Shares issued 45,543,710 VG
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W/C +$7.5 Million cash

Vancouver, British Columbia – Volcanic Gold Mines Inc. (TSXV: VG) (“Volcanic” or “the Company”) is pleased to report on the progress made at the Holly Property.

Government Progress

The Presidential Commission for Peace and Human Rights held the first coordination meetings with institutions and authorities at the national, departmental, and municipal levels during the past few weeks regarding the incidents that took place at the Holly property on February 23rd of this year.

From these meetings it is clear that the Central government and Departmental government of Chiquimula support the Holly project and will work with Volcanic to regain the social licence. Volcanic looks forward to a resolution of the issues and a resumption of work at the project and corresponding news flow.

Holly Project Gold Discovery and New Exploration Opportunities

The gold and silver discovery we have made at Holly is significant. It is a high-grade vein deposit that could be mined from underground, causing very little surface disruption. It will not require a processing plant as in the near future there will likely be two mills in operation within trucking distance. We are in the process of concluding an inferred resource calculation and from that we will generate an approximate value of the deposit that has been discovered to date. Further, the deposit is open in all directions. We will continue to move forward at a pace that will protect the investment we have made and the value we have created.

Elsewhere in the country the Company is actively reviewing the land position it optioned when we signed the agreement with Radius Gold Inc on June 1^st 2020. Several of the areas have been reviewed, some have been rejected and the concession applications cancelled. To date, three have shown significant promise and the Company is going through the process of getting these concessions granted. There are many more areas to review and the work is ongoing.

ESG and CSR Responsibilities

Wherever we work, we make it clear to the local population the work we do, the goal of our work and significance if we are successful (i.e. the development of a mine could follow, and the positive and negative implications of that). We then focus on areas where the local population is in favor of exploration work and where there is a consensus that long term employment is needed in the community. Then we get to work and evaluate the potential of that particular area. Occasionally when area community is clearly not in favor of mining, we inform our partner, Radius Gold Inc., drop the application and move on.

We have all read about the caravans of young men, women, and families that are leaving their homes to travel thousands of miles overland. They are taking those risks to get to the Mexico/US border with the aim of entering the US in search of work for some stability in their family’s future. Why some anti-mining and anti-development organizations collaborate to prevent the development of natural resources in Central America, mostly with mis-information, is difficult to understand. It generates conflict in the area by funding aggressive anti-mining and anti-development groups that conflict with the people who want work and the influx of vital capital to the region.

In all elements of its exploration and business activities, Volcanic conducts itself with integrity and transparency. Sustainability, truth, social responsibility, health and safety, and economic stability are prioritized. Volcanic is proud of the strong relationships formed with local communities and government entities. We strive to create employment and better quality of life for all we encounter. Shareholders and employees alike can depend on Volcanic to take its responsibilities seriously as we strive to produce lasting positive impacts for today and future generations.

About Volcanic

Volcanic brings together an experienced and successful mining, exploration and capital markets team focused on building multi-million-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.

For further information, visit our website at www.volgold.com.

Volcanic Gold Mines Inc.

Simon Ridgway, President and CEO

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Forward-looking statements

Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward- looking statements and include, without limitation, statements about the Company’s plans for exploration work in Guatemala. Often, but not always, these forward looking statements can be identified by the use of words such as “estimate”, “estimates”, “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”, “upgraded”, “offset”, “limited”, “contained”, “reflecting”, “containing”, “remaining”, “to be”, “periodically”, or statements that events, “could” or “should” occur or be achieved and similar expressions, including negative variations.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, whether the Company’s planned exploration work will be proceed as intended; changes in general economic conditions and financial markets; the Company or any joint venture partner not having the financial ability to meet its exploration and development goals; risks associated with the results of exploration and development activities, estimation of mineral resources and the geology, grade and continuity of mineral deposits; unanticipated costs and expenses; and such other risks detailed from time to time in the Company’s quarterly and annual filings with securities regulators and available under the Company’s profile on SEDAR at www.sedar.com Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to: that the Company’s stated goals and planned exploration and development activities will be achieved; that there will be no material adverse change affecting the Company or its properties; and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.