2020 Debenture Extension Proposal

As announced in its March 6, 2017 press release, in an effort to improve the Company's future liquidity and capital structure to enhance shareholder value, the Company has made proposals to its shareholders and 2020 Debenture holders to extend the maturity, on a voluntary basis, of its 2020 Debentures and to consolidate its common shares, both proposals subject to necessary approvals.

Gran Colombia believes that by extending the maturity of some or all of its 2020 Debentures, the Company can strike a better balance between capital investment and cash generation for senior debt retirement to enhance stakeholder value while at the same time using its excess cash flow to systematically reduce the issued and outstanding senior secured debt. The Company is seeking approval from holders of the 2020 Debentures to amend the Indenture through a consent solicitation process to provide the option for holders to extend the maturity date of the debentures to January 2, 2024 prior to the election deadline.

The extended 2020 Debentures will carry largely the same terms and conditions as the other 2020 Debentures except that the maturity date will be extended and interest will be paid monthly over the remaining term of the extended 2020 Debentures at an increased annual rate of 8%.

The materials for the 2020 Debenture Extension Proposal below contain important information that should be read before any decision is made with respect to the consent solicitation and any election. Each eligible holder must make his, her or its own decision as to whether to deliver a consent or elect to extend the maturity of their debentures and should consult his, her or its financial advisors in connection with such decision.

Materials were distributed to 2020 Debenture holders on or about April 11, 2017. The consent solicitation period is expected to remain open until May 11, 2017, following which the Company will announce the results. Eligible holders of 2020 Debentures also have the opportunity to elect to extend some or all of their 2020 Debentures, subject to meeting the necessary conditions, until the election deadline of May 11, 2017. 

For further information regarding the 2020 Debenture Extension Proposal and how to provide your consent and election, please review the consent solicitation materials above or contact the Company's consent solicitation agent,  Kingsdale Advisors at 1-877-659-1819 or via email at contactus@kingsdaleadvisor.com.

For access to all of our SEDAR filings click here.

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Contact Us

Head Office
333 Bay Street, Suite 1100 Toronto, Ontario M5H 2R2
Telephone: (416) 360-4653
Fax: (416) 360-7783

Colombia Operations Office
Calle 4 Sur No 43A-195 Centro Ejecutivo, oficina 230B Medellin, Colombia
Telephone: +57(4) 448 5220

Investor Relations
investorrelations@grancolombiagold.com

Resumes
talento.humano@grancolombiagold.com.co