Volcanic Completes Private Placement

VOLCANIC METALS CORP.

Suite 700, 510 West Hastings Street Vancouver, BC V6B 1L8 Tel: (604) 568-6312 / Fax: (604) 319-0447

For Immediate Release TSX-V: VOL

VOLCANIC COMPLETES PRIVATE PLACEMENT

January 24, 2013 – Vancouver, BC – Volcanic Metals Corp. (the "Company") (TSXV: VOL) announces that it has closed on $134,000 of the private placement (the "Offering") originally announced on December 21, 2012. Under the terms of the Offering, the Company issued 13,400,000 common shares and 13,400,000 share purchase warrants (the "Warrants"), for gross proceeds of $134,000. The Offering was conducted pursuant to the TSX Venture Exchange (the "Exchange") "Temporary Relief Measures" Bulletin dated December 12, 2012 (the "Bulletin"). The Company will not be proceeding with the balance of the announced $500,000 Offering.

Each Warrant entitles the holder to acquire one common share of the Company for a period of two years, exercisable at a price of $0.05 per share in the first year and $0.10 per share in the second year. The securities sold pursuant to the Offering are subject to a four month hold period expiring on May 25, 2013.

Proceeds from the Offering will be used to fund $22,000 in public company fees and expenses, $43,000 for professional services, $19,000 for general and administrative expenses and $50,000 for general working capital. The Offering has been approved by the Company's board of directors, excluding those directors that have a direct interest in the Offering.

Pursuant to the Offering, Michael Iverson, the Company's CEO, has acquired 1,850,000 common shares and 1,850,000 Warrants. Mr. Iverson now has ownership and control over 4,078,000 common shares, 1,850,000 Warrants and 241,480 stock options of the Company, representing 9.2% of the Company's issued and outstanding shares (13.3% assuming exercise of all of the Warrants and options held by Mr. Iverson).

Mr. Iverson advises that he has acquired securities for investment purposes and that he may in the future acquire or dispose of securities of the Company, through the market, privately or otherwise, as circumstances or market conditions warrant.

On behalf of the Board of Directors

VOLCANIC METALS CORP.

/s/ Michael Iverson

Contact:

Michael Iverson Chief Executive Officer (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..

which are not historical in nature are intended to be, and are hereby identified as, "forward‐looking statements". Statements included in this announcement, including statements concerning our plans, intentions and expectations,

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Forward‐looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward‐looking statements, including risks and uncertainties that could cause actual results to differ materially from those indicated in the forward‐looking without limitation those relating to the Company's future operations and business prospects, are subject to certain

statements.