Gran Colombia Gold Announces Approval of Debt Restructuring and Partial Interest Payments on Senior Debt

TORONTO, ON--(Marketwired - January 08, 2016) - Gran Colombia Gold Corp. (GCM.TO) (OTC PINK: TPRFF) is pleased to announce today that it has received final approval from the Supreme Court of British Colombia for the previously announced comprehensive debt restructuring proposal to be implemented pursuant to a Plan of Arrangement under the Business Corporations Act (British Columbia) as described in the Company's Supplemental Management Information Circular dated November 30, 2015 (the "Supplemental Circular"), modified as described in the December 18, 2015 news release (the "Revised Arrangement").

The Revised Arrangement is expected to close on January 20, 2016. The new 2020 Debentures and 2018 Debentures will be listed for trading shortly after closing, subject to final approval of the Toronto Stock Exchange, under the trading symbols GCM.DB.V and GCM.DB.U, respectively.

As a reminder, pursuant to the Revised Arrangement and as further described in the Supplemental Circular, at their election Noteholders are entitled to receive in exchange for the outstanding principal amount of their Notes plus all accrued and unpaid interest and restructuring fees either:

1. convertible debentures, including a conversion option at a price of US$0.13 per common share, representing approximately 7,692 common shares for each US$1,000 principal amount of Notes;

2. common shares of the Company at a conversion price of US$0.13 per common share, representing approximately 7,692 common shares for each US$1,000 principal amount of Notes; or

3. a combination thereof.

Noteholders should speak to their broker or other financial and legal advisors regarding their election. The deadline to make an election is January 13, 2016 at 5:00 p.m. Toronto time. If no election is duly submitted by this date, Noteholders will be deemed to have elected convertible debentures.

Registered Noteholders should complete the Letter of Transmittal and Election Form sent by the Company with the meeting materials. Non-registered Noteholders should contact their intermediary if they have any questions regarding this process and to complete the necessary steps to make your election. Should you have any concerns regarding your election, please contact the Company's depositary for the Revised Arrangement, Equity Financial Trust Company, at 1-866-393-4891 or 416-342-1091.

The Company also announced today details of partial interest payments it will make on January 20, 2016, immediately prior to the exchange for the new debentures, on its Senior Secured Gold-Linked Notes due 2017 and Senior Unsecured Silver-Linked Notes due 2018.

Gold Noteholders of record as of January 19, 2015 will receive approximately US$3.01 per US$1,000 face value of the notes, leaving a balance of interest in arrears after the payment of approximately US$14.25. Silver Noteholders of record as of January 19, 2015 will receive approximately US$1.51 per US$1,000 face value of the notes which will be applied against the interest in arrears from June 30, 2015 and December 31, 2015, leaving a balance of US$27.94 per US$1,000 face value of Silver Notes after the payment. These payments were determined based on amounts payable required to reduce the total principal amounts of the new 2018 Debentures and 2020 Debentures to a level that would maintain the maximum dilution amount for the Company's common shares in accordance with the Revised Arrangement approved by shareholders at the December 22, 2015 meeting. These payments will be made on January 20, 2016 regardless of whether the Revised Arrangement closes as the Company expects.

About Gran Colombia Gold Corp.

Gran Colombia is a Canadian-based gold and silver exploration, development and production company with its primary focus in Colombia. Gran Colombia is currently the largest underground gold and silver producer in Colombia with several underground mines in operation at its Segovia and Marmato Operations. Gran Colombia is currently advancing a project to develop a modern, large-scale, gold and silver mine at its Segovia operations.

Additional information on Gran Colombia can be found on its website at www.grancolombiagold.com and by reviewing its profile on SEDAR at www.sedar.com.

Cautionary Statement on Forward-Looking Information:

This news release contains "forward-looking information", which may include, but is not limited to, payments on senior debt, the debt restructuring and the expected timing for the closing on the Revised Arrangement. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Gran Colombia to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated as of March 31, 2015, which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this press release and Gran Colombia disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.