A Leading High Grade Underground Gold Producer Corporate - - PowerPoint PPT Presentation

TSX: GCM OTCQX: TPRFF February 2019

February 2019

A Leading High‐Grade Underground Gold Producer

TSX: GCM OTCQX: TPRFF Corporate Presentation

TSX: GCM OTCQX: TPRFF February 2019

Fo Forward‐Lo Looki

• king St

Statem emen ents

DISCLAIMER

This presentation 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, future cash costs and AISC, future G&A and capex, excess cash flow and future repayments of its gold‐linked notes. 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

• ther 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 27, 2018 and its interim MD&A dated as of November 13, 2018, both of which are available for view on SEDAR at www.sedar.com. Forward‐looking statements contained herein are made as of the date of this presentation 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.

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TSX: GCM OTCQX: TPRFF February 2019

GRAN COLOMBIA 2.0

 Gran Colombia is a mid‐tier gold miner with 218,000 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 and Sandspring in the pipeline.

WHAT’S NEW? Gran Colombia 2.0

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

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TSX: GCM OTCQX: TPRFF February 2019

2018

Gold Production

218,000 ozs

MID-TIER GOLD MINER Surpassed 2018 Guidance

We have produced more than 1 million

• unces 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

• pportunity

 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

TSX: GCM OTCQX: TPRFF February 2019

COLOMBIA

 Colombia is a country of opportunities with a growing economy, one of the lowest inflation rates in Latin America and free trade agreements with eight trading partners including the USA, European Union and more than 100 designated free-trade zones.  Colombia’s government is very supportive of foreign investment and it has 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 the country’s largest export sectors.  Ranked #3 in Latin America for ease of doing business and #65 globally according to the World Bank (Doing Business, 2018)  4th largest economy in South America (GDP US$792 billion) (International Monetary Fund, 2018)  The latest Colombia Tax Reform reduces the corporate income tax rate and repeals the 4% surcharge imposed on corporate income, reducing the total tax rate from 37% in 2018 to 33% in 2019, 32% for 2020, 31% for 2021 and 30% for 2022 and onwards.

A Great Mining Jurisdiction

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TSX: GCM OTCQX: TPRFF February 2019

THE RIGHT TEAM

Management

Lombardo 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 Mesa, General Manager, Segovia Operations – Mine engineer with 17+ years of experience in mining

• perations 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

• perations in Colombia

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Directors

Serafino 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

TSX: GCM OTCQX: TPRFF February 2019

CAPITAL STRUCTURE

Simplified

Fully Diluted = ~63 million common shares

Warrants GCM.WT.A: 0.3 million @ CA$48.75 (2019 expiry) 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 million

Market Capitalization (as of February 5, 2019)

CA$188 million

Major Shareholders

Common shares Founders/Management ‐ 5% | None > 10% Gold Notes Founders/Management ‐ 10% | No others > 10%

Outperforming TSX Global Gold Index over last 12 months

TSX: GCM OTCQX: TPRFF February 2019

$182M

BALANCE SHEET

Strengthened

Senior Secured Gold‐Linked Notes due 2024

Issued April 30, 2018 TSX‐listed…GCM.NT.U US$83.4 million currently outstanding 8.25% coupon paid monthly Quarterly principal repayments in cash with gold kicker above US$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 US$33 million of cash at end of 2018, up US$30M from December 2017 2,600 ozs in Gold Trust Account at end of 2018 for January 2019 debt repayment

TTM = Latest 12 months ended September 2018.

$83M

December 2015 January 2019

2.1X

2015

4.7X

2015

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0.9X 15.1X

TTM TTM

Total Debt Adjusted EBITDA to Interest Debt to Adjusted EBITDA

TSX: GCM OTCQX: TPRFF February 2019

PROPERTIES

Marmato Project

“Pursuing Underground Mine Expansion Opportunity”

Ownership 100% Mineral Resources (1)

‐ M&I ‐ Inferred

Gold:

3,872 kozs 2.9 g/t 4,194 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%

Mineral Resources (1)

‐ M&I ‐ Inferred

Gold:

1,246 kozs 11.4 g/t 1,107 kozs 10.1 g/t

Mineral Reserves (1,2)

‐ Proven ‐ Probable

Gold:

68 kozs 45.4 g/t 592 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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TSX: GCM OTCQX: TPRFF February 2019

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

$89 9

US$/oz sold

14 15 16 17 TTM GCM Peers

2.0X 3.7X

TTM = Trailing 12‐months ended September 2018 10

Gold Production reaches 218,001 ozs in 2018 Adjusted EBITDA surpasses US100M in 2018 AISC reflects focus on controlling costs EV/Adjusted EBITDA (2019e)

TSX: GCM OTCQX: TPRFF February 2019

SEGOVIA OPERATIONS Production Stage

 High‐grade mesothermal quartz‐sulfide veins in historic mining district….over 5 million ounces of gold produced through continuous mining over past 150+ years. Expected mine life runs through to 2026 (2017 PEA).  Three active underground mines (27 known veins) and a substantial land package of ~9,000 hectares, including a unique RPP contract license over ~3,000 hectares which grants mining rights in perpetuity.

