Vulcan Minerals Inc.

Vulcan Minerals Inc.

January 28, 2010 09:47 ET

Vulcan Minerals Inc.: Drilling to Commence at Parsons Pond, Western Newfoundland

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - Jan. 28, 2010) - Vulcan Minerals Inc. ("the Company")(TSX VENTURE:VUL) is pleased to announce that it will participate in the first deep test ever drilled in the Parsons Pond oil play in western Newfoundland. The Seamus well will be the first of a three well program. The Parsons Pond area has a long and storied history of oil exploration dating back to its first exploration well in 1867. The area attracted the attention of explorers from the very early days of the industry because of oil seeps observed at several surface locations and in community water wells. Since that first well in 1867, approximately thirty shallow wells have been drilled in several cycles of activity. Small scale commercial oil production was achieved for a few years in the early 1900s, but was not sustained because of limited financial backing and isolation from major markets. What all of these "historic" wells had in common was that they were quite shallow (typically 300 - 700 metres) and they were drilled without the benefit of seismic data. The first seismic lines in the area were acquired in the mid 1990s. They revealed that the old wells had tested highly deformed sediments in the shallow section where any reservoirs would tend to be breached. The seismic data also showed that large intact structures were present at much deeper levels within the Cambrian-Ordovician carbonate platform. These "platform rocks" are the same rocks that have delivered large oil and gas discoveries throughout the Appalachian trend that extends from offshore Labrador to Texas.

The Seamus well has a projected depth of approximately 3000 metres and will test a seismically defined target within the carbonate platform. One of the zones to be tested has been faulted and uplifted to the surface at Port au Choix , 85 km north of the Seamus well, and shows the evidence of a large exhumed oilfield, (extensive oil staining in outcrop up to 80 sq. km. in gross area). This proves that the platform rocks have been charged by oil in this area and large fields may remain where the rocks lie intact within the subsurface.

The Seamus well is the first of a three well program operated by Nalcor Energy Oil and Gas. Vulcan holds a 10% working interest in permit 03-103 on which the Seamus well will be drilled. Vulcan has modified its drilling arrangements with Stoneham Drilling to facilitate the move of Stoneham Rig #11 to the Parsons Pond project. Stoneham Rig #11 is a triple rig rated to 4500 metres which was mobilized to western Newfoundland by Vulcan and joint venture partner, Investcan Energy Corp to drill in the Bay St. George Basin in 2009. The rig is currently being moved to the Seamus site and drilling is expected to begin prior to February 12, 2010.

Patrick Laracy, Vulcan's president, said "Vulcan has positioned itself to have significant exposure to the different western Newfoundland petroleum plays. Our recent gas discovery in the Carboniferous Bay St. George basin is a threshold accomplishment for that play. On the heels of that success we are now getting to test an entirely different petroleum system at Parsons Pond. The carbonate platform rocks at Parsons Pond are part of a geological system that is productive in several American basins to the south and hosts two large gas discoveries offshore Labrador. A commercial discovery in any of the three upcoming wells will underscore the emergence of western Newfoundland as a petroleum district."

The Company also advises that the terms of exploration permits 03-101 and 03-102 at Parsons Pond, due to expire on February 12, 2010, have been extended for a period of one year by the Department of Natural Resources, Government of Newfoundland and Labrador.

Vulcan is a diversified junior exploration company focused on petroleum exploration in the under-explored western Newfoundland and Labrador areas and also holds mineral interests in areas strategic to its operations in Newfoundland and Labrador. This includes an approximate 19% shareholding in NWest Energy Inc. which owns 1.5 million acres of the offshore Carbonate platform play immediately adjacent to Vulcan's onshore Parsons Pond project.

Shares Issued: 47,584,455

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

There can be no assurance that forward-looking information will prove to be accurate. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise

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