Q2 2017 Results - s21.q4cdn.coms21.q4cdn.com/.../files/doc_presentations/GCM-Q2-2017-(Final).pdf1 TSX: GCM August 15, 2017 Lombardo Paredes Arenas, CEO Mike Davies, CFO The leading

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TSX: GCMAugust 15, 2017

Lombardo Paredes Arenas, CEOMike Davies, CFO

The leading high‐grade gold producer in Colombia

Q2‐2017 Results

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Forward‐Looking Statements DISCLAIMER

This presentation contains "forward‐looking information", which may include, but is not limited to, statements withrespect to the future financial or operating performance of the Company and its projects, and, specifically, statementsconcerning anticipated growth in annual gold production, future cash costs and AISC, future G&A and capex, excesscash flow and sinking funds for the senior debentures and future purchases and/or redemptions of the seniordebentures. 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" orvariations (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 knownand unknown risks, uncertainties and other factors which may cause the actual results, performance or achievementsof Gran Colombia to be materially different from any future results, performance or achievements expressed orimplied by the forward‐looking statements. Factors that could cause actual results to differ materially from thoseanticipated in these forward‐looking statements are described under the caption "Risk Factors" in the Company'sAnnual Information Form dated as of March 30, 2017 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 Colombiadisclaims, other than as required by law, any obligation to update any forward‐looking statements whether as aresult of new information, results, future events, circumstances, or if management's estimates or opinions shouldchange, or otherwise. There can be no assurance that forward‐looking statements will prove to be accurate, as actualresults and future events could differ materially from those anticipated in such statements. Accordingly, the reader iscautioned not to place undue reliance on forward‐looking statements.

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Q2‐2017 Highlights

2017 Priorities First Half Accomplishments

Improve capital structure• Share consolidation• Debt extension

• Completed April 25, 2017.• $47M extended to 2024 on May 31, 2017.

Generate Excess Cash Flow = 10% of principal amount of Senior Debentures

• Generated $5.5M in H1‐2017.• $2.0M used to cancel $2.4M of 2020s (NCIB).• $3.0M redemption of 2020s on July 31, 2017.

Continue implementation of optimized mine planat Segovia:• Development and mechanization at Providenciaand El Silencio

• Upgrades at Maria Dama and TSF expansion

H1‐2017 sustaining capex of $11.9M (~$142/oz):• ~40% related to exploration &development • ~30% mines and related infrastructure• ~15% Maria Dama plant upgrades• ~10% related to new water treatment plant

20,000m drilling program at Segovia • Commenced late January 2017.• 4 rigs currently in the field; 40% complete

Update mineral resource estimates:• Segovia

• Marmato Underground

• Completed effective March 15, 2017• PEA to be filed September 2017• Expected September2017

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RESULTS Highlights

Mine development at Sandra K – July 17, 2014

(1) Refer to Company’s MD&A for computation

2nd Quarter 1st Half

2017 2016 2017 2016

46,075 38,229 Gold production (ozs) 85,083 69,718

45,179 38,902 Gold sales (ozs) 83,613 68,588

$1,225 $1,216 Realized gold price ($/oz) $1,201 $1,185

$676 $680 Cash cost ($/oz) $709 $682

$884 $811 AISC ($/oz) $910 $802

$56.0M $48.0M Revenue $101.7M $82.5M

$21.3M $18.3M Adjusted EBITDA (1) $34.9M $29.9M

$36.2M $0.1M Net income $35.4M $10.9M

$1.77 $0.01 Per share $1.77 $1.40

$4.1M $3.9M Adjusted net income (1) $7.2M $4.1M

$0.20 $0.42 Per share $0.36 $0.53

$3.2M $2.3M Excess Cash Flow $5.5M $2.3M

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RESULTS Segovia LOM Plan

• Updated Mineral Resource effective March 15, 2017

• Life‐of‐mine (“LOM”) plan updated in Q2‐2017 with key results as follows:

• Mine life extended by 4 years to 2026• Incorporates mining from 5 major mines within our

titles• 4.1M tonnes processed over the LOM• LOM head grade averages 8.8 g/t• 1.0M ozs of gold recovered• LOM total cash cost of $697/oz and AISC (ex G&A)

of $896/oz• At $1,250 long‐term gold price, total

undiscounted after‐tax FCF of $210M

• SRK is preparing a 43‐101 PEA technical report to be filed on SEDAR in September 2017

• 20,000 meters drilling program being conducted in 2017 aimed at increasing confidence in Mineral Resources and expanding resources for future mining.

