Volcanic Gold provides update on developments in Guatemala

"We continue to have a strong commitment to progressing our interests in Guatemala. We are very encouraged by the optimism for success by Bluestone Resources at its Cerro Blanco Gold deposit and by the Guatemalan government's strong support for mining projects and assertion to be the arbitrators of the law as they stand firmly against anti-mining groups and their biased commission," stated Simon Ridgway, President & CEO of Volcanic. "Our focus remains on advancing our projects in Guatemala and working with the supportive community and government to bring robust economic benefits to the region in an environmentally safe and socially responsible way," continued Mr. Ridgway.

The Company recently filed an NI 43-101 technical report (see news release July 27, 2022) supporting an initial Inferred Mineral Resource of 406,316 oz Au Eq* estimated from the first target, La Peña vein at Holly. The high grade La Peña vein remains open to expansion along strike and at depth and several other drill targets remain to be tested at Holly with potential for new discoveries. Reporting the resource estimate for the discovery at the Holly property was important to show the community in Guatemala that we are developing a viable resource that will lead to a positive economic influence on the area and offer well paying, much needed employment for members of the community.

* Gold Equivalent (AuEq) values based on US$1800 Au and US$22 Ag, using formula: gold g/t + (silver g/t*0.01222)

As Volcanic previously stated (see news release Sept 1, 2022), the Company intends to resume drilling at its Holly property once Bluestone has been granted a permit to build a mine at Cerro Blanco. Bluestone has issued an update on Cerro Blanco (see Bluestone news release Sept 19, 2022).

Bluestone has made significant progress in advancing the Cerro Blanco Project and as a result has drawn attention from certain anti-mining groups known in the region for spreading misinformation. According to Volcanic's research, the lead anti-mining organization brought together opposition groups from El Salvador and other parts of Guatemala to unfairly portray public opinion on future mining activities within the municipal limits of Asuncion Mitta where the Cerro Blanco deposit is located. This week, however, according to local news reports (Prensa Libre/26 September) the constitutional court of Guatemala has annulled the illegitimate community consultation carried out by the anti-development groups, thereby establishing legal certainty that only the Guatemala mining ministry is competent to perform such consultations.

Over 25% of people in Guatemalan communities earn less than $1.00 per day, hence many risk their lives to travel north to try and enter the United States to find reasonable wages to support their families. And yet international organizations voice their objections to any development of the country's natural resources without providing any solutions to improve the livelihoods of Guatemalans.

Progress in Guatemala

Volcanic continues to work closely with the local communities toward creating employment opportunities and educational outreach. The community's primary areas of interest are employment and positive projects. The Company is diligently working with the various community participants and is encouraged by steps taken by the Community Councils for Urban and Rural Development (COCODE) of Guatemala to look for further discussion. The COCODE is configured as the coordinating entity for participation at the community level and is made up of residents of the corresponding communities.

Volcanic is currently advancing various studies and reports for the Holly property, including a hydrogeological study, an environmental monitoring report, and a mine design and facility report.

Technical Information

Bruce Smith, M.Sc. (Geology), a member of the Australian Institute of Geoscientists, is the Company's Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Smith has reviewed and approved the technical information contained in this news release.

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 its property interests 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, the uncertainties inherent in the mineral resource estimates; 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.