Mr. Simon Ridgway reports

VOLCANIC GOLD MINES AND RADIUS GOLD RECEIVE SHAREHOLDER AND EXCHANGE APPROVAL OF MOTAGUA NORTE PROJECT OPTION

Volcanic Gold Mines Inc. and Radius Gold Inc.'s previously announced (see Volcanic news release dated Sept. 18, 2023) signing of an amended option agreement between the companies, which includes the Motagua Norte project in exchange for the Banderas project, has been approved by the shareholders of each company and the TSX Venture Exchange. Disinterested shareholder approval was received at the respective annual general meetings of Volcanic and Radius held on Dec. 14, 2023.

The original earn-in requirement for Volcanic to spend $7-million (U.S.) in exploration of Radius's Guatemala properties remains unchanged. Under the modified option agreement, Volcanic has an exclusive option to earn a 60-per-cent interest in the Holly and Motagua Norte properties by spending $7-million (U.S.) on exploration of the properties. Expenditures previously made by Volcanic on exploration of the Banderas property are credited toward the option expenditure requirement.

As Volcanic and Radius have a common director and three common officers, Radius is a non-arm's-length party to Volcanic, within the meaning of TSX Venture Exchange Policy 5.9. The modified option agreement is not, however, a related-party transaction as defined in Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions and, therefore, the requirements of the exchange's Policy 5.9 and MI 61-101 do not apply.

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.