Mr. Frank Basa reports

GRANADA RECEIVES REGULATORY APPROVAL FOR LISTING OF CLASS A REDEEMABLE PREFERRED SHARES

Granada Gold Mine Inc. has received conditional approval from the TSX Venture Exchange for the supplemental listing on the TSX-V of Class A redeemable preferred shares. Granada has called an annual general and special meeting to be held at the company's head office in Coquitlam, B.C., on July 17, 2023, at which shareholders will be asked to adopt a special resolution approving the creation of Class A redeemable preferred shares, among other matters.

Granada intends to issue Class A redeemable preferred shares at an estimated price of $31.10 (U.S.) per share and thereby raise up to $25-million (U.S.) by way of a private placement. The company intends to use the proceeds from the private placement to accelerate the processing of gold at its Granada gold property near Rouyn-Noranda, Que., to process a fixed amount of gold-bearing material, being 75,000 ounces over 36 months, and for working capital. The company believes that it can accelerate the processing of gold at the Granada gold property in this manner without undue dilution to the holders of the company's common shares.

The Class A redeemable preferred shares will be redeemable 36 months from the closing date of the proposed private placement, subject to the right of the company to advance the redemption date in its discretion. Holders of Class A redeemable preferred shares will have an option to redeem their shares for a gold credit if the company produces at least 25,000 ounces of gold from the Granada gold property within 36 months from the closing date of the private placement. Holders of Class A redeemable preferred shares who have not elected to redeem their shares in the form of a gold credit will have their Class A redeemable preferred shares automatically redeemed by the company for cash, based on the New York spot price for gold multiplied by the number of grams represented by the Class A redeemable preferred shares held at that time. For that purpose, each Class A redeemable preferred share will be deemed to represent one gram of gold.

At the meeting to be held on July 17, shareholders will also be asked to approve the creation of Class B redeemable preferred shares and to amend the terms and conditions of the company's common shares so that each common share will be convertible at the option of its holder into Class B redeemable preferred shares during a period of 30 days prior to the redemption date, using a conversion ratio based on the volume-weighted average trading price of the common shares immediately prior to conversion and the issue price of the Class A redeemable preferred shares (estimated to be $31.10 (U.S.)). The Class B redeemable preferred shares will be redeemable in the same manner as the Class A redeemable preferred shares, subject to the condition that no Class B redeemable preferred share may be redeemed until all Class A redeemable preferred shares have been redeemed.

Final acceptance of the supplemental listing of the Class A redeemable preferred shares on the TSX-V will be conditional upon the company obtaining TSX-V approval for the proposed private placement of Class A redeemable preferred shares pursuant to all applicable TSX-V policies and satisfying filing requirements outlined in TSX-V Policy 2.8 (Supplemental Listings), including distribution of Class A redeemable preferred shares to at least 75 persons, each holding at least one board lot (100 shares) of Class A redeemable preferred shares. The Class B redeemable preferred shares will not be listed on the TSX-V.

The board of directors of the company unanimously recommends that shareholders vote in favour of the two special resolutions amending the company's share capital. The company believes this project will allow the company to move forward at an accelerated pace.

Shareholders are asked to carefully review the company's management information circular dated June 5, 2023, which is available under the company's profile on SEDAR and on the company's website.

About Granada Gold Mine Inc.

Granada continues to develop and explore its 100-per-cent-owned Granada gold property near Rouyn-Noranda, Que., 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 30,000 metres (2020 and 2021) out of 120,000 metres complete. The drills are currently paused to provide the technical team 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 current and historical drilling, up to 22 mineralized structures trending east-west over 5-1/2 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.

We seek Safe Harbor.