Ms. Maria Consuelo Araujo reports

GRAN COLOMBIA GOLD ANNOUNCES AN UPDATE TO ITS 2012 PRODUCTION PLAN

Gran Colombia Gold Corp. is continuing to progress its efforts to expand capacity and increase gold production at its Segovia operations, but due to delays in reaching its targeted capacity at Maria Dama in the second quarter of 2012, combined with lower-than-planned grades of ore in March, April and May, the company has revised its full-year 2012 production target for the company to a range of 115,000 to 135,000 ounces of gold from its Segovia and Marmato operations, from the previously expected 155,000 ounces of gold.

Gran Colombia is in the process of upgrading the Maria Dama plant to achieve a targeted capacity of 1,500 tonnes of ore per day at its Segovia operations. In the first quarter of 2012, the plant processed an average of 509 tonnes per day, and the company had expected the plant to ramp up to 1,000 tonnes per day by early in the second quarter and to 1,500 tonnes per day by the end of 2012.

The new ball mill at the Maria Dama plant came on-line in mid-May and continues to be tested under increasing loads. After experiencing delays related to power supply interruptions due to problems at EPM's La Cruzada substations, together with the mill's motor bearings overheating due to misalignment problems, as well as subsequent delays due to problems with the original crusher, the mill has averaged only 510 tonnes per day in April and May, despite achieving maximum loads of 850 to 900 tonnes per day.

Additionally, the company has recorded lower-than-expected head grades at its Segovia operations, due to capital development work in its mines to open new ore faces. This negatively affected grades in March and continued in April and May, 2012.

As a result of these developments, the company now expects 2012 gold production at its Segovia operations to be between 90,000 and 110,000 ounces of gold. The company continues to expect production from the underground mine at Marmato to total approximately 25,000 ounces of gold, resulting in expected total production for the company of between 115,000 and 135,000 ounces of gold for the full year of 2012.

"Our longer-term plan remains on track. While we are disappointed by the delays that we have experienced in ramping up the production capacity at our Segovia operations in the second quarter, we remain confident in our ability to achieve our longer-term target of an annual production rate of 200,000 ounces of gold at Segovia by 2014," said Maria Consuelo Araujo, chief executive officer of Gran Colombia. "We will remain focused on achieving our longer-term target production levels and will continue to invest in our key initiatives, adjusting our discretionary spending plans accordingly."

We seek Safe Harbor.