Volcanic Announces $500,000 Private Placement

VOLCANIC METALS CORP.

Suite 700, 510 West Hastings Street Vancouver, BC V6B 1L8 Tel: (604) 568-6312 / Fax: (604) 319-0447

For Immediate Release TSX-V: VOL

VOLCANIC ANNOUNCES $500,000 PRIVATE PLACEMENT

December 20, 2012 – Vancouver, BC, Canada. Volcanic Metals Corp. (the "Company") announces that, subject to regulatory approval, it will undertake a $500,000 non-brokered private placement (the "Offering") of 50,000,000 units (each a "Unit") at a price of $0.01 per Unit, each Unit consisting of one common share of the Company and one common share purchase warrant (a "Warrant").

Each Warrant will be exercisable to acquire one common share of the Company for a period of two years, at a price $0.05 per share in the first year and $0.10 per share in the second year.

The Company proposes to issue the Units in accordance with the TSX Venture Exchange (the "Exchange") "Temporary Relief Measures" Bulletin dated December 12, 2012.

The Company intends to use the net proceeds of the Offering to continue the funding of its current business operations.

The closing of the Offering is subject to obtaining Exchange approval.

On behalf of the Board of Directors

VOLCANIC METALS CORP.

/s/ Michael Iverson

Contact:

Michael Iverson Chief Executive Officer (604) 568-6312 http://www.volcanicmetals.com

Neither 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..

Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward‐looking statements". Forward‐looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward‐looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward‐looking statements.