Gran Colombia Gold Press Releases

Gran Colombia Gold announces the consolidation of its common shares and warrants

Fri, 14 Jun 2013 17:13:00 -0400

TORONTO, June 14, 2013 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM; TSX: GCM.WT; GCM.NT.U) is pleased to announce the approval of the proposed consolidation of its issued and outstanding Common Shares on a one-for-twenty-five basis. As a result of the consolidation, there will be 15,279,936 Common Shares issued and outstanding on a post-consolidated basis. The Company has also consolidated all of its issued and outstanding Warrants on the same basis.

The Company received Toronto Stock Exchange approval for the consolidation of the Common Shares and Listed Warrants (TSX: GCM.WT) on June 14, 2013, and commencing at the opening of trading on June 18, 2013, the Common Shares and Listed Warrants will trade on a post-consolidated basis on the TSX. The Company's name and trading symbols will remain unchanged. The following table summarizes the structure of the Company's Warrants following the consolidation:

Warrants	Original Terms of Warrants	Post Warrant Consolidation (effective June 18, 2013)
Listed Warrants expiring on August 24, 2015 (TSX: GCM.WT)	Each warrant exercisable to purchase one Common Share at an exercise price of $2.60 per Common Share.	Each warrant exercisable to purchase one post-consolidated Common Share at an exercise price of $65.00 per share. All entitlements to fractional consolidated warrants will be rounded down to the next whole number of consolidated warrants in accordance with the provisions of the applicable Warrant Indenture and no consideration will be paid in lieu of fractional Common Shares.
Warrants expiring on October 31, 2017 (issued in connection with the Gold-Linked Notes)	Each warrant is exercisable to purchase one Common Share at an exercise price of $0.75 per Common Share.	Each warrant exercisable to purchase one post-consolidated Common Share at an exercise price of $18.75 per share. All entitlements to fractional consolidated warrants will be rounded up to the next whole number of consolidated warrants in accordance with the provisions of the applicable Offering Memorandum.
Warrants expiring on June 18, 2013	Each warrant exercisable at an exercise price of US$3.75, to acquire 0.4032 (being 0.336 of a share multiplied by 1.2) of a Common Share for each warrant held, 0.168 of a "Gran Colombia Consideration Warrant" (which is a warrant entitling the holder thereof to purchase a Common Share at an exercise price of $2.60 and expiring on August 24, 2015) for every warrant held, 0.0108 of an underlying warrant for every warrant held (where each whole warrant is exercisable to purchase 1.2 Common Shares and 0.5 Gran Colombia Consideration Warrant for at an exercise price of $1.25), and a further 0.0054 of a Gran Colombia Consideration Warrant for every warrant held.	Each warrant is exercisable to purchase one (1) Unit at a price of US$93.75, to acquire 0.016128 (0.4032/25) of a Common Share for each Goldfields Warrant held, 0.000672 (0.0168/25) of a "Gran Colombia Consideration Warrant" (which is a warrant entitling the holder thereof to purchase 0.04 of a Common Share at an exercise price of $65.00 and expiring on August 24, 2015) for every Colombia Warrant held, 0.000432 (0.0108/25) of an underlying warrant for every Goldfields Warrant held (where each whole warrant is exercisable to purchase 0.048 (1.2/25) Common Shares for at an exercise price of $31.25 (1.25x25)), and a further 0.000216 (0.0054/25) of a Gran Colombia Consideration Warrant for every Goldfields Warrant held. Fractional Goldfields Warrants shall be rounded up to the next whole number. Fractional Gran Colombia Consideration Warrants or Common Shares shall not be issued or otherwise provided for. If any fraction of a Gran Colombia Consideration Warrant or Common Share would otherwise be issuable, the number of Gran Colombia Consideration Warrants or Common Shares so issued shall be rounded up to the nearest whole Gran Colombia Consideration Warrant or Common Share, as applicable, in the event that the holder would be entitled to receive a fractional share or warrant representing 0.5 or more of a Gran Colombia Consideration Warrant or Common Share, as applicable; conversely, the number of Gran Colombia Consideration Warrants or Common Share so issued will be rounded down to the nearest whole Gran Colombia Consideration Warrant or Common Share, as applicable, in the event that the holder would be entitled to receive a fractional share or warrant representing less than 0.5 of a Gran Colombia Consideration Warrant or Common Share.

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. In addition, Gran Colombia is advancing a project to develop a large-scale, gold and silver mine at its Marmato operations.

Additional information on Gran Colombia Gold can be found on the Company's website at www.grancolombiagold.com and by reviewing the Company's page on SEDAR at www.sedar.com.

Roy MacDonald
Investor Relations
(416) 360-4653

Voting results of the Annual and Special Meeting of the Shareholders of Gran Colombia

Fri, 07 Jun 2013 11:30:00 -0400

TORONTO, June 7, 2013 /CNW/ - Gran Colombia Gold Corp.'s (TSX: GCM; TSX: GCM.WT; GCM.NT.U) Annual and Special Meeting of Shareholders was held on Friday, May 31, 2013. The detailed results of the votes for each matter to be acted upon are set out below:

