Mr. Frank Basa reports

GRANADA GOLD MINE DEMONSTRATES 2.7X GRADE UPLIFT ON OPEN-PIT MINERALIZATION THROUGH ORE SORTING AT SASKATCHEWAN RESEARCH COUNCIL

Results from an independent ore-sorting test program completed at the Saskatchewan Research Council (SRC) that demonstrates a 2.7-times gold-grade uplift on open-pit mineralization from Granada Gold Mine Inc.'s Granada deposit. A 500-kilogram sample of open-pit mineralization was tested using X-ray transmission (XRT) and laser sorting; results indicate the mineralization is highly amenable to upgrading prior to milling, with material implications for project capital intensity, operating cost and resource economics.

"These results change the conversation around Granada. A 2.7-times grade uplift with 88-per-cent gold recovery and two-thirds of the material rejected as waste before it ever reaches the mill redefines what this project costs to build and what it costs to run. The Saskatchewan Research Council's independent confirmation gives us a defensible technical basis to advance the resource update and the project financing in parallel, rather than sequentially. We expect ore sorting to be a foundational element of the path from the current resource," commented Frank J. Basa, PEng (Ontario), president and chief executive officer of Granada Gold Mine.

Ore-sorting highlights:

• XRT sorting: head gold grade at 2.93 grams per tonne upgraded to 7.87 grams per tonne gold with an 88-per-cent recovery; mass recovery of 32.7 per cent with a waste rejection of 67.8 per cent.
• Laser sorting (secondary modality): head gold grade of 1.22 grams per tonne upgraded to 5.13 grams per tonne gold with 41.5-per-cent gold recovery; mass recovery of 9.9 per cent with waste rejection of 90.1 per cent.

Ore-sorting benefits:

• Potential to expand economic resources by lowering the grade applied to open-pit mineralization;
• Reduced processing cost per tonne of contained gold, driven by smaller required mill throughput and lower energy and reagent consumption;
• Reduced plant capital intensity through smaller mill footprint and lower water and tailings infrastructure requirements;
• Reduced surface disturbance and tailings volume per ounce of gold produced, supporting permitting and community engagement.

Next steps

The company holds a certificate of authorization issued by the Quebec Ministere du Developpement durable, de l'Environnement et de la Lutte contre les changements climatiques (MDDELCC) authorizing the mining of 550 tonnes per day for a total of approximately 590,000 tonnes (representing approximately 75,000 ounces of gold), structured as a phased rolling-start bulk sample pathway. The ore-sorting results announced today are expected to materially enhance the economics of the rolling start by upgrading the gold grade of material delivered for processing and reducing the mass of material requiring downstream handling per ounce of gold recovered.

The company intends to incorporate the Saskatchewan Research Council test program results into a forthcoming updated technical report on the Granada gold project, building on the framework of the existing National Instrument 43-101 mineral resource estimate referenced above.

Qualified person

The technical information in this news release was reviewed and approved by Matthew Halliday, PGeo, director of Granada Gold Mine and member of the Ordre des Geologues du Quebec, who is a qualified person in accordance with NI 43-101.

Mineral resource estimate

On Aug. 22, 2022, the company filed an updated NI 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 gram per tonne 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 Table 1 below for full details.

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., and 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 currently undergoing a large drill program with 20,000 metres out of 120,000 metres complete. The drills are currently paused to provide the technical team with the necessary time to evaluate, assimilate existing data and wait for improved market conditions.

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 Au from two shafts down to 236 m and 498 m with open-pit grades from 3.5 to five g/t Au.

The property includes the former Granada gold underground mine, which produced more than 50,000 ounces of gold at 10 g/t Au 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.

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