VG:CC - Volcanic Gold Mines and Radius Gold announce modification to Option Agreement to include the Motagua Norte project

(TheNewswire)

September 18, 2023 – TheNewswire - Vancouver, British Columbia – Volcanic Gold Mines Inc.(TSXV:VG) (“Volcanic” or the “Company”) and Radius Gold Inc. (“Radius”) are pleased to announce that they have modifiedthe Option Agreement signed in 2020 (seeVolcanic News Release September 3, 2020) toinclude the Motagua Norte project in exchange for the Banderasproject. The work that the Volcanic team hascompleted to date has demonstrated that MotaguaNorte is a high grade orogenic gold system withcompelling drill targets.

Highlights

• Under the modified Option Agreement, Volcanic has anoption to earn a 60% interest in the Holly and Motagua Norte projectsif Volcanic spends US$7M on exploration of the properties within 48months from March 2021, being the date drilling permits were grantedfor the Holly project.

• Volcanic has invested ~US$4.29M in exploration onHolly, and under the modified Option, a minimum of $2.0M will bedirected at the exploration and drilling of Motagua Norte.

• Volcanic’s geological team spent considerable timeand resources evaluating Radius’s 340,000 ha regional applicationsin eastern Guatemala and identified the Motagua Norte prospect as highgrade orogenic gold system with compelling drill targets.

The modified Option Agreement is subject to approval bythe TSX Venture Exchange.  As Volcanic and Radius have a commondirector and two common officers, Radius is a “non-arm’s lengthparty” to Volcanic within the meaning of TSX Venture Exchange Policy5.9.  The modified option agreement is not, however, a “relatedparty transaction” as defined in Multilateral Instrument 61-101,Protection of Minority Security Holders in Special Transactions (“MI61-101”) and therefore the requirements of the Exchange’s Policy5.9 and MI 61-101 do not apply.

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.

AboutVolcanic

Volcanic brings together an experienced and successfulmining, 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 withdemonstrated potential for hosting gold and silver resources, and byundertaking effective exploration and drill programs, Volcanic intendsto 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 northe Investment Industry Regulatory Organization of Canada acceptsresponsibility for the adequacy or accuracy of this release.

Forward-looking statements

Certain statements contained in thisnews release constitute forward-looking statements within the meaningof Canadian securities legislation. All statements included herein, other thanstatements of historical fact, are forward- looking statements andinclude, without limitation, statements about the Company’s modifiedoption agreement with Radius. 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”, “hasbeen”, “gain”, “upgraded”, “offset”, “limited”,“contained”, “reflecting”, “containing”, “remaining”,“to be”, “periodically”, or statements that events,“could” or “should” occur or be achieved and similarexpressions, including negative variations.

Forward-looking statements involveknown and unknown risks, uncertainties and other factors which maycause the actual results, performance or achievements of the Company to be materially different from any results, performance orachievements expressed or implied by forward-looking statements. Suchuncertainties and factors include, among others, whether theCompany’s planned exploration work will be proceed as intended;changes in general economic conditions and financial markets; theCompany or any joint venture partner not having the financial abilityto meet its exploration and development goals; risks associated withthe results of exploration and development activities, estimation ofmineral resources and the geology, grade and continuity of mineraldeposits; 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 underthe Company’s profile on SEDAR+ at www.sedarplus.ca. Although the Company has attempted toidentify important factors that could cause actual actions, events orresults to differ materially from those described in forward-lookingstatements, there may be other factors that cause actions, events orresults to differ from those anticipated, estimated or intended.

Forward-looking statements containedherein are based on the assumptions, beliefs, expectations andopinions 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 otherassumptions as set out herein. Forward-looking statements are made asof 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 asrequired 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 onforward-looking statements.

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