Volcanic Gold announces non-brokered financing of $1.5 million to fund restart of drilling at Holly Property, Guatemala

(TheNewswire)

May 8, 2025 – TheNewswire - Vancouver, British Columbia – Volcanic Gold Mines Inc.(TSXV: VG) (“Volcanic” or “the Company”) is pleased toannounce that it intends to complete a non-brokered private placementfinancing to raise up to $1.5 million to fund the resumption ofexploration activities on the Holly Property located in Guatemala. Theoffering will consist of up to 12.5 million units at $0.12 per unit. Each unit will consist of one common share of the Company and onewarrant which will entitle the holder to purchase one additionalcommon share at a price of $0.16 for 24 months.  The warrants willhave an exercise acceleration clause such that following the statutoryhold period, if the closing price of the Company’s shares exceeds$0.25 for any 10 consecutive trading days, the Company will have theright to accelerate the expiry date to 30 calendar days.

Spectacular grades were obtained in the previousdrilling at Holly where north-west trending epithermal veins cut theregional-scale east-west trending Jocotán structure. Drilling hasdefined a mineral resource of 410,000 ounces gold equivalent at agrade of 9.6 Au equivalent grams per tonne (see Technical Informationbelow). The resource is open to potential expansion.

Drill permits are in place and the Company now has thesocial licence to operate. Future drilling will aim to extend anddefine the depth and strike extent of mineralization and tighten drillspacing to upgrade the confidence level of the current mineralresource.

Figure 1: Vertical long section along the Pena veinlooking 040 ° northeast showing drill intercepts and interpretedgeology. The deeper level area between and along strike of high-gradeintercepts in drillholes HDD-21-027 (labelled27) and HDD-21-023 (labelled 23) is targeted for infill and extensiondrilling.

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Technical Information

Luc English PhD, who is a Chartered Geologist andFellow of the Geological Society of London, is the Company’sQualified Person as defined by National Instrument 43-101 - Standardsof Disclosure for Mineral Projects. Dr English has reviewed andapproved the technical information contained in this newsrelease.

The Holly project mineral resource is 1.3 Mt at6.5 g/t for 270,000 oz contained gold and 11 Moz at 260 g/tcontained silver, which equates to 9.6 g/t at 410,000 oz goldequivalent (effective date 7 June 2022).

1. Resources estimated using a 3.0 g/t gold equivalentcut-off grade and a top cap grade of 100 g/t Gold and 2,000 g/tSilver and presented on a 100%-basis.

2. Gold Equivalent values are based on Au$1800 and Ag$22using the formula: Au g/t + (Ag g/t*0.01222).

3. Mineral Resources are not Mineral Reserves and have notdemonstrated economic viability. The estimate of Mineral Resources maybe materially affected by environmental, permitting, legal, marketing, or other relevant issues. The mineralresources in this report were estimated using the Canadian Instituteof Mining, Metallurgy and Petroleum standards on mineral resources andreserves, definitions, and guidelines prepared by the CIM standingcommittee on reserve definitions and adopted by the CIM council.Notwithstanding, to meet the requirement that the reported MineralResources show “reasonable prospects for eventual economicextraction”.

4. The quantity and grade of reported Inferred resourcesin this estimation are uncertain in nature and there has beeninsufficient exploration to define these Inferred Resources as anIndicated or Measured Mineral Resource. It is uncertain whetherfurther exploration will result in an upgrade to Indicated or MeasuredMineral Resource category.

About Volcanic

Volcanic brings together an experienced and successfulmining, exploration and capital markets team focused on buildingmulti-million-ounce gold and silver resources in underexploredcountries.  Through the strategic acquisition of mineral propertieswith demonstrated potential for hosting gold and silver resources, andby undertaking effective exploration and drill programs, Volcanicintends 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 its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.

Forward-looking statements

Certain statements contained in this news releaseconstitute forward-looking statements within the meaning of Canadiansecurities legislation. All statements included herein, other thanstatements of historical fact, are forward- looking statements andinclude, without limitation, statements about the Company’s plansfor its property interests in Guatemala and the possible expansion ofthe Holly Property mineral resource. Often, but not always, theseforward-looking statements can be identified by the use of words suchas “estimate”, “estimates”, “estimated”, “potential”,“open”, “future”, “assumed”, “projected”, “used”,“detailed”, “has been”, “gain”, “upgraded”,“offset”, “limited”, “contained”, “reflecting”,“containing”, “remaining”, “to be”, “periodically”, orstatements that events, “could” or “should” occur or beachieved and similar expressions, including negativevariations.

Forward-looking statements involve known and unknownrisks, uncertainties and other factors which may cause the actualresults, performance or achievements of the Company to be materiallydifferent from any results, performance or achievements expressed orimplied by forward-looking statements. Such uncertainties and factorsinclude, among others, the uncertainties inherent in the mineralresource estimates; whether the Company’s plans for its propertyinterests in Guatemala will proceed as intended, and whether the HollyProperty mineral resource will be expanded; changes in generaleconomic conditions and financial markets; the Company or any jointventure partner not having the financial ability to meet itsexploration and development goals; risks associated with the resultsof exploration and development activities, estimation of mineralresources and the geology, grade and continuity of mineral deposits;unanticipated costs and expenses; and such other risks detailed fromtime to time in the Company’s quarterly and annual filings withsecurities regulators and available under the Company’s profile onSEDAR+ at www.sedarplus.ca. Although the Company has attempted to identify importantfactors that could cause actual actions, eventsor results to differ materially from those described inforward-looking statements, there may be other factors that causeactions, events or results to differ from those anticipated, estimatedor intended.

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

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