Mr. Frank Basa reports

GRANADA CLOSES SHARES FOR DEBT TRANSACTION AND CONFIRMS REPRICING AND EXTENDING WARRANTS

Further to the news release dated July 25, 2023, Granada Gold Mine Inc. has closed the shares-for-debt transaction, and the company has issued 2,558,333 common shares at a deemed price of three cents per share to certain creditors to settle $76,750 worth of debt owed to the creditors. One of the creditors was a related party as one of the principals is a director and officer of the company. The related creditor was issued 1,833,333 shares to settle $55,000 worth of debt.

All securities issued in connection with the transaction will be subject to a four-month hold expiring on Dec. 25, 2023, in accordance with applicable Canadian securities laws.

Further to the company's news release of Aug. 9, 2023, the company confirms it has repriced 3,956,521 share purchase warrants, which were issued in two tranches pursuant to a private placement that closed on Sept. 4, 2020. The warrants have been repriced to five cents and have been extended to Aug. 27, 2025 (3,043,478 warrants), and Sept. 4, 2025 (913,043 warrants).

The company has also repriced 5,178,572 warrants, which were issued pursuant to a private placement that closed on Sept. 27, 2021. The warrants have been repriced to five cents and have been extended to Sept. 27, 2025.

The warrants, as amended, are subject to an accelerated expiry provision such that, if for any 10 consecutive trading days during the unexpired term of the warrants, the closing price of the company's shares on the TSX Venture Exchange exceeds 6.25 cents, representing the amended warrant exercise price of five cents plus 25 per cent, the exercise period of the warrants will be reduced to 30 days, starting seven days after the last premium trading day. The company will announce any such accelerated expiry date by press release. All other terms of the warrants remain unchanged.

About Granada Gold Mine Inc.

Granada continues to develop and explore its 100-per-cent-owned Granada gold property near Rouyn-Noranda, Que., which 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 30,000 metres out of 120,000 metres complete. The drills are currently paused to provide the technical team with 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 from 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 m and 498 m with open-pit grades from 3.5 to five grams per tonne gold.

Mineral resource estimate

On Aug. 20, 2022, the company released an updated National Instrument 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, 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.

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 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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