Mr. Frank Basa reports

GRANADA GOLD MINE GRANTS STOCK OPTIONS

Granada Gold Mine Inc. has granted stock options to an officer of the company to purchase an aggregate of 4,545,319 common shares in the capital of the company. The stock options are exercisable for a term of four years at an exercise price of five cents per share. All stock options are granted in accordance with the terms of the company's stock option plan and the policies of the TSX Venture Exchange, and will be subject to a hold period of four months and one day.

Additionally, the 4,545,319 stock options granted are subject to performance vesting as follows:

1. One million one hundred thirty-six thousand three hundred thirty options shall vest upon the company achieving a market capitalization (as defined below) of $50-million.
2. The remaining 3,408,989 options shall vest upon the company achieving a market capitalization of $100-million. The thresholds must be achieved within three years after the grant date while the officer remains engaged by the company.

For purposes of determining whether a market capitalization performance hurdle applicable to the options has been achieved, market capitalization means, as at any applicable measurement date, the amount calculated by multiplying (i) the total number of issued and outstanding common shares of the company as at the close of trading on such date by (ii) the closing price of the common shares of the company on the TSX Venture Exchange on such date.

A market capitalization performance hurdle shall be deemed to have been achieved only if the market capitalization, calculated in accordance with the foregoing, equals or exceeds the applicable threshold of $50-million or $100-million, as applicable, for 20 consecutive trading days.

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 18,000 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 five 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 grams per tonne gold. It also extracted a bulk sample (pit No. 2) of 22,095 tonnes grading 3.46 grams per tonne gold. Details are available in the National Instrument 43-101 report and on the company website.

We seek Safe Harbor.