q3 2012 results

November 12, 2012 TSX: GCM

Business Update - Maria Consuelo Araujo (CEO)

Q3 2012 Results - Mike Davies (CFO)

Operational Update - Don East (COO)

Q&A

Q3 2012 Results and Operational Update

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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 Gran Colombia Gold Corp and its subsidiaries (“Gran Colombia” or “GCM”) and their respective projects. 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. Forward-looking statements contained herein are made as of the date of this presentation based on current expectations and beliefs 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.

DISCLAIMER FORWARD-LOOKING STATEMENTS

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BUSINESS UPDATE Maria Consuelo Araujo, Chief Executive Officer

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Corporate Grow gold production in FY 2012

Q3 Production of 26,912 ounces, +24% from Q3’11

At Segovia we achieved our targeted rate of 1,000 tpd, but production was impacted by lower grades

Now expecting total production of between 108,000 and 113,000 oz in FY 2012, an increase of 18% to 24% compared to 2011

Close US$100M financing for Segovia expansion

Closed October 30, 2012

Achieve significant cash flow from mining operations

$10.8M in Q3 & $30.6M YTD, up $17.7M from YTD’11

Positive Agent of change in our communities

2012 Plan – Progress Q3 2012 BUSINESS UPDATE

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Segovia

Increase capacity at Maria Dama to 1,500 tpd by 2013

Operating >1,000 tpd, up from 517tpd in 2011

Adding new underground mining equipment and capital development

Invested approximately $14M YTD, including Maria Dama upgrades

Begin development of new mechanized mine

Building dedicated project team, final engineering, procurement & arranging equipment leasing underway

Continued exploration with 51,000 m drilling program

Phase 1 Infill program underway at Segovia

Marmato

Prefeasibility study Expected completion in Q4 2012

2012 Plan – Progress Q3 2012 BUSINESS UPDATE

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Q3 2012 RESULTS

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Mike Davies, Chief Financial Officer


Production 26,912 oz Au, a 24% increase YoY & 22% increase YTD

Revenue US$47.1M, 21% higher than Q3’11, and $130.5M YTD

Consolidated Cash Cost US$1,261 per ounce, a $52 improvement over Q2’11, but higher than expected primarily due to lower grades at Segovia

Gross margin of US$6.1M and $17.7M YTD

G&A of $4.1M, includes additional expenses to collect overdue VAT claims, maintenance costs associated with properties held for disposal and increased activities from various company initiatives

Net loss US$0.7M, or $0.00 per share, compared to a net loss of $5.9 million, or $0.02 per share in Q3’11

FINANCIAL RESULTS

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Q3 2012 Highlights


FINANCIAL RESULTS

Gold ounces

Q3 2012 Actual

Q2 2012 Actual

YTD Actual

FY 2012 Target

Segovia

Company Operated 8,227 6,804 22,054

Artisanal 12,887 13,805 40,307

Total Segovia 21,114 20,186 62,361 85-90,000

Marmato 5,798 4,997 16,418 23,000

Consolidated 26,912 25,607 78,779 108-113,000

Segovia production expected to ramp through 2012

Achieved targeted ore processing rate of >1,000 tpd in September

Capital development underway to return grades to expected levels

Marmato returned to expected grades of 2.9 g/t in Q3

Silver production of 31,682 ounces in Q3 and 91,033 ounces YTD

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Production


FINANCIAL RESULTS

US$ Q1 2012 Q2 2012 Q3 2012

Average Gold Price $ 1,676 $ 1,623 $ 1,642

Segovia $ 1,202 $ 1,320 $ 1,288

Marmato $ 1,184 $1,288 $ 1,174

Consolidated $ 1,199 $ 1,313 $ 1,261

Segovia

Cash costs on track in Q3 to less than $1,200 per ounce if not for impact of lower grades

Productivity improvements at company operated mines materializing in Q3 with mining costs (80% of total costs) improving to $168 per tonne, a 40% improvement compared to Q1’12

Modern mechanized mining to drive long term cost improvements

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Cash Cost per Ounce Trend


FINANCIAL RESULTS

US$ (millions) Q3 2012 YTD 2012

Cash – Opening Balance $ 4.1 $ 20.3

Cash from Mining Operations

$ 10.8 $ 30.6

Other Operating Uses ($10.2) $ 0.6 ($ 28.8) $ 1.8

Net Cash from Bank Debt $ 4.9 $ 13.8

Capex and Exploration

Segovia ($ 5.5) ($15.1)

Marmato ($ 2.5) ($19.8)

Other Exploration $ -- ($ 8.0) ($ 1.4) ($ 36.3)

Other Sources $ -- $ 2.0

Cash – June 30, 2012 $ 1.6 $ 1.6

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Cash Flow


FINANCIAL RESULTS

US$ Q3 2012 YTD 2012 Plan

CAPEX

Segovia - complete Maria Dama expansion, mining equipment, lab & tailings facilities

$ 5M $ 14M $ 15 - 20M

Marmato – Pre-Feasibility, social programs, environmental studies & mining titles

$ 3M $ 18M $ 19M

$ 8M $ 32M $ 34+M

EXPLORATION

Segovia (51,000m drilling campaign) $ 0M $ 2M $ 5M

Marmato $ 0M $ 3M $ 3M

Zancudo $ 0M $ 1M $ 1M

$ 0M $ 6M $ 9M

Overall spending plan reduced by ~$13M to reflect lowered production guidance CapEx focus in 2nd half on Segovia

