Volcanic Announces 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 ANNOUNCES FINANCING

December 7, 2010 – Vancouver, BC, Canada. Volcanic Metals Corp. ("Volcanic") is pleased to announce that it will undertake a non-brokered private placement of up to 555,555 units at a price of $0.18 per unit for gross proceeds of up to $100,000. Each unit will consist of one common share and one half of one warrant exercisable at a price of $0.25 for a period of 24 months. The securities issued pursuant to the private placement will be subject to a four month hold period from closing. Completion of the private placement remains subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

Volcanic will use the offering proceeds for general working capital.

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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