Volcanic Closes $550,000 Financing

VOLCANIC METALS CORP.

Suite 680, 789 West Pender Street Vancouver, BC V6C 1H2 Tel: (604) 568-6312 / Fax: (604) 357-1419

For Immediate Release TSX-V: VOL

VOLCANIC CLOSES $550,000 FINANCING

December 31, 2010 – Vancouver, BC, Canada. Volcanic Metals Corp. ("Volcanic") is pleased to announce that it has closed its non-brokered private placements announced on November 25, 2010, and December 7, 2010, issuing a total of 2,250,000 flow-through common shares at a price of $0.20 per share for gross proceeds of $450,000, and 555,555 non-flow-through units (a "Unit") at a price of $0.18 per Unit for gross proceeds of approximately $100,000. Each Unit consisted of one common share and onehalf of a warrant, a whole warrant entitling the holder to purchase a common share at a price of $0.25 for a period of 24 months after closing.

The securities issued are subject to a hold period expiring May 1, 2011. The Company paid $31,009.99 and issued 158,939 finder's warrants in payment of finder's fees, each finder's warrant entitling the holder thereof to purchase a common share at a price of $0.25 for a period of 18 months after closing.

For more information, please visit the company website at www.volcanicmetals.com.

ON BEHALF OF THE BOARD

VOLCANIC METALS CORP.

/s/ John LaGourgue

John LaGourgue President, Chief Executive Officer and Director

For further information contact:

John LaGourgue (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.

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