ST. JOHN'S, NEWFOUNDLAND -- (MARKET WIRE) -- 10/05/2006 -- Vulcan Minerals Inc. (TSX VENTURE: VUL), the Company is pleased to announce that it has closed the $1,000,000 financing announced on September 1, 2006. The financing consisted of 2,000,000 flow-through shares issued at $0.50. D& D Securities Company acted as agent and received a commission of broker warrants in the amount of 10% of the shares sold. The broker warrants are exercisable at a price of $0.50 until September 28, 2008, subject to a 4-month hold period. The proceeds will be used in the company's ongoing exploration activities. The financing is subject to final TSX Venture Exchange approval.

The company also reports that it is preparing to mobilize its drilling rig in Western Newfoundland. The rig should be on the first of two locations next week and the program should be completed within 2 months. The first target is at Flat Bay #5. It is a downdip test of the Flat Bay oil deposit where improved reservoir character is anticipated based on seismic and geological interpretation. It is located approximately 2 km east of the shallow Flat Bay #1 discovery. Flat Bay #5 has a projected total depth of 900 metres targeting the Ship Cove limestone and Fischells Brook conglomerate. Vulcan is pioneering the exploration and development of the Bay St. George onshore basin in Western Newfoundland

Shares issued: 37,278,384

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