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Gran Colombia GOLD Continuing to Negotiate IN Good Faith Despite Actions of Illegal Miners IN Segovia and Remedios

Mine Development & Operations

GRAN COLOMBIA GOLD CORP.

333 BAY STREET, SUITE 1100, TORONTO, ONTARIO M5H 2R2, CANADA

TEL: (416) 603-4653 FAX: (416) 360-7735

NEWS RELEASE

GRAN COLOMBIA GOLD CONTINUING TO NEGOTIATE IN GOOD FAITH DESPITE ACTIONS OF

ILLEGAL MINERS IN SEGOVIA AND REMEDIOS

TORONTO, CANADA, Monday, July 31, 2017 – Gran Colombia Gold Corp. (the “Company”) (TSX: GCM)

announced today that it is continuing to execute its contingency plans and to negotiate in good faith with

the Mesa Minera of Segovia and Remedios toward formaliz ing activities of illegal mines operating within

its mining title despit e the actions being taken by certain illegal miners to disrupt the Company’s

operations.

Over the last ten days, the Company has been monitoring the actions of the Mesa Minera, a local mining

collective comprised in its majority by illegal miners, as they attempted to convene a civil disruption and

protest in response to the increased measures being implemented by the Colombia n government to

restrict illegal mining . Although the Mesa Minera has been in discussion with the various levels of

government and the Company since last year, they have not yet been able to reach a resolution .

Discussions are ongoing and the Company is committed to achieving its objectives through this process

despite the coercive actions of certain local interests.

While the Company’s employees are not directly invo lved in this dispute, the escalation in the civil

disruption in recent days has impeded their ability to safely report to work. The Company estimates that

approximately 30 to 40 per cent of its workers are currently able to attend. In addition, over the weekend,

an explosion damaged a pipeline owned by the Company that supplies water to 1,200 residents in

Remedios. The Company is taking appropriate measures and has implemented the necessary security

procedures, focusing on critical needs to continue its mining and plant operations while deferring certain

development projects . There are also increased numbers of governmental authorities present to aid in

controlling the situation. The civil disruption did not have a significant impact on the Company’s expected

production in July. However, production guidance for the balance of the year may be impacted if the local

civil disruption continues for a prolonged period.

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 Ma rmato

Operations. Gran Colombia is in the midst of an expansion and modernization project 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,

statements with respect to production and anticipated business plans or strategies . Often, but not always,

forward-looking statements can be identified by t he 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, even ts

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 Col ombia 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 state ments are

described under the caption "Risk Factors" in the Company's Annual Information Form dated as of March

30, 2017, which is available for view on SEDAR at www.sedar.com. Forward -looking statements

GRAN COLOMBIA GOLD CORP.

333 BAY STREET, SUITE 1100, TORONTO, ONTARIO M5H 2R2, CANADA

TEL: (416) 603-4653 FAX: (416) 360-7735

contained herein are made as of the date of this pre ss 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 plac e undue reliance on forward -looking

statements.

For Further Information, Please Contact:

Mike Davies

Chief Financial Officer

(416) 360-4653

[email protected]