Vulcan Minerals Inc.: Approval of Plan of Arrangement

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - Aug. 31, 2011) - Vulcan Minerals Inc. ("the Company")(TSX VENTURE:VUL) announces that unanimous approval to proceed with the Plan of Arrangement to spin out a new subsidiary company focussed on potash exploration and development was received today at the Company's annual and special meeting of shareholders. The Company will distribute to the shareholders of Vulcan Minerals, one share of the newly spun out company, Red Moon Potash Inc., for every 3.812 shares held in Vulcan Minerals. The distribution record date is expected to be announced upon listing approval on the TSX Venture Exchange after all regulatory approvals are received. The Company will require a financing to facilitate the exchange listing. Financing discussions are underway and will be announced as soon as arrangements are made.

Vulcan is a diversified junior exploration company focused on petroleum exploration in the under-explored western Newfoundland and Labrador areas 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: 57,176,129