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VG.V ·

Volcanic Completes $5.0 Million Financing

Financings

200 Burrard Street, Suite 650 Tel: 604.801.5432

Vancouver, BC V6C 3L6 Fax: 604.662.8829

TSX-V: VG

NEWS RELEASE

Volcanic Completes $5.0 Million Financing

March 10, 2017 – Vancouver, British Columbia – Volcanic Gold Mines Inc. (the “Company”)

(TSXV: VG) is pleased to report that it has closed its previously announced non- brokered private

placement financing by issuing 12.5 million units at $0.40 per unit, for proceeds of $5.0 million.

Each unit consist s of one common share and one full warrant, each warrant entitling the holder to

purchase one additional common share of the Company at $0.80 for five years from closing . The

warrants are subject to an acceleration provision such that if the closing price of the Company’s

shares for 10 consecutive trading days is $1.00 or greater, the Company may give notice to the

holders of the warrants that the warrants will expire 30 calendar days after receipt of such notice.

In connection with this financing, the Company paid finder’s fees totaling $220,262 cash and issued

a total of 550,655 warrants which have the same terms as described above. The common shares and

warrants issued in the placement are subject to a resale restriction until July 10, 2017.

The proceeds of the placement are intended to be used for exploration of the Company’s recently

acquired Mandiana Project located in Guinea, for possible future property acquis itions, and for

general working capital purposes.

About Volcanic

Volcanic brings together a deeply experienced and successful mining, exploration and capital

markets team focused on building a multi -million ounce gold resource in the underexplored West

African country of Guinea and its neighbouring countries. Through the strat egic acquisition of

mineral properties with demonstrated potential for hosting gold resources, and by undertaking

effective exploration and drill programs, Volcanic looks to become a leading junior gold resource

company.

For further information, contact J eremy Crozier at 604 -801-5432, or visit our website at

www.volgold.com.

Volcanic Gold Mines Inc.

Jeremy Crozier, President

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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 li mitation, statements about the Company’s intended use of the financing

proceeds 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 spend the financing proceeds 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 associ ated 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 mater ially 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 spend the financing proceeds as planned; that the

Company’s stated goals and planned exploration and development activities will be achieved; that there will be no

material adverse change affecting the Company 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, future 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.