Mr. Serafino Iacono reports

GRAN COLOMBIA REPORTS THIRD QUARTER AND FIRST NINE MONTHS 2020 RESULTS; ANNOUNCES TRIPLING OF ITS DIVIDEND AND CHANGING PAYMENT FREQUENCY TO MONTHLY

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 and nine months ended Sept. 30, 2020. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted.

Gran Colombia's board of directors has approved an increase in the company's dividend and the company is changing the payment frequency from quarterly to monthly. The first monthly dividend of 1.5 Canadian cents per common share will be paid on Dec. 15, 2020, to shareholders of record as of the close of business on Nov. 30, 2020.

Serafino Iacono, executive chairman of Gran Colombia, commenting on the company's latest results, said: "Our third quarter results were impressive. The higher spot gold prices helped fuel new highs in quarterly revenue, adjusted EBITDA, adjusted net income, operating cash flow and free cash flow. After the first nine months of 2020, adjusted EBITDA, operating cash flow and free cash flow are already equal to or better than our full-year totals in 2019. In light of these results and our confidence in our high-grade Segovia operations, we are also pleased to announce a significant increase in our dividend rate, from 1.5 Canadian cents per share on a quarterly basis to 1.5 Canadian cents per share on a monthly basis. That represents almost a 3-per-cent dividend yield and places us in the top quartile of dividend-paying gold stocks. Moreover, we are only one of two gold companies that are paying a dividend on a monthly basis. With the strength in our balance sheet and free cash flow, we welcome this opportunity to enhance our shareholders return on their investment in our company."

Highlights for the third quarter and first nine months of 2020:

• Gran Colombia has announced that it is tripling its dividend to the equivalent of 18 Canadian cents per share per annum and changing the payment frequency to monthly. The first monthly dividend of 1.5 Canadian cents per common share will be paid on Dec. 15, 2020, to shareholders of record as of the close of business on Nov. 30, 2020.
• The company continued to support the local communities surrounding the Segovia operations and Marmato project during the third quarter of 2020, providing groceries to families who have been economically affected by the COVID-19 crisis in addition to donations of medical equipment, supplies and sanitation kits to the local hospitals, and masks to the communities. Gran Colombia's consolidated gold production in the third quarter of 2020 was 58,454 ounces, up 4 per cent from the third quarter last year. The third quarter 2020 production reflects a 21-per-cent improvement over the second quarter of 2020, which had been adversely impacted by the COVID-19 national quarantine invoked in Colombia in late March. With a total of 162,929 ounces of gold produced in the first nine months of 2020, down from 174,754 ounces in the first nine months last year and another 19,391 ounces in October, the company is on track to meet its 2020 annual production guidance of a range between 218,000 and 226,000 ounces of gold.
• Revenue reached a new quarterly record of $113.1-million in the third quarter of 2020, up 36 per cent from the third quarter last year, as the 30-per-cent year-over-year improvement in spot gold prices increased the company's realized gold price to an average of $1,875 per ounce sold. For the first nine months of 2020, revenue of $291.2-million was up 22 per cent over the first nine months last year.
• Total cash costs per ounce averaged $796 per ounce in the third quarter of 2020, compared with $684 per ounce in the third quarter last year. Higher spot gold prices increased production taxes by approximately $25 per ounce in the third quarter of 2020, compared with the same period last year. Other factors increasing total cash costs in the third quarter of 2020 included an increase in contractor and artisanal mining rates, which had last been adjusted in 2017, an increased level of operating development costs at Marmato associated with the preparation of levels 21 and 22 (the transition zone) for expansion of mining activities, and additional costs being incurred to maintain the COVID-19 protocols required to protect the health and safety of workers. For the first nine months of 2020, total cash costs averaged $725 per ounce, compared with $653 per ounce in the first nine months last year.
• All-in sustaining costs (AISC) and all-in costs were $1,122 per ounce and $1,190 per ounce, respectively, in the third quarter of 2020, compared with $951 per ounce and $991 per ounce, respectively, in the third quarter last year. The year-over year increase in these metrics can largely be attributed to the increase in total cash costs, new spending on general and administrative (G&A) expenses, and social contributions in Caldas Gold Corp., and an increased level of sustaining and non-sustaining capex for the Marmato project. For the first nine months of 2020, AISC and all-in costs averaged $1,014 and $1,089 per ounce, respectively, compared with $886 and $911 per ounce, respectively, in the first nine months last year.
• The company reported record quarterly adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $56.7-million for the third quarter of 2020, up 51 per cent over the third quarter last year. For the first nine months of 2020, adjusted EBITDA totalled $144.7-million, up 36 per cent over the first nine months last year. The company's trailing-12-month adjusted EBITDA at the end of September, 2020, was $185.3-million, up 26 per cent over 2019.
• Net cash provided by operating activities in the third quarter of 2020 was $67.7-million, compared with $30.6-million in the third quarter last year. For the first nine months of 2020, net cash provided by operating activities was $106.0-million, up from $68.7-million in the first nine months last year. The company's trailing-12-month net cash provided by operating activities at the end of September, 2020, was $140.6-million, up 36 per cent over 2019.
• Record quarterly free cash flow in the third quarter of 2020 was $53.4-million, compared with $19.6-million in the third quarter last year. For the first nine months of 2020, free cash flow amounted to $66.8-million, up $28.2-million over the first nine months last year. The company's trailing-12-month free cash flow at the end of September, 2020, was $88.8-million, up 46 per cent over 2019.
• The company's balance sheet remained solid with total cash of $138.2-million at the end of September, 2020, including $43.0-million in Caldas Gold, of which $34.7-million represents the net proceeds of Caldas Gold's special warrant financing completed in the third quarter of 2020 that will be used as part of the financing for its Marmato deep zone (MDZ) project.
• The aggregate principal amount of gold notes outstanding is currently $35.5-million. In October, Fitch Ratings upgraded the company from B to B plus stable outlook. The company reported net income of $18.0-million (39 cents per share), compared with $9.0-million (18 cents per share) in the third quarter last year. For the first nine months of 2020, the company reported net income of $23.7-million (53 cents per share), compared with $17.7-million (36 cents per share) in the first nine months last year.
• Adjusted net income for the third quarter of 2020 was $29.5-million (47 cents per share), up from $16.0-million (33 cents per share) in the third quarter last year. For the first nine months of 2020, adjusted net income improved to $68.2-million ($1.14 per share), compared with $43.0-million (88 cents per share) in the first nine months last year. The year-over-year improvement in adjusted net income for the third quarter and first nine months of 2020 largely reflects the positive impact of higher gold prices in 2020, partially offset by the COVID-19 impact on gold sales volumes in the second quarter of 2020.
• The company currently has six diamond drill rigs in operation at its Segovia operations, with four rigs operating underground carrying out resource definition of the Providencia, Sandra K and El Silencio mines, one rig operating from level 3 of the Sandra K mine targeting the downplunge extension of the southern ore shoot of the El Silencio mine, and one rig on surface testing the easternmost end of the Providencia mine. In October, 2020, the company commenced its regional exploration campaign, delayed from earlier this year due to COVID-19 restrictions, with two additional rigs operating from surface in a 3,500-metre drilling program at the brownfield Vera vein located east of the Sandra K-Cogote vein system expected to be completed by the end of 2020. The regional exploration program, which will continue in 2021, represents a large diamond drilling campaign focused on the most prospective brownfield exploration targets within the 24 known veins at its Segovia operations, which are not currently being mined.
• Caldas Gold, 53.5 per cent-owned, continues to advance its plan to build the next major gold mine in Colombia. Following the release of its preliminary feasibility study for its Marmato project in early July, Caldas Gold completed a $50-million (Canadian) bought deal private placement of special warrants in late July, of which Gran Colombia acquired $20-million (Canadian) to maintain its equity ownership above 50 per cent. In late August, Caldas Gold finalized an $83.1-million private placement offering of subscription receipts, exchangeable into senior secured gold-linked notes and warrants of Caldas Gold, including $10-million acquired by Gran Colombia. On Nov. 5, 2020, Caldas Gold announced it had entered into a $110-million stream financing agreement with Wheaton Precious Metals International Ltd. The net proceeds from these three financings will be used by Caldas Gold to finance the planned expansion of mining operations into the MDZ. Caldas Gold is also continuing its drilling campaign at Marmato and recently announced it has extended the main zone by 300 metres along strike and it remains open.

