GGM.V · 2020-01-09 12:00:00

Granada Gold Mine Intersects 11.45 g/t Gold Over 33 Meters, Supports Continuity of High- Grade Structures

Drill Results

Granada Gold Mine Intersects 11.45 g/t Gold

Over 33 Meters, Supports Continuity of High-

Grade Structures

ROUYN NORANDA, QC

Jan. 9, 2020

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

"Company" or "Granada") is pleased to provide assays results from the last hole in the latest drill

program at its 100%-owned

Granada

gold deposit in

Rouyn-Noranda

. Unexpected near-surface,

high-grade mineralization has been discovered within the recently explored two-kilometer LONG

Bars Zone of the five and half kilometer Granada Shear zone which trends east-west on the

property.

The 450-meter Fall, 2019 drill program focused on testing the gold grade continuity and variability

within mineralized structures. The Granada Shear Zone and the South Shear Zone contains, 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 half kilometers. Three of these structures

were mined historically from two shafts and two 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 5 to

3.5 grams per tonne gold.

Highlights:

11.45

g/t in drill hole GR-19-A from 0 to

33 m

core length including high-grade intercepts of

42.5

g/t from 0 to

1.5 m

480

g/t from 8.1 to

8.5 m

, and

70.8

g/t from 31.9 to

32.4 m

. The horizontal

width, based on outcrop, is about 9 meters and true width is estimated at 6.3 meters. The core

length reported is estimated to have intersected only 15-20% of the entire thickness of the

zone. However, it is a real known extent in that direction down dip of gold mineralization within

the intersected length. Assays are uncut except where indicated.

A further

50 m

strike length of stripping uncovered a massive mineralized quartz zone exposing

strong veining with visible gold on surface

Hole GR-19-A was drilled down-dip from a surface exposure of the mineralized zone composed of a

massive quartz vein within a sheared and altered conglomerate adjacent to feldspar porphyry to the

south. The entire mineralized zone has a 9-meter horizontal thickness in that sector. GR-19-A was

drilled at azimuth 21 degrees North with a dip of 41 degrees in NQ core size.

Maps showing hole locations, stripping and full analytical results are available at

www.granadagoldmine.com

Frank J. Basa

, P.Eng., Granada Gold's president and chief executive officer, comments: "The

current drill program has unlocked the high-grade, near-surface potential and shows that the

Granada

gold deposit resource may have been underestimated.

An ongoing drilling and stripping exploration program at

Granada

will focus on defining new zones of

high-grade mineralization, both on surface and at depth. Numerous high-grade intercepts have been

found from surface to below a depth of 1000 meters. It is open both at depth and on east-west

strike for 5.5 kilometers."

Granada Gold Mine High-Grade Intersections

Showing High-Grade Intercepts and Prospective Zone for Future Exploration (Composite Section)

(CNW Group/Granada Gold Mine Inc.)

The company has completed surface stripping over a 25-meter by 50-meter extent in the immediate

area and has begun another short drill program to further test for near-surface high grade

mineralization.

The company has retained the drilling services of MultiDrilling based in

Rouyn-Noranda

. The program

was under supervision of GoldMinds Geoservices technical team.

Private Placement Closing

The Company has closed a private placement financing raising gross proceeds of

$200,000

. A total

of 2,000,000 units were issued with each unit consisting of one common share in the capital of the

Company and one share purchase warrant. Each warrant entitles the holder to purchase one share

of the Company for a period of two years from closing at an exercise price of

$0.15 cents

per

share.

All securities issued are subject to a four-month-and-a-day hold period expiring on

May 10, 2020

, in

accordance with applicable securities laws. The private placement is subject to final TSX Venture

Exchange approval.

The proceeds of the private placement will be used for surface exploration, trenching, and historical

resampling of drill core on the Company's Granada Gold Property in Québec and for general

working capital purposes.

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.

Quality Control and Reporting Protocols

All NQ core assays reported were obtained by either 1-kilogram screen fire assay or standard 50-

gram fire-assaying-AA (Atomic Absorption) finish or gravimetric finish at (i) ALS Laboratories in

Val

d'Or

, Québec,

Thunder Bay, Ontario

Sudbury, Ontario

Vancouver, British Columbia

. The screen

assay method is selected by the geologist when samples contain visible gold. All samples are also

analyzed for multi-elements, using an Aqua Regia-ICP-AES method at ALS Laboratories. The drill

program, Quality Assurance/Quality Control ("QA/QC") and interpretation of results is performed by

qualified persons employing a QA/QC program consistent with NI 43-101 and industry best

practices. Standards and blanks are included with every 12 samples for QA/QC purposes for this

program in addition to the lab QA/QC.

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.

Pit-Constrained Mineral Resources at

Granada

disclosed on

February 13

, 2019 Press Release

prepared by SGS independent QP stand at: