Vulcan Minerals Inc.
TSX VENTURE : VUL

Vulcan Minerals Inc.

September 11, 2008 14:38 ET

Vulcan Minerals Inc.-Wins Offshore Labrador Exploration Licence

ST. JOHN'S, NEWFOUNDLAND and LABRADOR--(Marketwire - Sept. 11, 2008) - Vulcan Minerals Inc. ("the Company")(TSX VENTURE:VUL) is pleased to announce that it has entered into a joint bidding agreement with Investcan Energy Corporation (Investcan) on a 50/50 basis. Pursuant to that agreement Vulcan (50%) and Investcan (50%) bid on Parcel #2 as per the Call for Bids NL07-2 for exploration licences offshore Labrador. The company has been notified by the Canada-Newfoundland and Labrador Offshore Petroleum Board (CNLOPB) that Vulcan and Investcan are the successful bidders on Parcel #2 with a work commitment bid of $9,601,000. Vulcan and Investcan must now post a refundable security deposit equal to 25% of the work commitment bid with the CNLOPB within 15 days to secure the exploration licence. Further information regarding Call for Bids NL07-2 is available at www.cnlopb.nl.ca

The joint bidding agreement between Vulcan and Investcan provides that Investcan shall initially post 100% of the refundable security deposit. Vulcan's obligation to pay 50% of the security deposit will be carried by Investcan for two years without dilution of Vulcan's working interest in the exploration licence. If Vulcan assumes its 50% share of the security deposit at the end of two years, it shall preserve its 50% working interest in the exploration licence. If Vulcan does not assume its 50% share of the security deposit at the end of two years, Investcan shall carry the obligation up to an additional two years subject to a dilution of Vulcan's interest in the licence up to a maximum of 22% (i.e.: Vulcan would maintain a minimum 28% working interest) at which time Vulcan will assume its share of the security deposit.

An exploration licence confers the right to explore for petroleum for an initial Period I of six years with a possible additional period of three years. Parcel #2 covers 236,525 hectares (584,000 acres) of the Hopedale Basin on the Labrador continental shelf. It is situated adjacent to and on trend between the Bjarni-North Bjarni discoveries (approximately 3.1 trillion cubic feet of natural gas) to the northwest and the Gudrid discovery (approximately 924 billion cubic feet of natural gas) to the southeast. The gas quantities for the Bjarni-North Bjarni and Gudrid discoveries are resources as published by the CNLOPB. The company has carried out an internal evaluation of the parcel and has identified prospects and leads worthy of further exploration in the context of an emerging gas play.

Investcan is a recently created private Newfoundland based corporation indirectly owned by SCDM, a private company based in Paris, France. Vulcan and Investcan currently have a joint venture for exploration of the onshore Bay St. George Basin in Western Newfoundland. Pre-drilling engineering, permitting and procurement work is underway towards a drilling program on that project.

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

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.

Shares issued: 43,564,301

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