Recent announcement from Aura Mines is a positive step for Mining in Guatemala

(TheNewswire)

January 13, 2026 – TheNewswire- Vancouver, British Columbia – Volcanic GoldMines Inc. (TSXV: VG) (“Volcanic” or “the Company”) is pleasedto note the announcement on January 6th that AuraMinerals Inc., the owners of the Era Dorado Project (previously knownas the Cerro Blanco gold deposit) have received a construction licenseand have commenced early works on the development of an undergroundmine. (See news release January 6, 2026 Aura Minerals Inc. (NASDAQ:AUGO))

This marks a significant milestone for the advancementof this project and for the future of mining in Guatemala. With astated aim of producing over 1.6 Moz gold at a rate of 100-120 koz peryear, the Era Dorada mine will provide a significant boost to thelocal and national economy (see news release December 8, 2025 -- AuraMinerals Inc. (NASDAQ: AUGO)).

The management of Volcanic has believed for some timethat the start of construction of an underground mine at Era Doradowould be an important step for the development of Volcanic’s nearbyHolly project. The Holly project is located some 40 km north ofAura’s Era Dorado project, is connected by paved road, and has aninferred mineral resource of 1.32 million tonnesat 6.46 g/t Au and 256 g/t Ag(1) for 270,000oz contained gold and 11 Moz contained silver. The Company believesthat Holly has potential to be developed as an undergroundmine. Despite good support from many of thecommunities of the area, some groups within thelocal and municipal councils have stated that they oppose the project. Development of the nearby Era Dorado mine in anenvironmentally and socially responsible manner should alleviate some of the opposition’s concerns. Volcanic’smanagement believe that it is important to have majority support andunilateral acceptance before resuming exploration and development ofthe Holly project.

Simon Ridgway, President and Chief Executive Officer ofVolcanic Gold Mines, commented: "Since 2022, when demonstrationsresulted in suspension of our drilling campaign, we have worked withthe local community promoting the benefits of restarting work at theHolly Project.  There is now an opportunity for the inhabitants ofthe area to see the advantages that responsiblemining can bring to a region.  Steady reliable employment createsprosperity that spreads far beyond those directly employed at themine.”

The Company continues to review a number of otheropportunities both within Guatemala and other parts of CentralAmerica.

(1) News Release, Volcanic GoldMines Inc. Volcanic files NI 43-101 technical report for InitialResource Estimate at Holly Project, Guatemala, July 27, 2022.

Technical information

Luc English, PhD, Vice-President, Exploration of theCompany, is a chartered geologist and fellow of the Geological Societyof London, and is the Company's Qualified Person as defined byNational Instrument 43-101 (Standards of Disclosure for MineralProjects). Dr. English has reviewed and approved the technicalinformation contained in this news release.

The Holly project mineral resource is 1.3 milliontonnes at 6.5 g/t for 270,000 ounces contained gold and 11 millionounces at 260 g/t contained silver, which equates to 9.6 g/t at410,000 oz gold equivalent, with an effective date of June 7,2022.

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/t silverand presented on a 100-per-cent basis. 

2. Gold equivalent values were based on $1,800 for and $22for silver. 

3. Mineral resources are not mineral reserves and have notdemonstrated economic viability. The estimate of mineral resources maybe materially affected by environmental, permitting, legal, marketingor 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 Gold Mines Inc.

Volcanic brings together an experienced and successfulmining, exploration and capital market team focused on buildingmultimillion-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 atwww.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. 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; 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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