Mr. Frank Basa reports

GRANADA PROPOSES TO ISSUE SHARES FOR DEBT

Granada Gold Mine Inc. has reached an agreement with certain non-arm's-length creditors to repay debt in the aggregate principal amount of $300,000 through the issuance of three million common shares in the capital of the company at a deemed price of 10 cents per common share.

All common shares proposed to be issued in connection with the transaction will be subject to a four-month-and-one-day hold period in accordance with applicable Canadian Securities Laws. The completion of the transaction remains subject to the approval of the TSX Venture Exchange.

Pursuant to exchange Policy 5.9 and Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, the transaction constitutes a related party transaction in that two of the company's directors are also principals of creditors. The company is exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 in reliance on the exemptions set out in sections 5.5(a) and 5.7(1)(a), respectively, as the fair market value of the transaction does not exceed 25 per cent of the company's market capitalization.

The company also announces that Christopher Ecclestone has tendered his resignation as a director of the company. The company thanks Mr. Ecclestone for his contributions and wishes him the best with his future endeavours.

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., and 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 18,000 metres out of 120,000 metres complete. The drills are currently paused to provide the technical team with the necessary time to evaluate, assimilate existing data and wait for improved market conditions.

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 metres and 498 metres, with open-pit grades from 3.5 to five grams per tonne gold.

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 grams per tonne gold. It also extracted a bulk sample (pit No. 2) of 22,095 tonnes grading 3.46 grams per tonne gold. Details are available in the National Instrument 43-101 report and on the company's website.

We seek Safe Harbor.