃ along with an Inferred Mineral Resource of 144.87 Mt @ 0.33% V₂O₅ (cut-off grade of 0.25% V2O5) and 241.9 ppm MoO₃ (Dufresne et al., 2022). The Company is targeting shallow, high-grade mineralisation that can be developed using low-cost mining and processing options.

The Company additionally owns Kotai Energy and the option to acquire 100% of the intellectual property rights associated with the Solid-State Hydrogen Storage Project from Curtin University in Western Australia. Kotai is focused on the commercialisation of technology that can produce high-pressure hydrogen following transport as an inert powder.

In October 2023, the Company acquired a package of tenements that are prospective for lithium in eastern Quebec.

The Indicated Resource of 61.33 Mt @ 0.34% V2O5 and an Inferred Resource of 144.87 Mt @ 0.33% V2O5 for the Cambridge Deposit was announced in November 2022 (see Currie Rose news release dated November 1, 2022 and the Technical Report by Dufresne et al., 2022).

Please visit our website at www.veloxenergymaterials.com.au for further information.

Approved by the Board of Velox Energy Materials Inc.

Simon Coyle
President & CEO
+1 416-214-7577

Investor Relations Contact

Andrew Rowell
Investor Relations - Australia
M: +61 400 466 226
Email: andrew@whitenoisecomms.com

Qualified Persons

The Velox Energy Materials scientific and technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed and approved on behalf Velox Energy Materials by Michael Griffiths, FAusIMM, Director & VP Exploration for Velox Energy Materials, a Qualified Person.

Forward Looking Statements

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain forward-looking statements that are based on the Company's expectations, estimates and projections regarding its business and the economic environment in which it operates. Statements about the closing of the transaction, expected terms of the transaction, the number of securities of Velox Energy Materials that may be issued in connection with the transaction, and the parties' ability to satisfy closing conditions and receive necessary approvals are all forward-looking information. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.

SOURCE: Velox Energy Materials Inc.