Measured & Indicated Inferred

Au(koz)

Au(koz)

March 15, 2017 1,100 978

December 31, 2016 402 1,278

Change vs 2016 698174%

(300)‐23%

• Mine life extension plus increase in LT gold price assumption to $1,250/oztriggered a $53M reversal of impairment ($35.5M after‐tax) in Q2‐2017.

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RESULTS

Segovia production growImproved head grades in the Company‐operated mining areas, notably in the Providencia mine,

was the key driver behind the Q2‐2017 th (26%) over Q2‐2016. Produced 12,651 ozs in July 2017.

Capital investment and mechanization focused on expanding Company‐operated mining areas.Marmato

Generally, operations running steady. Produced 2,329 ozs in July 2017.

Production

2nd Quarter 1st Half

2017 2016 2017 2016

Gold (ozs)

Segovia

13,647 7,962 Company-operated 21,547 13,051

26,581 23,922 Contract miners 51,449 44,832

40,228 31,884 72,996 57,883

5,847 6,345 Marmato 12,087 11,835

46,075 38,229 Total Company 85,083 69,718

44,691 43,722 Silver (ozs) 86,370 82,148

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Growth in Gran Colombia’s total gold production has been driven by the high‐grade Segovia Operations. Marmato has been steady.

2017 production guidance is 150,000‐160,000 ounces of gold.

Gold ProductionRESULTSAISC (‐23%

)

000’s ozs

‐

25

50

75

100

125

150

175

2013 2014 2015 2016 LTM *

Segovia Marmato

165k

* LTM = Latest 12 months ended June 30, 2017

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Total Cash Cost Per Ounce (1)RESULTS

117

89 $400

$600

$800

$1,000

$1,200

2013 2014 2015 2016 H1‐2017

Segovia

2013 2014 2015 2016 H1‐2017

Marmato

$1,06116% of H1‐2017 gold sales

US$/oz sold

$652

84% of H1‐2017 gold sales

Total cash cost for the Company was $709/oz in H1‐2017, up from $682/oz in H1‐2016.

Production growth helping to drive down fixed costs on a per ounce basis at Segovia.

Appreciation of the Colombian peso relative to last year has increased USD‐equivalent cash costs to some extent in H1‐2017. Marmato’s cash costs on a per ounce basis has also been impacted by lower grades this year compared to H1‐2016.

Continuing to expect FY2017 total cash cost to remain below $720/oz.

(1) By‐product credit basis. Refer to Company’s MD&A for computation.

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All‐In Sustaining Costs (1)

(1) All‐In Sustaining cash cost per ounce includes total cash costs per ounce and adds the sum of G&A, sustaining capital and certain E&E costs and provision for environmental discharge fees. Refer to the Company’s MD&A for computation.

(2) Latest 12 months ended June 30, 2017.

RESULTSAISC (‐23%

)

US$/oz sold

$400

$600

$800

$1,000

$1,200

$1,400

2013 2014 2015 2016 H1‐2017 LTM (2)

G&A,SustainingCapex and Other

Total Cash Cost

$901

2017 average AISC expected to remain below $900/oz.

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0 200 400 600 800 1,000 1,200

Guyana Goldfields

Detour Gold

IamGold

Alamos Gold

TAHOE Resources

Kinross Gold

Argonaut Gold

New Gold

Yamana Gold

Gran Colombia Gold

Centerra Gold

Timmins / Alio Gold

Goldcorp

Kirkland Lake Gold

Barrick Gold US$/oz sold

Cash Cost AISC

Gran Colombia’s AISC is well positioned amongst industry peers.

All‐In Sustaining Costs (1)

(1) Q2 2017 reported results filings; AISC is a common performance measure but does not have any standardized meaning within the industry and therefore its computations may vary between companies.

RESULTSAISC (‐23%

)

$884

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Adjusted EBITDA (1)RESULTS

(1) Refer to Company’s MD&A for computation.(2) LTM = Latest 12 months ended June 30, 2017.

