Tolima Gold Announces Approval of Re-Pricing of Warrants

NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES

TORONTO, ONTARIO -- (Marketwired - May 29, 2014) - Tolima Gold Inc. ("Tolima" or the "Company") (TSX VENTURE:TOM) is pleased to announce that further to its press releases on November 12, 2013 and December 5, 2013, it has received approval from TSX Venture Exchange ("TSX-V") to lower the exercise price of 18,749,999 outstanding common share purchase warrants of the Company (the "March Warrants") from $0.60 per common share of Tolima Gold Inc. ("Common Share") to $0.15 per Common Share and 19,250,000 outstanding common share purchase warrants (the "December Warrants", together with the March Warrants, the "Warrants") from $0.85 per Common Share to $0.15 per Common Shares.

In accordance with, and subject to, applicable TSX-V policies, the period to exercise the Warrants will be reduced to a period of 30 days (the "Reduced Exercise Period") if the closing price of the Common Shares on the TSX-V exceeds $0.1875 per Common Share for a period of 10 consecutive trading days (on each of which at least 500 Common Shares are traded in board lots) (the "Premium Trading Days"), and for greater certainty, the Reduced Exercise Period will commence five business days after the tenth Premium Trading Day and in such case, the Warrants shall expire on the last such day of the Reduced Exercise Period.

The March Warrants were originally issued in connection with the private placement (the "Private Placement") of 37,500,000 units (the "Units") of the Company on March 23, 2011, with each Unit being comprised of one common share of the Company and one-half of one common share purchase warrant.

The December Warrants were originally issued in connection with a financing as part of a reverse take-over that took place on October 31, 2011 (the "Reverse Take-Over Financing). The 19,250,000 common share purchase warrants of the Company resulting from the Reverse Take-Over Financing are governed by a warrant indenture dated December 5, 2011.


Forward-Looking Statements

Certain statements in this press release that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, are forward-looking statements within the meaning of securities law.


Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.



Contact

Tolima Gold Inc.
Andrew DeFrancesco
(416) 362-4441

Tolima Gold Inc.
Lisa-Marie Iannitelli
(416) 362-4441