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TSX: GCM OTCQX: TPRFF November 2020 The leading high-grade gold producer in Colombia Corporate Presentation November 2020 TSX: GCM OTCQX: TPRFF

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Page 1: Corporate Presentation November 2020s21.q4cdn.com/834539576/files/doc_presentations/2020/11/... · 2020. 11. 19. · Corporate Presentation November 2020 TSX: GCM OTCQX: TPRFF. TSX:

TSX: GCM OTCQX: TPRFFNovember 2020

The leading high-grade gold producer in Colombia

Corporate PresentationNovember 2020

TSX: GCM OTCQX: TPRFF

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TSX: GCM OTCQX: TPRFFNovember 2020

DisclaimerForward-Looking Statements

This presentation contains "forward-looking information", which may include, but is not limited to, statements with respectto the future financial or operating performance of the Company and its projects, and, specifically, statements concerninganticipated growth in annual gold production, future cash costs and AISC, future G&A and capex, operating and free cashflow, future repayments of its gold-linked notes, future dividends and purchases of common shares under the NCIB. 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 negativevariations) 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 andother factors which may cause the actual results, performance or achievements of Gran Colombia to be materially differentfrom any future results, performance or achievements expressed or implied by the forward-looking statements. Factorsthat could cause actual results to differ materially from those anticipated in these forward-looking statements aredescribed under the caption "Risk Factors" in the Company's Annual Information Form dated as of March 30, 2020 which isavailable for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date ofthis presentation and Gran Colombia disclaims, other than as required by law, any obligation to update any forward-lookingstatements whether as a result of new information, results, future events, circumstances, or if management's estimates oropinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to beaccurate, 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.

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

2

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TSX: GCM OTCQX: TPRFFNovember 2020

Emerging Mid-Tier Gold MinerFocus in Colombia

Marmato ProjectCaldas Gold Corp53.5% ownership

o High-grade underground mines

o 2019 Production: 214,000 ozs.

o One of the Top 5 Highest Grade Underground Global Gold Mines…16.4 g/t in 2019….14.7 g/t YTD 2020.

o Exploration extending existing mines and expanding to include regional targets in the mining title

o Spun out to Caldas Gold Corp in February 2020, retaining control position

o 2019 Production: 26,000 ozs.

o Building Colombia’s next major gold mine

o 2020 PFS and Wheaton stream validate underground mine expansion into the Deeps Zone

Segovia OperationsFlagship Operation 100% ownership

Core Projects in Historic Mining Districts with Significant Exploration Upside

On Track to Produce 218,000 - 226,000 ozs in 2020.Now Paying a Monthly Dividend.

3

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TSX: GCM OTCQX: TPRFFNovember 2020

Protein Groceries

Sanitation Kits for First Responders

Face Masks, Sewn Locally, Contributing to Economic Relief

Hospital Equipment

Donations of:

Increased Security & Protection Protocols

Installation of Facial Recognition Technology

Employee Sanitization Stations

On-Going COVID-19 ReliefProtecting our Workforce and Supporting Communities

4

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TSX: GCM OTCQX: TPRFFNovember 2020

GCM Mines

Benchmarking Gold Mine EmissionsPositioned Well Amongst ~200 Mines Globally

Source: Skarn Associates, Colombia Gold Symposium

5

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TSX: GCM OTCQX: TPRFFNovember 2020

Fully Diluted = ~88.8M shares

WarrantsGCM.WT.B: 11.2 million @ CA$2.21 (2024 expiry)

Unlisted: 3.3 million @ CA$5.40 (2023 expiry)

Unlisted: 7.1 million @ CA$6.50 (2023 expiry)

Stock Options1.8 million @ CA$2.55 to CA$6.88 (2021-2025 expiry)

Convertible DebenturesCA$20 million @ CA$4.75 (2024 expiry)

Exchanges

TSX: GCM

OTCQX: TPRFF

Common Shares61.3 million

Market Capitalization (as of November 10, 2020)

CA$372 million (1)

Monthly Dividend• CA$0.015 per common share

• Record date: November 30, 2020.

• Payment date: December 15, 2020

NCIB (2)

• Commenced September 4, 2020

for a 12-month period

• Authorized to purchase up to

5.9M common shares

• In September/October, bought

620,900 shares @ CA$6.17 per

share average price

(1) Based on C$6.07 at close on November 10, 2020.(2) The NCIB will allow the Company to purchase for cancellation up to 5,934,811 Shares of the Company over a 12-month period, representing 10% of the current

issued and outstanding Shares in the public float as of August 31, 2020.

