Volcanic Gold prepares to Restart Exploration at Holly Property with a Focus on Increasing the High-grade Resource

(TheNewswire)

March 3, 2025 – TheNewswire - Vancouver, British Columbia – Volcanic GoldMines Inc. (TSXV: VG) (“Volcanic” or “the Company”) is pleasedto announce the resumption of exploration activities on the HollyProperty in Guatemala. Previous drilling in 2021-22 at Holly definedan inferred resource of 1.32 million tonnes at 6.46 g/t Au and 256 g/tAg (1) .

Spectacular grades were obtained in the last drillcampaign where north-west trending epithermal veins cut theregional-scale east-west trending Jocotán fault breccia. Drilling hasdefined continuous high-grade mineralization along the La Peña vein to approximately 200 mbelow surface which remains open to depth and on strike. The La Peña vein has beentraced over 50 m into the metamorphic phyllites to the north of the Jocotán breccia with grades of up to 15.55 mat 7.67 g/t gold and 615 g/t silver (drill holeHDD-21-015) . To the South of the Jocotánbreccia, high-grade intercepts have been returned where drillholes cutthe vein in a sequence of interbedded volcanic and sedimentaryrocks . The highest-grade drill intercept todate, 4.58 m at 79.84 g/t gold and 5,053 g/tsilver (drill hole HDD-21-023), occurs in a thick mudstone unit at thebase of the current mineral resource . The areaaround this high-grade drill intercept and the depth continuation ofthe intersection of the Peña vein and the Jocotán breccia are priority targets for further drilling.

The Peña vein is only one of severalepithermal veins on the Holly property. Insufficient drill density onother veins means that they have not been included in the currentmineral resource estimate, but they contain significant gold-silvermineralization that may add to the overall Holly resource with furtherdrilling. The stand-out Pino vein which cuts the Jocotán breccia only 650 m to the eastof the Peña vein has a strike length of at least 100 m defined byrock chip samples. Three exploration drillholes at the northern end ofthe vein returned drill intercepts of (1) 3.60 m at 22.03 g/t gold and697 g/t silver, (2) 4.23 m at 4.00 g/t gold and 136 g/t silver, and(3) 3.17 m at 2.93 g/t gold and 284 g/t silver, all from within 40 mof the surface. These exploration drill results are comparable withthe best intercepts at La Peña vein.

The Company has drilling permits in place and isworking with landowners, local authorities and the local community fora social licence to operate. Additional drilling will aim to extendthe depth and strike extent of mineralization and tighten drillspacing to upgrade the confidence level of the mineral resource.

Initial drilling will test the two priority areasoutlined above: (1) defining the strike length and tracking the Peñavein down-dip where the mineral resource could potentially beexpanded, and (2) additional drilling on the Pino vein to bring theexisting high-grade drill intercepts into the mineral resource.

Figure 1: Vertical long section along the Pena veinlooking 040 ° northeast showing drill intercepts and interpretedgeology. The area around the isolated high-grade intercept in the mudstone in drillhole HDD-21-023(labelled 23) is targeted for infill and extension drilling.

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Figure 2: Holly project interpreted surface geology,surface rock chip samples, and selected drill intercept projected tosurface.

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Drill intercepts in the Peñavein hosted by the Jocotán breccia

*Reported as 5.29 g/t Au in news release July 7, 2021prior to receiving laboratory overlimit re-assay. Recalculated as 5.45g/t Au using final assay results.

Drill intercepts in the Peñavein hosted by metamorphic phyllite rock

Drill intercepts in the Peñavein hosted by the interbedded volcanic andsedimentary unit

Drill intercepts in the Pino vein hosted by theJocotán breccia

(1) News Release, Volcanic Gold Mines Inc. Volcanicfiles NI 43-101 technical report for Initial Resource Estimate atHolly Project, Guatemala, July 27, 2022.

Simon Ridgway, President and CEO of Volcanic GoldMines, commented: “Since 2022 when demonstrations resulted insuspension of the drilling campaign, we have worked with the localcommunity promoting the benefits that resource development can bring.There is a sense now that the attitude towards foreign investment andmetallic mining is changing for the better and feedback from the localcommunity is positive. We feel the time is right to reactivate what isan exciting high-grade gold-silver prospect at Holly. The nextdrilling campaign will be an opportunity to further support theexisting mineral resource estimate and to start bringing some of theother veins in the Holly system into the resource envelope.”

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 of 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 with an 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 Au(eq) values were based on Au$1800 andAg$22 using 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 mineral resources in this report wereestimated using the Canadian Institute of Mining, Metallurgy andPetroleum standards on mineral resources and reserves, definitions,and guidelines prepared by the CIM standing committee on reservedefinitions and adopted by the CIM council. Notwithstanding, to meetthe requirement that the reported Mineral Resources show “reasonableprospects 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 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. 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 planned exploration workwill be proceed as intended; whether the Company’s plan for itsproperty interests will proceed as intended; 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 hasattempted to identify important factors that could cause actualactions, events or results to differ materially from those describedin forward-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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