Mr. Frank Basa reports

MASSIVE CRITICAL METALS 177-METER-WIDE MINERALIZED ZONE UNVEILED DURING GRANADA GOLD MINE'S LAST DEEP-HOLE GOLD DRILL PROGRAM

Granada Gold Mine Inc. has made a groundbreaking discovery of critical metals during its recent deep-hole gold drill program. The discovery includes a suite of low-grade alkaline and rare-earth elements (REEs), which, despite their low grade, hold significant economic potential as possible byproducts during precious metal mining, leveraging the innovative Re-2Ox process.

The previous drill program, including several deep holes, has defined a potential strike length of 1.6 kilometres to a downhole depth of 1.6 kilometres, revealing the extensive nature of the critical mineral mineralization. A total of 21 mineralized zones were intercepted during the program, with the thickest zone reaching 177 metres (see the company's news release dated Jan. 11, 2022), highlighting the robustness of the discovery.

As this critical metal mineralized zone sits stratigraphically on top of the gold mineralized zone, it may be mined to produce gold bullion as a primary recoverable metal with a rubidium carbonate salt as a byproduct, thereby significantly increasing the value and economics of the property (see the company's news release dated Jan. 11, 2022).

Frank Basa, chief executive officer, expressed excitement about the discovery, stating: "The identification of critical metals alongside our gold exploration underscores the multifaceted value of our mineral assets. The potential economic viability of these metals as byproducts further enhances the attractiveness of our project. We are particularly encouraged by the successful test results of the Re-2Ox process, which paves the way for future exploration and development opportunities."

Mr. Basa adds to the conversation around critical minerals, "There is ample opportunity in the jurisdictions we work in to collaborate with partners to extract and transform critical and strategic metals into high-value products, and develop a strong ecosystem to expand the North American value chain."

Among the rare-earth metals uncovered is samarium (Sm), a crucial component used in permanent magnets for various applications, including some electric vehicle (EV) motors. Gallium, another rare-earth metal found, is often used for semiconductors. Additionally, rubidium (used in specialized batteries), an alkaline metal, has been identified and can be leached from unconcentrated mineralized material using the Re-2Ox process. Encouragingly, a test program conducted at SGS Lakefield demonstrated leach recovery rates exceeding 90 per cent in bench-scale test work, underscoring the viability of extracting these critical metals.

Granada Gold Mine remains steadfast in its mission to deliver value to stakeholders, while upholding the highest standards of environmental responsibility and community engagement. With these recent advancements, the company is poised to unlock new opportunities for growth and prosperity.

Applications of samarium, rubidium and gallium

Samarium is often used for permanent magnets, notable SmCo (samarium-cobalt) magnets are known for their exceptional magnetic properties, stability and especially their resistance to demagnetization. These permanent magnets are employed in electronics, wind turbines, medical devices (such as MRI (magnetic resonance imaging)), the automotive industry, including hybrid and EV motors, where their high magnetic strength and temperature stability make them well suited. They are used often in the military and aerospace industry, where they are resistant to extreme conditions such as radiation, and it is also used for catalysis in many industrial processes.

Rubidium is often used in atomic clocks, medical imaging (such as positron emission tomography (PET), specialized batteries, where high energy density and reliability are crucial offering additional advantages such as long life, stable voltage output and resistance to extreme temperatures. Rubidium is also employed as catalysts or reagents, where they facilitate various reactions and transformation, contributing to the production of pharmaceuticals, fine chemicals and specialty materials. Rubidium is also used for high-end optical instruments (rubidium vapour cells) such as atomic vapour laser isotope separation (AVLIS) and optical magnetometers. For electronics and semiconductor manufacturing, rubidium is occasionally used particularly in the production of specialized vacuum tubes and photoelectric cells.

Gallium is used extensively in the production of semiconductors and electronic devices. Commonly used to produce gallium arsenide (GaAs) and gallium nitride (GaN) semiconductors, used in high-frequency amplifiers, LEDs (light emitting diodes), laser diodes, photovoltaic cells and more. As such, it has wide usage in the LED and solid-state lighting industry, and solar cells (particularly in space). Additionally, gallium is used for thin-film coating for aerospace, defence, telecommunications and electronics. Gallium isotopes are used for medical imaging. Gallium alloys are employed in cooling systems and thermometers, and many other applications, including shape-memory alloys. Lastly, it is used as catalysts in many industrial processes from pharmaceuticals to specialty materials.

Qualified person

The technical information in this news release has been reviewed and approved by Claude Duplessis, PEng, GoldMinds Geoservices Inc., who is a member of the Quebec Order of Engineers, and a qualified person in accordance with the National Instrument 43-101 standards.

About Granada Gold Mine Inc.

Granada Gold Mine continues to develop and explore its 100-per-cent-owned Granada gold property near Rouyn-Noranda, Que., which is adjacent to the prolific Cadillac break. The company owns 14.73 square kilometres of land in a combination of mining leases and claims. The company is undergoing a large drill program with 30,000 metres out of 120,000 metres complete. The drills are currently paused to provide the technical team with the necessary time to evaluate and assimilate existing data.

The Granada shear zone and the South shear zone contain, based on historical detailed mapping as well as from current and historical drilling, up to 22 mineralized structures trending east-west over 5.5 kilometres. Three of these structures were mined historically from four shafts and three open pits. Historical underground grades were eight to 10 g/t gold from two shafts down to 236 m and 498 m with open-pit grades from 3.5 grams per tonne to five g/t gold.

Mineral resource estimate

On Aug. 20, 2022, the company released an updated National Instrument 43-101 technical report supporting the resource estimate update for the Granada gold project (please see July 6, 2022, news release) reporting that the Granada deposit contains an updated mineral resource, at a base case cut-off grade of 0.55 g/t gold for pit-constrained mineral resources within a conceptual pit shell and at a base case cut-off grade of 2.5 g/t for underground mineral resources within reasonably minable volumes, of 543,000 ounces of gold (8.22 million tonnes at an average grade of 2.05 g/t Au) in the measured and indicated category, and 456,000 ounces of gold (3.01 million tonnes at an average grade of 4.71 g/t Au) in the inferred category. Please see the table entitled "Mineral resource estimate showing tonnes, average grade and gold ounces" for full details (report reference: Granada gold project mineral resource estimate update, Rouyn-Noranda, Que., Canada, authored by Yann Camus, PEng, and Maxime Dupere, BSc, PGeo, SGS Canada, dated Aug. 20, 2022, and with an effective date of June 23, 2022).

The property includes the former Granada Gold underground mine, which produced more than 50,000 ounces of gold at 10 grams per tonne gold in the 1930s from two shafts before a fire destroyed the surface buildings. In the 1990s, Granada Resources extracted a bulk sample (pit No. 1) of 87,311 tonnes grading 5.17 g/t Au. It also extracted a bulk sample (pit No. 2) of 22,095 tonnes grading 3.46 g/t Au.