Mr. Frank Basa reports

GRANADA GOLD MINE ANNOUNCES $2.5 MILLION PRIVATE PLACEMENT

Granada Gold Mine Inc. has arranged a non-brokered private placement offering raising gross proceeds of up to $2.5-million through the issuance of up to 50 million units at a price of five cents per unit.

Each unit comprises one common share of the company and one common share purchase warrant of the company. Each warrant entitling the holder thereof to purchase one common share at a price of 7.5 cents per common share for a period of five years from the date of issuance.

The company may pay finders' fees in connection with the offering to eligible arm's-length finders in accordance with applicable securities laws and the policies of the TSX-V.

The company intends to use net proceeds of the offering for a resource update, exploration and general corporate purposes for the company's Granada gold property, near Rouyn-Noranda, Que.

All securities issued in connection with the private placement will be subject to a four-month-and-one-day hold period in accordance with applicable Canadian securities laws.

Completion of the offering is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

Qualified person

The technical information in this news release was reviewed and approved by Matthew Halliday, PGeo, director of Granada Gold Mine and member of the Ordre des Geologues du Quebec, who is a qualified person in accordance with National Instrument 43-101.

Mineral resource estimate

On Aug. 22, 2022, the company filed an updated National Instrument 43-101 technical report supporting the resource estimate update for the Granada gold project (see the 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 (g/t) gold (Au) 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, Quebec, 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.

About Granada Gold Mine Inc.

Granada Gold 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 20,000 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 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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