Item No.	Description of matter	Outcome of vote	Voted	Voted (%)
1.	Fixing the number of directors at ten.	Approved	212,610,455 Voted 6,009,921 Against	97.25% 2.75%
2.	The election of the following individuals as directors of the Corporation to hold office until the next annual meeting of the Corporation or until their successors are appointed or elected:
	Miguel de la Campa	Approved	180,807,896 Voted 1,778,117 Withheld	99.03% 0.97%
	Robert Doyle	Approved	101,872,617 Voted 80,713,396 Withheld	55.79% 44.21%
	Robert Hines	Approved	180,771,699 Voted 1,814,314 Withheld	99.01% 0.99%
	Serafino Iacono	Approved	180,903,790 Voted 1,682,223 Withheld	99.08% 0.92%
	Alfonso Lopez Caballero	Approved	180,680,978 Voted 1,905,035 Withheld	98.96% 1.04%
	Augusto Lopez	Approved	180,684,578 Voted 1,901,435 Withheld	98.96% 1.04%
	Hernan Juan Jose Martinez Torres	Approved	180,687,846 Voted 1,898,167 Withheld	98.96% 1.04%
	Robert Metcalfe	Approved	180,793,779 Voted 1,792,234 Withheld	99.02% 0.98%
	Mario Pacheco	Approved	180,719,898 Voted 1,866,115 Withheld	98.98% 1.02%
	Jaime Perez Branger	Approved	180,817,982 Voted 1,768,031 Withheld	99.03% 0.97%
3.	Appointing KPMG LLP as auditors of the Corporation at a remuneration to be fixed by the directors.	Approved	218,038,186 Voted 577,198 Withheld	99.74% 0.26%
4.	Ratifying, confirming, authorizing and approving the Advance Notice Policy, as described in the Management Information Circular dated April 19, 2013.	Approved	181,348,854 Voted 1,237,159 Against	99.32% 0.68%
5.	Authorizing a consolidation of the Corporation's issued and outstanding common shares on a twenty-five-for-one (25:1) basis, subject to approval of the Toronto Stock Exchange, as described in the Management Information Circular dated April 19, 2013.	Approved	179,184,342 Voted 3,401,671 Against	98.14% 1.86%

About Gran Colombia Gold Corp.

Additional information on Gran Colombia Gold can be found on the Company's website at www.grancolombiagold.com and by reviewing the Company's page on SEDAR at www.sedar.com.

Roy MacDonald
Investor Relations
(416) 360-4653

Gran Colombia Gold announces first quarter 2013 results, including savings from ongoing cost reduction initiatives, and releases high grade drill results from its Segovia Project

Tue, 14 May 2013 22:01:00 -0400

TORONTO, May 14, 2013 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) announced today the release of its unaudited condensed consolidated financial statements and accompanying management's discussion and analysis (MD&A) for the first quarter of 2013 and the results of its ongoing exploration at its Segovia Project. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted.

First Quarter 2013 Highlights

Total gold production of 24,350 ounces for the first quarter of 2013, a 10 percent increase over the fourth quarter of 2012, driven by a 13 percent increase at the Segovia Operations. Mill operations at the Maria Dama plant at the Segovia Operations have stabilized in 2013 with the mill averaging more than 1,000 tpd since the beginning of March. The company remains on track to produce a total of 110,000 ounces of gold in 2013.
Revenue of $37.6 million in the first quarter of 2013 reflected the sale of 22,289 ounces of gold at an average realized price of $1,639 per ounce and 35,069 ounces of silver at an average realized price of $30 per ounce.
In January 2013, management embarked on a comprehensive review of its operations to identify and implement $12 million in annualized cost savings. This program resulted in $850,000 per month of savings starting in February 2013, with approximately $700,000 directly related to operating costs at the Segovia Operations and the balance in general and administrative (G&A) spending. In May 2013, the company is implementing further actions that will reduce operating costs by an additional $500,000 per month at Segovia, bringing the annualized cost savings starting in June 2013 to $16.2 million, a 35 percent improvement compared to the company's previous target.
Total cash costs averaged $1,281 per ounce of gold in the first quarter of 2013, a significant improvement from $1,534 per ounce in the fourth quarter of 2012. As a result of the realized cost reductions and the improvement in gold production, Segovia's cash cost decreased to an average of $1,315 per ounce for the first quarter of 2013 and to $1,164 per ounce in the month of March.
All-in sustaining costs were $1,545 per ounce in the first quarter of 2013 and are expected to trend down over the balance of the year to an expected annual average for 2013 of $1,280 per ounce. The additional cost savings being implemented in May and a further improvement in Segovia's gold production, resulting from increased grades in the second half of 2013, will both have a positive impact on total cash costs and all-in sustaining costs. In addition, the decrease in gold prices since April 2013 will further reduce total cash costs and all-in sustaining costs, as approximately 56 percent of Segovia's production is sourced from artisanal mining operations, where approximately 80 percent of the production cost is directly tied to the price of gold.
G&A decreased to $3.6 million in the first quarter of 2013. In February 2013, the company took steps to cut spending by $150,000 per month, a significant contributor in the expected reduction in G&A from $16.5 million in 2012 to a level of $14.5 million in 2013.
Exploration: The company is pleased to announce significant results from the ongoing 20,000 meter exploration program at its Segovia Project, with several intercepts showing visible gold and grades of more than one ounce of gold per tonne of ore. These drill intercepts include 0.42 meters grading 663.32 grams per tonne (g/t), 0.30 meters grading 340.84 g/t, 0.30 meters grading 172.67 g/t, 0.50 meters grading 101.36 g/t and 2.60 meters grading 42.31 g/t. The company expects to finalize an updated NI 43-101 resource estimate for Segovia in mid-2013, following completion of the drilling campaign that commenced late last year to upgrade and expand its resources at Segovia.

"We believe that the global market fundamentals remain in place to support a strong gold market, but we have undertaken significant measures to adjust our 2013 business model to enable the company to achieve its cash generation targets in the current price environment and we will continue to identify opportunities to further reduce our costs", said Serafino Iacono, Executive Co-Chairman of Gran Colombia. Commenting on the drill results at the company's Segovia Project he added, "We are very excited by the ongoing exploration program at Segovia as we continue to see exceptional drill results, including several intercepts with visible gold and a 0.4 metre section with grades of over 20 ounces of gold per tonne of ore."