$3.50

$4.00

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Capital StructureUndervalued vs Peers

6

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TSX: GCM OTCQX: TPRFFNovember 2020

ValuationSignificant Re-Rating Potential

Stifel GMP – BUY: CA$8.75/share target price(November 11, 2020 Research Report)

“GCM generated $53.5M in Free Cash Flow in Q3-2020 or 20% of the Company’s market cap. GCM has tripled its newly minted dividend to CA$0.18/share, implying a yield of 3% as of November 11th

close. GCM now has the highest yield within our coverage universe.”

Red Cloud Securities – BUY: CA$16.50/share target price(November 13, 2020 Research Report)

“We expect Gran Colombia’s share price to be driven by steady operating results coupled with exploration success at Segovia.”

Fundamental Research – BUY: CA$11.69/share fair value estimate(November 13, 2020 Research Report)

“GCM’s shares are trading well below junior gold producers. Our fair value estimate increased from CA$11.41 to CA$11.69 per share due to higher 2021 EPS forecast.”

7

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TSX: GCM OTCQX: TPRFFNovember 2020

GCM dividend yield relative to Comps

Source: Company reports. Market data as of November 10, 2020

CA 1.5 cents/shareRecord date: November 30, 2020

Payment date: December 15, 20207.77%

4.31%

3.24%2.97%

2.66%2.46%

1.94%1.91%1.69%1.63%1.55%1.47%1.39%1.36%

1.14%1.08%0.99%0.94%0.88%0.86%0.80%0.77%0.58%

0.39%0.33%

Average = 1.79%

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Payment frequency changed from a quarterly to a monthly basis

Dividend DeclarationSignificant Re-Rating Potential

8

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TSX: GCM OTCQX: TPRFFNovember 2020

4

Directors Miguel de la Campa, Vice 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

De Lyle Bloomquist – Corporate director

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

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

Amanda Fullerton, VP Legal and Corporate Secretary – Lawyer with 12 years of experience in corporate securities law in resource industries

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

The Right TeamSeasoned Experience in Colombia

9

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TSX: GCM OTCQX: TPRFFNovember 2020

GRAN COLOMBIA 2.0 Segovia Operations

40.7

13.0

5.5 5.0

2016 2017 2018 2019

LTI Frequency Rate

Health and Safety is a Top Priority

8075

93

126

149

193

214

$1,169 $1,037

$695 $655 $664 $623 $607

2013 2014 2015 2016 2017 2018 2019

Production (koz) Cash Cost (US$/oz)

Substantial Production Growth while Lowering Costs

✓ DEMONSTRATED OPERATING AND MINE BUILDING EXPERIENCE IN LATIN AMERICA

✓ TRACK RECORD OF IMPROVEMENT

✓ STRONG HEALTH & SAFETY RECORD

✓ FOCUSED ON BUILDING STRONG COMMUNITY RELATIONSHIPS

Segovia Lost Time Incidents

Source: Company filings.

The Right TeamFocused on Cash, Costs & Execution

10

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TSX: GCM OTCQX: TPRFFNovember 2020

Annual Gold Production reaches 240,000 ozs in 2019 Higher gold prices fueling Adjusted EBITDA growth

AISC reflects focus on controlling costs

$M

Free Cash Flow is servicing debt and building cash

kozs

-

40

80

120

160

200

240

2017 2018 2019 9M-2019 9M-2020

Segovia

Marmato

$M

$-

$350

$700

$1,050

2017 2018 2019 9M-2019 9M-2020

AISC Total Cash Cost

US$/oz

$-

$50

$100

$150

2017 2018 2019 9M-2019 9M-2020

$-

$20

$40

$60

$80

$100

$120

2017 2018 2019 9M-2019 9M-2020

Operating Cash Flow Free Cash Flow

Refer to Company’s MD&A for computations.

ResultsPerformance Drivers

11

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TSX: GCM OTCQX: TPRFFNovember 2020

AIS

C (-2

3%

)

$-

$20

$40

$60

$80

$100

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Gold Notes Convertible Debentures Cash

$M

2018 2019

Gran Colombia’s balance sheet continues to get stronger each quarterFree Cash Flow and balance sheet strength facilitates an increased monthly dividend commencing November 30, 2020.

(1) Aggregate principal amount of debt outstanding.

