Granada Gold Mine Inc. announced an estimate of the potential quantity and grade of its exploration target to the north of the resource area at its Granada Gold deposit in Quebec. The target estimate, which is based on the results of several successful deeper holes drilled to the north of the resource area, is calculated at between 18 and 25 million tonnes with a gold grade range of 3.8 to 5.2 grams per tonne gold. The potential target exploration area extends 2.2 kilometers downdip from the current resource area towards the north boundary of the property with mineralization open at depth and on an east-west strike for 1.5 kilometers.

The Granada deposit's current resource estimate is based on a mineralized area close to the surface and is largely suitable for open-pit mining. However, the holes that had been drilled to the north of this resource area indicated that the gold veins dip down towards the Cadillac Break at the northern end of the property and based on the current data could be higher grade than the current resources. The Cadillac Break, which borders the Granada Mine Property to the North, has produced many multi-million-ounce gold deposits.

Mineralized material typically extends below two kilometers on the Cadillac Break and can be economically mined. Macassa Gold Mine in Ontario and the Don Laronde Gold Mine in Quebec both operate below two kilometers from surface. The exploration target potential was defined by modeling the identified mineralized structures in drill intercepts in the exploration target area, across vertical long sections of the historical mine area and to the north.

The target mineralized zone extends from the existing pit-constrained and underground resources area (which is approximately 400m downdip at -50 degrees from surface), a further 2,200m downdip to the north, towards the Cadillac Break, to the intercepts in DDH GR-21- 14. The Target mineralized zone has a modelled strike length of 1,500 meters east-west. The volume of the modeled mineralized zone uses a specific gravity of 2.75 tonnes per cubic meter to determine the potential tonnage in this one exploration target zone contemplated within 3 horizons of silicified, and altered with sulfides conglomerates along with quartz veining.

As a conservative approach, only a single 3m-thick zone is used in the calculation of the potential. The gold grade range given in the exploration target is determined in consideration of the drill results within the modeled exploration target area and of the latest assay intervals in hole GR-21-14 as well as existing mineral resources grades in the geological setting at Granada. The potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.

The exploration target which is conceptual in nature is based on previous drill results that defined the approximate length, thickness, depth, and grade of the portion of the historic resource estimate.