Financial and Operating Summary

A summary of the financial and operating results for the first quarter of 2013 is as follows:


	First Quarter
	2013	2012
Operating data:
Gold produced (ounces)	24,350	26,260
Gold sold (ounces)	22,289	24,814
Average realized gold price ($/oz sold)	$ 1,639	$ 1,676
Total cash costs ($/oz sold) (1)	1,281	1,199
All-in sustaining costs ($/oz sold) (2)	1,545	N/A
Financial data: (x $1,000, except per share amounts)
Total revenues	$ 37,621	$ 42,678
Gross margin (3)	4,140	7,921
Net income attributable to shareholders	9,545	1,128
Basic and diluted income per share	0.02	0.00
Cash and cash equivalents	1,993	5,113
Cash in trust, current and non-current (4)	77,264	2,400
Total debt, including current portion	172,091	83,168

(1)	"Total cash costs" are presented on a per ounce sold basis and represent consolidated averages for the company from both the Segovia Operations and Marmato Underground mine. See "Additional Financial Measures" in MD&A.
(2)	For 2013, in conjunction with a non-GAAP initiative being undertaken within the gold mining industry, the company has adopted an "all-in sustaining costs" non-GAAP performance measure that the company believes more fully defines the total costs associated with producing gold; however, this performance measure has no standardized meaning. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Refer to the MD&A for a reconciliation of all-in sustaining costs.
(3)	"Gross margin" represents total revenues, net of operating costs, production taxes and depreciation, depletion and amortization.
(4)	2013 includes $74.6 million set aside to pay capital costs of the Segovia expansion and interest on the Gold Notes until October 2014.

Segovia Operations Update

Gold production at the Segovia Operations was up 13 percent from the fourth quarter of 2012. With the resolution of the power disruptions that had adversely impacted the fourth quarter of 2012, the company successfully increased tonnes processed by approximately 8 percent from the previous quarter to an average of 918 tpd for the first quarter of 2013. In the month of March 2013, the daily rate averaged 1,033 tpd. Although head grades at the Segovia Operations were similar in the first quarter of 2013 to the previous quarter, gold production at the Segovia Operations also benefitted from an improvement in mill recovery to 83 percent, up from 76 percent in the previous quarter. Mine development work is continuing at the Segovia Operations and the company expects that head grades will begin to show improvement by the end of the second quarter of 2013.

The company commenced a drilling campaign of 80 holes and 20,000 metres in October 2012 to upgrade and expand the mineral resources at Segovia. With the completion of 72 holes and 18,000 metres, the program is approximately 88 percent complete. The company expects to complete the drilling in the second quarter of 2013, which will lead to an updated NI 43-101 resource estimate for Segovia to be announced mid-year.

Significant results (greater than 6.0 g/t) are summarized below:

Drill Hole	From (m)	To (m)	Length (m)	Gold (g/t)	Silver (g/t)	Vein
DS-0087	382.15	383.80	1.65	7.84	4.0	Providencia
incl.	382.15	382.80	0.65	11.37	7.8
DS-0088	371.75	372.18	0.43	7.63	28.1	Providencia HW
DS-0089	27.50	27.93	0.43	7.50	11.9	Granodiorite
DS-0089	453.54	454.26	0.72	396.07	270.8	Providencia
incl.	453.54	453.96	0.42	663.32	424.3
and	453.96	454.26	0.30	21.92	55.9
DS-0089	455.00	456.57	1.57	40.16	22.0	Providencia FW 1
incl.	455.00	455.30	0.30	172.67	89.4
and	455.30	456.00	0.70	11.90	6.9
DS-0089	464.00	464.40	0.40	6.45	3.9	Providencia FW 2
DS-0092A	110.42	110.80	0.38	16.21	11.8	Marmajito HW
DS-0093	174.10	174.65	0.55	7.54	14.2	Sandra K Piso
DS-0093	222.85	223.15	0.30	8.84	7.8	Sandra K Piso FW1
DS-0096	174.72	175.15	0.43	9.06	39.7	Sandra K Techo
DS-0097	366.00	366.50	0.50	8.69	9.9	Providencia
DS-0100	130.46	131.06	0.60	43.79	39.1	Sandra K Techo
DS-0101	71.70	72.20	0.50	15.93	12.4	Silencio Sur 1
DS-0102	210.06	210.54	0.48	12.31	13.4	Chumeca
DS-0103	125.52	125.95	0.43	13.65	21.1	Sandra K Techo
DS-0106	389.00	389.44	0.44	6.37	5.8	Providencia?
DS-0107	131.47	131.80	0.33	59.07	124.9	Sandra K Techo
DS-0113	195.65	196.22	0.57	18.69	16.6	Chumeca
DS-0118	179.37	179.92	0.55	6.25	16.4	Sandra K Techo
DS-0122	89.35	89.80	0.45	10.01	14.7	El Silencio 1?
DS-0126	484.70	487.30	2.60	42.31	24.2	Providencia
incl.	484.70	485.05	0.35	60.86	36.0
and	485.05	486.05	1.00	44.05	22.5
and	486.05	487.30	1.25	35.72	22.2
DS-0126	490.12	491.00	0.88	10.84	6.9	Providencia
DS-0126	493.10	493.60	0.50	9.38	12.3	Providencia FW1
DS-0129A	142.28	142.67	0.39	8.48	8.2	Poma Rosa HW1
DS-0130	201.70	202.00	0.30	340.84	459.9	Sandra K Techo
DS-0132	58.40	58.98	0.58	6.11	41.5	Las Aves
DS-0134	203.56	203.95	0.39	7.23	9.7	Sandra K Techo
DS-0139	235.32	235.72	0.40	15.00	12.1	Sandra K Techo
DS-0139	250.70	251.30	0.60	9.38	30.5
DS-0141	238.20	238.70	0.50	101.36	236.7	Sandra K Techo
DS-0145	252.37	253.21	0.84	16.37	60.2	Sandra K Techo
incl.	252.90	253.21	0.31	30.67	31.3	Sandra K Techo
DS-0146	123.12	123.42	0.30	19.78	25.2	Carla
DS-0148	193.98	194.75	0.77	32.22	33.9	Sandra K Techo
incl.	193.98	194.29	0.31	56.10	47.5
and	194.29	194.75	0.46	16.13	24.8

Sample grades over 6.0 g/t Au reported. Grades are for single samples and for length-weighted composites calculated with a cutoff grade of 5.0 g/t Au and no internal dilution. The length is the down-hole sample or composite length and is not necessarily the true width of the vein. The true widths are estimated to be between 50% and 100% of the down-hole length. The grades are not cut and the intervals are not diluted to a minimum mining width. Abbreviations: FW = foot wall vein, HW = hanging wall vein.

