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Gran Colombia Gold Provides Update on Production and 2020 Debenture Repurchase

T.ARIS

TORONTO, ON--(Marketwired - December 09, 2016) - Gran Colombia Gold Corp. (TSX: GCM) announced today that it produced a total of 12,973 ounces of gold in November 2016 bringing the eleven months' total production to 134,893 ounces of gold, up 28% over the same period last year. The Company expects that its total gold production for 2016 will reach the upper half of its latest guidance for the full year of 144,000 to 150,000 ounces.

At the Segovia Operations, November's gold production of 10,870 ounces reflected improved head grades in material from the Company-operated area within the Providencia mine where development activity has reached an expected high grade section of the resource. This brings the year-to-date total gold production at Segovia to 113,479 ounces, up 35% from the same period last year and for the full year, the Company continues to expect that Segovia's gold production will reach the upper end of its latest guidance of 120,000 to 126,000 ounces.

At the Marmato Operations, head grades and mill recovery showed some improvement compared with results in previous months and the mine produced 2,103 ounces in November, bringing the year-to-date total gold production to 21,415 ounces, on par with the same period last year. The mine is expected to produce close to 24,000 ounces again this year.

2020 Debenture Repurchase and Cancellation

On December 6, 2016, the Company used the approximately $1.1 million balance of funds available in the sinking fund for the 2020 Debentures to complete a block purchase under its normal course issuer bid of $1,290,000 aggregate principal amount of 2020 Debentures for cancellation. As of today's date, the aggregate principal amounts of the 2018 and 2020 Debentures issued and outstanding are $49.7 million and $101.2 million, 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.

For Further Information, Contact:
Mike Davies
Chief Financial Officer
(416) 360-4653
investorrelations@grancolombiagold.com

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