Volcanic Closes $740,000 Financing

VOLCANIC METALS CORP.

Suite 680, 789 West Pender Street Vancouver, BC V6C 1H2 Tel: (604) 568-6312 / Fax: (604) 357-1419

For Immediate Release TSX-V: VOL

VOLCANIC CLOSES $740,000 FINANCING

March 7, 2011 – Vancouver, BC, Canada. Volcanic Metals Corp. ("Volcanic") is pleased to announce that it has closed its non-brokered private placement announced on January 19, 2011 and increased on February 18, 2011, issuing a total of 2,960,000 non-flow-through units (a "Unit") at a price of $0.25 per Unit for gross proceeds of approximately $740,000.

Each Unit consisted of one common share and one-half of a warrant, a whole warrant entitling the holder to purchase a common share at a price of $0.35 for a period of 24 months after closing, subject to acceleration on the occurrence of certain events. The securities issued are subject to a hold period expiring June 4, 2011. The Company paid $14,000 and issued 15,600 finder's warrants in payment of finder's fees, each finder's warrant entitling the holder thereof to purchase a common share at a price of $0.35 for a period of 18 months after closing, subject to acceleration on the occurrence of certain events.

Volcanic also advises that its second private placement, announced January 26, 2011, has been cancelled. For more information, please visit the company website at www.volcanicmetals.com.

ON BEHALF OF THE BOARD

VOLCANIC METALS CORP.

/s/ John LaGourgue

John LaGourgue President, Chief Executive Officer and Director

For further information contact:

John LaGourgue (604) 568-6312 http://www.volcanicmetals.com

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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