Marmato Project

At Marmato Underground, operations remained steady in the first quarter of 2013, with 679 tpd milled at an average head grade of 3.0 g/t and a mill recovery of 88.9%, resulting in gold production of 5,298 ounces for the first quarter. Gold production is expected to be 20,000 ounces in 2013, down from 21,717 ounces produced last year, due to the impact on production of a crusher upgrade to be completed in the second quarter of 2013.

The company's near-term focus at the Marmato Project is to complete and publish the prefeasibility study for the modernization and expansion of its current underground operation. The company is making progress with Roscoe Postle and Associates and other technical consultants and expects to be in a position to publish the underground prefeasibility study and a supporting NI 43-101 mid-year 2013.

Outlook

The company is focused on cost reductions and limiting capital investments to support an expected production level of 110,000 ounces of gold in 2013. The company continues to expect production at its Segovia Operations to reach 90,000 ounces of gold in 2013 and production from the underground mine at Marmato to total 20,000 ounces of gold. To-date, management has identified and implemented $16 million in annualized cost savings, a 35 percent improvement over its initial target set at the beginning of the year and necessitated by the recent decline in gold prices to maintain the company's expected cash generation from operations in 2013.

In 2013, the company has adopted an "all-in sustaining cost" measure that it believes more fully defines the total costs associated with producing gold. All-in sustaining costs include cash costs (on a by-product credit basis), G&A, sustaining capital, and exploration and evaluation costs. As the measure seeks to reflect the full cost of gold production from current operations, new project capital is not included in the calculation. For 2013, in light of the current gold price environment and the incremental cost savings identified and effective in June, the company has revised its all-in sustaining cost guidance for the year to $1,280 per ounce, an improvement from the previously communicated target of $1,380 per ounce. This new target, based on the first quarter actual results and current gold prices, includes total cash cost of approximately $1,070 per ounce, G&A of $130 per ounce, sustaining capital of $40 per ounce and exploration and evaluation costs of $40 per ounce. Total cash cost guidance for the year has been reduced from $1,170 per ounce to approximately $1,070 per ounce reflecting the incremental cost savings being implemented effective June 2013 and the impact of lower gold prices on the artisanal mining operations' costs at Segovia and production taxes, both of which are tied to spot gold prices, and therefore, provide a natural hedge to gold price movement.

Guidance for sustaining capital expenditures for 2013 remains at approximately $4.5 million. These expenditures will be funded internally from unrestricted cash balances and operating cash flow and will focus on sustaining capital at the two operating mines, including the completion of Maria Dama mill upgrades, the environmental program at Segovia and a crusher upgrade at the Marmato underground mining operation. An additional $4.5 million is expected to be spent on various ongoing activities at the Marmato Project site.

Capital expenditures, exploration and mine development in support of the expansion of the Segovia Operations (also referred to as the "Pampa Verde Project") are being funded separately from the proceeds of the Gold Notes and are not included in all-in sustaining cash cost.

Webcast

As a reminder, the company will host a conference call and webcast on Wednesday, May 15^th at 9:30 a.m. Eastern Time (8:30 a.m. Bogota time) to discuss the results and provide an operational update.

Webcast and call-in details are as follows:

Live Event link:	http://www.media-server.com/m/p/fr4zrjj7
Toronto & International:	1 (847) 585-4405
North America Toll Free:	1 (888) 771-4371
Colombia Toll Free:	01 800 9 156 924
Conference ID:	34844128

A replay of the webcast will be available at www.grancolombiagold.com from May 15, 2013 until June 30, 2013.

Qualified Person

Stewart D. Redwood, Senior Consulting Geologist to the Company, is a qualified person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects and prepared or reviewed the preparation of the scientific and technical information in this press release in respect of the drilling results from the Segovia Project. Dr. Redwood verified the data disclosed in this news release, including the sampling, analytical and test data underlying the information contained in this news release. Verification included a review of the quality assurance and quality control samples, and review of the applicable assay databases and assay certificates.

Quality Assurance and Quality Control

In the case of the drilling results referred to herein, the samples were prepared by SGS Colombia S.A. at their sample preparation facility in Medellin, Colombia, and were assayed by SGS del Perú S.A.C. at their laboratory in El Callao, Peru. Both of these companies are part of the SGS group (ISO 9001:2008 certified). Gold was assayed by fire assay with atomic absorption spectrophotometer (AAS) finish. Samples over 5 g/t gold were re-assayed by fire assay with gravimetric finish. Silver was analyzed by multiacid digestion with AAS finish, or by aqua regia digestion and inductively coupled plasma emission spectrophotometer (ICP-ES) finish. Blank, standard and duplicate samples were routinely inserted for quality assurance and quality control.

About Gran Colombia Gold

Additional information on Gran Colombia Gold can be found on the company's website at www.grancolombiagold.com and by reviewing the company's page on SEDAR at www.sedar.com.

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 and its projects and, specifically, statements concerning anticipated growth in annual gold production and reduction of cash costs. 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 26, 2013 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.

Roy MacDonald
Investor Relations
(416) 360-4653

Gran Colombia Gold Announces Upcoming Webcast to Discuss Financial Results for Q1 2013

Tue, 07 May 2013 17:18:00 -0400

TORONTO, May 7, 2013 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) will release its financial results for the first quarter of 2013 after market close on Tuesday, May 14, 2013 and will host a conference call and webcast on Wednesday, May 15, 2013 at 09:30 a.m. Eastern Time (8:30 a.m. Bogota time) to discuss the results.

