TORONTO, Oct. 19, 2012 /PRNewswire/ – Gran Colombia Gold Corp. (TSX: GCM)
announced today that pursuant to an Alternative Monthly Report filed by
Sprott Asset Management LP and Flatiron Capital Management Partners, as
of August 31, 2012, Sprott and Flatiron have purchased, on behalf of
accounts fully managed by them, an aggregate of 70,062,746 of the
Company’s listed warrants (TSX: GCM.WT) in the open market. As of
today’s date, Sprott and Flatiron hold approximately 44.5% of the total
Warrants issued and outstanding. Assuming the exercise of these
Warrants, Sprott and Flatiron would exercise control or direction over
approximately 15.5 % of the issued and outstanding Common Shares of the
Company (on a partially-diluted basis).

For further information, please see the Alternative Monthly Report dated
September 10, 2012, filed by Sprott and Flatiron on the Company’s SEDAR
profile available at www.sedar.com.

About Gran Colombia Gold Corp.

Gran Colombia is a Canadian-based gold and silver exploration,
development and production company with its primary focus in Colombia.
Gran Colombia is currently the largest underground gold and silver
producer in Colombia with several underground mines in operation at its
Segovia and Marmato operations. In addition, Gran Colombia is advancing
a project to develop a large-scale, gold and silver mine at its Marmato
operations.

Additional information on Gran Colombia can be found on its website at www.grancolombiagold.com and by reviewing its profile on SEDAR at www.sedar.com.

Cautionary Statement on Forward-Looking Information:

This news release 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.
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 press release and Gran
Colombia disclaim, 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.

SOURCE Gran Colombia Gold Corp.