Mr. Simon Ridgway reports

DRILLING AT THE HOLLY PROPERTY DELAYED

During the recent visit of Volcanic Gold Mines Inc.'s president to the Holly project in Guatemala, it was noted that there is still some resistance to mining activities in the area adjacent to the project. For this reason, the company considers it prudent to postpone the start of drilling until more favourable conditions are achieved. The company is currently in discussions with local authorities and the community to reach an understanding and create a more suitable environment. The company is fully permitted to drill, and has agreements with all landowners where the drilling would take place, but it is the president's opinion that conflict is likely to take place if drilling restarts at this time.

Spectacular grades were obtained in the previous drilling at Holly where northwest-trending epithermal veins cut the regional-scale east-west-trending Jocotan structure. The last drilling campaign in 2021 to 2022 defined an inferred mineral resource of 1.32 million tonnes at 6.46 grams per tonne Au (gold) and 256 g/t Ag (silver) at Holly. Further drilling has been planned to extend the depth and strike extent of mineralization and tighten drill spacing to upgrade the confidence level of the mineral resource.

Volcanic's president and chief executive officer, Simon Ridgway, stated: "The company has worked tirelessly over the last two years with the local people promoting the benefits that resource development can bring, and it is unfortunate that we are prevented from advancing this project at this time. Our earlier decision to restart drilling was based on my previous meeting with the mayor and on information from other trusted sources. However, when we started preparations to work, some groups within the local and municipal councils expressed opposition. It is important that we work through their concerns to obtain majority support and unilateral acceptance before proceeding with the planned drilling.

"As the safety of local residents and our personnel is of the utmost importance, we cannot with good conscience restart work at this time. We will continue our discussions with the local community and also await developments at the nearby Cerro Blanco gold project."

The company is aggressively reviewing a number of other opportunities both within Central America and in other jurisdictions.

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.