                                         SELECTED FINANCIAL INFORMATION                                 
       
                                                                   Third quarters ended        Nine months ended
                                                                               Sept. 30,                Sept. 30,
                                                                         2020      2019           2020      2019
Operating data                                                                                       
Gold produced (ounces)                                                 58,454    56,271        162,929   174,754
Gold sold (ounces)                                                     59,633    56,284        168,412   174,697
Average realized gold price ($/oz sold)                              $  1,875  $  1,458       $  1,712     1,348
Total cash costs ($/oz sold)                                              796       684            725       653
AISC ($/oz sold)                                                        1,122       951          1,014       886
All-in costs ($/oz sold)                                                1,190       991          1,089       911
Financial data (in thousands of U.S. dollars, 
except per-share amounts)                                                                    
Revenue                                                              $113,138  $ 82,952       $291,248  $238,017
Adjusted EBITDA                                                        56,688    37,595        144,688   106,068
Net income                                                             18,027     9,014         23,704    17,685
Per share, basic                                                         0.39      0.18           0.53      0.36
Per share, diluted                                                       0.17      0.18           0.52      0.36
Adjusted net income                                                    29,503    16,034         68,239    43,003
Per share, basic                                                         0.47      0.33           1.14      0.89
Per share, diluted                                                       0.40      0.27           0.96      0.77
Net cash provided by operating activities                              67,712    30,606        105,954    68,655
Free cash flow                                                         53,365    19,630         66,821    38,658

                                                                                                           As at
                                                                                              Sept. 30,  Dec. 31,
                                                                                                  2020      2019
                                                                                                            
Balance sheet (in thousands of U.S. dollars, except as noted)                                                   
Cash and cash equivalents                                                                     $138,195  $ 84,239
Gold notes, including current portion -- principal amount outstanding                           38,413    68,750
Convertible debentures -- principal amount outstanding 
(in thousands of Canadian dollars)                                                             $20,000    20,000

Third quarter 2020 results webcast

As a reminder, Gran Colombia will host a conference call and webcast on Thursday, Nov. 12, 2020, at 10 a.m. Eastern Time, to discuss the results.

Webcast and call-in details are as follows.

Webcast:  A live webcast will be available.

Canada toll/international:  1-514-841-2157

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

Colombia toll-free:  01-800-915-6924

Conference ID No.:  49986279

A replay of the webcast will be available on the company's website from Thursday, Nov. 12, 2020, until Thursday, Dec. 17, 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 53.5 per cent of Caldas Gold, a Canadian mining company currently advancing 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 18-per-cent equity interest in Gold X Mining Corp. (Guyana -- Toroparu project) and an approximately 26-per-cent equity interest in Western Atlas Resources Inc. (Nunavut -- Meadowbank project).

Additional information on Gran Colombia can be found on its website and by reviewing its profile on SEDAR.

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