Canada beat Britain's women 6-4 to reach the Sochi 2014 curling final, leaving GB in a bronze medal play-off against Switzerland on Thursday.
Early errors helped the dominant Canadians take a 3-0 lead after two ends and skip Jennifer Jones closed out victory in a tense finish.
"I'm gutted and so are all the girls," said GB skip Eve Muirhead.
Canada face Sweden for women's gold on Thursday, after the GB-Switzerland clash at 08:30 GMT.
Canada's Jones remains unbeaten throughout the 2014 Olympic Games, whereas GB lost four round-robin matches before their semi-final.
The Britons had endured a tough start to the contest, with a "pick up" - a stone whose path is altered by debris or a fault in the ice - in the opening end.
Despite a valiant effort to recover in the following ends, British hopes were continually knocked back by the unruffled precision of the Canadian rink.
Jones delivered an inch-perfect final stone to secure victory, following a superb last-ditch effort from Muirhead to keep the tie alive.
"I came into this tournament saying I wanted no regrets and we gave everything we could in that game," said Muirhead.
"I'm proud of the girls and we've still got a chance of a medal. I don't want to come away without a medal around my neck.
"Our backs were against the wall but we gave it back to them and it was a high quality game. We've trained hard for this and we'll give the next match our all."