Vulcan Minerals Inc. Suspends Red Brook #1/Completes Medicine Hat Wells

1 January 1970

Vulcan Minerals Inc. ("the Company") (TSX VENTURE: VUL), announces that the drilling of Red Brook #1 in Western Newfoundland has been suspended at a depth less than the targeted horizons. A series of loss-circulation zones in intensely fractured rock has significantly slowed drilling progress. With Christmas break approaching, the Company has decided to suspend drilling and release the rig until an alternate drilling and casing program is designed to reach target depth. The Red Brook target therefore remains untested.

The Company is reviewing the results of its exploration program thus far in the Bay St. George Basin, Western Newfoundland and a discussion of that review will be provided early in 2007. The Company has drilled eight (8) shallow wells (less than 1,000 m) to test a variety of targets in the basin. Five of these wells have been drilled in or near the Flat Bay oil deposit and the other three wells were reconnaissance testing of other targets. Approximately 260 line kilometres of seismic data have been acquired and interpreted. As a result, the Company has discovered an active petroleum system within the basin as evidenced by the Flat Bay oil deposit which contains migrated oil in a very shallow low permeability reservoir. Good hydrocarbon shows were also encountered approximately 20 km south of Flat Bay in the two shallow Hurricane wells.

A preliminary exploration assessment based on drilling, seismic and geology indicates that better reservoir and trap integrity are expected at depths beyond 1,500 m in the deeper parts of the basin. The Company has seismically identified deep targets in the Hurricane area at depths of 2,500-4,000 m. This target area could exceed 100 square kilometres in areal size. It is the Company's intention to solicit partners and financing to test these targets with a deep drilling program in 2007, subject to rig availability. This would be the first well to test the deeper parts of the basin known to have an active petroleum system.

The Company is proud of its accomplishments as the leading explorer in Western Newfoundland. The Company continues to prove itself as a responsible operator drilling wildcat wells in a frontier area. Vulcan looks forward to the deep drilling of the Bay St. George Basin which has the potential to be an extremely high impact venture.

The Company also reports that it has drilled and completed three (3) new wells at Medicine Hat, Alberta. A fourth well has been re-entered and stimulated. The Company is waiting on test results.

Vulcan Minerals Inc. is a junior exploration company focussed on high impact petroleum exploration in Western Newfoundland (both onshore and offshore) coupled with low risk gas development in Alberta. As well, the Company owns the TL Nickel deposit in Labrador (currently optioned to Nortec Venture Corp) and uranium rights to approximately 100,000 acres within the Bay St. George Basin of Western Newfoundland.

Shares issued: 7,318,384

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

Contacts: Vulcan Minerals Inc. Mr. Patrick Laracy President 709-754-3186 709-754-3946 (FAX) info@vulcanminerals.ca www.vulcanminerals.ca

SOURCE: Vulcan Minerals Inc.

Source: marketwire

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