Volcanic Gold Mines Inc. provided an update on events in Guatemala. The Company recently filed an NI 43-101 technical report supporting an initial Inferred Mineral Resource of 406,316 oz Au Eq estimated from the first target, La Peña vein at Holly. The high grade La Peña vein remains open to expansion along strike and at depth and several other drill targets remain to be tested at Holly with potential for new discoveries.

Reporting the resource estimate for the discovery at the Holly property was important to show the community in Guatemala that the company is developing a viable resource that will lead to a positive economic influence on the area and offer well paying, much needed employment for members of the community. As Volcanic previously stated, the Company intends to resume drilling at its Holly property once Bluestone has been granted a permit to build a mine at Cerro Blanco. Bluestone has issued an update on Cerro Blanco.

Bluestone has made significant progress in advancing the Cerro Blanco Project and as a result has drawn attention from certain anti-mining groups known in the region for spreading misinformation. According to Volcanic's research, the lead anti-mining organization brought together opposition groups from El Salvador and other parts of Guatemala to unfairly portray public opinion on future mining activities within the municipal limits of Asuncion Mitta where the Cerro Blanco deposit is located. This week, however, according to local news reports (Prensa Libre/26 September) the constitutional court of Guatemala has annulled the illegitimate community consultation carried out by the anti-development groups, thereby establishing legal certainty that only the Guatemala mining ministry is competent to perform such consultations.

Over 25% of people in Guatemalan communities earn less than $1.00 per day, hence many risk their lives to travel north to try and enter the United States to find reasonable wages to support their families. And yet international organizations voice their objections to any development of the country's natural resources without providing any solutions to improve the livelihoods of Guatemalans. Progress in Guatemala: Volcanic continues to work closely with the local communities toward creating employment opportunities and educational outreach.

The community's primary areas of interest are employment and positive projects. The Company is diligently working with the various community participants and is encouraged by steps taken by the Community Councils for Urban and Rural Development (COCODE) of Guatemala to look for further discussion. The COCODE is configured as the coordinating entity for participation at the community level and is made up of residents of the corresponding communities.

Volcanic is currently advancing various studies and reports for the Holly property, including a hydrogeological study, an environmental monitoring report, and a mine design and facility report.