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2011 News

NOVEMBER 01, 2011

Volcanic Samples Up To 3.41 G/T Gold At Walhalla; Announces Financing

Vancouver, BC, Canada - Volcanic Metals Corp. (TSX.V: VOL) ("Volcanic" or the "Company") is pleased to announce that it has received the assay results from its Phase I soil-sampling and prospecting program on the Walhalla Property in the White Gold District of the Yukon Territory.

Highlights:

• 1,019 ridge and spur soil samples collected from the property
• Many grouped gold-in-soil anomalies suggest a gold-bearing system and warrant a comprehensive Phase II grid/trench/pit program to identify drill targets
• 3.41 g/t Au soil anomaly - top ten in entire White Gold District

Property Location and Description:

The Walhalla Property (the "Property") consists of 1,988 quartz claims covering approximately 41,800 hectares located 120 km southeast of Dawson City in the Yukon. The Property is located in the White Gold District immediately east of and contiguous to Pacific Ridge's Mariposa Project.

The Company holds a 25% interest in the Property and has entered into an option agreement (the "Option") to acquire the remaining 75% interest (see news release dated October 18, 2011). The Option remains subject to Exchange approval.

Phase I Sampling and Prospecting:

The Phase I program, which covered less than a third of the property, identified strong anomalous gold zones as well as anomalous pathfinder elements such as arsenic and barium. Ridge and spur samples were taken in the western, north-eastern, and south-eastern parts of the property. Significant gold-in-soil anomalies were identified in all areas, warranting a comprehensive Phase II grid/trenching/pit program to identify potential drill targets, as well as continued ridge and spur sampling on the rest of the property. Of particular interest was a gold-in-soil anomaly that returned a value of 3.41 g/t Au - one of the top ten historically in the entire White Gold District. For detailed maps of the property and the locations, please visit the website at: www.volcanicmetals.com/project

Geology and Mineralization:

Prospecting on the property identified a large breccia system in float rock extending approximately 2 km long and 200m wide. A breccia is a rock composed of broken fragments of minerals or rock cemented together by a fine-grained matrix. Breccia zones may be generated by faulting or by forceful explosions of volatile-rich fluids with the rapid expansion of the fluids shattering large volumes of country rock. This part of the property is located along the Teslin Fault, a major regional fault system which splays out on the property, and is mid Cretaceous in age which is the age of most Yukon gold mineralization. Other parts of this large property are underlain by intrusive and metamorphic rocks similar to those found in the White Gold district to the west, and also those which host the Minto copper-gold mine to the south. Outcrop is very sparse on the property, and the area is considered to be under-explored.

Airborne Geophysical:

The Company contracted Precision GeoSurveys Inc. and is currently flying an east-west oriented helicopter-borne high-resolution aeromagnetic survey over the property. Results from this airborne survey will be used in conjunction with assay results to identify targets for follow-up work such as further ridge and spur soil sampling, prospecting, grid soil-sampling, trenching and drilling.

Financing:

Volcanic will undertake a non-brokered private placement to raise gross proceeds of up to $600,000, consisting of up to 4,000,000 non-flow-through units at a price of $0.10 per unit (for gross proceeds of up to $400,000) and up to 1,666,667 flow through shares at a price of $0.12 per share (for gross proceeds of up to $200,000). Each unit will consist of one common share and one-half of a non-transferable warrant, with a whole warrant entitling the holder to purchase one common share at a price of $0.20 for a period of twelve months following the closing. The securities issued pursuant to the private placement will be subject to a four month hold period from the closing date. Completion of the private placement and the payment of any finder's fees remains subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

The proceeds of the private placement will be used to fund the acquisition of the Walhalla Project, the Phase II work program on Walhalla, and general administrative costs.

To learn more, please visit the Company's website at: www.volcanicmetals.com.

The technical information contained within this News Release has been reviewed and approved by William Mann, P.Geo, a Qualified Person as defined by National Instrument 43-101.

VOLCANIC METALS CORP.

Larry Johnson, B.Sc. (Geology)
President & CEO
(604) 644-9213

NEITHER THE 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.