GGM.V · 2019-01-08 12:00:00

Granada Gold Drills 8.39 g/t Gold Over 6 Meters at Granada Project Below Pit- Constrained Resources

Drill Results

Granada Gold Drills 8.39 g/t Gold Over 6

Meters at Granada Project Below Pit-

Constrained Resources

ROUYN NORANDA, QC

Jan. 8, 2019

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

Gold" or the "Company") is pleased to report final drill results from its Fall 2018 drill program at its

Granada

gold project along the Cadillac Trend in

Northern Quebec

. The program successfully

identified new significant gold intersections at depth below the recently-updated Pit-Constrained gold

resources as well as at a new, previously-untested area northwest of the Pit-Constrained resources.

Drill Highlights

8.39 g/t Au

over 6 meters in hole GR-18-03;

Including

12.41 g/t Au

over

4.0

meters

Including

45.7 g/t Au

over

1.0

meter

5.45 g/g Au

over 4 meters in hole GR-18-04;

Including

13.7

g/t Au over 1.5

meters

Including

37.3 g/t Au

over

0.5

meter.

8.15 g/t Au

over 3 meters in hole GR-18-01

Including

23.3

g/t Au

over

1.0

meter.

Frank J. Basa

, President and CEO, stated: ''These drill results show that there is growth potential

at our

Granada

gold project, both below and along strike with our existing gold resources, as well as

at new target areas elsewhere on our property. We are optimistic about our 2019 activities given

our recent progress in better defining our Pit-Constrained resources and our early successes with

new target generation."

December 2018

, the Company announced an updated resource estimate on the LONG-BARS

Zone at the

Granada

gold project (see Press Release,

December 12, 2018

for details). The Pit-

Constrained mineral resources include the following:

Measured Resources: 464,000 ounces of gold (12.8 Mt @ 1.13 g/t Au)

Indicated Resources: 349,000 ounces of gold (9.6 Mt @ 1.13 g/t Au)

Inferred Resources: 455,000 ounces of gold (6.9 Mt @ 2.04 g/t Au)

In late Fall 2018, Granada Gold completed a 4 hole drill program totaling

2,889m

. The holes tested

magnetic anomalies from two areas (See Figure 1 below): 1) down-dip continuity of gold

mineralization at depth below the Pit-Constrained resources, and 2) a magnetic anomaly roughly

500

northwest of the Pit-Constrained resources, identified in the magnetometer survey completed in

August 2018

(press release

October 9, 2018

Holes GR-18-01 and GR-18-03 targeted the down-dip extension of gold mineralization below the Pit-

Constrained resources. Hole GR-18-03 intersected multiple gold-bearing quartz veins between

564

and

680 m

downhole, exhibiting similar character to the veins typically exposed at surface within

the stripped area. Hole GR-18-01 intersected a high-grade zone at around 270 meters from surface,

associated with a silicified zone with disseminated pyrite within the conglomerate unit.

Location of drill holes reported here, 2018 Whittle Pit, and Magnetic Anomalies (CNW

Group/Granada Gold Mine Inc.)

Drill holes GR-18-04 and GR-18-05 tested a new magnetic anomaly in the North-West part of the

property, outside the known resource envelope. Hole GR-18-04 confirms the presence of a new

gold-bearing area northwest of the Pit-Constrained resources, hosted in a strong reddish

(hematised), silicified conglomerate with disseminated sulfides and visible gold (VG). More

exploration is needed to better understand this untested area, which the Company's geologists

believe may be important in the origins of the

Granada

gold deposit.

Selected Drill Hole Assay Results

Hole Name

From (m)

To (m)

Length (m)

Au g/t

Type

GR-18-01

365.00

368.00

3.00

8.15

including

366.00

367.00

1.00

23.30

GR-18-01

551.00

552.00

1.00

3.75

GR-18-01

495.00

500.00

5.00

1.10

GR-18-01

517.00

520.00

3.00

1.75

GR-18-01

525.00

528.00

3.00

2.30

including

525.00

526.00

1.00

4.12

GR-18-03

572.00

578.00

6.00

8.39

including

573.00

577.00

4.00

12.42

Including

573.00

574.00

1.00

45.70

GR-18-03

564.00

570.00

6.00

1.05

including

569.00

570.00

1.00

3.32

GR-18-03

613.00

614.00

1.00

1.09

GR-18-03

686.00

687.00

1.00

1.36

GR-18-04

660.00

664.00

4.00

5.45

including

662.00

663.50

1.50

13.70

including

662.50

663.00

0.50

37.30

GR-18-04

367.00

368.00

1.00

1.48

Core length, not capped FA=Standard Fire assay, SM Screen Metallic 1kg

The drill cores were partially analyzed based on the lithology, veins, and the presence of the

mineralization.

QA/QC

Core samples were logged by GoldMinds geologists then cut in half using a rock saw at the

Granada

site by Technominex technicians. Standards and blanks were inserted in the sequence at

every 20 samples. Standard preparation was completed at ALS Rouyn-Noranda with gold analysis

conducted in

Val d'Or

while multi element assays were completed in

Vancouver

. For the highly

mineralized intervals, a special preparation with screen metallic of 1 kg was used due to the

presence of visible gold within the core. The standards and blanks are in line with expected values

and allow for the public disclosure of these analytical results.

Qualified Persons

Merouane Rachidi P. Geo

., Ph.D., a geological, environmental and mining consultant and

Claude

Duplessis

, P. Eng., of GoldMinds Geoservices Inc., are qualified persons in accordance with

National Instrument 43-101. Both have both reviewed and approved the contents of this news

release.

About Granada Gold Mine Inc.

Granada Gold Mine Inc. is continuing to develop the Granada Gold Property near

Rouyn-Noranda,

Quebec

. The property includes the former

Granada

gold mine which produced more than 50,000

ounces of gold at 10 grams per tonne gold in the 1930's before a fire destroyed the surface

buildings. Approximately 120,000 meters of drilling has been completed to date on the property,

focused mainly on the extended LONGBARS zone which trends 2 kilometers east west over a

potential 5.5 kilometers mineralized structure. The highly prolific Cadillac Trend, the source of 50

million plus ounces of gold production in the past century, cuts right through the north part of the

Granada

property on a line running from

Val-d'Or

Rouyn-Noranda Quebec

The Company is in possession of all permits required to commence the initial mining phase known as

the "Rolling Start" to production with stripping underway. Exploration drilling is ongoing with the goal

of increasing the mineral resource at

Granada

. Additional information is available at

www.granadagoldmine.com

"Frank J. Basa"

Frank J. Basa P. Eng

President and Chief Executive Officer

Neither the TSX Venture Exchange nor its Regulation Service 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 including but not limited to

comments regarding the timing and content of upcoming work programs, geological interpretations,

receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements

address future events and conditions and therefore, involve inherent risks and uncertainties. Actual

results may differ materially from those currently anticipated in such statements.

SOURCE

Granada Gold Mine Inc.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/January2019/08/c8384.html

%SEDAR: 00004087E

For further information:

Frank J. Basa, P. Eng., President and CEO at 1-819-797-4144 or Wayne

Cheveldayoff, Corporate Communications, at 416-710-2410 or [email protected]

CO: Granada Gold Mine Inc.

CNW 07:30e 08-JAN-19

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