TORONTO, June 15, 2011 /PRNewswire/ – Gran Colombia Gold Corp. (TSX: GCM,
GCM.WT, GCM.WT.A) has filed today its interim condensed consolidated
financial statements for the three months ended March 31, 2011. The
Company’s consolidated financial statements, together with its
Management’s Discussion and Analysis of these results, are available
for review on the Company’s website at www.grancolombiagold.com and under the Company’s profile at www.sedar.com.

Completion of Merger with Medoro Resources Ltd.

On June 10, 2011 the Company completed the merger with Medoro Resources
Ltd., creating the leading Colombian gold producer. Serafino Iacono,
Executive Co-Chairman of Gran Colombia said, “The merger of these
companies has created a significant player in the Colombian gold space
with operational synergies, and a very exciting growth profile. The
Company expects to grow its combined annual gold production from
120,000 ounces in 2011 to over 600,000 ounces in 2016, representing a
compound annual growth rate of 42%. With the merger complete, the
Company and its shareholders can now benefit from significant projects
across all phases of the development pipeline, world-class gold
resources and current production and cash flow.”

First Quarter Financial Results

The Company reported revenues for its first fiscal quarter of 2011 of
US$20.8 million, principally from the sale of 14,774 ounces of gold at an
average realized price of US$1,363 per ounce. For the quarter ending
March 31, 2011, the Company reported a net loss of US$16.8 million, or
US$0.08 per share, after reflecting an US$12.6 million one-time charge related
to the 2011-2014 equity tax levied on companies in Colombia.

Operational Update

The Company currently has six wholly-owned operating underground mines,
four in the vicinity of Segovia plus El Zancudo and Mineros Nacionales
as well as two processing plants – Maria Dama in Segovia and Mineros
Nacionales in Marmato. In addition, the processing facilities at El
Zancudo are also being readied for restart.

Segovia Operations

Production continues to ramp up at the Company’s Segovia operations,
with over 26,000 ounces of gold and over 25,000 ounces of silver
produced in the first five months of 2011. Current plans indicate the
ramp up to continue, and total production for this year is expected to
be 90,000 ounces of gold and 90,000 ounces of silver, as compared to
the September to December 2010 figures of 14,509 ounces of gold and
13,336 ounces of silver.

Planning for the plant expansion from 700 to 1,000 tonnes per day is
well underway with construction of a new primary crusher and a second
primary mill to be completed by the end of the year.

El Zancudo

The Company has commenced mining operations at El Zancudo with
approximately 1,200 tonnes of ore with a gold grade of 12.0 grams per
tonne (g/t) and a silver grade of 138 g/t stockpiled to date. This
material will be processed at the onsite facility which will be capable
of processing 100 tonnes per day, and is expected to be restarted in
the third quarter of this year. Estimated production from this
operation for 2011 is 6,000 ounces of gold and 45,000 ounces of silver.

Mineros Nacionales

Production from the Mineros underground operation at Marmato is ongoing,
with 8,900 ounces of gold and 13,700 ounces of silver produced through the end of May. The Company expects to
produce 24,300 ounces of gold and 40,300 ounces of silver this year.

Exploration and Development Update

Marmato Project

The Company released the results of a Preliminary Economic Assessment
for a large-scale open pit operation at Marmato on May 26, 2011. The
study, prepared by SRK Consulting (UK) Ltd., determined that the
preferred mining method for the Marmato Project is open pit with
contractor mining. This method was based on processing 283 million
tonnes of ore at a rate of 40,000 tonnes per day utilizing a flowsheet
similar to the one currently being used at the Company’s Mineros
Nacionales underground operation.

This method would produce, on average, 340,000 ounces of gold and 1.3
million ounces of silver per year over a 21-year mine life. The cash
operating cost is expected to be $524 per ounce of gold, net of silver
credits. Assuming a life of mine capital cost of $550 million, total
cost per ounce is estimated to be $643. Assuming gold and silver prices
of $1,200 and $16 per ounce respectively, this would result in a net
present value of $1.1 billion assuming a discount rate of 5%. These
estimates assume an average gold grade of 0.9 g/t, a stripping ratio of
3.3:1 and a metallurgical recovery of 88% for gold and 60% for silver –
all of which the consultants, and the Company, believe can be improved
upon with further drilling and metallurgical testwork. The Company is
now finalizing the bidding process for preparation of a Pre-feasibility
Study, which is expected to be completed by the end of the first
quarter next year.

Infill and definition drilling continues at the property, with results
for a further 25 diamond drill holes (8,593 metres) presented herein. A total of 91,744 metres have been drilled to
date, including 12 holes for which the Company is awaiting assay
results and 11 holes currently being drilled.

Highlights include Hole #1386 which intersected 1.5 g/t gold over 278
metres, #1391 which encountered 1.5 g/t gold over 179 metres and #1384
which assayed 1.0 g/t gold over 302 metres. These intercepts represent
some of the best intersections seen to date, proving the continuity of
economic mineralization at depth. In addition, the intersection from
Hole #1391 fills a void in the current block model.

Significant intercepts (greater than 20 grams per tonne-metres) are
summarized in the following table.

