Mr. Simon Ridgway reports

VOLCANIC GOLD PREPARES TO RESTART EXPLORATION AT HOLLY PROPERTY AND SURROUNDING REGIONAL PROSPECTS

Volcanic Gold Mines Inc. will resume exploration activities on the Holly property and nearby regional targets in Central America. This follows two positive developments, the acquisition of Bluestone Resources by Aura Minerals and the El Salvadorian President, Nayib Armando Bukele Ortiz, proposing to revoke that country's ban on mining.

Aura Minerals Inc. plans to acquire Bluestone Resources in a $74.3-million (U.S.) deal (see Bluestone Resources announcements on Oct. 28 and Nov. 5, 2024). Aura described Bluestone's Cerro Blanco gold project as a world-class deposit that it hopes to make a flagship asset in the next few years. Cerro Blanco is a near-surface, high-grade deposit with a measured and indicated resource of 3.1 million ounces at 1.5 grams per tonne gold (see technical report and feasibility study of the Cerro Blanco gold project at the Bluestone website).

Volcanic Gold owns 60 per cent of the Holly project, located 38 kilometres north of the Cerro Blanco deposit, where the company defined a high-grade epithermal gold-silver inferred mineral resource estimate of 1.32 million tonnes at 9.6 g/t (grams per tonne) AuEq (gold equivalent) for 410,000-ounce gold equivalent. The resource was established on the La Pena vein that is open on strike to the south and at depth and is just one of many epithermal veins on the Holly property. Highlight drilling intercepts are shown in the table below.

Exploration work at Holly was put on hold following an aggressive demonstration at the property that saw a small opposition group set fire to the drill rig. The company has worked tirelessly over the last two years with the local people promoting the benefits resource development can bring.

The recent announcement by neighbouring El Salvador's president, Nayib Armando Bukele Ortiz, who is well respected in the border areas of Guatemala, emphasizes using El Salvador's mineral wealth to support economic growth. The president stated in a speech that the country is losing out on the value of their unmined gold deposits. "If we make responsible use of our natural resources, we can change the economy of El Salvador overnight," he wrote on social media. This has resonated with the mayors and population of the towns around Holly who have contacted the company expressing full support for the advancement of the Holly project.

Volcanic's geological team is currently evaluating the best approach to restarting exploration at the Holly property and other targets in the region using the extensive proprietary database the Gold Group has established over the past 20 years exploring in Central America.

Simon Ridgway, president and chief executive officer of Volcanic Gold Mines, commented, "We have been patient and now feel the time is right to re-establish our presence in the region and help create the economic benefits that result from the evolving economic policies."

Corporate update

The company also announces the resignations of two of its directors, Charles Straw and Michael Povey, who will be focusing on other business activities. Their valuable contributions to the Volcanic board over the past several years are very much appreciated and the company wishes them all the best in their future endeavours.

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.

The Holly project mineral resource of 1.3 Mt (million tonnes) 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 with an effective date June 7, 2022.

Resources estimated using a 3.0 g/t gold equivalent cut-off grade and a top cap grade of 100 g/t gold and 2,000 g/t silver and presented on a 100-per-cent basis.

Gold equivalent (AuEq) values based on $1,800 (gold) and $22 (silver) using formula (Au g/t plus (Ag g/t multiplied by 0.01222)).

Mineral resources which are not mineral reserves have not demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, marketing or other relevant issues. The mineral resources in this report were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum standards on mineral resources and reserves, definitions, and guidelines prepared by the CIM standing committee on reserve definitions and adopted by the CIM council. Notwithstanding, to meet the requirement that the reported mineral resources show "reasonable prospects for eventual economic extraction."

The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource. It is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.

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.