Mr. Simon Ridgway reports

VOLCANIC GOLD MINES COMMENCES DRILLING AT THE MILA GOLD DISCOVERY, GUATEMALA

Volcanic Gold Mines Inc. and joint-venture (JV) partner Radius Gold Inc. have begun a first-pass drilling campaign on the Mila gold discovery located within the Motagua Norte project.

The Mila prospect, to date, is defined over a 250-metre by 600 m area of quartz outcrop, subcrop and boulder float, with abundant visible gold and bonanza-grade assays discovered by company geologists in central Guatemala. A diamond core drilling rig has mobilized to commence exploration of the compelling gold targets developed at Mila. Drill holes are designed to establish the width, grade and geometry of gold mineralization. The company anticipates drilling between 1,000 m and 3,000 m of diamond core in the first campaign.

The Mila discovery presents an unusual challenge for exploration, but an exceptional opportunity. The abundance of gold-mineralized quartz boulders covering the surface makes it difficult to map out, measure and model the gold mineralized structures. Of approximately 420 rock chip samples collected at surface across the area, over 100 returned assays exceeding 10 grams per tonne (g/t) gold, including 21 of over 100 g/t gold and a maximum of 692 g/t gold. With widely distributed gold-bearing quartz at surface, it is difficult to distinguish the in situ quartz outcrop from the boulder piles that form at the base of collapsed vein outcrops and from boulder scree that has been locally transported downhill. In addition to the obvious quartz vein mineralization, gold has also been observed hosted within sericite-altered and micro-veined schist, with samples returning assay results of up to 94 g/t gold, indicating potential for significant wall rock mineralization.

The north-south-striking quartz ridge, which returned rock chip assays of up to 116 g/t gold, is being tested in the first few drill holes.

Sericite-altered schist with quartz stockwork veinlets cropping-out on the eastern wall of the north-south quartz ridge returned assay results of up to 118 g/t gold is also being targeted in the first few drill holes.

Geological mapping of outcrops combined with interpretation of topographic features suggests that there are multiple quartz veins in at least two different orientations: north-south- and northwest-southeast-striking, with the best assay results concentrated in north-south trends. Continuous chip channel sampling across the best-defined north-south structure, a 250 m long ridge running through the centre of the prospect area, returned average grades of 95 g/t gold across a 10 m width of collapsed quartz vein boulders. This structure, and at least two more less-well-defined parallel quartz boulder ridges are interpreted as north-south-striking veins. True thickness and dip direction of these veins is not yet understood and will be tested in the initial drilling.

Drilling will also test a 100 m wide dense quartz boulder field on the west side of the central north-south structure continuous lines of two m long chip channel samples of mixed outcrop, subcrop and colluvium returned average grades of 42 g/t gold along a 34 m line, and 54 g/t gold along a 24 m long line. The surficial quartz in this area is interpreted as the expression of multiple, close-spaced quartz veins. The number of veins and their geometry are undefined.

The initial drill program is exploratory in nature and aims to establish the number of zones, width, grade and geometry of the gold-bearing structures.

Simon Ridgway, Volcanic Gold Mines' president and chief executive officer, commented:

"The Volcanic team's dedication has resulted in the discovery of great high-grade drill targets, and secured licences, permits and community support for the Motagua Norte project. The team is enthusiastic to commence drilling the first holes into the multiple gold targets in the Mila prospect. The results of several rock chip sampling programs conducted in recent months along the belt has revealed several new areas of interest where we are seeing similar high grades. A successful drill program at Mila will reinforce my belief that the Motagua Suture zone has the potential to become a prolific gold camp."

About the Motagua Norte project

The Motagua Norte project is a gold system hosted by schists of the Motagua suture zone, an east-west-striking belt of metamorphic rocks that outcrops at the line of collision between the North American and Caribbean tectonic plates.

Volcanic Gold Mines has an option agreement with Radius Gold Inc. to earn a 60-per-cent interest in the Cirilo I exploration licence and other licences under applications and negotiation within the Motagua Norte project, as well as the Holly project where the joint venture has established a high-grade epithermal gold resource 60 km north of the Cerro Blanco gold deposit (see news release Sept. 18, 2023).

Technical information

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.

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.