Gran Colombia Gold Announces CA$40 Million Private Placement

TORONTO, Jan. 27, 2020 - Gran Colombia Gold Corp. (TSX: GCM; OTCQX: TPRFF) is pleased to announce a non-brokered private placement (the “Private Placement”) of up to 7,142,858 Units of the Company at a price of CA$5.60 per Unit for total proceeds of up to CA$40 million. The five-day volume weighted average price of the Company’s shares for the period ended January 24, 2020 was CA$5.607. The net proceeds of the Private Placement will be used for general working capital and corporate purposes, including repurchases of the Company’s listed warrants (GCM.WT.B) under its normal course issuer bid. Closing of the Private Placement is subject to the receipt of regulatory approvals, including from the Toronto Stock Exchange, and is expected to close two business days following receipt of such approval. Each Unit consists of one common share and one common share purchase warrant exercisable into a full common share at CA$6.50 per share for a period of three years from the date of issuance.

Serafino Iacono, Executive Chairman of Gran Colombia, stated “We see the increased interest from strategic and institutional investors in Gran Colombia as a continuing endorsement of our successful turnaround of the Company and the potential for further appreciation in our share price, which doubled in 2019 and is up by almost 300% over the past three years, as we execute our strategy to unlock value in our portfolio of quality assets. We have ramped up our near-mine and regional exploration programs at our high-grade Segovia Operations for the coming year and we are unlocking value in our Marmato Project through the spin out to Caldas Gold Corp., which we anticipate will be completed within the next couple of weeks.”

About Gran Colombia Gold Corp.

Gran Colombia is a Canadian-based mid-tier gold producer with its primary focus in Colombia where it is currently the largest underground gold and silver producer with several mines in operation at its Segovia and Marmato Operations. Gran Colombia is continuing to focus on exploration, expansion and modernization activities at its high-grade Segovia Operations and, through a spin out transaction with Bluenose Gold Corp. announced on October 7, 2019, is progressing toward a major expansion and modernization of its underground mining operations at the Marmato Project.

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 27, 2019 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