2020

Note: Excludes Caldas Gold cash and debt

ResultsCash & Debt (1)

12

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TSX: GCM OTCQX: TPRFFNovember 2020

o Issued April 30, 2018 and mature on April 30, 2024

o Senior secured obligation of Gran Colombia

o US$35.5 million outstanding as of November 2, 2020

o Listed on the TSX under the symbol GCM.NT.U

o 8.25% annual coupon paid monthly in cash

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

o Company sets aside physical gold each month into a Gold Trust Account to meet quarterly principal payment

obligations

o Less than 5% of Segovia’s projected future production is required to meet principal repayments

B (Outlook Stable) -

5,000

10,000

2020 2021 2022 2023 2024

Amortization ScheduleAugust 2020 to April 2024

(Ounces to be Deposited to Gold Trust Account)

Gold NotesExposure to Upside on Gold

13

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TSX: GCM OTCQX: TPRFFNovember 2020

• Colombia is an OECD member country with a growing economy, and one of the lowest inflation rates in Latin America

• 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, and 32% for 2021, and 30% for 2022 and onwards

Annual GDP (US$B)

$745 (4th largest in

Latin America)

Population 49.8 Million

GDP Per Capita ($US) $14,943

5-Year GDP CAGR (%) 2.8%

Inflation 3.2%

Public Debt to GDP 50.5%

Free Trade Agreements

8 countries(including the US, Canada, and EU)

Ease of Doing Business Ranking

3rd best in Latin America (65th Globally out of 19)

Investor Protection Ranking

1st in Latin America (15th

Globally out of 190)

Economic Freedom Index Ranking

45th Globally out of 180

Credit Rating Investment Grade by Moody’s, Fitch, and S&P

Why ColombiaA Great Mining Jurisdiction

14

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TSX: GCM OTCQX: TPRFFNovember 2020

License Boundaries for Segovia & Carla (100% Owned)

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Comparative Asset Milled Grade(1)

g/t

Amongst the Highest-Grade Mines in the Gold Sector

16.4 g/t2019 Segovia Milled Grade

Segovia OperationsProduction Stage

(1) Source: company reports, year ended December 31, 201915

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TSX: GCM OTCQX: TPRFFNovember 2020

1) Derived from the NI 43-101 Technical Report Prefeasibility Study Update, Segovia Project, Colombia, dated May 14, 2020, prepared by SRK Consulting (US) Inc. (“SRK”).

2) Mineral resources are not mineral reserves and do not have demonstrated economic viability. 3) All figures are rounded to reflect relative accuracy of the estimate. All composites have been capped where appropriate.4) The Mineral Resources are reported at an in situ cut-off grade of 3.0 g/t Au over a 1.0 m mining width, which has been derived using a gold price of US$1,400

per ounce and technical and economic parameters for the existing underground mining and conventional gold mineralized material processing using a gold recovery of 90.5%. Each of the mining areas have been sub-divided into Pillar areas (“Pillars”), which represent the areas within the current mining development, and long-term resources (“LTR”), which lie along strike or down dip of the current mining development.

5) Derived from the Amended NI 43-101 Technical Report Prefeasibility Study Update, Segovia Project, Colombia, dated July 8, 2019, prepared by SRK.

Project Deposit Type

Measured Indicated Measured & Indicated Inferred

Tonnes

(kt)

Grade

(g/t)

Au

Metal

(koz)

Tonnes

(kt)

Grade

(g/t)

Au

Metal

(koz)

Tonnes

(kt)

Grade

(g/t)

Au

Metal

(koz)

Tonnes

(kt)

Grade

(g/t)

Au

Metal

(koz)

Segovia

ProvidenciaLTR 118 15.9 60 296 13.0 124 414 13.8 184 315 8.3 84

Pillars 108 26.1 90 116 12.1 45 224 18.8 135 389 20.0 249

Sandra KLTR 385 10.3 128 385 10.3 128 315 8.6 87

Pillars 152 10.9 53 152 10.9 53

El SilencioLTR 824 11.5 304 824 11.5 304 1,736 8.3 462

Pillars 1,459 10.7 504 1,459 10.7 504 395 12.1 154

Verticales LTR 771 7.1 176

Subtotal

Segovia

Project

LTR 118 15.9 60 1,504 11.5 555 1,623 11.8 616 3,136 8.0 809

Pillars 108 26.1 90 1,727 10.8 602 1,835 11.7 692 784 16.0 403

CarlaSubtotal Carla

ProjectLTR 154 9.7 48 154 9.7 48 178 9.3 53

December 31, 2019 (1) 226 20.8 151 3,385 11.1 1,205 3,611 11.7 1,356 4,098 9.6 1,265

December 31, 2018 (2) 218 20.0 140 3,289 11.2 1,187 3,507 11.8 1,327 3,562 10.1 1,157

% Change vs previous 4% 4% 8% 3% -1% 2% 3% -1% 2% 15% -5% 9%

In the 2019 MRE update, Gran Colombia more than replaced what it mined in the year.

