Volcanic Gold Mines Inc. announced a maiden Inferred Mineral Resource Estimate for the Holly property, Guatemala. The mineral resource estimate is reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards (2014) incorporated by reference in National Instrument 43-101 - Standards of Disclosure for Mineral Projects. The Mineral Resource Estimate is underpinned by data from 21 diamond drillholes totalling 3707m of drilling.

Drill spacing ranges between 20 and 100m. All sample data was composited to a 2D dataset (linear grade and true thickness values) prior to analysis and estimation. The sample da ase and the topographic survey were reviewed and validated by Bruce Smith, Ludving Monroy and Shawn Rastad prior to being supplied to John Arthur, an independent UK based Resource Consultant.

Such review and validation help to support the reliability of the estimate. Geological domain modelling was completed by Bruce Smith and Dr. John Arthur. Mineral Resource domain modelling, grade interpolation, Mineral Resource classification and reporting of the Mineral Resource statement, was performed by Dr. John Arthur.

Dr. Arthur, Mr. Smith, Mr. Monroy and Mr. Rastad are "qualified persons" within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). Block modelling was carried out using cell dimensions of 32mE by 32mN by 8 mRL and was coded to reflect the surface topography and mineralised zones. Density values were globally assigned into two zones, an upper zone between 50 to 100m from surface had an average density of 2.33t/m³ and below this an average density of 2.52t/m³ was applied.

The Mineral Resource Estimate has been classified based on data density, data quality, confidence in the geological interpretation and confidence in the robustness of the grade interpolation. The Company will follow this resource calculation with the preparation of a preliminary economic analysis aimed to show that the high-grade La Peña vein deposit could be mined from underground, causing minimal surface disruption. It is anticipated that trucking of high-grade ore to a nearby mill could minimize on-site processing and other associated costs and impacts.

The Company's strategy is to calculate an approximate value of the deposit and potential income and be able to offer concrete benefits and much needed long term employment opportunities to the local communities. The Company expects the Holly project can grow significantly through exploration, but at this time it is important to clearly define the opportunity and potential value of the project to all stakeholders.