A Leading High Grade Underground Gold Producers21.q4cdn.com/834539576/files/March-2019.pdf · land package of ~9,000 hectares, including a unique RPP contract ... SEGOVIA OPERATIONS

TSX: GCM OTCQX: TPRFFMarch 2019

March 2019

A Leading High‐Grade Underground Gold Producer

TSX: GCM OTCQX: TPRFF

Corporate Presentation


Forward‐Looking Statements DISCLAIMER

This presentation contains "forward‐looking information", which may include, but is not limited to, statementswith respect to the future financial or operating performance of the Company and its projects, and, specifically,statements concerning anticipated growth in annual gold production, future cash costs and AISC, future G&A andcapex, excess cash flow and future repayments of its gold‐linked notes. Often, but not always, forward‐lookingstatements 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 suchwords and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" betaken, occur or be achieved. Forward‐looking statements involve known and unknown risks, uncertainties andother factors which may cause the actual results, performance or achievements of Gran Colombia to be materiallydifferent from any future results, performance or achievements expressed or implied by the forward‐lookingstatements. 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 Formdated as of March 27, 2018 and its interim MD&A dated as of November 13, 2018, both of which are available forview on SEDAR at www.sedar.com. Forward‐looking statements contained herein are made as of the date of thispresentation 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 ifmanagement'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 thoseanticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward‐looking statements.

All amounts are denominated in U.S. dollars, unless indicated otherwise.

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2018 Gold Production

218,000 ozs

MID-TIER GOLD MINER Surpassed 2018 Guidance

We have produced more than 1 million ounces of gold since inception in 2010

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Marmato Project

High‐grade underground mines

89% of production

2018: 193,000 ozs

Head grades averaged 17.1 g/t in 2018

One of the Top 5 Highest Grade Underground Mines

Underground mine expansion opportunity

11% of production

2018: 25,000 ozs

Head grades averaged 2.7 g/t in 2018

One of the Top 20 Undeveloped Global Gold Deposits

Segovia Operations


THE RIGHT TEAM

ManagementLombardo Paredes, CEO ‐ 20+ years of corporate leadership and operations management experience in the resource sector in Latin America

Mike Davies, CFO – CPA, CA with 20+ years of international and public company experience in resource and other sectors

Alessandro Cecchi, VP Exploration – Exploration geologist with 20+ years of experience focused gold exploration and development in South America

Jose Ignacio Noguera, VP Corporate Affairs – Lawyer with 20+ years of experience in public and government affairs and sustainability in the resource sector in Colombia

Angel Meza, General Manager, Segovia Operations –Mine engineer with 17+ years of experience in mining operations in South America and Africa

Inivaldo Diaz, Technical Manager, Segovia Operations –Civil mine engineer with 24+ years of experience in the mining industry in South America

Gabriel Gaviria, General Manager, Marmato Operations –Mine engineer with 39+ years of experience in mining operations in Colombia

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DirectorsSerafino Iacono, Executive Co‐Chairman – Company co‐founder with 30+ years of experience in capital markets and public companies

Miguel de la Campa, Executive Co‐Chairman – Company co‐founder with 30+ years of experience in financing and developing mining and other resource projects

Jaime Perez Branger – Executive with 30+ years of experience in finance and capital markets

Robert Metcalfe – Lawyer and corporate director

Hernan Martinez – Former Colombian Minister of Mines and Energy

Monica De Greiff – Executive President of the Bogota Chamber of Commerce and former Colombian Minister of Justice

De Lyle Bloomquist – Corporate director


GRAN COLOMBIA 2.0

Gran Colombia has become a mid‐tier gold miner with 218,001 ounces of gold production in 2018, up 25% over 2017.

Simplified our capital structure in 2018.

Eliminated dilution overhang of previous convertible debentures. New Gold Notes and Warrants listed on the TSX in September 2018. Common shares listed on the OTCQX in the USA in October 2018.

Strengthened balance sheet in 2018.

Debt down to $83.4M as of January 31, 2019. Debt/EBITDA of ~0.8X. $33M of cash as of December 31, 2018, up from $3M at the end of 2017.

Future growth continues emphasis on high‐grade Segovia mines and the other 24 known veins we are not currently mining.

Blue sky potential with Marmato, Zancudo, Sandspring and Venezuela in the pipeline.

WHAT’S NEW? Gran Colombia 2.0

“Focused on what we can control……Cash, Costs and Execution.”

