Mr. Simon Ridgway reports

VOLCANIC GOLD PROVIDES FURTHER UPDATE ON DRILLING AT MOTAGUA NORTE PROPERTY, GUATEMALA

Volcanic Gold Mines Inc. and joint venture (JV) partner Radius Gold Inc. have provided a further update on the continuing drilling campaign at the Motagua Norte project.

As previously reported, drilling to date has confirmed that the broad area of boulder float with abundant 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 company has named the Veta Madre fault zone.

To date, two drill holes cutting across the broad Veta Madre fault zone have been completed. Both holes have cut wide zones of quartz veining and quartz stockwork at the fault contact between serpentinite in the hanging wall to the north, and schistose rock in the footwall to the south. The wide stockwork zones with associated intense silica-sericite alteration of the host rock appear to be best developed in the footwall schist, although stockwork veining has been recognized on both sides of the vein.

Hole MIDD-24-004 targeted the Veta Madre above the central part of the colluvial field, drilling through 98 metres of serpentinite before reaching the fault zone at a depth of approximately 120 m below surface. The hole remained in veining and stockwork schists for 63 m before entering unaltered schistose rocks at 161 m. The hole was drilled at an inclination of minus-45 degrees; true width of the mineralized zone is yet to be confirmed as the dip of the fault, while thought to be steep, is as yet unknown.

Hole MIDD-24-005 was drilled 100 m along strike to the west of MIDD-24-004, collared closer to the fault zone so that it intersected the fault at a slightly shallower depth of approximately 80 m below surface. This hole passed through 73 m of serpentinite before entering the targeted structure. A wide zone, some 39 m of altered rock with strong stockwork quartz veining, was intersected before passing into unaltered schistose rock at 112 m drill depth. This hole was also drilled at an inclination of minus-45 degrees, and again, true width of the zone is, at present, unknown.

Half-core samples from both drill holes have been sent for analysis at ALS Laboratory, Vancouver, and assay results are expected in early May. The present plan is to test the Veta Madre fault zone with a panel of holes, cutting the structure on 50 m horizontal and vertical grid spacing to a depth of up to 200 m below surface. Drilling will initially concentrate on a 250 m strike length immediately uphill of the thickest and most extensive concentration of gold-bearing colluvium. Drilling through the boulder colluvium is technically challenging. Two attempts to drill into the structure at a shallower depth to test the weathered zone have been abandoned due to the rods getting stuck in the thicker colluvium pile adjacent to the fault zone (drill holes MIDD-006 and 007). In order to avoid these problems, the remainder of this drilling program will be restricted to fresh rock well below the colluvium, targeting mineralization 50 m or more below surface.

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

"The drilling of the Veta Madre at the Motagua Norte project has intersected a broad zone of quartz veins, vein breccia and microstockwork in two drill holes, located 100 m apart. Two other holes were lost by setting up too close to the fault zone, intersecting thick piles of colluvium before entering the stockwork veining. Future holes will be set up further back from the fault zone. Above the Veta Madre fault zone, veining carrying visible gold had been mapped in the Schistose bedrock between the Veta Madre and a second large structure, named Veta Padre. These gold-bearing veins appear to dip to the south so drill holes orientated south to north are planned later in the program to test this area.

Drilling has now recommenced following the break for Semana Santa. A good working relationship has been developed with the local communities. Meetings are held on a regular basis updating the leaders of the communities on the company's plans and we are assisting where possible with community projects."

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 JV has established a high-grade epithermal gold resource 60 kilometres north of the Cerro Blanco gold deposit (see news release dated 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.