Gran Colombia Closes US$80 Million Financing Of Senior Unsecured Silver-Linked Notes

August 11, 2011

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, Aug. 11, 2011 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) announced today that it has closed its previously announced offering of US$80,000,000 aggregate principal amount of senior unsecured silver-linked notes at a price of US$1,000 principal amount per Note.  The Offering was completed by a syndicate of agents, led by GMP Securities L.P. and included RBC Dominion Securities Inc., Fraser Mackenzie Limited, Raymond James Ltd. and TD Securities Inc. The Notes are listed for trading on the Toronto Stock Exchangeunder the symbol "GCM.NT.U".

The net proceeds of the Offering will be used by the Company for the development of the Marmato Project, Colombia-based social programs related to the Marmato Project, the relocation of the Town of Marmato and for general corporate purposes including improvements at its operating properties.

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 six underground mines in operation.  In addition, Gran Colombia is also developing a large-scale, open-pit gold and silver mine at Marmato.  The Company also has a highly-prospective land position in Colombia as well as an advanced stage property in Venezuela and earlier stage properties in Mali.

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 the future financial or operating performance of the Company, its projects and the proposed use of proceeds from the Offering. 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. Forward-looking statements contained herein are made as of the date of this press release and Gran Colombia disclaim, 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.

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Contact Us

Head Office
401 Bay Street, Suite 2400, PO Box 15
Toronto, ON M5H 2Y4
Telephone: (416) 360-4653
Fax: (416) 603-4653

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