Vulcan Minerals Inc.: Corporate Update

ST JOHN'S, NEWFOUNDLAND AND LABRADOR -- (Marketwire - March 15, 2012) - Vulcan Minerals Inc. ("the Company") (TSX VENTURE:VUL) is pleased to provide the following update on its activities:


Bay St. George Petroleum:

Following upon a Term Sheet agreement whereby the Company will convert its working interest in the three onshore petroleum permits in western Newfoundland to a 2% royalty and a $2.5 million payment, the Company and Investcan Energy Corporation (Investcan) have finalized and signed a definitive Purchase and Sale agreement. Final closing of the transaction is expected within 60 days. As part of the agreement, Vulcan maintains full co-ownership rights to all technical information and data to explore for minerals under the petroleum permits and for any purpose outside the permits subject to certain industry standard confidentiality requirements.


Red Moon Potash Inc.:

The distribution of Red Moon shares, as per the shareholder approved plan of arrangement, will occur upon final listing approval from the TSX Venture Exchange. A financing is required to facilitate this listing of common shares for trading on the exchange. The Company continues to have discussions with potential financing sources for Red Moon. In the opinion of management, Vulcan's capital value is currently undervalued in the weak equity market and as a result the valuation for Red Moon shares pursuant to any financing would be undervalued in current market conditions. As a result, management is reviewing the merits of having Vulcan provide the minimum financing for Red Moon as per the plan of arrangement in order to get Red Moon listed and active on its exploration plan. As a result, Vulcan would maintain a proportionately larger equity stake in Red Moon. A larger follow-up financing would be carried out in the context of the market over the next few months in order to maintain a drilling program for late summer/fall on the potash targets. Managements' final decision on the Red Moon financing plan is expected shortly after regulatory and legal review. In the interim, the Company continues to carry out geoscientific work on the property. The Company has received the final results from the high resolution airborne gravity survey. Interpretation and integration with existing data sets is underway towards prioritizing drill targets for potash and salt.


Labrador:

The seismic survey on EL 1107 offshore Hopedale basin in Labrador has been evaluated with enhanced processing techniques towards better definition of potential petroleum traps and direct hydrocarbon indicators. Efforts to market the exploration and drilling opportunities on EL 1107 have commenced. The licence is situated between two significant gas discoveries and was issued on November 15, 2008. Its initial Period I is due to expire within six years of issuance whereby if a well is drilled in that Period I the licence is extended for an additional three year term. The Company currently owns a 30% working interest in EL 1107. The remaining 70% working interest and operatorship is held by Investcan.


NWest Energy Corp.:

The Company has been advised by NWest Energy Corp. (NWest) that it has entered into a non-binding letter of intent with Caribe Oil and Gas Ltd., (Caribe) a private Alberta corporation focused on exploration and development of oil and gas proprieties in Argentina, pursuant to which NWest will amalgamate with Caribe to form a new company. It is intended that the experienced management team of Caribe will assume the key management positions in the new company. The closing of the transaction is subject to several conditions including regulatory and due diligence reviews and the completion a $20,000,000 financing at a price to be determined in the context of the market. For a full description of the proposed transaction, please refer to a news release issued by NWest on March 5, 2012 and posted on their website www.nwestenergy.com. The company owns 1,796,437 shares of the currently outstanding 9,474,192 shares in NWest. NWest shares have been halted from trading on the TSX Venture Exchange pending receipt and review of acceptable documentation by the Exchange in respect to the proposed transaction. The Company has a positive view on the proposed transaction given the renewed exploration and market interest in the conventional and unconventional oil and gas opportunities in Argentina.

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: 57,526,129

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.



Contact

Vulcan Minerals Inc.
Patrick J. Laracy, President
Gerri A. MacNeil, Business Manager, Investor Relations
709-754-3186
info@vulcanminerals.ca

www.vulcanminerals.ca