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VG.V ·

Volcanic proposes share consolidation and $375,000 private placement

Financings Corporate Actions

200 Burrard Street, Suite 650 Tel: 604.801.5432

Vancouver, BC V6C 3L6 Fax: 604.662.8829

TSX-V: VG

NEWS RELEASE

Volcanic proposes share consolidation and $375,000 private placement

March 8, 2019 – Vancouver, British Columbia – Volcanic Gold Mines Inc. (TSXV: VG) announces

that management has determined that it is in the best interests of the Company and its shareholders

to consolidate the issued common shares of the Company on the basis of one new share for every

seven existing shares and thereafter complete a non-brokered private placement financing to raise

proceeds of up to $375,000. These transactions are intended to put the Company in a position to

attract new business opportunities.

The private placement will consist of , on a post -consolidation basis, up to 1,500,000 units at $0.25

per unit. Each unit will consist of one post -consolidation common share and one warrant entitling

the holder to purchase one additional post-consolidation common share of the Company at $0.35 for

one year from closing. The proceeds of the placement are intended to be used for general working

capital purposes, including funding management’s search for prospective projects for the Company.

The completion of the share consolidation and private placement is subject to stock exchange

approval. The name of the Company will remain unchanged. The Company’s current issued

capital is 45,886,538 common shares. Upon completion of the previously announced debt

settlement (see Volcanic news release March 4, 2019 ), the share consolidation and the private

placement, the Company’s issued capital would become an estimated 8,618,420 common shares.

About Volcanic

Volcanic brings together an experienced and successful mining, exploration and capital markets

team focused on building multi -million ounce gold resource s in underexplored countries. Through

the strategic acquisition of mineral properties with demonstrated potential for hosting gold

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

a leading gold company.

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

Volcanic Gold Mines Inc.

Simon Ridgway, Executive Chairman

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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 fo rward-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 business goals and the proposed

share consolidation and private placement . 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, pe rformance or

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

others, the proposed share consolidation and private placement ; changes in general economic conditions and financial

markets; t he 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 proposed share consolidation and privat e placement will be

completed as intended; 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, exce pt 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.