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CAPITAL STRUCTURE Simplified

Fully Diluted = ~63 million common shares

Warrants

GCM.WT.B: 12.2 million @ CA$2.21 (2024 expiry)

Stock Options

1.4 million @ CA$2.55 (2021‐2022 expiry)

1.2 million @ CA$3.16 (2023 expiry)

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Common Shares

48.2 millionMarket Capitalization (as of March 1, 2019)

CA$172 millionMajor ShareholdersCommon sharesFounders/Management ‐ 5% | None > 10%

Gold NotesFounders/Management ‐ 10% | No others > 10% Outperforming TSX Global Gold Index


$182M

BALANCE SHEET Strengthened

Senior Secured Gold‐Linked Notes due 2024 Issued April 30, 2018

TSX‐listed…GCM.NT.U

$83.4 million currently outstanding

8.25% coupon paid monthly

Quarterly principal repayments in cash with gold kicker above $1,250/oz

Less than 10% of Segovia’s projected future production is required to meet principal repayments

Upgraded to B (Outlook Stable) in October 2018

Working Capital Turned positive in 2018

$33 million of cash at end of 2018, up $30M from December 2017

2,600 ozs in Gold Trust Account at end of 2018 for the January 2019 debt repayment

TTM = Latest 12 months ended September 2018.

$83MDecember 2015 January 2019

2.1X2015

4.7X2015

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0.9X

15.1XTTM

TTM

Total Debt

Adjusted EBITDA to Interest

Debt to Adjusted EBITDA


PROPERTIES

Marmato Project“Pursuing Underground Mine Expansion Opportunity”

Ownership 100%

MineralResources (1)‐ M&I‐ Inferred

Gold:3,872 kozs 2.9 g/t4,194 kozs 2.5 g/t

2018 Gold Production 24,951 ozs

2018 Head Grade 2.7 g/t

Cash Cost/oz (3) US$1,138

Segovia Operations“Core Producer”

Ownership 100%

MineralResources (1)‐ M&I‐ Inferred

Gold:1,246 kozs 11.4 g/t1,107 kozs 10.1 g/t

Mineral Reserves (1,2)‐ Proven‐ Probable

Gold:68 kozs 45.4 g/t592 kozs 11.4 g/t

2018 Gold Production 193,050 ozs

2018 Head Grade 17.1 g/t

Cash Cost/oz (3) US$618

(1) As of December 31, 2017(2) Included in Mineral Resources(3) Nine months ended September 30, 2018

Zancudo Project“Exploration Stage”

Ownership 100%

IAMGOLD entering 3rd year of a 6‐year earn‐in option agreement

Historic Mining Districts

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‐

75

150

225

14 15 16 17 18

Segovia Marmato

RESULTS Solid Turnaround

$‐

$250

$500

$750

$1,000

2014 2015 2016 2017 TTM

Capex and G&A Total Cash Cost

$899

$/oz sold

$‐

$20

$40

$60

$80

$100

$120

14 15 16 17 TTM

GCM Peers

2.4X

4.1X

Source: FactSet, Bloomberg, equity research

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Gold Production reaches 218,001 ozs in 2018 Adjusted EBITDA surpasses $100M in 2018

AISC reflects focus on controlling costs EV/Adjusted EBITDA (2019e)

kozs $M

TTM = Trailing 12‐months ended September 2018


SEGOVIA OPERATIONS Production Stage

High‐grade mesothermal quartz‐sulfide veins in historic miningdistrict….over 5 million ounces of gold produced through continuousmining over past 150+ years. Expected mine life runs through to 2026(2017 PEA).

Three active underground mines (27 known veins) and a substantialland package of ~9,000 hectares, including a unique RPP contractlicense over ~3,000 hectares which grants mining rights in perpetuity.

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Main Mineralization ZonesLicense Boundaries for Segovia & Carla (100% Owned)


SEGOVIA OPERATIONS El Silencio Mine

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M&I 744 kozs 10.5 g/tInferred 498 kozs 9.7 g.t

Reserves 417 kozs 11.3 g/t 2018 Production of 85,000 ozs, up 5% from 2017


SEGOVIA OPERATIONS Providencia Mine

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2018 Production of 88,000 ozs, up 70% from 2017


Reserves 156 kozs 25.5 g/t


SEGOVIA OPERATIONS Sandra K Mine

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2018 Production of 9,000 ozs, up 100% from 2017


Reserves 50 kozs 8.3 g/t


Chicharron(Sandspring Resources)

Blue Sky Potential

Currently operating mines on only 3 of 27 known veins in the RPP-140 license.

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Increase M&I resources and reserves

Consolidate advance deposits

Follow‐up brownfield exploration projects

Areas of Immediate Interest

SEGOVIA OPERATIONS


THE SEGOVIA MINES Blue Sky Potential

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FGM drilling

GCM Drilling

1,207 holes

175,796 meters

Segovia Heat Map ‐ Drilling Collars – Historical drilling centered around the three existing mines. Going forward, drilling will be focused on stepping out at the mines and evaluating other brownfield opportunities.


