Mr. Serafino Iacono reports

GRAN COLOMBIA GOLD REPORTS FIRST QUARTER 2020 RESULTS; FILES NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT FOR ITS SEGOVIA OPERATIONS

Gran Colombia Gold Corp. has released its unaudited interim condensed consolidated financial statements and accompanying management's discussion and analysis (MD&A) for the three months ended March 31, 2020. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted.

Serafino Iacono, executive chairman of Gran Colombia, commenting on the company's latest results, said: "Our first quarter results continued to show strength and that was when gold was more than $100 an ounce lower than where we are now. Quarterly revenue surpassed $100-million for the first time, leading to adjusted EBITDA of $50-million. Operating cash flow and free cash flow were up over 50 per cent compared with the first quarter last year. The balance sheet also got stronger as we built up our consolidated cash position to about $100-million and, by the end of April, we had reduced our gold notes by 40 per cent since the beginning of the year. We are very pleased that Caldas Gold is up and running now. Drilling results from the Deep zone at Marmato continue to be impressive and the PFS remains on track for midyear. I am also very proud of what our company has been able to do during COVID-19 to help out the communities in which we live and work. These are definitely unprecedented times and our people have done a tremendous job keeping our operations going while ensuring we all do the right thing to keep our workers safe."

First quarter 2020 highlights:

• Gran Colombia's gold production in the first quarter of 2020 was 56,247 ounces, compared with 60,601 ounces in the first quarter last year. The company's mines have continued to operate during the national quarantine implemented in Colombia in late March. However, restrictions on the movement of people between communities have limited the availability of workers at the mines. Although the April gold production totalled 12,602 ounces, about 65 per cent of the average monthly volume over the last 12 months, the situation has improved and the Segovia operations have been operating at about 95 per cent of normal since mid-April.
• During the COVID-19 quarantine, the company has stepped up its efforts to support the local communities in which it operates, providing medical equipment, supplies and sanitation kits to the local hospitals, and groceries to families who have been economically affected by the COVID-19 crisis.
• Revenue amounted to $101.0-million in the first quarter of 2020, up 30 per cent over the first quarter last year, getting a boost from the 21-per-cent increase in spot gold prices, which increased the company's realized gold price to an average of $1,570 per ounce sold, compared with $1,298 per ounce sold in the first quarter last year. The volume of gold sales in the first quarter of 2020 was also up 8 per cent over the first quarter last year, benefiting from a reduction in mineral inventories following a build up during the refinery shutdown during the holiday period at the end of 2019.
• Total cash costs (1) per ounce averaged $667 per ounce in the first quarter of 2020, compared with $621 per ounce in the first quarter last year. Segovia's total cash costs were $604 per ounce in the first quarter of 2020 and Marmato's total cash costs of $1,215 per ounce reflected the impact of additional costs associated with the commencement of mine optimization activities and the adverse impact on production in January of a temporary explosives shortfall.
• All-in sustaining costs (AISC) (1) and all-in costs (1) of $890 per ounce and $978 per ounce, respectively, in the first quarter of 2020 reflected increased levels of capital and exploration spending and arbitration-related costs in G&A (general and administrative), compared with $832 per ounce and $843 per ounce, respectively, in the first quarter last year.
• The company reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) (1) of $50.4-million for the first quarter of 2020, up 43 per cent over the first quarter last year, benefiting from the stronger revenue performance in the first quarter of 2020.
• Net cash provided by operating activities in the first quarter of 2020 of $31.8-million was up 60 per cent over the first quarter last year, fuelling a 57-per-cent increase in the company's free cash flow (1) in the first quarter of 2020 to $17.8-million from $11.3-million in the first quarter last year.
• The company's balance sheet strengthened in the first quarter of 2020, as total cash increased to $99.7-million at the end of March, 2020, from $84.2-million at the end of 2019. Meanwhile, the company used $21.1-million from the net proceeds of a $40-million (Canadian) ($30.1-million) private placement completed in February to redeem 30 per cent of its gold notes ahead of schedule. At April 30, 2020, the aggregate principal amount of gold notes outstanding was down to $41.3-million.
• The company completed the spinout of its Marmato mining assets through a reverse takeover transaction. The company has a 74.4-per-cent interest in the resulting issuer, named Caldas Gold Corp., which commenced trading on the TSX Venture Exchange on Feb. 28, 2020, under the symbol CGC.
• As of May 15, 2020, the total issued and outstanding common shares of the company is 61.3 million and, after inclusion of stock options, warrants and the convertible debentures, the company's fully diluted common shares would total approximately 89.4 million.
• The company reported a net income for the first quarter of 2020 of $24.3-million (42 cents per share), compared with a net income of $7.9-million (16 cents per share) in the first quarter last year. Adjusted net income (1) for the first quarter of 2020 was $21.2-million (37 cents per share), up from $13.0-million (27 cents per share) in the first quarter last year. The year-over-year improvement in adjusted net income for the first quarter of 2020 largely reflects the positive impact of the company's revenue growth, resulting from higher gold prices in 2020 and the increased volume of gold sales in the current period.
• The company has successfully completed phase 2 of its 2019 infill drilling program in the Zona Baja Deep zone at Marmato, which focused above the 600-metre level and was designed to provide enough tonnes and grade in the measured and indicated mineral resource categories within the Main zone, to support the prefeasibility study (PFS) that is currently being carried out and that is expected to be finalized by mid-2020. The company's exploration program was also successful in extending the recently discovered New zone along strike to more than 400 metres, opening up an opportunity for further mineral resource expansion.
• Gran Colombia recently signed a letter of intent with Renergetica Colombia S.A.S. to acquire, through its Segovia operations, a solar project with a total installed capacity of 11.2 megawatts of power called Suarez, to be located in the Tolima region of Colombia.