Webcast and call-in details are as follows:

Live Event link:	http://www.media-server.com/m/p/fr4zrjj7
Toronto & International:	1 (847) 585-4405
North America Toll Free:	1 (888) 771-4371
Colombia Toll Free:	01 800 9 156 924
Conference ID:	34844128

A replay of the webcast will be available at www.grancolombiagold.com from May 15, 2013 until June 30, 2013.

About Gran Colombia Gold Corp.

Additional information on Gran Colombia Gold can be found on the Company's website at www.grancolombiagold.com and by reviewing the Company's page on SEDAR at www.sedar.com.

Roy MacDonald
Investor Relations
(416) 360-4653

Gran Colombia Gold announces improvement in Segovia's cash cost to $1,164 per ounce in March 2013 and production of 24,350 ounces of gold in first quarter of 2013

Tue, 16 Apr 2013 06:41:00 -0400

TORONTO, April 16, 2013 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) announced today that the cost reduction program initiated in January at its Segovia Operations is already having a positive impact on its all-in sustaining cost per ounce. Cash cost, the primary component of the company's all-in sustaining cost, at the Segovia Operations decreased to an average of $1,337 per ounce for the first quarter of 2013, down from $1,604 per ounce in the fourth quarter of 2012. The company's cost reduction program resulted in $850,000 per month of savings starting in February, with approximately $700,000 directly related to operating costs and the balance to general and administrative expenses. As a result of the realized cost reductions and the improvement in gold production, Segovia's cash cost decreased to $1,164 per ounce in the month of March.

"We are pleased to report a significant improvement in our first quarter cash cost results at Segovia," said Serafino Iacono, Executive Co-Chairman of Gran Colombia. "The actions that we have taken to reduce our cash costs are an important first step in improving our cash margins and we are continuing to identify opportunities for further cost reductions while the Pampa Verde project, that is now underway, will be the foundation of our low cost, modern mining operations in Segovia."

The company also announced today that first quarter 2013 gold production totaled 24,350 ounces, a 10 percent increase compared to the fourth quarter of 2012, as set out below:.

	Q1 2013		Q4 2012
(ounces)	Gold	Silver	Gold	Silver

Segovia Operations	19,052	27,574	16,817	25,081
Marmato Operations	5,298	9,854	5,299	7,918

Total	24,350	37,428	22,116	32,999

Gold production at the Segovia Operations was up 13 percent from the fourth quarter of 2012. With the resolution of the power disruptions that had adversely impacted the fourth quarter, the company successfully increased tonnes processed by approximately 8 percent from the previous quarter to an average of 918 tonnes per day ("tpd") for the first quarter of 2013. In the month of March, the daily rate averaged 1,033 tpd. Although head grades at the Segovia Operations were similar in the first quarter of 2013 to the previous quarter, gold production at the Segovia Operations also benefitted from an improvement in mill recovery to 83 percent, up from 76 percent in the previous quarter. Mine development work is continuing at the Segovia Operations and the company expects that head grades will begin to show improvement by the end of the second quarter of 2013.

The company expects to report its full financial and operating results for the first quarter of 2013 on or about May 14, 2013.

About Gran Colombia Gold

Additional information on Gran Colombia Gold can be found on the Company's website at www.grancolombiagold.com and by reviewing the Company's page on SEDAR at www.sedar.com.

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 and its projects and, specifically, statements concerning anticipated growth in annual gold production and reduction of cash costs. 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 28, 2012 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.

Roy MacDonald
Investor Relations
(416) 360-4653

Gran Colombia Gold announces approval of Advance Notice Policy

Fri, 12 Apr 2013 16:05:00 -0400

TORONTO, April 12, 2013 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) announces that the Board of Directors of the Company has approved an Advance Notice Policy effective on April 9, 2013, which will be presented to Shareholders of the Company for ratification at its annual general meeting of shareholders on May 31, 2013.

The Advance Notice Policy includes, among other things, a provision that requires advance notice be given to the Company in circumstances where nominations of persons for election to the Board are made by shareholders of the Company other than pursuant to: (i) a requisition of a meeting made pursuant to the provisions of the Business Corporations Act (British Columbia); or (ii) a shareholder proposal made pursuant to the provisions of the Act.

Additionally, the Advance Notice Policy sets a deadline by which holders of record of common shares of the Company must submit director nominations to the Company prior to any annual or special meeting of shareholders, sets forth the information that a shareholder must include in the notice to the Company, and establishes the form in which the shareholder must submit the notice for that notice to be in proper written form.

In the case of an annual meeting of shareholders, notice to the Company must be made not less than 30 days and not more than 65 days prior to the date of the annual meeting. However, in the event that the annual meeting is to be held on a date that is less than 50 days after the date on which the first public announcement of the date of the annual meeting was made, notice may be made not later than the close of business on the tenth day following such public announcement.

In the case of a special meeting of shareholders (which is not also an annual meeting) notice to the Company must be made not later than the close of business on the fifteenth (15th) day following the day on which the first public announcement of the date of the special meeting was made.

The full text of the Advance Notice Policy is available under the Company's profile on SEDAR at www.sedar.com.

About Gran Colombia Gold

Additional information on Gran Colombia Gold can be found on the company's website at www.grancolombiagold.com and by reviewing the company's page on SEDAR at www.sedar.com.

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 and its projects and, specifically, statements concerning anticipated growth in annual gold production and reduction of cash costs. 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 28, 2012 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.

