Vulcan Minerals Inc.
TSX VENTURE : VUL

Vulcan Minerals Inc.

February 28, 2008 15:54 ET

Vulcan Minerals Inc.-Forms Strategic Joint Venture

ST. JOHN'S, NEWFOUNDLAND--(Marketwire - Feb. 28, 2008) - Vulcan Minerals Inc. ("the Company" (TSX VENTURE:VUL) is pleased to announce that it has entered into an agreement with Investcan Energy Corporation (Investcan), whereby Investcan will purchase a 50% working interest in Vulcan's onshore petroleum permits 96-105, 03-106 and 03-107 in the Bay St. George basin of Western Newfoundland. Pursuant to the agreement, Investcan will pay Vulcan $51,000.00, Vulcan and Investcan will form a joint venture to explore the permits and Investcan commits to incur $15,000,000.00 of work expenditures on the permits pursuant to the joint venture. Vulcan's 50% working interest share will be fully carried by Investcan through the first $15,000,000.00 of work expenditures on the permits by the joint venture.

The initial work program covers a period to January 31, 2010 and includes a deep well on the Hurricane Deeps Prospect on Permit 03-106 in 2008 and a multiwell program in 2009. Vulcan will be the operator for the work program. Closing of the transaction is expected to occur within 60 days and is subject to, amongst other things, due diligence, certain regulatory approvals, the signing of a joint operating agreement and the delivery of a bank guarantee by Investcan to secure its commitment under the agreement to carry Vulcan's 50% working interest share of the proposed work program. Vulcan has agreed to assume responsibility for payment of gross overriding royalties on Permit 96-105.

Investcan is a newly created, private Newfoundland based corporation indirectly owned by SCDM, a private company based in Paris, France. Investcan brings not only financial support to the Bay St. George Project but the ability through its international operating network to contribute significant technical expertise to the exploration and development of the project. Vulcan is very pleased that Investcan shares its enthusiasm and vision for the petroleum potential of the Bay St. George basin.

The company also announces that it has entered into agreements to purchase 6.69% gross overriding royalties on Permit 96-105. Vulcan will pay 228,000 common shares of the company for the royalties. Included in that amount are 105,000 shares to be paid to the President of Vulcan and a company he controls for 3.08% of the gross overriding royalties purchased. Permit 96-105 remains subject to a 1.58% gross overriding royalty to an arms-length third party. There are no gross overriding royalties on Permits 03-106 and 03-107.

The Bay St. George Project consists of approximately 250,000 acres covering an under-explored sedimentary basin in western Newfoundland. Vulcan has been pioneering exploration of this area for several years and has discovered the presence of an active petroleum system. The Company has identified several drillable targets based on geophysical and geological data. Together, Vulcan and Investcan will accelerate the pace of exploration and development of the area.

The transactions described herein are subject to approvals by the TSX Venture Exchange.

Vulcan is a diversified junior exploration company focussed on petroleum exploration in Western Newfoundland and also holds mineral interests in areas strategic to its operations in Newfoundland and Labrador.

Shares issued: 41,344,634

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

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