Vulcan Minerals Inc.
TSX VENTURE : VUL

Vulcan Minerals Inc.

December 11, 2007 12:34 ET

Vulcan Minerals Inc.: Corporate Update

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - Dec. 11, 2007) - Vulcan Minerals Inc. ("the Company") (TSX VENTURE:VUL) has been advised by NWest Energy Inc., a related company, and Trilogy Metals Inc. (Trilogy) that pursuant to their pending reverse takeover transaction the financing has been amended as reported by Trilogy as follows:

"Trilogy Metals Inc. is proceeding with its private placement subscription receipt offering announced November 9, 2007, on the following amended terms:

Trilogy has engaged GMP Securities as lead agent to place on a commercially reasonable-efforts basis by way of private placement, an issue of subscription receipts of Trilogy at a price of 50 cents per subscription receipt and flow-through subscription receipts at a price of 55 cents per flow-through subscription receipt. Total maximum gross proceeds of the subscription receipts and the flow-through subscription receipts will be $20-million, with a maximum of $15-million issued pursuant to the sale of flow-through subscription receipts. Completion of the offering is subject to receipt of applicable regulatory, shareholder and TSX-V approvals. Each subscription receipt will entitle the holder to receive one common share of Trilogy and one common share purchase warrant, without further payment or action on the part of the holder, concurrently with completion of Trilogy's acquisition of NWest Energy Inc.

Each whole warrant will entitle the holder to purchase one common share at a price of 75 cents at any time prior to 5 p.m. (Calgary time) on the date that is 24 months from closing. Each flow-through subscription receipt will entitle the holder to receive one flow-through common share of Trilogy without further payment or action on the part of the holder concurrently with the completion of the acquisition. If Trilogy does not complete the acquisition and meet other criteria of the offering on or before December 20, 2007, then the subscription receipts and flow-through subscription receipts shall be automatically redeemed by Trilogy and the funds will be returned to investors with accrued interest.

Trilogy's pending acquisition of NWest Energy was announced in Stockwatch on Oct.ober 29, 2007. NWest is a private corporation based in St. John's, NL, which is engaged in East Coast frontier oil and gas exploration. NWest's principal assets are four exploration licences located offshore Western Newfoundland. The exploration licences were issued by the Canada Newfoundland and Labrador Offshore Petroleum Board in 2006 and 2007, and cover a combined area of 1,630,599 acres. The exploration licences are the subject of a report completed by Sproule Associates Ltd. of Calgary, Alta., under National Instrument 51-101 on behalf of NWest. Based on existing 2-D seismic shot over the exploration licences in the 1990s, and NWest's and Sproule's interpretive analysis of data collected to date, Trilogy and NWest propose to employ the proceeds of the offering as follows:



3-D seismic program - $9.4-million (minimum) to $15-million:

- Costs associated with carrying out seismic data collection
and interpretation including seismic vessel mobilization
and demobilization, and approximately 72 days of
acquisition on site off Western Newfoundland;

- Costs associated with the further evaluation of exploration
licences including seismic interpretation and updating of
National Instrument (NI) 51-101-compliant report;

- Costs associated with preliminary assessment of prospects
and targets for further exploration, drilling and
development of exploration licences;

- Administrative/corporate - $600,000 (minimum) to $5-million:

- Provide working capital to finance continuing operations,
administration, audit, legal, regulatory and contingencies;

- Pay costs associated with financings.


Completion of the acquisition is subject to a number of conditions, including exchange acceptance and shareholder approval. The acquisition cannot close until the required shareholder approval is obtained. There can be no assurance that the offering and acquisition will be completed as proposed or at all."

The company proposes to purchase 150,000 Trilogy subscription receipts pursuant to the financing described above. As well the company may acquire additional Trilogy shares for investment purposes.

The company reports that its recently acquired seismic data in the onshore Bay St. George Basin of Western Newfoundland is currently being processed in preparation for interpretation and mapping. Upon completion of this process, petroleum drill targets will be identified and a drilling program will be designed and permitted for 2008 subject to equipment availability and financing.

The company reports that it has been advised by Commander Resources Ltd. ("Commander") that it will not proceed with its option on certain mineral claims in the Bay St. George Basin. Commander carried out its first year work commitment and identified some areas of anomalous uranium and base metal mineralization. Vulcan now owns 100% of the mineral rights to its Bay St. George claims and will continue to evaluate their mineral potential through the solicitation of joint venture partners.

The company has also staked 98 mineral claims adjacent to its existing Tassisuak Lake (TL) nickel property in Labrador. The TL area has been the subject of significant recent staking as a result of new nickel prospecting discoveries. As well, the company has staked 234 mineral claims in the Kingurutik River near the TL property. The Kingurutik property covers favourable geology for nickel-copper mineralization including several co-incident magnetic-electromagnetic airborne geophysical anomalies, which have never been drilled.

Vulcan is a diversified junior exploration company focussed on petroleum exploration in the under-explored onshore and offshore area of Western Newfoundland and also holds mineral interests in areas strategic to its operations in Newfoundland and Labrador.

Shares issued: 41,169,634

The TSX Venture Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information