Roy MacDonald
Investor Relations
(416) 360-4653

Gran Colombia Gold Announces Filing of Notice and Access

Wed, 03 Apr 2013 16:01:00 -0400

TORONTO, April 3, 2013 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) will be taking advantage of the new Notice-and-Access rules to further its cost cutting efforts by reducing printing and mailing costs. Notice-and-Access permits annual financial statements, management's discussion and analysis and meeting circulars to be posted on public companies' websites instead of being mailed to shareholders. In accordance with the rules, the Company has filed a first time notice of use of Notice-and-Access, which is available on the Company's profile at www.sedar.com. The Company will post on its website the meeting circular, annual financial statements and management's discussion and analysis in respect of its upcoming annual general meeting to be held on May 31, 2013.

About Gran Colombia Gold

Additional information on Gran Colombia Gold can be found on the company's website at www.grancolombiagold.com and by reviewing the company's page on SEDAR at www.sedar.com.

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 and its projects and, specifically, statements concerning anticipated growth in annual gold production and reduction of cash costs. 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 28, 2012 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.

Roy MacDonald
Investor Relations
(416) 360-4653

Gran Colombia Gold announces year end 2012 results and Segovia operations processing 1,000 tonnes per day in March 2013

Wed, 27 Mar 2013 00:44:00 -0400

TORONTO, March 26, 2013 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) announced today the release of its audited consolidated financial statements, accompanying management's discussion and analysis (MD&A) and Annual Information Form for the 2012 fiscal year. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted.

2012 Highlights

Gold production of 100,895 ounces in 2012 represented a 10 percent increase over 2011. Fourth quarter production of 22,116 ounces of gold was adversely impacted by power disruptions at Segovia. Gran Colombia has taken steps to mitigate the power issues and gold production in 2013 has shown improvement over the fourth quarter and no further power interruptions have been experienced in 2013.
Revenues of $168.2 million in 2012 represented growth of 22 percent compared to 2011, primary resulting from production growth, an increase in realized gold prices to an average of $1,664 per ounce for the year and having a full year of operations in 2012 at the Marmato underground mine.
Total cash costs averaged $1,317 per ounce of gold in 2012, up from $1,254 per ounce in the prior year. Segovia's cash cost, averaging $1,341 per ounce in 2012, reflected the impact on artisanal mining costs of higher gold prices in 2012, the numerous challenges encountered during a year of extensive activity to double the Maria Dama plant's milling capacity, power disruptions in the fourth quarter and temporary lower grades in the second half of the year.
Gross Margin of $18.2 million in 2012, improved by $6.7 million, compared to $11.5 million last year.
General and administrative expenses (G&A) of $16.5 million in 2012, up from $15.6 million in 2011 (although 2011 did not include Medoro Resources' G&A prior to the June 2011 merger). In early 2013, the company has taken steps to cut G&A spending by $150,000 per month, a significant contributor in the expected reduction in G&A to a level of $14.5 million in 2013.
Net loss attributed to shareholders of $36.2 million, or $0.09 per share, in 2012 included $7.7 million in transaction costs related to the gold-linked notes financing, $7.2 million loss on the market-to-market of financial instruments, $4.1 million impairment of assets, $3.8 million foreign exchange losses and $3.1 million of acquisition costs.
Exploration highlights included the successful completion of exploration campaigns at Segovia and Marmato that increased total measured, indicated and inferred resources in early 2012 to 1.9 million ounces, 10.2 million ounces and 3.7 million ounces, respectively, and the discovery of a new deep zone mineralization at Marmato. The company commenced a 20,000 meters drilling campaign in October 2012 to upgrade and expand its resources at Segovia. This program is expected to be completed in the second quarter of 2013.
On October 30, 2012, the company closed a $100 million, senior secured 10 percent gold-linked notes financing to fund its Pampa Verde project to reduce costs and increase production at its Segovia Operations.

Commenting on the company's 2012 results, Serafino Iacono , Executive Co-Chairman of Gran Colombia commented, "In 2012, we undertook a major upgrade and expansion of our existing processing plant at Segovia, growing capacity from 500 to 1,300 tonnes per day. Despite many challenges, we were able to increase the amount of ore produced at our plant by 38 percent." Looking forward to 2013, Mr. Iacono added, "This year our focus is on delivering a profitable and steady production rate at Segovia to fund our near term cash needs while we deliver the Pampa Verde project, which will be the foundation of our future low cost, modern mining operations in Segovia. At Marmato our focus in the first half of the year is on publishing a prefeasibility study on the expansion of our current underground operations."

Financial and Operating Summary

A summary of the financial and operating results for the fourth quarter and full year of 2012 is as follows:

		Fourth Quarter				Year
		2012		2011		2012		2011

Operating data:
Gold produced (ounces)		22,116		26,979		100,895		81,480⁽³⁾
Gold sold (ounces)		21,198		29,185		98,439		83,809
Average realized gold price ($/oz sold)	$	1,728	$	1,687	$	1,664	$	1,596
Total cash costs ($/oz sold) ⁽¹⁾		1,534		1,113		1,317		1,254

Financial data: ($000's, except per share amounts)
Total revenues	$	37,758	$	50,425	$	168,243	$	137,713
Gross margin ⁽²⁾		472		13,157		18,201		11,453
Net (loss) income attributable to shareholders		(22,852)		2,402		(36,172)		(37,047)
Basic and diluted loss per share		(0.06)		0.01		(0.09)		(0.12)
Cash and cash equivalents		1,298		20,334		1,298		20,334
Cash in trust, current and non-current ⁽⁴⁾		84,937		2,356		84,937		2,356
Total debt, including current portion		188,449		73,454		188,449		73,454


⁽¹⁾	"Total cash costs" are presented on a per ounce sold basis and represent consolidated averages for the company from both the Segovia Operations and Marmato Underground mine. See "Additional Financial Measures in the MD&A".
⁽²⁾	"Gross margin" represents total revenues, net of operating costs, production taxes and depreciation, depletion and amortization.
⁽³⁾	91,410 ounces including production from Marmato Underground prior to the June 2011 merger with Medoro Resources Inc.
⁽⁴⁾	2012 includes $83.7 million set aside to pay capital costs of the Segovia expansion and interest on the Gold Notes until October 2014.

