Mr. Simon Ridgway reports

VOLCANIC REFLECTS ON RECENT NEWS REGARDING BLUESTONE AND THE CERRO BLANCO GOLD DEPOSIT IN GUATEMALA, AND THE IMPLICATIONS FOR THE HOLLY GOLD DISCOVERY

On July 6, 2023, Bluestone Resources Inc. outlined plans for its Cerro Blanco feasibility-stage gold and silver project in Guatemala in a news release entitled "Bluestone Announces Strategic Review Process." The Bluestone news release announced that "The company has commenced a process to explore and evaluate potential strategic alternatives to further advance the Cerro Blanco gold project" and states further that "These alternatives could include, among other things, the sale of part or all of the assets of the company, a sale of the company, a merger or other business combination with another party, or other strategic transaction."

After reviewing the news release from Bluestone, Simon Ridgway, founder, president and chief executive officer of Volcanic Gold Mines, stated: "Jurisdiction aside, the Cerro Blanco gold deposit is probably one of the more economically attractive gold deposits in today's market. This is a high-margin gold deposit, whether viewed as an underground mine, with an impressive measured and indicated mineral resource of 1.41 Moz [million ounces] at 10.3 g/t [grams per tonne] Au and 4.1 Moz at 35.6 g/t Ag or as an open-pit scenario with measured and indicated mineral resources total 3.1 Moz grading at 1.5 g/t Au and 13.4 Moz at 6.6 g/t Ag."

The Cerro Blanco's initial 2019 feasibility study, that proposed mining the deposit as an underground mine, provided impressive economics that included an after-tax IRR (internal rate of return) of 34 per cent and AISC (all-in sustaining cost) of $579 (U.S.) per oz using a base case of $1,250 (U.S.) per oz gold and $18 (U.S.) per oz silver.

Volcanic Gold's Holly discovery is located on private land about 60 kilometres (km) north of Cerro Blanco along a paved highway. It has a maiden inferred mineral resource on La Pena vein (one of many veins) of 1.3 Mt at 6.5 g/t for 270,000 oz contained gold and 11 Moz at 260 g/t contained silver, which equates to 9.6 g/t at 410,000 oz gold equivalent.

As has been stated in a previous news release, Volcanic Gold is committed to engaging with local stakeholders and actively working with communities to further develop and deliver impactful community programs. Mr. Ridgway, CEO, commented: "Drilling was stopped at Holly due to past social unrest, when anti-mining groups invaded the project. However, 12 months of community work appears to have reached hearts and minds of the local population and I believe the tide is turning."

In a mining scenario, the Holly project would be mined as an underground operation with processing of the ore remote from the location of the project. More drilling is required to determine the full extent of the underground mineral resource: the deepest hole drilled yet on the La Pena vein cut 4.58 metres (m) of 79.84 g/t Au and 5,053 g/t Ag (see news release dated Feb. 16, 2022). However, the company has stated it would not drill at holly again until Cerro Blanco had a clear way to production and that remains the company's position.

Volcanic holds the property at Holly under a joint venture agreement with Radius Gold Inc. The company also holds other properties in Guatemala under that same JV (joint venture) agreement and other important discoveries have been made on that JV property that are pending the granting of a mineral concession. "While things are moving slowly, progress is being made on that front," commented Mr. Ridgway.

Mr. Ridgway further states: "While we continue to review opportunities in other jurisdictions, we are committed to continue our efforts in Guatemala. I have been instrumental in both the Cerro Blanco and Holly gold discoveries and I believe there are many more discoveries to be made in eastern Guatemala. Mining could create a vibrant economy in the region, creating employment while protecting the beautiful landscape and the waters."

About Volcanic Gold Mines Inc.

Volcanic brings together an experienced and successful mining, exploration and capital markets 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.