Name of the Project
Marmato gold project.

Location
The project is located in Zona Baja, Colombia.

Project Owner/s
Gran Colombia Gold.

Project Description
The Marmato mine will comprise two distinct operations, the existing Upper Zone operation and a new Deep Zone operation that are situated directly below the Upper Zone vein system.

The preliminary economic assessment (PEA) life-of-mine (LoM) production schedule foresees a total of 26.4-million tonnes of mineralised material being processed over a 19-year LoM, resulting in 2.2-million ounces of gold produced at an average LoM total cash cost of $799/oz and an average LoM all-in sustaining cost of $882/oz.

In the PEA, the Upper Zone is envisioned to produce 5.5-million tonnes of mineralised material, primarily from the vein system, over a 16-year LoM, with an average LoM head grade of 3.8 g/t resulting in total gold production of 600 000 oz, or about 27% of total gold production from the Upper and Deep zones. This will be accomplished through the immediate implementation of an optimised mine plan, including the strict control of dilution and mine recovery, that will result in production increasing from about 25 000 oz/y to between 35 000 oz/y and
40 000 oz/y starting in 2020.

The PEA envisages Deep Zone producing 20.8-million tonnes of mineralised material over a 16-year LoM starting in 2023, with an average LoM head grade of 2.5 g/t resulting in total gold production of 1.6-million ounces, or about 73% of total gold production from the Upper and Deep zones.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $207-million. Before financing, the project has a 20% internal rate of return and payback by 2026.

Capital Expenditure
The Upper Zone will require about $12-million over the next two years in mine development and equipment.

The initial capital cost required for the Deep Zone mining operation is estimated to at $269-million. This will be incurred between 2020 and 2022.

Planned Start/End Date
Development and construction activities will start in the new Deep Zone, which should come on stream in 2023.

Latest Developments
Gran Colombia is planning to spin off Marmato and has signed a letter of intent with TSX-listed Bluenose Gold to dispose of certain mining assets. The transaction is expected to be completed in December.

Meanwhile, Gran Colombia is proceeding with the prefeasibility study to be finalised by mid-2020.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Gran Colombia Gold, tel +1 416360 4653 or email investorrelations@grancolombiagold.com.