Segovia Operations Update

At the Segovia Operations, the company executed a number of initiatives in 2012 to upgrade the Maria Dama plant, successfully increasing the plant's capacity to about 1,300 tpd at the present time. These initiatives included the installation of a new crusher-jig-sifter system at the beginning of the year, a new 1,500 tpd ball mill that came on-line in mid-May and six (three dual) new flotation cells that were completed in the month of December. Six new cyanidation tanks are also now in operation. In September 2012, the company reached its objective of processing 1,000 tpd, double the historical processing rate at Maria Dama. Fourth quarter production at Segovia was primarily impacted by unexpected downtime caused by external power disruptions on almost a daily basis over a 25-day period, beginning in mid-November, that reduced throughput by about 40 percent during that period. The power supply situation in Segovia has since returned to normal and there have been no recurrences since that time. The company has taken steps to resolve the issue, including establishing suitable notice periods with the local power supplier and signing a contract with Colombia-based, Proelectrica & CIA S.C.A. ESP to provide backup diesel generating plants for the company's current Segovia Operations, which the company expects to be operational in the first half of 2013. During the first two months of 2013, an average of 858 tpd was processed at Maria Dama. In March 2013, the plant has been steadily processing ore at the rate of 1,000 tpd. Some minor capital investment (less than $1 million) is being undertaken in 2013 to improve mill uptime and to complete the Maria Dama plant expansion to a maximum capacity of 1,500 tpd.

Historically, grades at Segovia, one of the top ten producing mines by grade in the world⁽¹⁾, have averaged in the range of 12 to 14 grams per tonne (g/t). However, in the third and fourth quarters of 2012, grades averaged approximately 9 g/t due to the temporary depletion of higher grade zones in the levels currently being mined at Providencia and El Silencio and, to a lesser extent, the processing of some lower grade stockpiles. Through mid-March 2013, head grades continue to average approximately 9 g/t as mine development activities progress, it is expected that head grades will begin to show some improvement in the second quarter, increasing to an average of about 10 g/t in the second half of 2013.

(1)	Source: NRH Research, Global Gold Mines & Deposits 2012 (publicly traded companies with deposits greater than one million ounces in all resources categories)

Marmato Project

At Marmato Underground, operations remained steady in 2012, with 732 tpd milled at an average head grade of 2.9 g/t and a mill recovery of 88.3%, resulting in total gold production of 21,717 ounces for the year. Gold production is expected to be 20,000 ounces in 2013 due to a crusher upgrade to be completed in the second quarter of 2013.

The company's near-term focus at the Marmato Project is to complete and publish the prefeasibility study for the upgrade of its current underground operation, which the company expects to complete by June 2013.

Outlook

As previously disclosed in the March 1, 2013 press release, the company expects full year 2013 production of 110,000 ounces of gold. The company expects its all-in sustaining cash cost (including cash costs (on a by-product credit basis), sustaining capital, corporate G&A expenses and exploration expense) to be approximately $1,380 per ounce of gold. This comprises cash cost of approximately $1,170 per ounce, G&A of $130 per ounce, sustaining capital of $40 per ounce and Marmato Project ongoing costs of $40 per ounce. Sustaining capital expenditures for 2013 will total approximately $4.5 million and an additional $4.5 million is expected to be spent on social and other ongoing programs at the Marmato project site. Capital expenditures and exploration in support of the Pampa Verde Project will be funded separately from the proceeds generated by the Gold Notes and are not included in all-in sustaining cash cost.

Webcast

As a reminder, the company will host a conference call and webcast on Wednesday, March 27^th at 9:30 a.m. Eastern Time (8:30 a.m. Bogota time) to discuss the results and provide an operational update.

Webcast and call-in details are as follows:

Live Event link:	http://www.media-server.com/m/p/w96h49pb
Toronto & International:	1 (847) 585-4405
North America Toll Free:	1 (888) 771-4371
Colombia Toll Free:	01 800 9 156 924
Conference ID:	34523853

A replay of the webcast will be available at www.grancolombiagold.com from March 27, 2013 until April 27, 2013.

About Gran Colombia Gold

Additional information on Gran Colombia Gold can be found on the company's website at www.grancolombiagold.com and by reviewing the company's page on SEDAR at www.sedar.com.

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 and its projects and, specifically, statements concerning anticipated growth in annual gold production and reduction of cash costs. 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 28, 2012 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.

Roy MacDonald
Investor Relations
(416) 360-4653

Gran Colombia Gold announces upcoming webcast to discuss 2012 year end results

Thu, 21 Mar 2013 18:05:00 -0400

TORONTO, March 21, 2013 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) will release its financial results for the fourth quarter of 2012 after market close on Tuesday, March 26, 2013 and will host a conference call and webcast on Wednesday, March 27, 2013 at 9:30 a.m. Eastern Time (8:30 a.m. Bogota time) to discuss the results.

Webcast and call-in details are as follows:

Live Event link:	http://www.media-server.com/m/p/w96h49pb

Toronto & International:	1 (847) 585-4405
North America Toll Free:	1 (888) 771-4371
Colombia Toll Free:	01 800 9 156 924
Conference ID:	34523853

A replay of the webcast will be available at www.grancolombiagold.com from March 27, 2013 until April 27, 2013.

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. In addition, Gran Colombia is advancing a project to develop a large-scale, gold and silver mine at its Marmato 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 the future financial or operating performance of the Company and its projects and, specifically, statements concerning anticipated growth in annual gold production and reduction of cash costs. 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 28, 2012 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.

Roy MacDonald
VP, Investor Relations
(416) 360-4653
investorrelations@grancolombiagold.com

Gran Colombia Gold Provides Business Update and 2013 Outlook

Fri, 01 Mar 2013 08:18:00 -0500

TORONTO, March 1, 2013 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) provides its 2013 outlook and a business update, including its progress on the development of a new mine and mill at its Pampa Verde Project in Colombia.

