Mr. Frank Basa reports

GRANADA GOLD MINE UNVEILS HIGH-GRADE FLOW SHEET, POISED TO BECOME LOW-COST GOLD PRODUCER ON CADILLAC BREAK

Granada Gold Mine Inc. has developed a high-grade flow sheet for the ore at its Granada property. Leveraging this advancement, the company is currently sourcing the main processing equipment designed to operate at 10 grams per tonne gold or higher, with a targeted capacity of 550 tonnes per day. The plant is of modular design and can be increased in increments of 550-tonne-per-day capacity.

Historically, Granada's vein 1 was mined from underground at an impressive grade of nine to 10 g/t gold. With this new flow sheet and equipment, Granada Gold Mine is positioned to become a low-cost producer of gold on the prolific Cadillac break.

Frank Basa, chief executive officer, remarked: "One of our metallurgical consultants previously assessed the cash costs per ounce gold, estimating them to be approximately $959 (U.S.) per ounce for an initial mine and milling cost, based on a previous gold price of $1,462 (U.S.) per ounce. However, the current surge in gold prices ($2,346 (U.S.) per ounce and $3,189 per ounce (yesterday's spot price) significantly enhances our projected revenues and internal rate of return (IRR) for the project, making what was already an attractive prospect even more compelling."

Granada Gold Mine anticipates a low capital expenditure (capex) for the return on investment, particularly in light of the rising gold prices. This favourable combination of factors underscores the company's confidence in the economic viability and potential profitability of the Granada project.

Qualified person

The technical information in this news release has been reviewed and approved by Claude Duplessis, PEng, of GoldMinds Geoservices Inc., who is a member of the Quebec Order of Engineers and a qualified person in accordance with 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 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 5.5 kilometres. Three of these structures were mined historically from four shafts and three open pits. Historical underground grades were eight to 10 g/t 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 g/t 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, of 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, authored by Yann Camus, PEng, and Maxime Dupere, BSc, PGeo, SGS Canada, 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 Resources 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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