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Granada Signs MOU with CSR for Granada Processing

Partnerships & JV

Granada Signs MOU with CSR for Granada Processing

ROUYN-NORANDA, QC

,

Sept. 8, 2017

/CNW/ - Granada Gold Mine (TSX.V: GGM) ("Granada Gold" or the "Company") is pleased to announce that it has signed

a Memorandum of Understanding ("MOU") with Castle Silver Resources ("CSR") for the consideration of the processing of 579,000 tonnes of ore at 4.24 g/t Au

(see Company Prefeasibility news release of

May 6, 2014

) in northern

Ontario

with an option for an additional 2 million tonnes of mineralized material from the

Granada

mine over the next three years.

As part of the MOU, CSR is undertaking a study to install a 600 tonne per day gravity flotation plant at one of its northern

Ontario

properties. The study is to be

completed during the fourth quarter of this year.

The

Granada

mine, fully permitted and shovel ready, is one of the largest undeveloped gold projects in northwest

Quebec

(please refer to Company's

May 6, 2014

,

news release as well as its

July 5, 2017

, Mineral Resource update).

Qualified Person

Claude Duplessis

, P. Eng., of Goldminds Geoservices Inc., a geological, environmental and mining consultant, is an independent qualified person in accordance

with National Instrument 43-101, and has reviewed and approved the contents of this news release.

About Granada Gold Mine Inc.

Granada Gold Mine Inc. (formerly Gold Bullion Development Corp.) is developing 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 in the 1930's before a fire destroyed the surface buildings. The highly prolific

Cadillac Trend cuts through the north part of the property. The Cadillac Trend has been the source of more than 50 million ounces of gold produced in the past

century on a line running from

Val-d'Or

to

Rouyn-Noranda

.

The Company has obtained all necessary permits for the initial mining phase known as the "Rolling Start" for which stripping has already begun, and has been

conducting exploration drilling in order to expand the reported mineral resource for the property. 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: http://www.newswire.ca/en/releases/archive/September2017/08/c1015.html

%SEDAR: 00004087E

For further information:

Frank J. Basa, P. Eng., President and CEO at 1-819-797-4144 or Wayne Cheveldayoff, Investor Relations, at 416-710-2410 or

[email protected]

CO: Granada Gold Mine Inc.

CNW 18:36e 08-SEP-17