Surface or Underground	DRILL HOLE	From (m)	To (m)	Length (m)	Au (g/t)	Ag (g/t)
S	MT-1361	26.0	139.0	113.0	0.8	15.6
S	MT-1368	141.0	225.0	84.0	0.7	6.9
S	MT-1374	323.3	331.4	8.1	2.9	18.5
S	MT-1377A	164.5	192.0	27.5	2.1	6
	and	483.7	643.1	159.4	1.1	4.2
U	MT-1380A	158.4	174.0	15.6	1.6	7.3
S	MT-1382	282.0	293.5	11.5	1.7	13.0
U	MT-1384	2.0	304.0	302.0	1.0	3.9
S	MT-1385A	103.4	192.7	89.3	0.7	7
	and	256.0	288.0	32.0	1.3	3.2
U	MT-1386	143.0	421.4	278.4	1.5	2.3
S	MT-1387	122.2	131.0	8.8	3.3	62.8
	and	165.5	193.0	27.5	3.3	18.0
	and	304.6	329.0	24.4	2.0	14.1
	and	386.0	422.8	69.8	0.5	4.3
U	MT-1388	99.2	144.0	44.8	0.6	2.3
U	MT-1389	181.0	207.2	26.2	0.9	4.4
U	MT-1390	85.8	256.5	170.7	1.9	2.7
S	MT-1391	159.4	180.5	21.1	1.1	9.4
	and	201.6	230.7	29.1	0.9	4.3
	and	237.0	275.0	38.0	1.0	3.9
	and	323.0	502.4	179.4	1.5	7.2
S	MT-1392	159.0	188.0	29.0	1.1	10.2
	and	197.7	239.0	41.3	1.2	8.8
S	MT-1395	6.1	34.9	28.8	1.1	6.7
	and	48.0	60.0	12.0	5.1	7.3
U	MT-1396	78.0	191.4	113.4	0.5	2.3
S	MT-1400	100.6	158.0	57.4	2.8	25.1
S	MT-1401	342.0	399.0	57.0	0.6	3.7
S	MT-1402	92.7	111.0	18.4	2.3	9.8
	and	178.0	190.1	12.1	1.8	3.9
U	MT-1403	82.9	208.0	125.1	0.6	2.2

The surface drill holes are inclined at -35 to -70 degrees from
horizontal while the underground drill holes are inclined at -70 to +45
degrees from horizontal and the intersection lengths do not represent
true widths. Sample lengths are normally 2.0 metres but may be varied
for geological and recovery factors. Intersections are based on a
cut-off grade of 0.1 g/t gold and no more than 6.0 metres of internal
dilution. Gold grades are capped at 20.0 g/t and silver grades are
capped at 500 g/t.

The Company plans to complete a further 134 holes over the balance of
the year, of which 18 will be drilled from the surface and 116 from
underground. In addition, to facilitate the Pre-feasibility Study, the
Company intends to update its current National Instrument 43-101
compliant mineral resources effective June 30, 2011. This information
is expected to be available by the end of August 2011.

Mazamorras

At Mazamorras, the initial reconnaissance drilling program, consisting
of 18 diamond drill holes totalling 12,000 metres, is well advanced.
To date, over 7,000 metres have been completed, with assay results
available for approximately 50% of the holes. When all holes are
completed, assayed and validated, the Company will provide a
comprehensive update. However, drilling to date and initial assay
results are encouraging. A significant number of the holes and
interpretation of the core confirms the anomalies are copper porphyries
with increasing gold values in the silicified zones and open at depth.

Other Properties

The Company holds a 100% interest in the Lo Increíble 4A and 4B
concessions in Venezuela. Initial mineral resources based on limited
diamond drilling have identified 13.4 million tonnes grading 2.2 g/t,
or 940,000 ounces of open pittable gold. The Company is continuing its
efforts to obtain an exploitation permit to allow for the development
of these gold properties when circumstances in Venezuela are more
favourable.

In Mali, the Company currently owns the rights to four gold exploration
properties. Three of the licenses are located in the gold-bearing
Bougouni region in southern Mali, on the West African craton. The
licenses are Sindo, Kangare and Samava, Naiouleni. The other license
area, Bantanko, is located in the west of Mali, in the Keneiba window
portion of the West African craton. The Company has ceased funding
exploration activities on the Mali properties, while it seeks possible
joint venture partners to finance further exploration of these
properties.

Qualified Person/Quality Assurance/Quality Control

Stewart D. Redwood, Senior Consulting Geologist to Gran Colombia, is a
qualified person as defined by National Instrument 43-101 and prepared
or reviewed the preparation of the scientific and technical information
in this press release in respect of the drilling results from the
Marmato Project. Dr. Redwood is a Fellow of the Institute of Materials,
Minerals and Mining (Number 47017), a professional association and
designation recognised by the Canadian regulatory authorities. Dr.
Redwood verified the data for the Marmato Project disclosed in this
press release, including the sampling, analytical and test data
underlying the information contained in this release. Verification
included a review of the quality assurance and quality control samples,
and review of the applicable assay databases and assay certificates.

Sample Preparation, Assays, QA/QC

The drill core samples from Marmato were prepared by Acme Analytical
Laboratories Ltd (ISO 9001:2008) at their sample preparation facility
in Medellin, Colombia, and were assayed at their laboratory in
Santiago, Chile. Gold was assayed by fire assay with atomic absorption
spectrophotometer (“AAS”) finish. Samples over 10 g/t were assayed by
fire assay with gravimetric finish. Silver was assayed by aqua regia
digestion and AAS finish. Silver samples above 100 g/t were assayed by
fire assay with gravimetric finish. Blank, standard and duplicate
samples were routinely inserted for quality assurance and quality
control.

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 six underground mines in operation. In
addition, Gran Colombia is also developing a large-scale, open-pit gold
and silver mine at Marmato. The Company also has a highly-prospective
land position in Colombia as well as an advanced stage property in
Venezuela and earlier stage properties in Mali.

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.