GGM.V · 2020-08-11 12:00:00

Granada 55.56 g/t over 3 meters from 1220 kg surface grab sample. Adds second drill Mr. Frank J. Basa reports:

Drill Results Exploration Programs

Granada 55.56 g/t over 3 meters from 1220 kg

surface grab sample. Adds second drill

Mr.

Frank J. Basa

reports:

ROUYN NORANDA, QC

Aug. 11, 2020

/CNW/ - Granada Gold Mine (TSX.V: GGM) ("Granada

Gold" or the "Company") is pleased to provide an update of its 2020 High-Grade exploration and

bulk sampling program.

Highlights

Grab sample returns

55.6 grams per tonne native gold

from 1220 kilograms of mineralized

material taken from surface over a 3-meter strike length on Vein No 1 structure where diamond

drill hole GR-19-A intersected 11.45 g/t gold from 0 to 33 metres core length (refer to

January

9, 2020

, news release).

Sample was processed at Temiskaming Testing Labs in

Cobalt, Ontario

. Conventional gravity

concentration was used and therefore only native gold was recovered and quantified. The gold-

bearing sulfides were not recovered.

Native gold component has been defined for the Granada Gold Mine to represent an average of

50% percent of the recoverable gold from the mineralized deposit (43-101 Technical Report

dated

February 13, 2019

on the Granada Gold Project Mineral Resource Estimate,

Rouyn

Noranda, Quebec

authored by the Qualified persons,

Allan Armitage

, Ph. D.., P.

Geo and

Maxime Dupere

, B.SC., Geo both of SGS Canada Inc. – Section 13.1).

Second drill rig focussing on the high-grade Vein No 1 structure. Stripping to the West to

continue along strike. The mineralized structure has been traced on surface for over 115 meters

on east-west trend by stripping. The structure extends over 500 meters when we connect the

pierce points with the drill holes.

Frank J. Basa

, P.Eng., Granada Gold's President and CEO, comments: "Historically, the mill grades

at Granada Mine were higher than drill grades. This is common with high-grade native gold

concentration deposits on the Cadillac Trend - as it is with this deposit. The 1220-kg sample

returned 4 times the drill grade of the core – using only the native gold component."

Frank J. Basa

, P.Eng., further comments: "A bulk sample is to be taken at this location to further

quantify the grade of the mineralized material. The company is awaiting quotes from local

contractors to take this bulk sample. The bulk sample is to be processed at Temiskaming Testing

Labs,

Cobalt, Ontario

Historical Recap

Historic underground production between 1930 and 1935, from 2 shafts had an average grade

of 9.7 grams/tonne gold and 1.5 grams/tonne silver from 164,816 tonnes of mineralized material

(51,476 ounces gold in 181,744 tons at 0.28 oz/ton) primarily from Vein No.2 underground *

A 1994 surface bulk sample extracted 87,311 tonnes grading 5.17 g/t gold from Pit No.1 (on

Vein No. 1) *

A later, 1996 surface bulk sample extracted 22,095 tonnes grading 3.46 g/t gold from Vein No.

The Aukeko Shaft, 2300 metres east of the current bulk sample, and within the Auk Shear, saw

an average of 7.00 ounces gold per Ton (240.0 grams per tonne) from 3 bulk samples taken

just east of the Aukeko shaft in 1938 (from public files with MERN (Ministère d'Energie et

Ressources Naturelles) GM52851). The Auk Shear zone was mapped over a one-kilometre

length with an average width of 50 metres. The Aukeko gold mine is part of the east-west

trending structure on the Granada Gold Mine property. It is two kilometres east from the

extended LONG Bars zone where over 120,000 metres of drilling has been undertaken to date,

including historical drilling from the 1990s. A further 1.9 kilometres east is the Austin-Rouyn

Mine where grab samples in 1940 showed up to 6.57 ounces of gold per Ton (225.2 grams per

tonne). Grab samples are selected samples and are not necessarily representative of the

mineralization hosted on the property.

*The above disclosure of the bulk sample size and grade is extracted from the 43-101 Technical

Report dated

February 13, 2019

on the Granada Gold Project Mineral Resource Estimate,

Rouyn

Noranda, Quebec

authored by the Qualified persons,

Allan Armitage

, Ph. D.., P.

Geo and Maxime

Dupere

, B.SC., Geo both of SGS Canada Inc. The Company has no reason to doubt its reliability.

Drill programs in 2019 focussed on testing the gold grade continuity and variability within mineralized

structures.

GR-19-C intersected a high-grade zone with 7.67 g/t gold over 15 meters of core length from near

surface at downhole depth of 18.5 to 33.5 metres on the extended LONG Bars zone (refer to

Nov 6,

2019

, news release). Assays are uncut except where indicated. True width is not known at present

time.

Coarse, native gold was observed in the drill core of hole GR-19-E which intersected a high-grade

zone with 12.32 g/t Au over 2 metres core length at a depth of 35.5 metres on the extended LONG

Bars zone (refer to

Oct 15, 2019

, news release). The core length reported is estimated to have

intersected 85-90% of true thickness of the zone. Assays are uncut except where indicated

It is important to note that the current NI 43-101 resource calculation by SGS does not include the

above mineralized zone as it was recently uncovered by stripping for a water sump.

The current resource at the Company's Granada Gold project in

Rouyn-Noranda, Quebec

is detailed

in the report filed on Sedar, a technical report compliant with National Instrument 43-101 titled,

"Granada Gold Project Mineral Resource Estimate

Rouyn-Noranda, Quebec, Canada

." The report,

written by Independent Qualified Persons Allan Armitage, PhD, P.Geo, and

Maxime Dupere, BSc

P.Geo, of SGS Canada Inc., provides support for the following resource estimate:

Current Resources: 2019 Pit-Constrained Resource Estimate