Gran Colombia Gold Announces First Quarter 2017 Production and Distribution of Materials for Debt Extension Proposal

TORONTO, ON--(Marketwired - April 11, 2017) - Gran Colombia Gold Corp. (TSX: GCM) announced today that it produced a total of 39,008 ounces of gold in the first quarter of 2017, up 24% over the first quarter last year. With the trailing 12 months' total gold production as of the end of March 2017 increasing 5% over 2016's annual production to 157,227 ounces, the Company remains on track with its production guidance for the 2017 calendar year of a total of 150,000 to 160,000 ounces.

At the Segovia Operations, a 19% increase in tonnes processed and improved mill recovery were the key drivers behind a 26% year-over-year increase in its first quarter 2017 gold production to 32,768 ounces. With the trailing 12 months' total gold production as of the end of March 2017 at Segovia increasing 5% over its 2016 annual production to 133,030 ounces, the Company continues to expect that Segovia's gold production will fall within its production guidance range for the 2017 calendar year of 126,000 to 134,000 ounces.

At the Marmato Operations, gold production in the first quarter of 2017 was 6,240 ounces, up 14% over the first quarter last year, driven by a 20% year-over-year increase in tonnes processed and improved mill recovery. This brings Marmato's trailing 12 months' gold production at the end of March 2017 to 24,197 ounces, up 3% over its 2016 annual production and within its 2017 calendar year production guidance range of 24,000 to 26,000 ounces.

2020 Debenture Extension Proposal

On April 7, 2017, the Company used funds available in the sinking fund for the 2020 Debentures (TSX: GCM.DB.V) to complete a block purchase at a discount under its normal course issuer bid of $450,000 aggregate principal amount of 2020 Debentures for cancellation. As of today's date, the aggregate principal amount of the 2020 Debentures issued and outstanding is $100,700,085.

The Company also announced today that it has commenced distribution of the materials to holders of its 2020 Debentures related to its proposal to voluntarily extend the maturity date on some or all of their debentures to January 2, 2024 (the "Proposed Indenture Amendments"). The Company is seeking approval from holders of the 2020 Debentures to amend the Amended and Restated Indenture dated as of January 20, 2016 through a consent solicitation process (the "Consent Solicitation"). The extended 2020 Debentures will carry largely the same terms and conditions as the other 2020 Debentures except that the maturity date will be extended and interest will be paid monthly over the remaining term of the extended 2020 Debentures at an annual rate of 8%. The Consent Solicitation will expire at 5:00 p.m. (Toronto time) on May 11, 2017, unless extended at the sole discretion of the Company. Eligible holders who desire to extend the maturity of their 2020 Debentures pursuant the Proposed Indenture Amendments, conditional on such amendments becoming effective, can also make their election at or prior to 5:00 p.m. (Toronto time) on May 11, 2017, unless extended at the sole discretion of the Company. The Consent Solicitation materials, election form and a FAQ document can be found on the Company's website at www.grancolombiagold.com and contain important information that should be read before any decision is made with respect to the Consent Solicitation. Holders may also contact Kingsdale Advisors for additional information or assistance in providing their consent or election by telephone at 1-877-659-1819 (North America toll free) or by e-mail at contactus@kingsdaleadvisors.com.

The Consent Solicitation and the Proposed Indenture Amendments are subject to certain conditions and approvals including, but not limited to, the receipt of all necessary shareholder, regulatory and stock exchange approvals. Terms outlined herein may be amended as required to receive such approvals.

About Gran Colombia Gold Corp.

Gran Colombia is a Canadian-based gold and silver exploration, development and production company with its primary focus in Colombia. Gran Colombia is currently the largest underground gold and silver producer in Colombia with several underground mines in operation at its Segovia and Marmato Operations. Gran Colombia is continuing an expansion and modernization project at its Segovia Operations.

Additional information on Gran Colombia can be found on its website at www.grancolombiagold.com and by reviewing its profile on SEDAR at www.sedar.com.

Cautionary Statement on Forward-Looking Information:

This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to anticipated business plans or strategies. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Gran Colombia to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated as of March 30, 2017, which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this press release and Gran Colombia disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.