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VG.V ·

Volcanic Closes Option on Guatemala Gold-Silver Properties and Commences Exploration

Mergers & Acquisitions Exploration Programs

200 Burrard Street, Suite 650 Tel: 604.801.5432

Vancouver, BC V6C 3L6 Fax: 604.662.8829

TSX-V: VG

NEWS RELEASE

Volcanic Closes Option on Guatemala Gold-Silver Properties and Commences

Exploration

September 3, 2020 – Vancouver, British Columbia – Volcanic Gold Mines Inc. (TSXV: VG) is pleased to

announce that it has received final acceptance from the TSX Venture Exchange of the Option Agreement

dated May 17, 2020 between Volcanic and Radius Gold Inc. (“Radius”) for the Holly and Banderas

gold-silver properties located in eastern Guatemala.

Under the terms of the Option, Volcanic can earn a 60% interest in the Holly and Banderas properties (full

details of the properties are available on Volcanic’s website) by completing a minimum C$3 million

financing (C$5 million financing completed July 27, 2020) and spending US$7.0 million on exploration of

the properties within 48 months from the date drilling permits are granted . An initial US$1M must be

spent on exploration within 12 months of receiving the required drill permits, including a minimum 3,000m

of drilling. Volcanic is required to make a cash payment to Radius of C$100k (completed). Following the

exercise of the Option, Volcanic will enter into a standard 60/40 joint venture with Radius in order to

further develop the Properties.

Volcanic also has the exclusive right for 24 months following the execution of the Option to evaluate the

other property interests of Radius in eastern Guatemala and to enter into an agreement to acquire an

interest in any of such other properties on reasonable mutually agreed upon terms.

Charles Straw, CEO and Director, commented: “We are pleased to have received final acceptance from the

TSXV for both the Option and our recently completed financing . We are now planning our exploration

programs and working towards obtaining the necessary permits to commence drilling as soon as possible.

Volcanic will continue to work closely with the technical personnel Radius has in Guatemala who have

invaluable expertise that will provide essential support and local knowledge for the implementation of our

strategy.”

About Volcanic

Volcanic brings together an experienced and successful mining, 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 with demonstrated potential for hosting gold and silver

resources, and by undertaking effective exploration and drill programs, Volcanic intends to become a

leading gold-silver company.

For further information, visit our website at www.volgold.com.

Volcanic Gold Mines Inc.

Charles Straw, Director/CEO

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Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts

responsibility for the adequacy or accuracy of this release.

Forward-looking statements

Certain statements contained in this news release constitute forward -looking statements within the meaning of

Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-

looking statements and include, without limitation, statements about the Company’s option to acquire an interest in

the Holly and Banderas properties, and proposed exploration thereon. Often, but not always, these forward looking

statements can be identified by the use of words such as “estimate”, “estimates”, “estimated”, “potential”, “open”,

“future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”, “upgraded”, “offset ”, “limited”,

“contained”, “reflecting”, “containing”, “remaining”, “to be”, “periodically”, or statements that events, “could” or

“should” occur or be achieved and similar expressions, including negative variations.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the

actual results, performance or achievements of the Company to be materially different from any results, performance

or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among

others, whether the Company will exercise its option to acquire an interest in the Holly and Banderas properties, and

whether exploration thereon will proceed as planned; changes in general economic conditions and financial markets;

the Company or any joint venture partner not having the financial ability to meet its exploration and development

goals; risks associated with the results of exploration and development activities, estimation of mineral resources and

the geology, grade and continuity of mineral deposits; 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 under the

Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors

that could cause actual actions, events or results to differ materially from those described in forward -looking

statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated

or intended.

Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of

management, including but not limited to: that the Company will exercise its option to acquire an interest in the Holly

and Banderas properties; that the Company’s stated goals and planned exploration and development activities will

be achieved; that there will be no mat erial adverse change affecting the C ompany or its properties; and such other

assumptions as set out herein. Forward -looking statements are made as of the date hereof and the Company

disclaims any obligation to update any forward -looking statements, whether as a result of new information, fu ture

events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements

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 on forward-looking statements.