Volcanic Announces $600,000 Private Placement and New Director

VOLCANIC METALS CORP.

Suite 700, 510 West Hastings Street Vancouver, BC V6B 1L8 Tel: (604) 568-6312 / Fax: (604) 357-1419

For Immediate Release TSX-V: VOL

VOLCANIC ANNOUNCES $600,000 PRIVATE PLACEMENT AND NEW DIRECTOR

January 19, 2011 – Vancouver, BC, Canada. Volcanic Metals Corp. (the "Company") is pleased to announce that it will undertake a non-brokered private placement of up to 2,400,000 units at a price of $0.25 per unit for gross proceeds of up to $600,000. Each unit will consist of one common share and onehalf of a warrant, a full warrant being exercisable into a common share at a price of $0.35 for a period of 24 months. The securities issued pursuant to the private placement will be subject to a four month hold period from closing. Completion of the private placement and the payment of any finder's fees remains subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

The Company is also pleased to further announce the addition of Mr. Dan Roulston, a Calgary-based Professional Engineer, to its Board of Directors. Mr. Roulston brings over 30 years of experience in all facets of petroleum engineering. Most recently, he held senior management positions at Zargon Oil and Gas Ltd. for over 15 years. He will be a tremendous asset in the Company's evaluation of the initial test wells and potential development on Aldon Oils' 320-acre Viewfield Property, and Brownstone Resources' 6400-acre Moosomin Property – both prospective, early stage projects located in the Southeastern Saskatchewan Bakken (see news release of September 21, 2010). In connection with Mr. Roulston's appointment, the Company has granted 100,000 options exercisable at a price of $0.29 per share for a period of five years. Mr. Roulston will be replacing Mr. Rock Lefrancois, who has resigned from the Board but will remain as a technical consultant.

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.

{008236000-00080543; 1 }