TORONTO, ON--(Marketwired - April 19, 2017) - Gran Colombia Gold Corp. (TSX: GCM) announced today that it has completed an updated Mineral Resource estimate for its high grade producing Segovia Operations prepared in accordance with the Canadian Institute of Mining Metallurgy and Petroleum ("CIM") Definition Standards incorporated by reference in National Instrument 43-101 ("NI 43-101") with an effective date of March 15, 2017.

Lombardo Paredes Arenas, Chief Executive Officer of Gran Colombia, commenting on the Company's updated Mineral Resource estimate, said "We are pleased with the substantial increase in Measured & Indicated Mineral Resources achieved in this latest update and the replacement of close to 400,000 ounces of gold in the Inferred Mineral Resource category. We believe that our high grade Segovia Operations continue to have a considerable mine life ahead and in 2017, we have already commenced our planned 20,000 meters drilling campaign intended to further upgrade and extend Segovia's Mineral Resources."

Highlights of March 15, 2017 Mineral Resource Estimate

• Total Measured & Indicated Resources increased to 2.9 million tonnes at a grade of 12.0 g/t totalling 1.1 million ounces of gold, up 174% compared to the Mineral Resource estimate as of December 31, 2016 (which reflected depletion of production for the period from September 2013, the date of the previous CIM Mineral Resource estimate, through the end of 2016). Infill drilling along with the ongoing validation work of the historical database and surveying of the underground mine workings have contributed to the increase in the Measured & Indicated categories of Segovia's Mineral Resource estimate.
• The updated Mineral Resource estimate reaffirms the high grade nature of the gold deposits at Segovia with the grade of the Measured & Indicated Mineral Resources averaging 12.0 g/t. By comparison, the head grade of the material mined at Segovia averaged 13.8 g/t during the year ended December 31, 2016 and 13.7 g/t during the first quarter ended March 31, 2017.
• The previous estimate reported all material at El Silencio as Inferred and the estimates were limited to Veta Manto material in lower areas of the mine, which were still flooded at that time. The upgrading of the El Silencio Mineral Resource below Mine Level 29 added 1.8 million tonnes at a grade of 11.4 g/t, representing 659,000 ounces of gold, from Inferred to the Indicated category in the updated Mineral Resource estimate. Mapping and surveying of historical workings together with ongoing validation work of the historical database by the Company's geology team has significantly increased the volume of material available for estimation in the upper levels of the mine, and within five additional known veins within the system.
• The updated Mineral Resource estimate also follows on the successful drilling campaign in 2016, as previously announced on March 13, 2017, focused on infill drilling to increase confidence levels of the Mineral Resources at the Providencia and Sandra K mines which resulted in increases in Measured & Indicated Mineral Resources at these mines by 14% and 4%, respectively, in contained gold. The revised databases for Providencia, Sandra K and El Silencio used in this updated Mineral Resource estimate incorporate the results from 90 additional diamond core drillholes completed by the Company from 2013 through early 2017, using both surface and underground drilling rigs.
• The Company added 398,000 ounces of gold to the Inferred category of the updated Mineral Resource estimate. After the upgrade of material to the Measured & Indicated categories as noted above, Inferred Mineral Resources reflect a total of 3.1 million tonnes at an average grade of 9.9 g/t representing 978,000 ounces of gold.
• The Mineral Resource estimates for Las Verticales and Carla have not been updated as no new information is currently available and the previous estimates for these projects remain valid.

The following table summarizes the Mineral Resource estimate for the Segovia Operations as of March 15, 2017 and changes by category in tonnes, grade and ounces of gold compared with the total Mineral Resource estimate as of December 31, 2016:

Table 1: Mineral Resource Summary for the Segovia Operations dated as of March 15, 2017 ⁽¹⁾

(1) The Mineral Resources are reported at an in situ cut-off grade of 3.0 g/t Au over a 1.0 m mining width, which has been derived using a gold price of US$1,400 per ounce and projected mining, processing and minesite overhead costs, using actual mine data, which have been benchmarked for underground mining and conventional gold mineralised material processing. A gold recovery of 90.5 % has been assumed. A bulk density of 2.7 g/cm3 has been used for all veins. Each of the mining areas have been sub-divided into Pillar areas ("Pillars"), which represent the areas within the current mining development, and long term resources ("LTR"), which lie along strike or down dip of the current mining development. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. All composites have been capped where appropriate.

(2) Derived from the NI 43-101 Technical Report on a Mineral Resource Estimate on the Segovia and Carla Operations, Department of Antioquia, Colombia, dated September 2013, prepared by SRK Consulting (UK) Limited and updated for production to December 31, 2016 by Ben Parsons, an independent Qualified Person under NI 43-101, of SRK. Some production is sourced from mining areas that are not currently included in the Company's Mineral Resource Estimate.

About the Mineral Resource Estimate

The updated Mineral Resource estimate for the Segovia Project incorporates assay results from 780 diamond drillholes totalling 94,396 meters within the Providencia, El Silencio and Sandra K models. In addition to the drilling, a total of 101,782 historical samples have been validated and positioned spatially relative to the current mining and an additional 20,126 verification and production channel samples have been taken. All drilling and sampling completed since 2010 has included QAQC protocols and assayed at SGS laboratories in Medellin. The Mineral Resource estimate was prepared using a block model constrained with 3D wireframes of the principal veins, which have been sub-domained using high-grade mineralisation wireframes to constrain the influence of higher grade material. Assays are capped prior to compositing. Values were interpolated using ordinary kriging and inverse distance squared. All models have been depleted using projections of the mining faces through the entire width of the veins. Classification has been applied based on a combination of data quality, confidence in the spatial location, and confidence in the mining depletion shapes. Only material reporting above a cut-off of 3.0 g/t over a minimum stope width of 1.0 m has been included in the Mineral Resource estimate.

Qualified Person

Ben Parsons, Principal Consultant (Resource Geology) with SRK Consulting (USA) Inc., prepared the Segovia Mineral Resource estimate according to CIM Definition Standards and will be supported by a NI 43-101 independent report which will be published and filed on the Company's website and SEDAR profile within 45 days. Mr. Parsons is a Qualified Person as defined by NI 43-101. The NI 43-101 independent report will include detailed information on the key assumptions, parameters and methods used to estimate the mineral resources.

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.