Granite Creek Gold Ltd. Announces Closing of Its Initial Public Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 30, 2011) - Granite Creek Gold Ltd. (TSX VENTURE:GCX) (the "Company") is pleased to announce that it has completed its initial public offering (the "Offering") through its agent, Global Securities Corporation ("Global"). The Offering consists of 5,315,400 units at a price of $0.20 per unit, comprised of one common share and one half of one warrant, and 1,400,000 flow-through shares at a price of $0.22 per flow-through share, for aggregate gross proceeds of $1,371,080. Each whole warrant shall entitle the holder thereof to purchase one additional common share for two years at a price of $0.30 on or before August 26, 2012 and $0.45 thereafter until August 26, 2013, subject to an early expiry provision such that any time after November 26, 2011 and before August 26, 2012, should the Company's common shares trade on the TSX Venture Exchange (the "Exchange") at or above a weighted average trading price of $0.50 for 20 consecutive trading days, or should the Company's common shares trade after August 26, 2012 at or above a weighted average trading price of $0.75 for 20 consecutive trading days, the Company may give notice to the holder that the warrants will expire 30 days from such notice. The Company's common shares are expected to begin trading on the Exchange on August 30, 2011 under the symbol "GCX", subject to final Exchange approval.

As consideration for its role as the agent on the Offering, Global received the following: (i) a cash commission of 8½% of the aggregate gross proceeds of the Offering; (ii) broker warrants to purchase up to 570,809 common shares of the Company exercisable for a period of two years from the date the Company's shares are listed for trading on the Exchange at an exercise price of $0.20 per common share; (iii) 20,000 corporate finance shares; and (iv) corporate finance warrants to purchase up to 20,000 common shares of the Company exercisable for a period of two years from the date the Company's shares are listed for trading on the Exchange at an exercise price of $0.30 per common share.

Following completion of the Offering, the Company now has 14,972,066 common shares issued and outstanding, of which: (i) 4,385,000 common shares are subject to escrow pursuant to an escrow agreement among the Company, Computershare Investor Services Inc. and certain securityholders of the Company, of which 10% will be released from escrow on listing of the common shares on the Exchange and an additional 15% will be released every six months thereafter over the next 36 months. In addition, 2,351,666 common shares that were issued prior to the Offering are subject to a four month hold, of which 20% will be released on the first, second, third and fourth months following the date of filing of the final prospectus. Also, 750,000 common shares issued as partial consideration for the Taseko property prior to the Offering have no hold period, and an additional 750,000 common shares issued as partial consideration for the Taseko property after the Offering are subject to a hold period expiring on December 26, 2011.

The net proceeds from the sale of the Units and Flow-Through Shares are intended to be used to pay the costs of the Offering, the costs to conduct the phase I exploration program on the Company's Taseko property in British Columbia, administrative costs, and for general working capital purposes.

The Company has also granted 675,000 stock options, at an exercise price of $0.20 per share, to certain directors, officers, employees and consultants of the Company. These stock options expire on April 18, 2016.

For further information, please review the Company's final prospectus filed on www.sedar.com or visit the Company's website at www.granitecreekgold.com.

Granite Creek Gold Ltd. is a Vancouver-based exploration company. The Company's main asset is its 2781 ha Copper-Gold "Taseko" property located approximately 200km north of Vancouver at the south end of Taseko Lakes.

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.