Expands near-term resource target from 1km to over 3km in length

Volcanic Gold Mines Inc. (“Volcanic”) (TSX VENTURE:VG) is pleased to report further results of close-spaced air core (“AC”) drilling at its Mandiana Project in Guinea. The drilling, immediately adjacent to Volcanic’s existing Inferred Mineral Resource (“Resource”) at Yagbelen (as reported on November 6, 2016), 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 refinement 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.