An anonymous director reports

CANACOL ENERGY LTD. ANNOUNCES DIVIDEND AND PROVIDES CORPORATE UPDATE

Canacol Energy Ltd. has provided the details of its quarterly dividend, as well as a brief corporate update.

Quarterly dividend

The corporation has declared a dividend of 52 cents per share, payable on Oct. 15, 2020, to shareholders of record at the close of business on Sept. 30, 2020. The ex dividend date for all shareholders is Sept. 29, 2020. This dividend qualifies as an eligible dividend for Canadian income tax purposes. The declaration, timing, amount and payment of future dividends remain at the discretion of the board of directors.

Dividends on shares traded on the Toronto Stock Exchange will be paid in Canadian dollars on Oct. 15, 2020.

For shareholders trading on the Colombia Stock Exchange, the Colombian peso equivalency shall be calculated based on the exchange rate as certified by the Banco de la Republica on the date of monetization and will be published accordingly on the SIMEV website.

Shares traded on the Toronto Stock Exchange

Form NR301 will be mailed to registered non-resident shareholders as at the dividend record date, by Olympia Trust Company, Canacol's transfer agent. In order to receive the preferred treaty rate, you must complete and mail back the form as soon as possible. Failure to supply a completed NR301 form will result in Olympia withholding the statutory 25%-per-cent withholding tax rate on any payments to registered non-resident shareholders. If you have previously completed Form NR301, you do not need to complete a new form.

Instructions on how to correctly complete the NR301 are on the back of the form. Shareholders who hold their shares through a broker should contact their broker directly. They do not need to return a form to Olympia.

Shares traded on the Colombia Stock Exchange

Dividend payments will be subject to withholding at the Canadian statutory rate of 25 per cent. Shareholders who are entitled to a reduced withholding tax rate under a tax treaty should contact their broker or nominee to submit Form NR301 (English version). Brokers should submit Form NR301 on behalf of their shareholders to Deposito Centralizado de Valores as soon as possible. If you have previously completed Form NR301, you do not need to complete a new form.

Form NR301 can be downloaded on-line.

For information purposes, a Spanish version of Form NR301 can also be downloaded on-line.

The content contained herein is not tax advice. Do not use or otherwise rely upon any of the content without first seeking independent tax advice.

Uninterrupted access to transportation capacity in Colombia

The corporation wishes to provide the following clarification concerning the availability of transportation capacity from its operated fields to Cartagena and Barranquilla. The corporation is currently delivering gas to its clients without any interruption or issue with respect to transportation. As such, the corporation reconfirms its 2020 sales guidance of between 170 and 197 million standard cubic feet per day. Under Colombian regulations, transportation services are considered a public utility and, as a result, are heavily regulated. In particular, the regulation (Resolution No. 071 of 1999 (Gas and Energy Regulatory Commission)) prohibits transport companies from denying access to the national transport system to any agent or producer wishing to make use of the same, as long as the capacity is available and not being used by another agent or producer.

Update on Medellin pipeline

With respect to the corporation's plans to build and operate a new gas pipeline from Jobo to Medellin, the corporation continues its advanced negotiations with multiple international pipeline construction and operation companies, one or several of whom will build the pipeline. The corporation is also in the final stages of completing the financial structuring of the project with its banking and equity partners. The pipeline has a targeted completion date of 2024.

About Canacol Energy Ltd.

Canacol Energy is a gas exploration and production company with operations focused in Colombia.

We seek Safe Harbor.