Canacol Energy Ltd. Announces Closing of Second Tranche of Private Placement

CALGARY, ALBERTA--(Marketwired - Aug. 5, 2016) -

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Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE) (OTCQX:CNNEF) (BVC:CNEC) announced today that it has committed to and closed, in escrow, a second and final tranche of its private placement offering of an additional 1,800,000 common shares ("Common Shares") at a price of $4.08 per Common Share for proceeds of $7,344,000. Combined with the first tranche closing announced on August 2, 2016, the Corporation raised a total of $46,869,694.

Proceeds of the Offering will be used to fund additional exploration and production wells at Canacol's 100% operated gas explorations and production position in Colombia for the remainder of 2016. Completion of the Offering is subject to the acceptance of the Toronto Stock Exchange. The Common Shares issued in connection with the Offering are subject to a four month hold period that expires on December 6, 2016.

About Canacol

Canacol is an exploration and production company with operations focused in Colombia and Ecuador. The Corporation's common stock trades on the TSX, the OTCQX in the United States of America, and the Colombia Stock Exchange under ticker symbols CNE, CNNEF, and CNEC, respectively.

Cautionary Statement

This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur, including without limitation, statements relating to the Offering. In making the forward-looking statements in this release, the Corporation has applied certain factors and assumptions that are based on the Corporation's current beliefs as well as assumptions made by and information currently available to the Corporation. Although the Corporation considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, those matters identified in its continuous disclosure filings, including its most recently filed MD&A. Readers are cautioned not to place undue reliance on forward-looking statements. The Corporation does not intend, and 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 required by law.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an available exemption from the registration requirements thereof. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.