VG - Volcanic Reflects on Recent News Regarding Bluestone and the Cerro Blanco Gold Deposit in Guatemala and the Implications for the Holly Gold Discovery

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Vancouver, British Columbia - TheNewswire - July 10, 2023 - Volcanic Gold Mines Inc. (TSXV:VG ) (“ Volcanic ” or the “ Company ”) On July 6, 2023, Bluestone Resources Inc.(TSX-V: BSR) outlined plans for its Cerro Blanco feasibility stagegold and silver project in Guatemala in a news release entitled“Bluestone Announces Strategic Review Process”. The Bluestone newsrelease announced that: “… the Company has commenced a process to explore and evaluatepotential strategic alternatives to further advance the Cerro Blancogold project ” and states further that:“ These alternatives couldinclude, among other things, the sale of part or all of the assets ofthe Company, a sale of the Company, a merger or other businesscombination with another party, or other strategictransaction.” 1

After reviewing the news release from Bluestone, SimonRidgway, Founder, President and CEO of Volcanic Gold Mines statedthat: “ Jurisdictionaside , the Cerro Blanco gold deposit is probably one of the moreeconomically attractive gold deposits in today’s market . This is ahigh-margin gold deposit, whether viewed as an undergroundmine , with an impressive measured and indicated mineral resource of 1.41Moz at 10.3 g/t Au 1 and4.1 Moz at 35.6 g/t Ag 2 or, asan open pit scenario with measured and indicated mineral resourcestotal 3.1 Moz grading at 1.5 g/t Au 3 and 13.4 Moz at 6.6 g/t Ag 3 . ”

The Cerro Blanco’s initial 2019 feasibility study,that proposed mining the deposit as an underground mine, providedimpressive economics that included an after-tax IRR of 34% and AISC ofUS$579/oz using a base case of US$1250/oz gold and US$18/ozsilver 4 .”

Volcanic Gold’s Holly discovery is located on privateland about 60 km north of Cerro Blanco along a paved highway. It has amaiden inferred mineral resource on La Peñavein, (one of many veins) of 1.3 Mt at 6.5 g/tfor 270,000 oz contained gold and 11 Moz at 260 g/t contained silver,which equates to 9.6 g/t at 410,000 oz gold equivalent .* , 5

As has been stated in a previous newsrelease 6 , Volcanic Gold is committed to engaging with localstakeholders and actively working with communities to further developand deliver impactful community programs. Simon Ridgway, CEOcommented: “ Drilling was stopped at Holly due to pastsocial unrest, when anti-mining groups invaded the project. However,twelve months of community work appears to have reached hearts andminds of the local population and I believe the tide isturning.”

In a mining scenario, the Holly project would be minedas an underground operation with processing of the ore remote from thelocation of the project. More drilling is required to determine thefull extent of the underground mineral resource: the deepest hole drilled yet on the La Pe ña Vein cut4. 58m of 79.84 g/t Au and5,053 g/t Ag 7 ( see news release February 16,2022 ) . However, the Company has stated it would notdrill at Holly again until Cerro Blanco had a clear way to production,and that remains the Company’s position.

Volcanic holds the property at Holly under a jointventure agreement with Radius Gold Inc. (TSX-V: RDU). The Company alsoholds other properties in Guatemala under that same J/V agreement, andother important discoveries have been made on that J/V property thatare pending the granting of a mineral concession. “ While things are moving slowly, progressis being made on that front” , commented SimonRidgway.

Simon Ridgway further states: “ While we continue to review opportunitiesin other jurisdictions, we are committed to continue our efforts inGuatemala.  I have been instrumental in both the Cerro Blanco andHolly gold discoveries, and I believe there are many more discoveriesto be made in Eastern Guatemala. Mining could create a vibrant economyin the region, creating employment while protecting the beautifullandscape  and the waters .”

1. News Release, Bluestone ResourcesInc : Bluestone Announces Strategic ReviewProcess, July 6, 2023.

2. News Release, Bluestone Resources Inc.: BluestoneAnnounces Updated Resource Estimate at Cerro Blanco; IncreasesMeasured Indicated resources by 18% to 1.41Moz at 10.3 g/t Au,November 6, 2019.

3. News Release, Bluestone Resources Inc.: BluestoneIncreases Cerro Blanco Mineral Resources to 3.1Moz gold and 13.4Mozsilver, July 19, 2021.

4. News Release, Bluestone Resources Inc.,  BluestoneAnnounces Positive Feasibility Study at Cerro Blanco Gold Project –34% After-Tax IRR and AISC of US$579/oz, January 19, 2019.

5. News Release, VolcanicGold Mines Inc. Volcanic files NI 43-101 technical report for InitialResource Estimate at Holly Project, Guatemala, July 27, 2022.

6. News Release, VolcanicGold Mines Inc, Volcanic Gold Commissions Technical Report on HollyProject as Part of Permit Upgrade and Continues with StakeholderEngagement, February 8, 2023.

7. News Release, Volcanic Gold Mines Inc. - Volcanic Gold drills 4.57 meters @ 54.24 g/t Gold 3,925 g/tSilver February 16, 2022.

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.

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

The Holly project mineral resource has an effectivedate 7 June 2022.

1. Resources estimatedusing a 3.0 g/t Gold equivalent cut-off grade and a top cap grade of100 g/t Gold and 2,000 g/t Silver and presented on a 100%-basis.

2. Gold Equivalent Au(eq) values based on Au$1800 andAg$22 using formula (Au g/t + (Ag g/t*0.01222)).

3. Mineral Resources which are not Mineral Reserves havenot demonstrated economic viability. The estimate of Mineral Resourcesmay be materially affected by environmental, permitting, legal,marketing, or other relevant issues. The mineral resources in thisreport were estimated using the Canadian Institute of Mining,Metallurgy and Petroleum standards on mineral resources and reserves,definitions, and guidelines prepared by the CIM standing committee onreserve definitions and adopted by the CIM council. Notwithstanding,to meet the requirement that the reported Mineral Resources show“reasonable prospects for eventual economic extraction”.

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 if furtherexploration will result in upgrading them to an Indicated or MeasuredMineral Resource category.

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 by undertaking effective exploration and drillprograms, 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 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 plansfor exploration work in Guatemala. 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.sedar.com. 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-lookingstatements 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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