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Capex, Exploration

November 12, 2012 TSX: GCM 12

PAMPA VERDE Financing

Closed $100M Gold-Linked Note, October 30, 2012

5 year, 10% note with principal tied to spot price of gold; $1,400 notional price

Financial equivalent of 71,429 ounces of gold, equates to <10% of expected 5 year production at Segovia

Gold-Linked Note $100M

Escrowed Interest $ 20M

Transaction Costs $ 7M

Net Proceeds $ 73M

Total cost of project approximately $100M

Funded by net proceeds from financing and capital leasing

Repayments & interest do not impact cash flow until November 2014

G-L Notes Leasing

Processing Plant $40M

Tailings & Infrastructure $11M

Mine Development $12M

Mechanized Equipment $ 6M $20M

Contingency $ 4M

$73M $20M


OPERATIONAL UPDATE

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Don East, Chief Operating Officer

Site of Pampa Verde Project


Development potential of 14.4M oz gold deposit, average grade 0.91 g/t New deep zone of >300M tonnes

potential ore

Producing 23,000 oz gold & 36,000 oz silver annually (underground) Q3 produced 5,798 oz gold & 9,684

oz silver

Pre-Feasibility Stage Potential phased underground &

open pit mines Expected completion of study by

end of Q4’12

MARMATO

(1) Marmato Technical Report, dated June 21, 20012, filed August 7, 2012

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Q3 Summary

Category (1) Gold Resource Silver Resource

Measured 1,725,000 oz 8,011,000 oz

Indicated 10,064,000 oz 72,319,000 oz

Inferred 2,588,000 oz 9,429,000 oz

Total 14,377,000 oz 89,759,000 oz

Marmato, Caldas COLOMBIA


MARMATO Deep Mineralize Body Further Explored

Includes a bonanza grade zone of 16.9m, with a true width of 4.4m, abundant visible gold & includes 1.8m of 159 g/t of gold


MARMATO Optionality for Development

Open Pit • ~12M oz gold at 0.9 g/t

Underground • ~2M oz gold at 3 g/t

New Porphyry Zone: • Est. 300M tonnes of

mineralization • Potential incremental

resources 10 to15M oz gold


PAMPA VERDE Overview

Grow production to 200,000 ounces of gold at Segovia annually

Reduce cash costs to around $800 per ounce

Modern mining and access to new Las Verticales veins systems

New 2,500 tpd plant

Filled Area Las Verticales

El Silencio Providencia

New 5m x 5m ramp access to existing Providencia and El Silencio mines

12 months for mine development

18 months for plant commissioning


PAMPA VERDE Overview

New Plant

Crushers, SAG and ball mill, flotation, CIL - cyanide destruct

To process Company mined ore, with legacy Maria Dama plant to process 3rd party ore

Underground Access & Mine 5m x 5m decline, long-hole retreat mining

Tailings Options will be mine backfill and surface storage

with full recycle of process water

Permitting Chocho tailing facility included in PMA. Plant

and mine to be included as modification to PMA

Final engineering, procurement and initial site works starting


Produced 21,114 oz in Q3 New mill tested at >1,300 tpd Q3 ore processed 82,000 t (+52% vs Q2) October averaged 1,000 tpd

Cost per ounce $1,288, down $32 vs Q2 Average grade 9.5 g/t with 85% plant

recovery compared to Q2 average grade 13.8 g/t with 87% plant recovery

Expect to produce 85,000 to 90,000 oz in 2012, up 24 to 31% compared to 2011 Expect to average 1,000 tpd in Q4 while

rest of plant upgrades are completed

SEGOVIA

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Q3 Summary

(1) GCM Resource update dated March 5, 2012 & April 15,2012

Category (1) Gold Resource Grade

Measured 136,000 oz 16.1 g/t

Indicated 156,000 oz 9.9 g/t

Inferred 1,138,000 oz 13.6 g/t

Total 1,430,000 oz 13.3 g/t

One of the Top 10 Producing Mines by Grade in the World Source: NRH Research, Global Gold Mines & Deposits 2012 (publically traded companies with deposits greater than one million ounces in all resource categories)


Maria Dama Expansion

Ball Mill with 1,500tpd capacity – completed mid-May 2012

Crushing capacity improvements

4 of 6 new flotation cells in operation

Cyanidation circuit refurbishment complete

Tailings – new Chocho facility will reduce cost from $7 to $2 per tonne. Design complete and awaiting permit approvals

New plant thickener being constructed for increased plant throughput in 2013

SEGOVIA

Next Steps:

Improved sampling, instrumentation & automation scheduled for 2013

517 509 590

790 822

1,066 1,000

-

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300

Tonnes per day

FY’11 Q1’12 Q2’12 Jul Aug Sep Oct


>20 12-20 6-12 3-6 <3

SEGOVIA

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Resource Growth – Exploration Underway

Phase I: Infill – upgrade existing resources Targets; Providencia, Sandra K & El Silencio Sur/Las

Aves 82 holes totalling 21,000 metres Upgrading >200,000 ounces of gold to Indicated From October 2012 to April 2013

Phase II: Exploration - extend known structures 30,000 metres planned Target >500,000 ounces of gold to Inferred From April 2013 to December 2013

Budget US$15 million 5-6 surface rigs will be operating in both phases

Providencia

Sandra K El Silencio

Au (ppm) drilling intercepts

November 12, 2012 TSX: GCM TSX: GCM 21 MARCH 2012

Q&A

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