GGM.V · 2021-05-12 12:00:00

Granada Gold Hits Massive Rare Earth and Alkali Metals Zone 1.6 Kilometers from Discovery Hole GR-20-20

Drill Results

Granada Gold Hits Massive Rare Earth and

Alkali Metals Zone 1.6 Kilometers from

Discovery Hole GR-20-20

ROUYN NORANDA, QC

May 12, 2021

/CNW/ - Granada Gold Mine Inc. (TSXV: GGM) (the

"Company" or "Granada") is pleased to announce that Hole GR-20-22 drilled to a depth of 1626

meters on the Big Claim of the Granada Gold Mine property, in

Quebec, Canada

Results are preliminary and full core lengths have not yet been assayed in two holes drilled at the

north of the Big Claim. The company encountered unusual facies of altered rock which has been

sampled in portions of the drill core. The mineralized portions of the core have been assayed for 56

metals. Additional assays are pending. Initially, portions of drill holes GR-20-20 and GR-20-22 were

sampled. The company has received preliminary assay results for GR-20-22. Based on recent

assays for intervals sampled, the intervening intervals are being prepared and will be sent for assay

to create a complete picture.

Highlights of drill hole GR-20-22 as of today:

Intercepted 21 distinct mineralized zones.

Zones range in core length from 177 meters to 2.8 meters.

Rare Earths and Alkali metals of note identified to date are Caesium (Cs), Rubidium (Rb),

Scandium (Sc), Zirconium (Zr), Cerium (Ce), Gallium (Ga), Hafnium (Hf), Neodymium (Nd) and

Strontium (Sr). Others pending.

Highlights of Select Drill Core Intercepts:

Length

From

metres

ppm

53.0 ( I )

1053.0

1106.5

6.55

340.2

0.96

724.3

123.0

32.5

18.3

34.4

150.9

35.0 ( II )

1291.0

1326.0

6.56

144.7

9.03

301.5

121.4

19.73

7.76

53.6

1285.4

30.0 ( III )

1596.0

1626.0

4.83

83.4

14.8

161.7

67.8

20.4

4.35

31.3

489.3

True widths are unknown at the moment.

Complete analysis of current 21 drill intercepts can be found on the GGM website (

REE Interval Table

Uses and Market Price Ranges of Rare Earths and Alkali Metals

Caesium

is used to make special optical glass, as a catalyst promoter, in vacuum tubes and in

radiation monitoring equipment. One of its most important uses is in the 'caesium clock' , or atomic

clock. (

Royal Society of Chemistry

) with a price of

68,100 US dollars

per kilogram (

Mineral Commodity Summaries 2019

Rubidium

's photoemissive properties make it useful for electrical-signal generators in motion-sensor

devices, night vision devices, photoelectric cells (solar panels), and photomultiplier tubes. Rubidium

is used as an atomic resonance-frequency-reference oscillator for telecommunications network

synchronization, playing a vital role in global positioning systems with prices of

15,500 US dollars

per

kilogram (

USGS Mineral Commodity Summaries 2019

Scandium

is one of the most expensive of all the natural elements. Prices for 99.99% pure

scandium (RE: 99% min. | Sc/TREM: 99.99% min.) have fluctuated between

US$ 7000

and

US$

20,000

per kilogram over the past decade. Of course, because of the limited amount of material

produced globally and the limited market for scandium, there is also a wide range of prices offered

for the metal at any given time (

strategic-metal.com

and phone conversation

May 10, 2021

Applications for scandium were not developed until the 1970s, when the positive effects of

scandium on aluminium alloys were discovered, and its use in such alloys remains its only major

application.

The leading consumers of

zirconium

metal are the chemical process and nuclear energy industries.

(

USGS zirconium-hafnium.pdf

) with a price of

37.1 US dollars

per kilogram. (

Shanghai Metals Market

Cerium

metal is used in ferrocerium lighters for its pyrophoric properties. Cerium-

doped YAG phosphor is used in conjunction with blue

light-emitting diodes

to produce white light in

most commercial white LED light sources. Recent prices are

4.71 US dollars

per kilogram (

Shanghai Metals Market, cerium

Gallium

as an arsenide is used in the manufacture of devices such

as microwave frequency integrated circuits,

monolithic microwave integrated circuits

infrared

light-emitting diodes

laser diodes

solar cells

and optical windows with a price of

534.4 US dollars

per kilogram (

kitco.com strategic-metals

The leading use of

hafnium

metal is in superalloys with a price of

1347.4 US dollars

per kilogram (

kitco.com strategic-metals

Neodymium

is as a component in the alloys used to make high-strength neodymium magnets—

powerful permanent magnets. These magnets are widely used in such products as microphones,

professional loudspeakers, in-ear headphones, high performance hobby DC electric motors, and

computer hard disks, where low magnet mass (or volume) or strong magnetic fields are required.

