Mr. Timothy Johnson reports

GRANITE CREEK PROPOSES CONSOLIDATION AND PRIVATE PLACEMENT

Granite Creek Gold Ltd. has approved a consolidation of its common shares on the basis of one new postconsolidation common share for every four preconsolidation common shares. The company proposes this consolidation in order to facilitate future financings and acquisitions. A name change is not intended as part of the consolidation, and it is subject to acceptance for filing by the TSX Venture Exchange.

There are presently 23,392,066 common shares issued and outstanding in the capital of the company and, following the proposed share consolidation, there will be approximately 5,848,017 common shares issued and outstanding.

The company also wishes to announce that upon acceptance of the consolidation, it intends to complete a private placement of up to two million units at a price of five cents per unit for gross proceeds of approximately $100,000. Each unit will consist of one postconsolidation common share and one-half of a transferrable common share purchase warrant. Each full common share purchase warrant will be exercisable for one postconsolidation common share of the company's capital stock for a period of 18 months from the date of issue at an exercise price of seven cents. The terms and completion of the private placement are subject to TSX Venture Exchange approval. The company may pay finders' fees in connection with the private placement. The net proceeds from the placement will be used by the company for operations and general working capital purposes.

Other matters

The company also announces that it has completed due diligence on the Niaouleni concession (see press release dated Sept. 23, 2014) and has given Frontline Gold Corp. notice that the conditions of closing, subject to the agreement dated Sept. 22, 2014, have been completed to Granite Creek's satisfaction. A minor revision was made to the agreement stating that any shares issued as a payment to Frontline as a result of Granite Creek delineating a resource of 500,000 ounces of gold shall only be issued if Granite Creek is trading above five cents and that any share issuance under this provision is subject to TSX Venture approval. All other terms remain the same.

We seek Safe Harbor.