December 8, 2003

News Release: Volcanic Metals Exploration to Raise up to $450,000 for Drilling Activity in Canada

Volcanic Metals Exploration has agreed to terms of private placements of up to 2,250,000 units at a price of 20 cents per unit, to generate gross proceeds of $450,000.00 Each unit is to consist of one common share in the capital of the corporation and one-half non-transferable share purchase warrant at a price of 20 cents per unit. Each warrant will entitle the subscriber to purchase one additional share exercisable for 18 months at a price of 30 cents per share. A finder's fee will be payable in accordance with the policies of the exchange. The private placement is subject to the approval of the TSX Venture Exchange. The warrants will be subject to accelerated expiry in the event that the issuing company's common shares trade at a trigger price of .50 ( fifty cents). The trigger price will be based on the 20-day average closing trade price of each of the company's common shares. If the trigger price is achieved before the18-month expiry date but after the four-month hold period applicable to all the units under Canadian securities resale rules, holders of the warrants will be notified in writing and the remaining term of the warrants of that company will be shortened to 45 days but the exercise price will be unaffected.

The financings are subject to execution of subscription agreements and regulatory acceptance and are expected to close on or before December 28, 2003. This offering is exclusive of and in addition to the financings separately announced.

The proceeds of the private placement will be used for working capital, drilling activity in Newfoundland and Nunavik, Que., as well as geological and geophysical compilations. The shares to be issued under this agreement do not result in a change in control or a control-voting block.

Volcanic Metals Exploration Inc. is a Toronto based mineral exploration company operating in Newfoundland and Quebec.

Shares issued 4,967,340

Dec. 5 2003 close $ 0.26

Volcanic Metals Exploration Inc. J. David Mason Chief Executive Officer (416) 777-2008 or 1(888) 442-8436 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Website: www.vmexplore.com

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