Mr. Simon Ridgway reports

VOLCANIC ANNOUNCES UPSIZE TO BOUGHT DEAL OFFERING

Volcanic Gold Mines Inc. has amended the terms of its previously announced offering of units of the company. Under the amended terms of the offering, Haywood Securities Inc., on behalf of a syndicate of underwriters, including Canaccord Genuity Corp., has agreed to purchase, on a bought deal basis, 10.91 million units of the company, at a price of 55 cents per unit for gross proceeds to the company of $6,000,500.

Each unit will consist of one common share in the capital of the company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one common share at a price of 70 cents for a period of 18 months following the closing date.

The company will pay the underwriters a cash commission of 6.0 per cent of the gross proceeds of the offering, subject to a reduced cash commission being payable on sales to certain members of the president's list and will issue to the underwriters broker warrants exercisable at any time prior to the date that is 24 months after the closing date at a price of 55 cents per broker warrant to purchase such number of units as is equal to 6 per cent (reduced in the case of president's list sales) of the aggregate number of units issued pursuant to the offering, including on any proceeds realized on the exercise of the overallotment option. Each broker unit will comprise one common share and one-half of one common share purchase warrant.

In addition, Silvercorp Metals Inc. may exercise its right to maintain its 19.9-per-cent pro rata interest in the outstanding shares of the company by purchasing, in a concurrent private placement, units at the offering price which will increase the gross proceeds to the company.

The underwriters have been granted an option, exercisable in whole or in part, at any time within 48 hours prior to the closing date, to purchase from the company up to an additional 15 per cent of the units offered under the offering.

The offering is expected to close on or about Oct. 20, 2020, or such other date as may be agreed by the underwriters and the company, and is subject to the company receiving all necessary regulatory approvals, including the approval of the TSX Venture Exchange and applicable securities regulatory authorities. The units and broker warrants will be offered by way of a short-form prospectus in each of the provinces of British Columbia, Alberta, Saskatchewan and Ontario.

The company plans to use the net proceeds from the offering for the exploration and advancement of the company's principal assets in Guatemala and for general corporate purposes.

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.