raises $1.65 million

Vulcan raises $1.65m to expand drilling in Finland

16:20, Monday, 22 August 2005

Sydney - Monday - August 22: (RWE Australian Business News) -
Vulcan Resources Ltd (ASX code: VCN) today announced an in-principle
agreement with Hartleys Ltd and Taylor Collison Ltd for a $1.65 million
issue of 5.5 million shares at 30c each to institutional and retail
clients of those brokers.
This compares with the current market price of 36.5c.
The capital raising will allow Vulcan to undertake "aggressive"
exploration on its Kylylahti Copper Project and Kuhmo-Suomussalmi Nickel
Project in Finland. Drilling at both projects will resume in September.
The pre-feasibility study on Vulcan's Kylylahti Copper Project
is scheduled to be completed by the end of September, after which it is
expected the company will move immediately to full feasibility