Mr. Frank Basa reports

GRANADA GOLD MINE COMPLETES METALLURGICAL & ENVIRONMENTAL TEST WORK FOR POTENTIAL CUSTOM MILLING

Granada Gold Mine Inc. has completed metallurgical and environmental test work at SGS Lakefield.

Test work highlights:

• Mineralized gold and silver grades of open-pit bulk sample:
  • Gold -- three to 5.5 grams per tonne;
  • Silver -- 0.5 to 1.5 grams per tonne.
• A total of 50 samples of 10 kilograms each were subjected to the test work.
• Test work indicated that Granada mineralized material can be co-mingled with owner's mineralized material for processing or, with the addition of 35 kilograms of calcite material to Granada mineralized material, would permit custom processing at any mill in Ontario or Quebec.

Granada Gold Mine remains confident in the potential of processing the mineralized material economically. With mining permits still in place, the company has begun an internal study for potential milling of the mineralized open-pit material off site at a custom mill or the potential for on-site processing.

Qualified person

The technical information in this news release has been reviewed and approved by Claude Duplessis, PEng, GoldMinds Geoservices Inc., a member of the Quebec Order of Engineers and a qualified person in accordance with the National Instrument 43-101 standards.

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., 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 undergoing a large drill program with 30,000 metres out of 120,000 m 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 5.5 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 m and 498 m with open-pit grades from 3.5 to five grams per tonne gold.

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