Vulcan Minerals Inc.

Vulcan Minerals Inc.

October 24, 2006 14:11 ET

Vulcan Minerals Inc.-Commences Drilling in Western Newfoundland

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(CCNMatthews - Oct. 24, 2006) - Vulcan Minerals Inc. ("the Company") (TSX VENTURE:VUL), is pleased to announce that it has commenced drilling at Flat Bay #5 in Western Newfoundland. Conductor pipe has been cemented at 54 metres depth. The Company is using its own RD10 Rig with a local drilling crew. The well has a projected depth of 900 metres and is targeting Lower Carboniferous clastics and limestone reservoirs approximately 2 km east of the shallow Flat Bay #1 oil discovery. Improved reservoir quality is anticipated at this location. Given the frontier nature of the drilling operation, results are not expected for at least 4 weeks.

Vulcan is pioneering the exploration and development of the unexplored Bay St. George onshore Basin in Western Newfoundland. The company has discovered an active petroleum system within its 250,000-acre land position. Numerous drill targets have been identified from seismic, high-resolution aeromagnetics and geology. The company is methodically testing a variety of targets. The current drill program will consist of two wells targeting shallow (less than 1,000 m) sub-salt reservoirs. A 2007 drill program is being planned to test deeper targets (2,500-3,000m) in the basin. The company also owns rights to two offshore licences in the Gulf of St. Lawrence along the west coast of Newfoundland. An independent resource assessment is currently being prepared for these licences towards marketing the joint venture opportunity.

As well, the company has acquired a low-risk gas project in Alberta. As previously reported, the Operator has re-entered two shut-in wells and has applied for a continuation of the natural gas lease. The two wells were subjected to a short term (24 hours) rate test using a 2" critical flow prover with a 1/4" orifice and flowed gas at calculated rates of 220 MCFD (thousand cubic feet per day) and 121 MCFD which are regarded as commercial rates for this area. Both wells also contain substantial volumes of frac fluid from the original stimulation by a previous operator. Gas flow rates are expected to improve as this fluid is produced from the well bore. These wells may be re-stimulated to further enhance flow rates. Further field operations are awaiting government approval of the lease extension application.

Shares issued: 37,318,384

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