Mr. Lloyd Miller, investor, reports

LLOYD I. MILLER, III ACQUIRES 2020 SENIOR SECURED CONVERTIBLE DEBENTURES OF GRAN COLOMBIA GOLD CORP.

Lloyd I. Miller III has acquired ownership, control or direction over an aggregate $75,000 (U.S.) principal amount of Gran Colombia Gold Corp.'s senior secured convertible debentures due 2020 that are convertible into approximately 576,923 common shares of Gran Colombia, representing an increase in Mr. Miller's securityholding percentage of approximately 0.09 per cent of the outstanding common shares on a partially diluted basis, taking into account only the outstanding common shares, as reported by Gran Colombia, and the 2020 debentures over which Mr. Miller exercises control or direction and no others. Mr. Miller acquired the foregoing 2020 convertible debentures through Milfam II LP, a partnership of which Mr. Miller is the managing member of the general partner.

Prior to the acquisition, the number of outstanding common shares of Gran Colombia increased from approximately 137.1 million common shares as of March 31, 2016, to approximately 252.9 million common shares as of Aug. 11, 2016. The increase in the outstanding common shares decreased Mr. Miller's securityholding percentage from approximately 51.24 per cent, as previously reported, to approximately 36.38 per cent after the transaction described herein, in each case on a partially diluted basis, taking into account only the outstanding common shares, as reported by Gran Colombia, and the 2020 convertible debentures over which Mr. Miller exercises control or direction and no others. Assuming the conversion of all 2020 convertible debentures, Mr. Miller's securityholding percentage has decreased from approximately 15.46 per cent, as previously reported, to currently approximately 13.83 per cent.

The 2020 convertible debentures were acquired through the facilities of the Toronto Stock Exchange for total consideration of $65,245 (U.S.), which, based on the Bank of Canada noon exchange rate on Aug. 4, 2016, equals approximately $84,460 in total consideration.

Immediately prior to the transaction described herein, Mr. Miller had ownership, control or direction over an aggregate principal amount of $18,727,223 (U.S.) of the 2020 convertible debentures, and assuming conversion of the entire principal amount of the 2020 convertible debentures over which Mr. Miller had ownership, control or direction, such 2020 convertible debentures were convertible into approximately 144,055,562 common shares, representing 36.29 per cent of the outstanding common shares on a partially diluted basis, taking into account only the outstanding common shares, as reported by Gran Colombia, and the 2020 debentures over which Mr. Miller exercised control or direction and no others (13.77 per cent of the outstanding common shares, taking into account the outstanding common shares (as reported by Gran Colombia) and all of the outstanding 2020 debentures; full conversion, partially diluted basis).

Immediately after the transaction described herein, Mr. Miller had ownership, control or direction over an aggregate principal amount of $18,802,223 (U.S.) of the 2020 convertible debentures, and, assuming conversion of the entire principal amount of the 2020 convertible debentures over which Mr. Miller has ownership, control or direction, such 2020 convertible debentures are convertible into approximately 144,632,485 common shares, representing 36.38 per cent of the outstanding common shares on a partially diluted basis, taking into account only the outstanding common shares, as reported by Gran Colombia, and the 2020 debentures over which Mr. Miller exercises control or direction and no others (13.83 per cent of the outstanding common shares, taking into account the outstanding common shares (as reported by Gran Colombia) and all of the outstanding 2020 debentures; full conversion, partially diluted basis).

The 2020 convertible debentures were acquired for investment purposes. Depending on the evolution of Gran Colombia's business, financial condition, the market (if any) for Gran Colombia's securities, general economic conditions and other factors, Mr. Miller and his joint actors may acquire additional securities of Gran Colombia, or sell some or all of the securities they hold, in the open market, by private agreement or otherwise, subject to their availability at attractive prices, market conditions and other relevant factors.

For inquiries or a copy of the related early warning report required under Canadian provincial securities legislation, a copy of which has also been filed on SEDAR, please contact Mr. Miller.