SEGOVIA OPERATIONS Maria Dama Processing Plant & Lab

Plant has capacity to handle up to 1,200 tpd at present; expanding to 1,500 tpd in 2019 at a capital cost of ~$1M.

Plant includes crushing, grinding, gravity concentration, gold flotation, cyanidation of the flotation concentrate, Merrill‐Crowe precipitation and refining of both the Merrill‐Crowe precipitate and gravity concentrate to produce a final doré.

Onsite lab provides quick turnaround of development samples; exploration samples processed in SGS Medellin.

New “El Chocho” tailings storage facility will receive material over the next six years and filter press will be commissioned in 2019; onsite water treatment facility is treating excess water to Colombian standards before being discharged.

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Third Party Miner Contracts

Agreements with 30+ third party miner groups

Mine designated areas with the Company’s mining title

GCM pays for recovered gold at fixed price

Contractors manage miners & fund own costs

GCM processes ore and sells the gold & silver

GCM provides health & safety training

Benefits of Contract Mining Model

Environmental benefits – GCM controls processing, reducing mercury use

Employment – expanded workforce

Improved health & safety

Workers receive health & pension benefits

Government receives tax & royalties

SEGOVIA OPERATIONS Positive Agent for Change

Improving Health & Safety in Our Mines

Funding Community Programs

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MARMATO PROJECT

Category Gold Resource (1)(ozs)

Gold Grade(g/t)

Silver Resource (1)(ozs)

Silver Grade (g/t)

Measured 388,000 4.8 1,774,000 21.3

Indicated 3,485,000 2.8 20,787,000 16.7

Inferred 4,194,000 2.5 15,005,000 9.0

Mineralization is hosted by sheeted pyrite vein system indacite to andesite porphyry stocks.

Mountain of gold in historic mining district. Ranked inTop‐20 of undeveloped global gold deposits by size.

Deep zone drilling shows that mineralization at Marmatoextends at least 800m below the limit of the currentunderground mining operation and is still open at depth.

The 2018 drilling campaign has increased our confidencein the geological model, outlining a higher‐grade zonewith excellent continuity over 450 meters along strikeand strong vertical continuity for more than 300 metersbelow the deepest level of our existing mining operation.

Currently evaluating the potential to expandunderground mining operations. Completing additionaldrilling and technical studies toward expectedcompletion of a PEA by the end of 2019.

(1) Underground resource information based on Marmato 43‐101 Technical Report, November 2017.

Exploration Stage

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The Future of Marmato is Going Underground

11%2018

Production


Exploration

Veins (1)M&I: 13.3 Mt @ 4.6 g/t Au for 1,979 kozInferred: 9.4 Mt @ 4.2 g/t Au for 1,275 koz

Porphyry (1)M&I: 27.0 Mt @ 2.1 g/t Au for 1,858 kozInferred: 13.3 Mt @ 1.8 g/t Au for 777 koz

Location of 2018‐2019 Drilling Program

MARMATO PROJECT

Deeps (2)M&I: 0.9 Mt @ 2.0 g/t Au for 60 kozInferred: 29.3 Mt @ 2.3 g/t Au for 2,142 koz

(1) Using 1.9 g/t cut‐off grade(2) Using 1.2 g/t cut‐off grade

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WHAT COMES NEXT?Expected catalysts for 2019:

2018 final production and 2019 production guidance (210,000 to 225,000 ounces) were announced on January 16, 2019

Continuing to pay down debt. $4.9M of Gold Notes principal repaid on January 31, 2019. Future quarterly repayments on April 30th, July 31st and October 31st

Additional first quarter news

Final results from 2018 drilling programs at Segovia and Marmato

Mineral reserves and resources update for Segovia Operations

2018 fourth quarter and year end results; 2019 financial guidance

Second quarter

Annual and special meeting of shareholders, including ratification of Shareholder Rights Plan – June 2019

Balance of 2019

Ongoing results from 2019 drilling programs and Segovia and Marmato

Update on expected PEA for underground expansion at the Marmato Project

Stay disciplined….remain focused on cash, costs and execution!

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ADDITIONAL INFORMATION

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COLOMBIA

Colombia is a country of opportunities with a growing economy, one ofthe lowest inflation rates in Latin America and free trade agreementswith eight trading partners including the USA, European Union andmore than 100 designated free-trade zones.

Colombia’s government is very supportive of foreign investment and ithas the best investor protection in Latin America, 15th worldwide,according to the World Bank (2018).

