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GGM.V ·

Granada GOLD Closes $600,000 Flow-Through Private Placement

Financings

Q

2875 Ave Granada

Rouyn Noranda, Québec J9Y 1Y1

Tel : 819-797-4144 / Fax: 819-792-2306

GRANADA GOLD CLOSES $600,000 FLOW-THROUGH PRIVATE PLACEMENT

December 21, 2021: Rouyn Noranda, QC - Granada Gold Mine Inc. (TSXV: GGM) (the “Company” or

“Granada”) announces that the Company has closed a non-brokered private placement by way of

issuing 5,454,546 flow-through units (“FT Units”) at a price of $0.11 per FT Unit raising gross

proceeds of $600,000.06.

Each FT Unit is comprised of one flow-through common share of the Company and one half of one

share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one

additional common share of the Company at an exercise price of $0.15 per share, for a period of two

years from closing, subject to TSX Venture Exchange (“Exchange”) approval.

The proceeds of the FT Unit Private Placement will be used for surface exploration, trenching, and

historical resampling of drill core on the Company’s Granada Gold Property in Québec.

GloRes Securities Inc., was paid $12,000 in cash and was issued 109,090 finder’s warrants (“Finder

Warrants”). An additional $36,000 cash and 327,272 Finder Warrants were also paid. Each Finder

Warrant will entitle the finder to purchase one additional share of the Company at an exercise price

of $0.11 per share for a period of two years from closing. The finder’s fees paid in connection with

the private placement are subject to Exchange approval.

All securities issued in connection with the private placement will be subject to a four-month and a

day hold period expiring on April 22, 2022 in accordance with applicable Canadian Securities Laws.

About Granada Gold Mine Inc.

Granada Gold Mine Inc. continues to develop and explore its 100% owned Granada Gold Property near

Rouyn-Noranda, Quebec which is adjacent to the prolific Cadillac Break. The Company owns 14.73

square kilometers of land in a combination of mining leases and claims. The company is currently

undergoing a large drill program with 30,000m out of 120,000m 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 twenty-two mineralized structures trending east-

west over five and a half kilometers. Three of these structures were mined historically from four

shafts and three open pits. Historical underground grades were 8 to 10 grams per tonne gold from

two shafts down to 236 m and 498 m with open pit grades from 3.5 to 5 grams per tonne gold.

Mineral Resource Estimate

On March 15, 2021 the Company released an updated NI 43-101 resource estimate for the Granada

Gold project (Please see January 29, 2021 news release) with a combined total of 713,000 gold ounces

of measured, indicated, and inferred. This estimate contains 351,000 gold ounces of combined

measured, indicated, and inferred for the open pit and 362,000 gold ounces of combined measured,

indicated, and inferred for the underground. Please see Table 2 below for full details. Report

reference: Granada Gold Project Mineral Resource Estimate Update, Rouyn-Noranda, Quebec, Canada

authored by Yann Camus, P.Eng. and Maxime Dupéré, B.Sc, P.Geo., SGS Canada Inc. with an effective

date of December 15, 2020 and signature date of March 15, 2021.

2

Table 2: Mineral Resource Estimate Showing Tonnes, Average Grade, and Gold Ounces

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 1930’s from two shafts before a fire

destroyed the surface buildings. In the 1990s, Granada Resources extracted a bulk sample (Pit #1)

of 87,311 tonnes grading 5.17 g/t Au. They also extracted a bulk sample (Pit # 2) of 22,095 tonnes

grading 3.46 g/t Au.

“Frank J. Basa”

Frank J. Basa, P. Eng.

Chief Executive Officer

For further information, Contact:

Frank J. Basa, P.Eng.

Chief Executive Officer

P: 416-625-2342

Or:

Wayne Cheveldayoff,

Corporate Communications

P: 416-710-2410

E: [email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of

the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release

may contain forward-looking statements which include, but are not limited to, comments that involve future

events and conditions, which are subject to various risks and uncertainties. Except for statements of historical

facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and

security of mineral property titles, availability of funds, and others are forward-looking. Forward-looking

statements are not guarantees of future performance and actual results may vary materially from those

statements. General business conditions are factors that could cause actual results to vary materially from

forward-looking statements.

Type Category Tonnes Avg Grade Au (g/t) Gold Ounces

Open Pit

Measured 3,756,000 1.89 228,000

Indicated 1,357,000 2.55 111,000

Measured + Indicated 5,113,000 2.06 339,000

Inferred 34,000 11.29 12,000

Underground

Measured 37,000 4.22 5,000

Indicated 807,000 4.02 104,000

Measured + Indicated 844,000 4.03 109,000

Inferred 1,244,000 6.33 253,000