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Main Mineralization Zones

License Boundaries for Segovia & Carla (100% Owned)

TSX: GCM OTCQX: TPRFF February 2019

SEGOVIA OPERATIONS Company Mines

Source: SRK, 43‐101 Technical Report, May 2018 M&I 744 kozs 10.5 g/t Inferred 498 kozs 9.7 g.t Reserves 417 kozs 9.7 g/t M&I 125 kozs 9.7 g/t Inferred 86 kozs 8.5 g.t Reserves 50 kozs 8.3 g/t M&I 330 kozs 15.8 g/t Inferred 295 kozs 16.5 g.t Reserves 156 kozs 25.5 g/t M&I 48 kozs 9.7 g/t Inferred 53 kozs 9.3 g.t Reserves 37 kozs 8.6 g/t 12

El Silencio Mine Design, Colored by Au Grade Sandra K Mine Design, Colored by Au Grade Providencia Mine Design, Colored by Au Grade Carla Mine Design, Colored by Au Grade

TSX: GCM OTCQX: TPRFF February 2019 Chicharron (Sandspring Resources)

Blue Sky Potential

Currently operating mines on

• nly 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

SE SEGO GOVIA OPERA OPERATIONS NS

TSX: GCM OTCQX: TPRFF February 2019

SEGOVIA OPERATIONS Maria Dama Processing Plant

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

• nsite water treatment facility is treating excess water to Colombian standards before being discharged.

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TSX: GCM OTCQX: TPRFF February 2019

Thir Third Pa Party Mi Miner ner Con 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

Bene Benefits fits of

• f Con

Contract Mi Mini ning ng Mo 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

Im Improvin ing Heal Health th & Sa Safety in in Our Our Mi Mine nes Fun Fundin ing Commun mmunity Pr Programs ms

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TSX: GCM OTCQX: TPRFF February 2019

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 in dacite to andesite porphyry stocks.  Mountain of gold in historic mining district. Ranked in Top‐20 of undeveloped global gold deposits by size.  Deep zone drilling shows that mineralization at Marmato extends at least 800m below the limit of the current underground mining operation and is still open at depth.  The 2018 drilling campaign has increased our confidence in the geological model, outlining a higher‐grade zone with excellent continuity over 450 meters along strike and strong vertical continuity for more than 300 meters below the deepest level of our existing mining operation.  Currently evaluating the potential to expand underground mining operations. Completing additional drilling and technical studies toward expected completion of a PEA by the end of 2019.

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

Explor Exploration ion St Stag age

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The Future of Marmato is Going Underground 11%

2018 Production

TSX: GCM OTCQX: TPRFF February 2019

Explor Exploration ion

Veins (1) M&I: 13.3 Mt @ 4.6 g/t Au for 1,979 koz Inferred: 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 koz Inferred: 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 koz Inferred: 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 17

TSX: GCM OTCQX: TPRFF February 2019

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. US$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  March 27th – 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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TSX: GCM OTCQX: TPRFF February 2019

ADDITIO ADDITIONAL AL IN INFORMATIO ION

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TSX: GCM OTCQX: TPRFF February 2019

Mi Mine Coun untry Own wner er Au Gr Grade ade in in Mille illed Or Ore

Q4 Q4‐2017 2017 g/ g/t

Au Au Cash Cash Cos Costs

Q4 Q4‐2017 2017 USD/ 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 Flow

SEGOVIA OPERATIONS

Top 5 Highest‐Grade Underground Gold Operations in 2017 (1)

200 400 600 800 Fosterville Yaramoko Segovia Cerro Negro Turquoise Ridge Median Median Au Au Cas Cash Cos Costs Throug ughou hout th the Wo World in in 2017 2017 (U (US$ S$/oz) (1

(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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TSX: GCM OTCQX: TPRFF February 2019

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, 2018 US$/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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TSX: GCM OTCQX: TPRFF February 2019

Segovia Heat Map ‐ Drilling Collars

THE SEGOVIA MINES Blue Sky Potential

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FGM drilling GCM Drilling 1,207 holes 175,796 meters

TSX: GCM OTCQX: TPRFF February 2019

ZANCUDO PROJECT Under Under Opt Option

• n to

to IA IAMGOLD

IAMGOLD Option

 Option granted in March 2017 to acquire a 65% interest by incurring an aggregate of US$10M of exploration over a 6-year period.  2nd option granted for further 5% interest if feasibility study completed.  IAMGOLD commenced exploration (drilling) in 2017 and has continued their program in 2018….refer to

• ur October 9, 2018 press release for results to-

date.  The Zancudo Project is located 27 km south of Medellin.  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 to Brazil Resources Titiribí Project (7.9 Moz Au Inferred resources @ 0.5 g/t Au).  1.5M ounces of past production.

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TSX: GCM OTCQX: TPRFF February 2019

SANDSPRING RESOURCES

 Acquired ~17% equity interest in Sandspring Resources (TSX-V: SSP) in 2018.  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 (~US$3M) in Sandspring’s private placement in July 2018; purchased additional shares for CA$1M (~US$0.8M)in a private transaction completed in early October 2018.  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

• ur 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

• ther veins in the Segovia mining district.

Chicharron Project

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Sandspring Investment Chicharron Project

For Further Information, Contact: Mike Davies Chief Financial Officer (416) 360-4653 investorrelations@grancolombiagold.com

Town of Segovia

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