Mr. Frank Basa reports

GRANADA GOLD MINE TO COMPLETE STRUCTURAL ANALYSIS OVER 5.5 KILOMETERS OF MINERALIZED STRUCTURE FOR THE GRANADA GOLD PROPERTY

Granada Gold Mine Inc. has contracted Ronacher McKenzie Geoscience Inc. (RMG) to review the company's data to provide a new structural interpretation of the Granada property.

"With 80 per cent of the 5.5-kilometre east-west mineralized structure largely unexplored, and with the price of gold now over $4,000 (U.S.) an ounce, which is significantly higher than when the resource estimates for the property were done several years ago, there is potential for a significant resource increase," stated chief executive officer Frank Basa, PEng, Ontario.

"We are very pleased that RMG has agreed to conduct the review. We have drilled intensively in the southwestern part of the Granada property, near the past-producing mine, to develop a gold resource estimate close to the surface suitable for an open pit. However, developing the structural analysis across the property and tying the existing knowledge from the high-density drilled area to the underexplored claims laterally and to depth will boost the geological knowledge of the entire property."

There is a significant amount of both public and company sources of geophysical, geological and cultural data that will be used to complete a detailed lineation study to provide a new structural evaluation. This information, along with the drill database from over 150,000 metres of drilling developed from company drill data since 2007 and historic drill data from the 1990s, will provide additional information to add to the overall interpretation process. To be able to explore at depth at the north end of the property, as well as along strike both east and west from the core area currently explored, a structural interpretation will provide information critical to the success of future and ongoing exploration.

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 National Instrument 43-101.

Mineral resource estimate

On Aug. 22, 2022, the company filed an updated National Instrument 43-101 technical report supporting the resource estimate update for the Granada gold project (see the 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 (g/t) gold (Au) 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 attached table for full details. Report reference: Granada Gold project mineral resource estimate update, Rouyn-Noranda, Que., Canada, written by Yann Camus, PEng, and Maxime Dupere, BSc, PGeo, SGS Canada Inc., dated Aug. 20, 2022, and with an effective date of June 23, 2022.

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 grams per tonne gold from two shafts down to 236 metres and 498 metres with open pit grades from 3.5 to 5 grams per tonne gold.

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. They also extracted a bulk sample (pit No. 2) of 22,095 tonnes grading 3.46 g/t Au. Details are available in the NI 43-101 report and on the company's website.

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