Granada Receives Regulatory Approval for Listing of Class a Redeemable Preferred Shares

Jun 02, 2023

(TheNewswire)

Rouyn Noranda, QC -TheNewswire - June 6, 2023- Granada Gold Mine Inc. (TSXV:GGM) (the" Company " or " Granada ") is pleased to announce that it hasreceived conditional approval from the TSX Venture Exchange("TSXV") for the supplemental listing on the TSXV of Class ARedeemable Preferred Shares. Granada has called an annual general andspecial meeting to be held at the Company's head office inCoquitlam, British Columbia on July 17, 2023 at which shareholderswill be asked to adopt a special resolution approving the creation ofClass A Redeemable Preferred Shares, among other matters.

Granada intends to issue Class A Redeemable PreferredShares at an estimated price of USD $31.10 per share and thereby raiseup to USD $25 million by way of private placement. The Company intendsto use the proceeds from the private placement to accelerate theprocessing of gold at its Granada Gold Property near Rouyn-Noranda,Québec in order to process a fixed amount of gold-bearing material,being 75,000 ounces over 36 months, and for working capital. TheCompany believes that it can accelerate the processing of gold at theGranada Gold Property in this manner without undue dilution to theholders of the Company's common shares.

The Class A Redeemable Preferred Shares will beredeemable 36 months from the closing date of the proposed privateplacement, subject to the right of the Company to advance theredemption date in its discretion. Holders of Class A RedeemablePreferred Shares will have an option to redeem their shares for a goldcredit if the Company produces at least 25,000 ounces of gold from theGranada Gold Property within 36 months from the closing date of theprivate placement. Holders of Class A Redeemable Preferred Shares whohave not elected to redeem their shares in the form of a gold creditwill have their Class A Redeemable Preferred Shares automaticallyredeemed by the Company for cash, based on the New York spot price forgold multiplied by the number of grams represented by the Class ARedeemable Preferred Shares held at that time. For that purpose, eachClass A Redeemable Preferred Share will be deemed to represent onegram of gold.

At the meeting to be held on July 17, shareholderswill also be asked to approve the creation of Class B RedeemablePreferred Shares and to amend the terms and conditions of theCompany's common shares so that each common share will beconvertible at the option of its holder into Class B RedeemablePreferred Shares during a period of 30 days prior to the redemptiondate, using a conversion ratio based on the volume weighted averagetrading price of the common shares immediately prior to conversion andthe issue price of the Class A Redeemable Preferred Shares (estimatedto be USD $31.10). The Class B Redeemable Preferred Shares will beredeemable in the same manner as the Class A Redeemable PreferredShares, subject to the condition that no Class B Redeemable PreferredShare may be redeemed until all Class A Redeemable Preferred Shareshave been redeemed.

Final acceptance of the supplemental listing of theClass A Redeemable Preferred Shares on the TSXV will be conditionalupon the Company obtaining TSXV approval for the proposed privateplacement of Class A Redeemable Preferred Shares pursuant to allapplicable TSXV policies and satisfying filing requirements outlinedin TSXV Policy 2.8 Supplemental Listings , including distributionof Class A Redeemable Preferred Shares to at least 75 persons, eachholding at least one board lot (100 shares) of Class A RedeemablePreferred Shares. The Class B Redeemable Preferred Shares will not belisted on the TSXV.

The Board of Directors of the Company unanimouslyrecommends that shareholders vote in favour of the two specialresolutions amending the Company's share capital. The Companybelieves this project will allow the Company to move forward at anaccelerated pace.

Shareholders are asked to carefully review theCompany's management information circular dated June 5, 2023, whichis available under the Company's profile on SEDAR at www.sedar.com and on theCompany's website at www.granadagoldmine.com.

About Granada Gold Mine Inc.

Granada Gold Mine Inc. continues to develop and exploreits 100%-owned Granada Gold Property near Rouyn-Noranda, Québec,adjacent to the prolific Cadillac Break. The Company owns14.73 square kilometers of land in a combination of mining leases andclaims. The Company is currently undergoing a large drill program with30,000 meters (2020-2021) out of 120,000 meters complete. The drillsare currently paused to provide the technical team the necessary timeto evaluate and assimilate existing data.

The Granada Shear Zone and the South Shear Zonecontain, based on historical detailed mapping as well as current andhistorical drilling, up to 22 mineralized structures trendingeastwest over five and a half kilometers. Three of these structureswere mined historically from four shafts and three open pits.Historical underground grades were 8 to 10 grams per tonne gold fromtwo shafts down to 236 meters and 498 meters with open pit grades from3.5 to 5 grams per tonne gold.

Caution Regarding Forward-LookingStatements

Certain statements in this news release may constituteforward-looking statements within the meaning of applicable securitieslaws, including, without limitation, statements with respect to theproposed private placement of Class A Redeemable Preferred Shares,development of the Company's Granada Gold Property nearRouyn-Noranda, Québec and production of gold from the Granada GoldProperty. In making the forward-looking statements in this newsrelease, the Company has applied certain factors and assumptions thatare based on the Company's current beliefs as well as assumptionsmade by and information currently available to the Company. Althoughthe Company considers these assumptions to be reasonable based oninformation currently available to it, they may prove to be incorrect,and the forward-looking statements in this news release are subject tonumerous risks, uncertainties and other factors that may cause futureresults to differ materially from those expressed or implied in suchforward-looking statements. Readers are cautioned not to place unduereliance on forward-looking statements. The Company does not intend,and expressly disclaims any intention or obligation to, update orrevise any forward-looking statements whether as a result of newinformation, future events or otherwise, except as required bylaw.

"Frank J. Basa"

Frank J. Basa, P. Eng. Chief ExecutiveOfficer

For further information, Contact: Frank J. Basa, P. Eng. Chief ExecutiveOfficer P: 416-625-2342

Or

Wayne Cheveldayoff CorporateCommunications P: 416-710-2410

E: [email protected]

Neither the TSX Venture Exchange norits Regulation Service Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.

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