Velo Energy Provides Corporate Update

    /Not for distribution in the United States of America/

    CALGARY, Aug. 1 /CNW/ - Velo Energy Inc. ("Velo" or the "Company") (TSX
VENTURE EXCHANGE: VLO) provides the following update on its activities.

    Private Placement

    Today Velo completed the private placement described in the press release
dated June 11, 2008. Having obtained the conditional approval of the TSX
Venture Exchange ("TSX-V"), Velo issued 30,000,000 common shares at $0.05 per
share in a non-brokered private placement to raise $1,500,000. The Company has
paid finder's fees of $57,500 (5%) in connection with $1,150,000 of the
financing. The completion of the proposed private placement did not result in
the creation of a new control person (as such term is defined in the TSX-V
Exchange Policy 1.1). These shares are subject to a 4 month hold period in
Canada. The net proceeds of the private placement will be used to pursue new
exploration and development opportunities, including the new joint venture
described in the press release dated July 28, 2008, and working capital.

    About Velo Energy Inc.

    Velo is an emerging oil and gas company engaged in the exploration for,
development and production of natural gas and oil in the western sedimentary

    Reader Advisory

    Certain information set forth in this media release contains
forward-looking statements, including statements regarding new exploration and
development opportunities. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, they cannot give
any assurance that such expectations will prove to be correct. Results of the
Company may be affected by a variety of variables and risks associated with
oil and gas exploration, production and transportation, such as loss of
market, volatility of oil and gas prices, currency fluctuations, imprecision
of reserve estimates, environmental risks, competition from other producers,
ability to access sufficient debt and equity capital from internal and
external sources, ability to replace and expand oil and gas reserves, ability
to generate sufficient cash flow from operations to meet its current and
future obligations, and risks associated with existing and potential future
lawsuits and regulatory actions made against the Company; as a consequence,
actual results could differ materially from those anticipated or implied in
the forward-looking statements.
    The Company's forward-looking statements are expressly qualified in their
entirety by this cautionary statement and are made as of the date of this news
release. Unless otherwise required by applicable securities laws, the Company
does not intend nor do they undertake any obligation to update or review any
forward-looking statements to reflect subsequent information, events, results
or circumstances or otherwise, except as may be required by applicable
securities laws.

    The TSX-V has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this press release.

For further information:

For further information: Jack Muir, Director, Tel: (604) 891-8782

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