Mining is a significant sector in the Colombian economy and one of thecountry’s largest export sectors.

Ranked #3 in Latin America for ease of doing business and #65globally according to the World Bank (Doing Business, 2018)

4th largest economy in South America (GDP $792 billion) (InternationalMonetary Fund, 2018)

The latest Colombia Tax Reform reduces the corporate income taxrate and repeals the 4% surcharge imposed on corporate income,reducing the total tax rate from 37% in 2018 to 33% in 2019, 32% for2020, 31% for 2021 and 30% for 2022 and onwards.

A Great Mining Jurisdiction

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Mine Country Owner Au Grade in Milled OreQ4‐2017 g/t

Au Cash Costs

Q4‐2017 USD/oz

Fosterville Australia Kirkland Lake 21.50 $226

Yaramoko Burkina Faso Roxgold 17.60 $417

Segovia Colombia Gran Colombia 17.48 $662

Cerro Negro Argentina Goldcorp 16.74 $457

Turquoise Ridge USA Barrick Gold 15.22 $550

Driving Cash FlowSEGOVIA OPERATIONSTop 5 Highest‐Grade Underground Gold Operations in 2017 (1)

0

200

400

600

800

Fosterville Yaramoko Segovia Cerro Negro Turquoise Ridge

Median Au Cash Costs Throughout the World in 2017 (US$/oz) (1)

(1) Source: IMARC (miningintelligence.com Whitepaper, July 2018)

“Gold grade is a profitability driver for a mine.”

miningintellince.com

Gran Colombia’s cash cost is below below the median for all mines.

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RESULTS All‐In Sustaining Costs

Gran Colombia’s AISC continues to be well positioned amongst industry peers.

I. Source: Issuer filings for Third Quarter 2018

II. AISC is a common performance measure but does not have any standardized meaning within the industry and therefore its computations may vary between companies.

Nine Months Ended September 30, 2018US$/oz sold

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400

Alio Gold

Kinross Gold

Detour Gold

TAHOE Resources

Golden Star

Asanko Gold

New Gold

Guyana Goldfields

IamGold

Centerra Gold

Alamos Gold

Leagold

Teranga Gold

Gran Colombia Gold

Argonaut Gold

Yamana Gold

Barrick Gold

Kirkland Lake Gold

Roxgold

Cash Cost AISC

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ZANCUDO PROJECT Under Option to IAMGOLD

IAMGOLD Option Option granted in March 2017 to acquire a 65%

interest by incurring an aggregate of $10M ofexploration over a 6-year period.

2nd option granted for further 5% interest if feasibilitystudy completed.

IAMGOLD commenced exploration (drilling) in 2017and continued their program in 2018….refer to ourOctober 9, 2018 press release for results to-date.

The Zancudo Project is located 27 km south ofMedellin.

Excellent infrastructure. In Municipality of Titiribi, a town dependent on

mining (coal). Multi-million ounce epithermal to mesothermal vein

system in the Cauca Porphyry Belt, adjacent toBrazil Resources Titiribí Project (7.9 Moz AuInferred resources @ 0.5 g/t Au).

1.5M ounces of past production.

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SANDSPRING RESOURCES

Hold ~18% equity interest in Sandspring Resources (TSX-V: SSP).

Sandspring’s Toroparu Project is considered to be one of the largest undeveloped gold deposits in South America with 10.4Mozs in-situ gold (MI&I) resources.

Vended in our 30% carried participating interest in the Chicharron Project in Segovia and subscribed for CA$4M (~$3M) in Sandspring’s private placement in July 2018; purchased additional shares for CA$1.7M (~$1.3M) in private transactions completed in October 2018 and February 2019.

GCM has representation on Sandspring’s board.

Guyana

“The Sandspring transaction will allow us to diversify our project exposure outside of Colombia and to leverage our previous experience in the Venezuelan Guyana Shield greenstone belt” Serafino Iacono

Sandspring acquired 100% of the rights to explore, develop and mine a 386 hectare area within our mining title in the Segovia area

Project Area lies outside of the areas of our principal mining operations in Segovia.

The Guia Antigua vein that is the current focus of the Chicharron Project appears to be similar in geology, structure, vein style and mineralogy to other veins in the Segovia mining district.

ChicharronProject

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Sandspring Investment

Chicharron Project

For Further Information, Contact: Mauricio Ostos

Investor Relations(416) 360-4653

[email protected]

Town of Segovia

Documents

A Leading High Grade Underground Gold Producers21.q4cdn.com/834539576/files/March-2019.pdf · land package of ~9,000 hectares, including a unique RPP contract ... SEGOVIA OPERATIONS