Mr. Simon Ridgway reports

VOLCANIC GOLD ANNOUNCES NON-BROKERED FINANCING OF $1.5 MILLION TO FUND RESTART OF DRILLING AT HOLLY PROPERTY, GUATEMALA

Volcanic Gold Mines Inc. intends to complete a non-brokered private placement financing to raise up to $1.5-million to finance the resumption of exploration activities on the Holly property, located in Guatemala. The offering will consist of up to 12.5 million units at 12 cents per unit. Each unit will consist of one common share of the company and one warrant, which will entitle the holder to purchase one additional common share at a price of 16 cents for 24 months. The warrants will have an exercise acceleration clause such that following the statutory hold period, if the closing price of the company's shares exceeds 25 cents for any 10 consecutive trading days, the company will have the right to accelerate the expiry date to 30 calendar days.

Spectacular grades were obtained in the previous drilling at Holly, where northwest-trending epithermal veins cut the regional-scale east-west-trending Jocotan structure. Drilling has defined a mineral resource of 410,000 ounces gold equivalent at a grade of 9.6 grams per tonne (g/t) gold equivalent (AuEq) (see technical information below). The resource is open to potential expansion.

Drill permits are in place and the company now has the social licence to operate. Future drilling will aim to extend and define the depth and strike extent of mineralization, and tighten drill spacing to upgrade the confidence level of the current mineral resource.

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.

The Holly project mineral resource is 1.3 million tonnes (t) at 6.5 g/t for 270,000 ounces (oz) contained gold (Au) and 11 million oz at 260 g/t contained silver (Ag), equating to 9.6 g/t at 410,000 oz gold equivalent (effective date of June 7, 2022):

1. 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;
2. Gold equivalent values are based on gold at $1,800 and silver at $22 using the formula: Au g/t plus (Ag g/t times 0.01222);
3. Mineral resources are not mineral reserves and 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;"
4. 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 whether further exploration will result in an upgrade to 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.