Mr. Simon Ridgway reports

VOLCANIC GOLD UPDATE ON DRILLING AT MILA GOLD DISCOVERY, GUATEMALA

Volcanic Gold Mines Inc. and joint venture partner Radius Gold Inc. have provided an update on the first-pass drilling campaign that is continuing at the Motagua Norte project.

Drilling to date has confirmed that the broad area of boulder float with abundant visible gold and bonanza-grade assay results discovered by company geologists is underlain by a serpentinite package, and that all of the colluvial boulders of quartz and schists bearing the high-grade gold values have likely moved downslope from a major structural corridor that the companies have named the Veta Madre fault zone.

The Veta Madre fault contains a wide quartz vein that has been known for some time, and where sampled, has returned relatively high silver and lead results but poor gold numbers. It is a massive vein, forming in places a vertical, impassable wall. Flute marks and slickensides on the vein show near-vertical fault movement. However, in the area uphill from the Mila quartz float field, the vein is not exposed. The drill program conducted to date has cut six metres to 15 metres of colluvium composed of quartz and schist float, bearing visible gold in places, before passing from this colluvium into a serpentinite package. With the drill data in hand it appears that the green schists and serpentinite contact is at the Veta Madre fault zone, and the Mila zone within this major structural corridor is the target to be tested. Drilling of this target is under way and drill pads are being prepared along the strike of the structure.

This presents an exciting picture: the Motagua Norte project has geological similarities to the Motherlode- and Grassy Valley-type orogenic systems of California, hosted in metamorphic rocks along plate boundary faults, often in close association with serpentine rocks. These systems are known for quartz veining with coarse visible gold and high-grade ore shoots that can have extensive vertical depth components. For example: the historic Empire mine in California was mined to over one kilometre depth and produced 5.8 million ounces at an average grade of 19 grams per tonne Au.

As previously reported, 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 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 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 microveined schist with samples returning assay results of up to 94 g/t gold, indicating potential for significant wall rock mineralization.

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

"The Volcanic team continues its dedication to the project; the more we work the more we learn. This recent geological interpretation has significance for the belt as we see similar structural settings in many of the zones we have sampled along the belt.

"The team is facing the challenge of working within communities where some have been persuaded by reports and information supplied by NGOs that mining is bad. This challenge requires a constant effort to inform the community to counteract misinformation and erroneous assumptions. However, people want work, and they want to work in their own backyard and not be drawn by necessity to travel to North America to feed their families. Exploration and mining can provide work opportunities. The team is gathering support from all areas to inform and show the positive influence that mining can bring to the area."

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 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

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.

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.