2013 Outlook

As announced on January 25, 2013, Gran Colombia's total gold production for 2012 was 100,895 ounces, a 10 percent increase over 2011. Fourth quarter production at the company's Segovia Operations was primarily impacted by unexpected downtime caused by power disruptions on almost a daily basis over a 25-day period, beginning in mid-November, that reduced throughput by about 40% during that period. The power supply situation in Segovia has since returned to normal and there have been no recurrences since that time. The company has taken steps to resolve the issue, including establishing suitable notice periods with the local power supplier and signing a contract with Colombia based, Proelectrica & CIA S.C.A. ESP (Proelectrica) to provide backup diesel generating plants for the company's current Segovia Operations, which the company expects to be operational in the first half of 2013

"We are focused on the profitability of our existing production at our Segovia and Marmato operations and we have set 2013 targets that deliver the cash flow required to meet our current development needs, while we bring our new Pampa Verde Project to completion on time and under budget", said Serafino Iacono, Executive Co-Chairman of Gran Colombia. "The new processing plant and mechanized mining operation that are part of the Pampa Verde Project will be the foundation of our Segovia operations of the future".

In 2013, the Company will focus on cost reductions and limiting capital investments to support an expected production level of 110,000 ounces of gold. Production at its Segovia Operations is expected to reach 90,000 ounces of gold in 2013 and production from the underground mine at Marmato is expected to total approximately 20,000 ounces of gold. In January 2013, management embarked on a comprehensive review of its operations to identify and implement US$12 million in annual cost savings. To date, cost actions taken will realize approximately US$850,000 per month (US$10 million annualized) of savings starting by March 2013. Further reductions have been identified and are being evaluated. Management is confident it will reach its cost reductions target.

In 2013, the company is adopting an "all-in sustaining cash cost" measure that the company believes more fully defines the total costs associated with producing gold. All-in sustaining cash costs include cash costs (on a by-product credit basis), sustaining capital, corporate general and administrative expenses (G&A) and exploration expense. As the measure seeks to reflect the full cost of gold production from current operations, new project capital is not included in the calculation. For 2013, the company expects its all-in sustaining cash cost to be approximately US$1,380 per ounce of gold. This comprises cash operating cost of approximately US$1,170 per ounce, G&A of US$130 per ounce, sustaining capital of US$40 per ounce and Marmato Project ongoing costs of US$40 per ounce.

Sustaining capital expenditures for 2013 will total approximately US$4.5 million. These will be funded internally from unrestricted cash balances and operating cash flow and will focus on sustaining capex at our two operating mines, including the completion of Maria Dama mill upgrades, the environmental program at Segovia and a crusher upgrade at the Marmato underground mining operation. An additional US$4.5 million is expected to be spent on social and other ongoing programs at the Marmato project site.

Capital expenditures and exploration in support of the Pampa Verde Project will be funded separately from the proceeds generated by the gold-linked notes (see October 30, 2012 press release) and are not included in all-in sustaining cash cost.

The company expects to provide its full 2012 results around the last week of March 2013.

Pampa Verde Project

As announced on October 30, 2012, Gran Colombia closed a US$100 million financing with the proceeds to be used for the Pampa Verde project at the Company's Segovia Operations in Colombia. This new mechanized mining operation and plant is designed to significantly lower production costs and increase the production rate to 200,000 ounces of gold annually. The project includes the construction of a 2,500 tpd mill and the development of a new, mechanized underground mine to access new vein deposits, as well as improve access to the existing mining operations.

The company's cross-functional project team is being lead by Vicente Mendoza, Chief Project Director at Gran Colombia Gold. The 18-month project plan has been reviewed and optimized by the new project team to include new access roads and shaft compared to original ramp design, resulting in significant cost savings, reducing the estimated total cost of the project from $90 million to $84 million.

As announced on January 29, 2013, the company purchased some of the mineral processing equipment required for the new Pampa Verde mill for US$4.3 million. This purchase includes the semi-autogenous grinding (SAG) and ball mills, which are typically long lead time items. The mills are reconditioned and have a capacity of 3,500 tpd. The other equipment purchased includes crushing feeders, cyclones and pumps, flotation screens and pumps, regrind pumps, CIL loaded carbon screen and pumps, carbon regeneration furnace and screen and carbon destruct pumps and screens. All of the aforementioned items are new and include many spare parts. The company estimates that the value of the equipment, if purchased new, is approximately US$12 million. The selection and procurement of the remaining processing equipment is ongoing with orders are expected to be placed in early March.

Gran Colombia is negotiating an agreement with Proelectrica to provide a fully operational, turn-key power plant power to meet the requirements of the new Pampa Verde plant and mine.

Marmato Project

Gran Colombia's near-term focus at the Marmato Project is to complete and publish the Prefeasibility Study for the upgrade of its current underground operation, which the company expects to complete by June 2013.

Webcast

As a reminder, the company will host a conference call and webcast on Friday, March 1, 2013 at 9:00 a.m. Eastern Time (9:00 a.m. Bogota time).

Webcast and call-in details are as follows:
	Live Event link:	http://www.media-server.com/m/p/5zwpsvmx
	Toronto & International:	1 (847) 585-4405
	North America Toll Free:	1 (888) 771-4371
	Colombia Toll Free:	01 800 9 156 924
	Conference ID:	34372141

The presentation and a replay of the webcast will be available at www.grancolombiagold.com until Monday, April 1, 2013.

About Gran Colombia Gold

Additional information on Gran Colombia Gold can be found on the company's website at www.grancolombiagold.com and by reviewing the company's page on SEDAR at www.sedar.com.

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 and its projects and, specifically, statements concerning anticipated growth in annual gold production and reduction of cash costs. 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 28, 2012 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.

Roy MacDonald
Investor Relations
(416) 360-4653