Gran Colombia Gold Provides Positive Updates on Senior Debt Reduction and Gold Production for August 2016

TORONTO, ON--(Marketwired - September 06, 2016) - Gran Colombia Gold Corp. (TSX: GCM) (OTC PINK: TPRFF) announced today that the aggregate principal amounts of its Senior Unsecured Convertible Debentures due 2018 (the "2018 Debentures") and its Senior Secured Convertible Debentures due 2020 (the "2020 Debentures" and together the "Debentures") decreased by a total of US$12.3 million in the month of August 2016 through holders' elections to convert Debentures into common shares of the Company and through the Company's previously announced Normal Course Issuer Bids ("NCIBs") for the Debentures.

During the month of August 2016, holders converted a total of US$10.9 million aggregate principal amount of the 2018 Debentures into 83.7 million common shares of the Company. In addition, the Company used a total of US$1.1 million of its Excess Cash Flow that had been deposited into the sinking funds for the Debentures to repurchase, for cancellation, US$765,000 aggregate principal amount of its 2018 Debentures and US$635,817 aggregate principal amount of its 2020 Debentures at discounts to par value through the NCIBs for the Debentures.

As of today, the Company's issued and outstanding common shares and principal amounts of its Debentures are summarized as follows:

Production Update

The Company also announced today that it produced a total of 13,451 ounces of gold in the month of August 2016, bringing the total gold production for the first eight months of 2016 to 96,752 ounces. The Company remains on track with its gold production guidance for 2016 of a total of 135,000 to 145,000 ounces for the full year.

Gold production in August 2016 from the Segovia Operations and Marmato underground mine amounted to 11,461 ounces and 1,990 ounces, respectively, bringing the total gold production through the end of August 2016 to 81,075 ounces and 15,677 ounces, respectively.

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 in the midst of 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". 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, 2016, 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.