Segovia OperationsMineral Resource Estimate as of December 31, 2019

16

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TSX: GCM OTCQX: TPRFFNovember 2020

Area CategoryTonnes

(kt)

Grade

(g/t)

Au Metal

(koz)

ProvidenciaProven 165 16.5 88

Probable 154 12.0 59

Sandra K Probable 249 8.9 71

El Silencio Probable 1,313 9.9 419

Carla Probable 104 10.0 33

December 31, 2019 (1) Total 1,985 10.5 670

December 31, 2018 (2) Total 1,941 11.0 688

% Change vs previous 2% -5% -3%

1) Derived from the NI 43-101 Technical Report Prefeasibility Study Update, Segovia Project, Colombia, dated May 14, 2020, prepared by SRK Consulting (US) Inc.(“SRK”).

2) Mineral resources are inclusive of mineral reserves.

3) All figures are rounded to reflect relative accuracy of the estimate. All composites have been capped where appropriate

4) Ore reserves are reported using a gold cutoff grade ranging from 3.25 to 4.24 g/t depending on mining area and mining method. The cutoff grade calculationsassume a $1,350/oz Au price, 90.5% metallurgical recovery, $6/oz smelting and refining charges, $25/t G&A, $26/t processing cost, and projected LoM miningcosts ranging from $76/t to 115/t. Mining dilution is applied to a minimum mining height and estimated overbreak (values differ by area/mining method) using azero grade. Mineral Reserves have been stated on the basis of a mine design, mine plan, and cash-flow model. There are potential survey unknowns in someof the mining areas and lower extractions have been used to account for these unknowns.

5) Derived from the Amended NI 43-101 Technical Report Prefeasibility Study Update, Segovia Project, Colombia, dated July 8, 2019, prepared by SRK.

Segovia OperationsMineral Reserve Estimate as of December 31, 2019

17

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TSX: GCM OTCQX: TPRFFNovember 2020

Chicharron(Gold X Mining)

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

Segovia OperationsRegional Exploration Program Now In Process in Mining Title

18

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TSX: GCM OTCQX: TPRFFNovember 2020

14

Segovia OperationsMaria Dama Processing Plant

o Plant has capacity to handle up to 1,500 tpd.

o 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.

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

o The “El Chocho” tailings storage facility will receive material over the next seven years and a filter press commissioned in 2019 enables tailings to be dry stacked; onsite water treatment facility is treating excess water to Colombian standards before being discharged. 19

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TSX: GCM OTCQX: TPRFFNovember 2020

Third Party Miner Contractso Agreements with 40+ third party miner groups

o Mine designated areas with the Company’s mining title

o GCM pays for recovered gold at fixed price

o Contractors manage miners & fund own costs

o GCM processes ore and sells the gold & silver

o GCM provides health & safety training

Benefits of Contract Mining Modelo Environmental benefits – GCM controls processing,

reducing mercury use

o Employment – expanded workforce

o Improved health & safety

o Workers receive health & pension benefits

o Government receives tax & royalties

Improving Health & Safety in Our Mines

Funding Community Programs

15

Segovia OperationsPositive Agent for Change

20

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TSX: GCM OTCQX: TPRFFNovember 2020

(1) As of September 28, 2020, Gran Colombia owns 53,435,989 common shares of Caldas Gold.(2) Refer to Caldas Gold press releases dated July 29, 2020 , August 26, 2020, and September 29, 2020.

Building Colombia’s Next Major Gold MineMine Expansion into the DEEPS ZONE

Caldas Gold Corp (TSX-V: CGC, OTCQX: ALLXF) was formed in a spin out by Gran Colombia Gold in February 2020; GCM holds a 53.5% equity interest(1).

• Caldas Gold is focused on a major underground mine expansion at Marmato to incorporate the Deeps Zone mineralization.

