Ms. Maria Araujo reports

GRAN COLOMBIA ANNOUNCES SIGNING OF MANDATE LETTER FOR US$100 MILLION GOLD PARTICIPATING TERM LOAN WITH STANDARD BANK

Further to the announcement on Dec. 12, 2011, that GMP Securities LP had been retained to assist Gran Colombia Gold Corp. in the evaluation of several debt-financing alternatives, Gran Colombia has signed an exclusive mandate letter with Standard Bank PLC, in conjunction with Pareto Commodities LLC, for the arrangement of a $100-million (U.S.) senior secured term loan facility to finance the company's plan to increase production at its Segovia operations through the development of a new mechanized mining operation and the acquisition of a new 2,500-tonne-per-day mill in addition to its expanded Maria Dama mill.

Maria Consuelo Araujo, chief executive officer of the company, commented: "We are very pleased to be working with Standard Bank. Its facility will provide Gran Colombia with the funding required to accelerate the growth at our Segovia operations at a prudent cost of capital (approximately 12 to 13 per cent), third party validation of our Segovia assets and a clear path to the next stage of the company's evolution. Standard Bank has an unparalleled reputation in executing debt financings in the resource sector."

The facility, expected to close at the end of January, 2012, will incorporate gold price participation on a total of 150,000 ounces of gold production from the Segovia operations over the five-year term of the facility. This represents only 17 per cent of the company's total estimated gold production from the Segovia operations over the same five-year period. The fully financed expansion of the existing Maria Dama mill, already in process and scheduled to be completed in the first quarter of 2012, is expected to almost double gold production from the Segovia operations in 2012 to approximately 130,000 ounces. The expansion of mining and milling capabilities with the proceeds of this facility will enable the company to increase total gold production at Segovia to approximately 200,000 ounces annually by 2014 and to reduce long-term cash costs below $900 (U.S.) per ounce.

Under the facility, Standard Bank will purchase 2,500 ounces of gold per month from the company at market prices, subject to an agreed-upon hedging program. From the monthly proceeds derived from the sale of the minimum production, Standard Bank will deduct interest on the facility at London interbank offered rate plus 6.5 per cent, any net premiums related to the hedging program, principal repayments and its gold price participation, which is only 25 per cent to 35 per cent of the gold price realized above $1,300 (U.S.) per ounce.

The company will pay interest only on the facility during the first 12 months, allowing the company to use its operating cash flow in 2012 to finance its planned $20-million (U.S.) 80,000-metre drilling program to expand and upgrade its resource at its Segovia operations. Principal repayments of $25-million (U.S.) per annum will commence at the beginning of the second year of facility and will be made on a monthly basis. The facility may be prepaid at any time after six months.

The facility will be secured by a pledge of the shares of certain of the company's subsidiaries holding title to the Segovia operations, an assignment of the specific assets of the Segovia operations, an undertaking from the company regarding the minimum production obligation and certain limitations on the incurrence of additional debt, excluding project financing for the development of the Marmato project.

We seek Safe Harbor.