An anonymous director reports

GRAN COLOMBIA GOLD ANNOUNCES DELAY IN PAYING INTEREST ON SENIOR DEBT

Gran Colombia Gold Corp. has missed the interest payment due Dec. 31, 2014, on its senior unsecured silver-linked notes due 2018. Due to this missed payment, as of Jan. 10, 2015, the company will default under the terms of the silver note indenture. The default will arise from the company's failure to make the interest payment due on Dec. 31, 2014, within the 10-day cure period provided in the silver note indenture. The company has provided the trustee, Equity Financial Trust Company, with notice of the default.

In addition, the company has not made the interest payment due Dec. 31, 2014, for the company's senior secured gold-linked notes due 2017, nor does the company currently intend to make this payment within the 30-business-day cure period afforded to the company under the terms of the gold note indenture. As such, the gold-linked notes will fall into default at that time, and the company will provide the trustee with a notice of default when applicable.

As the company previously advised shareholders in its financial statements and management's discussion and analysis for the quarter ended Sept. 30, 2014, it has significant liquidity concerns in meeting the debt service requirements associated with the exercise of the put options under the gold notes, and the interest payments associated with both the gold and silver notes. The company has engaged GMP Securities LP to assist in the evaluation of its various options to resolve the current situation and is in the process of developing a plan to move forward. The company has also engaged SRK Consulting (U.S.) Inc. to conduct mine plan optimization with site personnel of the latest resource model to improve future cash flow. As part of this work, SRK will also review capital and operating costs associated with the life-of-mine plan. The company will continue to work closely with these advisers, as well as gold and silver noteholders, to resolve the current situation and will announce its strategy concerning the debt service in due course.

Changes to executive compensation

In a continued effort to reduce general and administrative costs, the company has eliminated the deferred portion of executive salaries effective Jan. 1, 2015. In addition, the company has also cancelled the full amount of deferred salaries of the company's executives accumulated through Dec. 31, 2014, amounting to approximately $612,000 (U.S.), 80 per cent of which pertained to the executive co-chairmen. By eliminating accumulated deferred payments, the executive co-chairmen effectively reduced their combined 2014 annual salaries by 58 per cent to a total of $300,000 (U.S.). Effective Jan. 1, 2015, the combined salaries of the executive co-chairmen will be further reduced by 40 per cent to a total of $180,000.

We seek Safe Harbor.