$‐

$25

$50

$75

2013 2014 2015 2016 LTM (2)

$71.0M

US$M

H1‐2017 adjusted EBITDA of $35M is up 17% over H1‐2016.

The LTM adjusted EBITDA is $71.0M at the end of H1‐2017, up 8% over FY2016.

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Excess Cash Flow (1)RESULTS

(1) As defined in the Indentures (available on the Company’s web site) for the 2018 and 2020/2024 Debentures.

‐20.0 ‐10.0 0.0 10.0 20.0 30.0 40.0

Excess Cash Flow (1)

Working capital

Local debt repayments

Other obligations

Interest paid

Capex

Income taxes paid

Adjusted EBITDA

$5.5M

US$M

H1‐2017

$34.9M

Sinking Fund Balances – June 30, 2017:2020/2024 Debentures ‐ $3.1M2018 Debentures ‐ $1.5M

Used $1.4M of 2020 Sinking Fund torepurchase $1.7M of debentures inH1‐2017 under NCIB.

Used $3.0M of 2020 Sinking Fund at June 30, 2017 for partial redemption on July 31, 2017.

Expecting Excess Cash Flow of ~$16M for FY2017, up from $2.9m in FY2016

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Balance SheetRESULTS

* Excludes current portion of short and long‐term debt ** Aggregate principal amounts issued and outstanding

June 2017 December 2016

Adjusted working capital deficit *

Cash $3.0M $2.8M

Accounts receivable $10.3M $11.4M

Accounts payable and accrued liabilities ($19.8M) ($16.6M)

Wealth taxes payable ($0.5M) ‐

Income taxes payable ($1.2M) ($6.1M)

Mining titles and compensation agreements payable ($10.5M) ($11.0M)

Inventories and other items, net $10.8M $9.2M

($7.9M) ($10.3M)

Total short and long‐term debt

Local debt, net of cash in trust $0.7M $1.4M

2018 Debentures ** $46.0M $49.7M

2020 Debentures ** $52.5M $101.2M

2024 Debentures** $47.0M

Sinking funds for 2018 and 2020 Debentures ($4.6M) ($0.5M)

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CAPITAL STRUCTURE

TSX Symbol Exercise Price Issued &Outstanding2017‐08‐14

Fully DilutedShares

Common shares GCM 20.5M 20.5M

2018 Debentures (1) GCM.DB.U US$1.95 $46.0M 23.6M

2020 Debentures (1) GCM.DB.V US$1.95 $48.8M 25.0M

2024 Debentures (1) GCM.DB.X US$1.95 $47.0M 24.1M

93.2M

Warrants GCM.WT.AUnlisted

CA$48.75CA$281.25

0.3M67K

Options CA$2.55 CA$27.60 1.8M47K

(1) Amounts shown for the Senior Debentures are at Face Value.

Common shares consolidated on a 1:15 basis effective April 25, 2017.

Through NCIB repurchases and the July 31, 2017 partial redemption, the 2020 Debentures principal outstanding has been reduced by $5.4M so far this year, eliminating $0.8M of future interest and reducing potential dilution by 2.8M shares.

$47.0M of 2020 Debentures extended to 2024 effective May 31, 2017

Post Consolidation

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2017 OUTLOOK

Priorities1. Improve capital structure: share consolidation and debt extension.2. Generate Excess Cash Flow = 10% of principal amount of Senior Debentures.3. Continue implementation of optimized mine plan at Segovia:

– Continue development and mechanization at Providencia and El Silencio;– Additional upgrades at Maria Dama and tailings storage expansion;

4. 20,000m drilling program at Segovia; and5. Update mineral resource estimates at Segovia and Marmato Underground.

2017 Targets2017 Guidance H1‐2017 Actual LTM *

Gold production (ozs) 150,000 – 160,000 85,083 165,073

Cash cost/oz sold < $720 $709 $718

AISC/oz sold < $900 $910 $901

Maintaining Guidance

* LTM = Latest 12 months ended June 30, 2017

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For Further Information, Contact: Mike Davies

Chief Financial Officer(416) 360‐4653

[email protected]

Town of Segovia

Documents

Q2 2017 Results - s21.q4cdn.coms21.q4cdn.com/.../files/doc_presentations/GCM-Q2-2017-(Final).pdf1 TSX: GCM August 15, 2017 Lombardo Paredes Arenas, CEO Mike Davies, CFO The leading