Larger neodymium magnets are used in high-power-versus-weight electric motors (for example

in hybrid cars) and generators (for example aircraft and wind turbine electric generators). Price is

118.5 US dollars

per kilogram (

kitco.com strategic-metals

Strontium is

used in

producing ferrite magnets and refining zinc. Modern 'glow-in-the-dark' paints

and plastics contain

strontium

aluminate (

Royal Society of Chemistry - Strontium

). Recent prices

are

6.68 US dollars

per kilogram (

https://en.institut-seltene-erden.de/current-prices-of-strategic-metals/

Equivalent Range Values of Intercepts

Equivalent Range Intercepts (I), (II), and (III) were calculated without Caesium and Rubidium as no

active market for the metals could be identified at present. Inclusion into the Equivalent Range Value

of intercepts would present values of 404.8 and

5,273.1 US dollars

per tonne for Caesium and

Rubidium respectively for Intercept (I). For comparison purposes, in gold equivalents 6.83 and 89.0

g/t over 53 meters respectively.

Equivalent Range Value for Intercept (I) is 80.8 to

93.8 US dollars

per tonne.

In gold equivalents 1.36 g/t to 1.58 g/t over 53 meters. Gold

59.24 US dollars

per gram (

https://www.jmbullion.com/charts/gold-price/

Equivalent Range Value for Intercept (II) is 110.9 to

228.3 US dollars

per tonne.

In gold equivalents 1.87 g/t to 3.85 g/t over 35 meters.

Equivalent Range Value for intercept (III) is 133.6 to

326.0 US dollars

per tonne.

In gold equivalents 2.25 g/t to 5.50 g/t over 30 meters.

Ten other rare earths and/or alkali metals are pending for inclusion into Equivalent Range Values.

Currently gold is mined from underground at values down to 2 g/t gold in

Ontario, Canada

(

https://miningdataonline.com/property/1484/Young-Davidson-Mine.aspx#Geology

Granada Gold Mine target underground gold grade is 4 g/t over a mining width of 1.5 to 2 meters.

Processing and Refining Rare Earths and Alkali Metals

Conventional mining, milling, separations and finishing possible at a single site with a zero discharge.

Mountain Pass Mine in

California, USA

, which is in operation now is producing rare earth metals.

Granada's

rare earth and alkali metal discovery was encountered during our deep drilling program

for gold on the defined gold zone that is dipping at 50 degrees to the north towards the renowned

Cadillac Break. Our target depth for the gold mineralization extension in the north of the Big Claim is

about 2,500 meters," said

Frank J. Basa

, P.Eng., "The 1.6 kilometer step out along the Cadillac

Break could potentially be a massive rare earth and alkali metals mineralized zone yet to be

discovered which would greatly impact the value of the property. The company has 5.5 kilometers of

east-west strike length to further explore along the Cadillac Break. Drill results to date are

exceptionally encouraging."

The company is taking action on characterizing the minerals of these elements. It has sent samples

to SGS Minerals in

Ontario

for advanced mineral analysis under the direction of Tassos

Grammatikopoulos, Mineralogist at SGS Lakefield Research

Results to date are from SGS independent laboratories where NQ core samples of hole GR-20-22

were analysed. The company will proceed with sampling of the entire hole to enable disclosure of

mineralized lengths associated with grades as well as investigation on the mineralogy as the grades

of interest are not confined to one geological unit.

Co-ordinates of the hole have been determined by handheld GPS and will be surveyed in spring.

GR-20-22: 647 624E, 5 339 218N, 291Z, Azimuth 360N, Dip -65 and length

1,626m

QA/QC

The insertion of blanks and standards by the technical team in the program were in line with

expected values. The laboratory QA/QC results for these anomalous elements at the laboratory are

in line with their expected values thereby allowing the public disclosure of the values.

Qualified person

The technical information in this news release has been reviewed by

Claude Duplessis

, P.Eng.,

GoldMinds Geoservices Inc. member of Québec Order of Engineers and a qualified person in

accordance with National Instrument 43-101 standards.

About Granada Gold Mine Inc.

Granada Gold Mine Inc. continues to develop the Granada Gold Property near

Rouyn-Noranda,

Quebec

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

focused mainly on the extended LONG Bars zone which trends 2 kilometers east-west over a

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

more than 75 million plus ounces of gold production in the past century, cuts through the north part of

the

Granada

property, but is not necessarily indicative of mineralization hosted on the company's

property.

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.

Updated Mineral Resource

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

Rouyn-Noranda, Quebec

was

estimated by SGS Canada and outlined in a

January 29, 2021

news release. The final report was

filed

March 15, 2021

with an Effective date of

December 15, 2020

. The 43-101 Technical Report is

titled: Granada Gold Project Mineral Resource Estimate Update,

Rouyn-Noranda, Quebec, Canada

authored by

Yann Camus

, P.Eng. and Maxime Dupéré, B.Sc, géo. Both of SGS Canada Inc.

Updated Mineral Resource Estimate Base Case with Details Between the Open Pit Portion

and the Underground Portion

Type