• US$110M stream financing with Wheaton Precious Metals to fund mine expansion.(2)

• Completed CA$50M equity private placement and US$83M Gold-Linked Notes Offering as part of the financing for the mine expansion.(2)

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Building Colombia’s Next Major Gold MineMine Expansion into the DEEPS ZONE

Caldas Gold Corp (TSX-V: CGC, OTCQX: ALLXF) was formed in a spin out by Gran Colombia Gold in February 2020; GCM holds a 57.5% equity interest(1).

Exploration drilling is continuing to upgrade and expand the Deeps Zone mineralization.

The existing mine has been in operation since 1991 and has produced an average of ~24,000 ozs of gold annually over the last 10 years (2019 – 25,750 ozs).

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o Marmato mine in Zona Baja will comprise of two distinct operations: Upper Zone and Deeps Zone.

o Upper Zone: Immediate optimization of existing mining operation to reduce dilution, improving production and reducingcash costs, together with an expansion of the existing processing plant over the next two years from 1,200 tpd to 1,500tpd. A total pf 5.1M tonnes to be processed over 13-year life with average LoM Au grade of 4.2 g/t resulting in 0.6M ouncesof gold (32% of total).

o Deeps Zone: US$269M initial capital in 2020 to 2023. Total of 14.6M tonnes processed over a 11-year life starting in mid-2023 at an average LoM Au grade of 2.9 g/t resulting in 1.3M ounces of gold (68% of total).

o Combined:o 1.9M ounces of gold with LoM cash cost of US$778 per ounce and LoM AISC of US$880/oz.o At US$1,400 per ounce long-term gold price, total undiscounted LoM after-tax project cash flow of US$491M (NPV

5% - US$256M).o Before financing, after-tax IRR = 19.5% and payback by 2026.

Precious Metal Production Profile (ozs/year)

-

50,000

100,000

150,000

200,000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Gold Silver

Marmato ProjectLife-of-Mine Plan (“PFS”) Results (1)

(1) Source: Caldas Gold NI 43-101 Technical Report Pre-Feasibility Study Marmato Project Colombia dated August 17, 2020 prepared by SRK. 23

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Juby Project

Toroparu

Meadowbank

ZancudoProject

• Location: Colombia• Former high-grade producer in the Titribi mining district of Antioquia, about 27 km south of Medellin.• Currently being drilled by IAMGOLD under a 6-year option agreement signed in March 2017 whereby IAMGOLD can

earn up to 70%.• Entered into a LOI on September 23, 2020 to spin out its interest to ESV Resources (TSXV:ESV.H) for 27,000,000

common shares. ESV plans to become a silver-focused company, changing its name to Denarius Silver Corp. Gran Colombia subscribed for CA$3,000,000 of subscription receipts in a non-brokered private placement.

• Location: Ontario• Completed the acquisition of a 100% interest on July 2, 2020.• Advanced exploration-stage gold project within the Shining Tree area in the southern part of the Abitibi

greenstone belt. Gold was discovered in the Shining Tree area in the 1930’s.• Over 14,000 acres controlled through claims covering 10 km strike length on the mineralized trend.• Completed an updated Mineral Resource estimate with an effective date of July 14, 2020. Indicated Resources of

773,000 ozs (21.3 Mt @ 1.13 g/t) and Inferred Resources of 1,488,000 ozs (47.1 Mt @ 0.98 g/t).• Preparing for a proposed drilling program for execution in 2021.

• Location: Guyana• 18% equity interest (TSX-V: GLDX).• Advancing PFS for one of the largest undeveloped gold deposits in the Americas with 7.35 Mozs M&I and 3.15 Mozs

Inferred. Commencing 58 km road connecting it to the Aurora Project and Tidewater.• Recently commenced a 12,000 m drilling program to upgrade and expand mineral resources at Toroparu.

• Location: Nunavut• 26% equity interest (TSX-V: WA).• Exploring its 100% owned Meadowbank Project strategically positioned along trend immediately adjacent to

Agnico Eagle’s Meadowbank/ Amaruq producing gold mines.• Recently completed initial 3,545 m drilling program.

PipelineAdditional Opportunities for Growth and Value Creation

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Why Invest in Gran Colombia?Leading High-Grade Gold Producer in Colombia

Undervalued versus peers

Strong free cash flow yield and healthy balance sheet

Pays monthly dividend

Segovia is one of the highest grade global underground mines

Focusing on significant exploration upside at Segovia

Strong management with Latin American mining experience

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For Further Information, Contact: Mike Davies

Chief Financial Officer(416) 360-4653

[email protected]

Segovia Operations: El Chocho Tailings Storage Facility and Filter Press