Mr. Simon Ridgway of Volcanic Gold reports

VOLCANIC GOLD PREPARES TO RESTART EXPLORATION AT HOLLY PROPERTY WITH A FOCUS ON INCREASING THE HIGH-GRADE RESOURCE

Volcanic Gold Mines Inc. and Radius Gold Inc. have resumed exploration activities on the Holly property in Guatemala. Previous drilling in 2021-2022 at Holly defined an inferred resource of 1.32 million tonnes at 6.46 grams per tonne gold and 256 g/t silver (1).

Spectacular grades were obtained in the past drill campaign, where northwest-trending epithermal veins cut the regional-scale east-west-trending Jocotan fault breccia. Drilling has defined continuous high-grade mineralization along La Pena vein to approximately 200 metres below surface, which remains open to depth and on strike. La Pena vein has been traced over 50 m into the metamorphic phyllites to the north of the Jocotan breccia with grades of up to 15.55 m at 7.67 g/t gold and 615 g/t silver (drill hole HDD-21-015). To the south of the Jocotan breccia, high-grade intercepts have been returned where drill holes cut the vein in a sequence of interbedded volcanic and sedimentary rocks. The highest-grade drill intercept to date, 4.58 m at 79.84 g/t gold and 5,053 g/t silver (drill hole HDD-21-023), occurs in a thick mudstone unit at the base of the current mineral resource. The area around this high-grade drill intercept and the depth continuation of the intersection of the Pena vein and the Jocotan breccia are priority targets for further drilling.

The Pena vein is only one of several epithermal veins on the Holly property. Insufficient drill density on other veins means that they have not been included in the current mineral resource estimate, but they contain significant gold-silver mineralization that may add to the overall Holly resource with further drilling. The standout Pino vein, which cuts the Jocotan breccia only 650 m to the east of the Pena vein, has a strike length of at least 100 m defined by rock chip samples. Three exploration drill holes at the northern end of the vein returned drill intercepts of: (1) 3.60 m at 22.03 g/t gold and 697 g/t silver; (2) 4.23 m at 4.00 g/t gold and 136 g/t silver; and (3) 3.17 m at 2.93 g/t gold and 284 g/t silver, all from within 40 m of the surface. These exploration drill results are comparable with the best intercepts at La Pena vein.

The company has drilling permits in place and is working with landowners, local authorities and the local community for a social licence to operate. Additional drilling will aim to extend the depth and strike extent of mineralization and tighten drill spacing to upgrade the confidence level of the mineral resource.

Initial drilling will test the two priority areas outlined above: (1) defining the strike length and tracking the Pena vein downdip where the mineral resource could potentially be expanded; and (2) additional drilling on the Pino vein to bring the existing high-grade drill intercepts into the mineral resource.

Simon Ridgway, president and chief executive officer of Volcanic Gold Mines, commented: "Since 2022, when demonstrations resulted in suspension of the drilling campaign, we have worked with the local community promoting the benefits that resource development can bring. There is a sense now that the attitude towards foreign investment and metallic mining is changing for the better and feedback from the local community is positive. We feel the time is right to reactivate what is an exciting high-grade gold-silver prospect at Holly. The next drilling campaign will be an opportunity to further support the existing mineral resource estimate and to start bringing some of the other veins in the Holly system into the resource envelope."

Technical information

Dr. Luc English, PhD, who is a chartered geologist and fellow of the Geological Society of London, is the company's qualified person as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects). Dr. English has reviewed and approved the technical information contained in this news release.

The Holly project mineral resource is 1.3 million tonnes at 6.5 g/t for 270,000 ounces contained gold and 11 million ounces at 260 g/t contained silver, which equates to 9.6 g/t at 410,000 oz gold equivalent, with an effective date of June 7, 2022.

1. Resources estimated using a 3.0 g/t gold equivalent cut-off grade and a top cap grade of 100 g/t gold and 2,000 g/t silver and presented on a 100-per-cent basis.
2. Gold equivalent values were based on $1,800 for and $22 for silver.
3. Mineral resources are not mineral reserves and have not demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, marketing or other relevant issues. The mineral resources in this report were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum standards on mineral resources and reserves, definitions, and guidelines prepared by the CIM standing committee on reserve definitions and adopted by the CIM council, notwithstanding, to meet the requirement that the reported mineral resources show reasonable prospects for eventual economic extraction.
4. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature, and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource. It is uncertain whether further exploration will result in an upgrade to indicated or measured mineral resource category.

About Volcanic Gold Mines Inc.

Volcanic brings together an experienced and successful mining, exploration and capital market team focused on building multimillion-ounce gold and silver resources in underexplored countries. Through the strategic acquisition of mineral properties with demonstrated potential for hosting gold and silver resources and by undertaking effective exploration and drill programs, Volcanic intends to become a leading gold-silver company.

We seek Safe Harbor.