Granite Creek Gold Ltd.

Granite Creek Gold Ltd.

May 31, 2013 13:01 ET

Granite Creek Acquires Railway Property

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 31, 2013) - Granite Creek Gold Ltd. (the "Company") (TSX VENTURE:GCX) is pleased to announce the acquisition of the 654ha "Railway Property" a copper project in the highly prospective Stikine arch area of northwestern British Columbia. The project is within 11km north east of the North ROK project where Colorado Resources recently announced a significant drill intercept of 242m of 0.63% Cu and 0.85 g/t Au (Colorado Resources news release dated April 25, 2013). The project also lies 22km north of the Red Chris Property currently being developed by Imperial Metals.

A 100% interest in the Railway Property is being acquired for a cash consideration of $20,000, subject to a 2% NSR on a portion of the property.

Certain directors and officers of the Company are participating in the sale/option of the mineral claims referred to above to the Company, which are being sold at cost. Any such participation would be considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the transaction paid to such persons will not exceed 25% of the Company's market capitalization. The acquisition is subject to regulatory approval.

A limited prospecting program, completed by the vendors in 2010, on the property identified two mineralized showings approximately 1000 meters apart. Well-mineralized grab samples from the showings assayed up to 9.35% Cu, 0.294 g/t Au and 52.6 g/t Ag. (See table below)

Sample Cu % Au g/t Ag g/t
Tjr 1005 9.35 .294 52.6
Tjr 1006 2.14 .085 14.4
Tjr 1008 1.34 .130 5.6
Tjr 1010 0.67 .028 8.2
Tjr 1011 8.28 .094 77.6
Tjr 1015 0.39 n/s 1.8
Tjr 1021 1.50 n/s 4.1
Tjr 1022 2.78 .005 5.6
Tjr 1023 n/s .683 n/s

As soon as weather permits the Company plans to initiate a mapping and sampling program on the project to help design future programs, including geophysical and geochemical surveys followed by drilling, should results warrant.

The Company is presently preparing maps and figures related to the project and surrounding area and plans to have more information available on its website soon.

Dr. Mathias Westphal P. Geo, a Qualified Person as defined in National Instrument 43-101, has reviewed and approved the technical information in this news release.

In these challenging times for junior exploration companies, Granite Creek Gold is excited about this acquisition in one of the most highly prospective areas for mineral exploration in BC. Recent acquisitions by other companies in the area, coupled with very significant results being announced, have re-invigorated this area of the province. Upgrades to infrastructure including the North West Transmission line presently under construction make this a very compelling area to be exploring.

About Granite Creek Gold

Granite Creek Gold is a Vancouver BC based exploration company with an advanced staged British Columbia project, the 2781 ha copper-gold-molybdenum "Taseko" Property. The Company has an option to acquire a 70% interest in the property. The project lies within 25km south of Taseko Mines' advanced stage copper-gold Prosperity project.

The Company also has an option to acquire a 100% interest in the Koussikoto Ouest concession in West Africa. The Company intends to continue to evaluate Malian projects and is relying on directors Willis Osborne and Mamadou Kieta for their extensive experience working in the country, especially in the highly prospective Birimian.

This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the expected listing of shares, Exchange approvals, the use of proceeds, exploration programs, and other future plans, objectives or expectations of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include the Company's ability to obtain Exchange approval and to complete its exploration programs on schedule and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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