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Volcanic reports further air-core drilling results at Mandiana Project, including 20m at 6.43 g/t Au, 4m at 10.4 g/t Au and 12m at 6.34 g/t Au; expands near-term resource target from 1km to over 3km in length

Drill Results Resource Estimates

200 Burrard Street, Suite 650 Tel: 604.801.5432

Vancouver, BC V6C 3L6 Fax: 604.662.8829

TSX-V: VG

NEWS RELEASE

Volcanic reports further air-core drilling results at Mandiana Project, including

20m at 6.43 g/t Au, 4m at 10.4 g/t Au and 12m at 6.34 g/t Au; expands near-term

resource target from 1km to over 3km in length

October 12, 2017 – Vancouver, British Columbia – Volcanic Gold Mines Inc. (“Volcanic”) (TSXV: VG) is

pleased to report further results of close- spaced air core (“AC”) drilling at its Mandiana Project in Guinea .

The d rilling, immediately adjacent to Volcanic’ s existing Inferred Mineral Resource (“Resource”) at

Yagbelen (as reported on November 6, 201 6), now shows the mineralized target area surrounding and along

strike from the Resource to be over 3km in length, up to 500m in width and consisting of multiple parallel

zones, as shown in red on Figures 1 and 2. This mineralized area is considerably larger than the surface

projection of the Resource ( 1km by up to 200m; shown in magenta on Figure 1) , thereby indicating the

potential to significantly increase this Resource. Note that the maximum downhole depth from collar of AC

drilling is 40m for the entire Yagbelen program. AC results therefore likely represent the surface expression

of underlying mineralization.

Highlights of the AC drilling program are as follows:

Hole From

(meters)

To

(meters)

Interval

(meters)

Gold Grade (g/t)

(at a cut-off grade of 0.5 g/t Au)

17YAC0030 24 28 4 2.27

17YAC0076 8 28 20 6.43

17YAC0088 20 24 4 2.08

17YAC0095 8 20 12 1.67

17YAC0133 36 40 4 10.4

17YAC0153 12 16 4 2.25

17YAC0184 0 12 12 6.34

17YAC0205 28 32 4 3.14

17YAC0244 32 36 4 1.92

Air core drilling is a technique that allows rapid, low -cost exploration beneath cover with the objective of

providing targeting information for further mineralization. It has been used very effectively by Volcanic in

the identification and refine ment of resource targets for subsequent reverse circulation ( “RC”) and diamond

drilling. Volcanic’s near- term plan is to conduct such drilling within the target area identified by air core

drilling, with the objective of defining an expanded resource.

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Quality Assurance and Quality Control

Drill chip sampling at Mandiana followed a standardized protocol to ensure the collection of representative

and unbiased quantities of material from each sample. Samples were collected from Volcanic’s Mandiana

field operations by SGS Mineral Services of Bamako, Mali, and were transported directly to the assay

facilities thereof, at which they were analysed for gold by means of fire assay, in accordance with analyti cal

method FAA505. In this procedure, a 50g sample is fused with a litharge based flux; the resulting prill is

then dissolved in aqua regia, from which gold content is then determined by flame AAS at a detection Limit

0.01 ppm. Volcanic routinely inserted appropriate standards and blanks into its sample stream at Mandiana,

and additionally collected regular field duplicate samples.

Qualified Person

Mr. Simon Meadows-Smith is a Qualified Person as defined by “National Instrument 43- 101 - Standards of

Disclosure for Mineral Projects” and has approved the disclosure of the scientific and technical information

contained in this news release. Mr. Meadows -Smith holds a BSc degree in geology from Nottingham

University, England, and has been involved in mineral exploration since 1988, including 20 years of

experience working in West Africa. He is a Fellow in good standing of the Institute of Materials, Minerals &

Mining in London.

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 strategic acquisition of mineral properties with

demonstrated potential for hosting gold resources, and by undertaking effective exploration and drill

programs, Volcanic is seeking to become a leading junior gold resource company.

For further information, contact Alex Langer, the Company’s VP Capital Markets, at 604-765-1604, or visit

our website at www.volgold.com.

Volcanic Gold Mines Inc.

Jeremy Crozier, President and CEO

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 exploration work at the Mandiana

Project. 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’s exploration work on the Mandiana Project will proceed as intended; changes in general

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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 continuit y 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’s exploration work on the Mandiana Pr oject will proceed

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,

except as required by law. There can be no assurance t hat 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.

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Figure 1: Air-core drilling results showing distribution of resource targets (outlined in black) relative

to the Resource (in magenta).

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Figure 2: Air -core drilling results (outlined in black) from southern extension to Yagbelen showing

1.25 km southward continuation of resource target.