(1) Refer to the section on non-IFRS (international financial reporting standards) measures in the company's MD&A.

                           SELECTED FINANCIAL INFORMATION 

                                                  First quarter             First quarter
                                                        of 2020                   of 2019
Operating data                                
Gold produced (ounces)                                   56,247                    60,601
Gold sold (ounces)                                       63,701                    59,045
Average realized gold price ($/oz sold)                   1,570                     1,298
Total cash costs ($/oz sold) (1)                            667                       621
AISC ($/oz sold) (1)                                        890                       832
All-in costs ($/oz sold) (1)                                978                       843
Financial data 
(in thousands of dollars, except per-share amounts)          
Revenue                                               $ 100,976                 $  77,455
Adjusted EBITDA (1)                                      50,437                    35,275
Net income                                               24,255                     7,903
Per share -- basic                                    $    0.42                 $    0.16
Per share -- diluted                                  $    0.42                 $    0.16
Adjusted net income (1)                                  21,232                    13,015
Per share -- basic                                    $    0.37                 $    0.27
Per share -- diluted                                  $    0.31                 $    0.24
Net cash provided by operating activities                31,811                    19,818
Free cash flow (1)                                       17,831                    11,277

                                                          As at                     As at
                                                       March 31,                  Dec. 31,
                                                           2020                      2019
Balance sheet (in thousands of dollars)
Cash and cash equivalents                             $  99,705                 $  84,239
Gold notes, including current portion -- 
principal amount outstanding (2)                         44,713                    68,750
Convertible debentures -- 
principal amount outstanding (3) 
(in thousands of Canadian dollars)                       20,000                    20,000

(1) Refer to the section on non-IFRS measures in the company's MD&A.

(2) The gold notes are recorded in the interim financial statements at fair value. At 
March 31, 2020, and Dec. 31, 2019, the carrying amounts of the gold notes outstanding 
were $44.4-million and $69.0-million, respectively.

(3) The convertible debentures are recorded in the interim financial statements at fair 
value. At March 31, 2020, and Dec. 31, 2019, the carrying amount of the convertible 
debentures outstanding was $15.1-million and $21.1-million, respectively.

Filing of National Instrument 43-101 technical report for the Segovia operations

Gran Colombia also announced today that it has filed an updated PFS technical report on its Segovia operations, pursuant to NI 43-101, Standards of Disclosure for Mineral Projects. The technical report, which supports the disclosure made by the company in its March 30, 2020, news release and its 2019 annual MD&A dated March 30, 2020, was prepared by SRK Consulting (U.S.) Inc., and is based on the updated mineral reserve and mineral resource estimates for the Segovia operations with an effective date of Dec. 31, 2019.

First quarter 2020 results webcast

As a reminder, Gran Colombia will host a conference call and webcast, together with Caldas Gold, on Tuesday, May 19, 2020, at 9:30 a.m. Eastern Time, to discuss the results.

Call-in details

International:  1-514-841-2157

North America toll-free:  1-866-215-5508

Colombia toll-free:  1-800-915-6924

Conference ID No.:  49673039

A replay of the webcast will be available at the company's website from Tuesday, May 19, 2020, until Friday, June 19, 2020.

About Gran Colombia Gold Corp.

Gran Colombia is a Canadian-based mid-tier gold producer with its primary focus in Colombia, where it is currently the largest underground gold and silver producer with several mines in operation at its high-grade Segovia operations. Gran Colombia owns approximately 74 per cent of Caldas Gold, a Canadian mining company currently advancing a prefeasibility study for a major expansion and modernization of its underground mining operations at its Marmato project in Colombia. Gran Colombia's project pipeline includes its Zancudo project in Colombia, together with an approximately 21-per-cent equity interest in Gold X Mining Corp. and an approximately 20-per-cent equity interest in Western Atlas Resources Inc.

We seek Safe Harbor.