Corporate Presentation September 2020 The leading high-grade gold producer in Colombia TSX: GCM OTCQX: TPRFF TSX: GCM OTCQX: TPRFF September 2020
Disclaimer Forward-Looking Statements 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 the Company and its projects, and, specifically, statements concerning anticipated growth in annual gold production, future cash costs and AISC, future G&A and capex, operating and free cash flow, 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 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. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated as of March 30, 2020 which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this presentation 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. All amounts are denominated in U.S. dollars, unless indicated otherwise. TSX: GCM OTCQX: TPRFF TSX: GCM OTCQX: TPRFF September 2020 September 2020 2
Emerging Mid-Tier Gold Miner Focus in Colombia 2019 Gold Production 240,000 ozs +10% over 2018 Segovia Operations Marmato Project Flagship Operation Caldas Gold Corp 100% ownership 57.5% ownership Spun out to Caldas Gold Corp in February 2020, retaining o High-grade underground mines o control position 2019 Production: 214,000 ozs o 2019 Production: 26,000 ozs o One of the Top 5 Highest Grade Underground Global Gold o Building Colombia’s next major gold mine o Mines…16.4 g/t in 2019 2020 PFS and Wheaton stream validate underground mine o Exploration extending existing mines and expanding to o expansion into the Deeps Zone include regional targets Core Projects in Historic Mining Districts with Significant Exploration Upside TSX: GCM OTCQX: TPRFF TSX: GCM OTCQX: TPRFF September 2020 September 2020 3
COVID-19 Response Protecting our Workforce Increased Security & Protection Protocols • Continued COVID-19 restrictions in place, in-line with Colombian national guidelines. • Suspension of international travel for employees and restriction of foreign personnel to our operations at Segovia. • Work from home strategy for all office staff. • Mandatory PPE and signage installed to aid in protective measures and social distancing. • Increased disinfection, monitoring of possible symptoms, and around-the-clock employee access to medical care. Installation of Facial Recognition Technology • Biometric facial recognition was installed for touchless access, health screening, and mask compliance. • The technology takes the temperature of each employee and alerts if temperatures are over 38 ° C. Employee Sanitization Stations • Additional employee sanitization stations were installed. • Stainless steel sinks with pedal pumps are used to avoid surface contact. TSX: GCM OTCQX: TPRFF TSX: GCM OTCQX: TPRFF September 2020 September 2020
COVID-19 Response Supporting Vulnerable Communities Gran Colombia supported vulnerable communities, donating: Protein groceries for families in Segovia, Remedios, Marmato, Caldas, Riosucio and surrounding communities of Chinchina and Mato Sanitation kits to first responders 110,000 face masks for the communities of Antioquia and Caldas TSX: GCM OTCQX: TPRFF September 2020 5
Capital Structure Fully Diluted = ~89.4M shares Undervalued Versus Peers Exchanges Warrants Quarterly Dividend TSX: GCM CA$0.015 per common share • GCM.WT.B: 11.2 million @ CA$2.21 (2024 expiry) Payment date: October 15, • OTCQX: TPRFF 2020 Unlisted: 3.3 million @ CA$5.40 (2023 expiry) Record date: September 30, • Unlisted: 7.1 million @ CA$6.50 (2023 expiry) Market Capitalization 2020 Stock Options (as of August 31, 2020) CA$372 million (1) NCIB (2) 1.8 million @ CA$2.55 to CA$4.05 (2021-2024 expiry) Commencing September 4, • Convertible Debentures 2020 for a 12-month period Common Shares Authorized to purchase up • to 5.9M common shares CA$20 million @ CA$4.75 (2024 expiry) 61.9 million $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 (1) Based on C$6.00 at close on August 31, 2020. TSX: GCM OTCQX: TPRFF TSX: GCM OTCQX: TPRFF (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 September 2020 September 2020 6 issued and outstanding Shares in the public float as of August 31, 2020.
Valuation Significant Re-Rating Potential Stifel GMP - CA$8.75/share target price (August 14, 2020 Research Report) “Another solid operational Q for GCM; significant free cash flow generation ahead. GCM currently trades at 0.44x spot P/NAV behind peers at 0.55x. GCM has a Free Cash Flow Yield of 32% versus peers at 10%.” Red Cloud Securities - CA$13.00/share target price (August 17, 2020 Research Report) “Confidence in H2/20 signaled with dividend declaration. GCM trades at 1.8x 2021E EV/EBITDA and 0.43x NAV versus peers at 5.0x and 0.9x.” Fundamental Research - CA$11.41/share target price (August 28, 2020 Research Report) “We estimate GCM’s shares are trading approximately 75% below all the average metrics of senior producers. GCM’s forward EV/EBITDA is just 1.5x versus the senior producers’ average of 8.1x.” Frank Holmes, U.S. Global Investors (August 20, 2020, Twitter) “ GCM has the highest free cash flow yield 16% vs 75 gold stocks we follow with median 2.5%. Gold stocks trade at 13x cash flow and GCM is 3x.” TSX: GCM OTCQX: TPRFF TSX: GCM OTCQX: TPRFF September 2020 September 2020 7
The Right Team Seasoned Experience in Colombia Management Directors Serafino Iacono, Executive Chairman – Company co-founder with Miguel de la Campa, Vice Chairman – 30+ years of experience in capital markets and public companies Company co-founder with 30+ years of experience in financing and developing Lombardo Paredes, CEO - 20+ years of corporate leadership and mining and other resource projects operations management experience in the resource sector in Jaime Perez Branger – Executive with 30+ Latin America years of experience in finance and capital Mike Davies, CFO – CPA,CA with 20+ years of international and markets public company experience in resource and other sectors Robert Metcalfe – Lawyer and corporate Alessandro Cecchi, VP Exploration – Exploration geologist with director 20+ years of experience focused gold exploration and Hernan Martinez – Former Colombian development in South America Minister of Mines and Energy Amanda Fullerton, VP Legal and Corporate Secretary – Lawyer Monica De Greiff – Former Executive with 12 years of experience in corporate securities law in President of the Bogota Chamber of resource industries Commerce and former Colombian Minister Jose Ignacio Noguera, VP Corporate Affairs – Lawyer with 20+ of Justice years of experience in public and government affairs and De Lyle Bloomquist – Corporate director 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 TSX: GCM OTCQX: TPRFF TSX: GCM OTCQX: TPRFF 4 September 2020 September 2020
The Right Team Segovia Operations GRAN COLOMBIA 2.0 Focused on Cash, Costs & Execution Production (koz) Cash Cost (US$/oz) 214 Substantial Production 193 Growth while Lowering Costs 149 126 $1,169 ✓ DEMONSTRATED OPERATING AND $1,037 93 80 75 $695 $664 MINE BUILDING EXPERIENCE IN $655 $623 $607 LATIN AMERICA ✓ TRACK RECORD OF IMPROVEMENT 2013 2014 2015 2016 2017 2018 2019 Segovia Lost Time Incidents ✓ STRONG HEALTH & SAFETY RECORD LTI Frequency Rate ✓ FOCUSED ON BUILDING STRONG 40.7 Health and Safety is COMMUNITY RELATIONSHIPS a Top Priority 13.0 5.5 5.0 2016 2017 2018 2019 TSX: GCM OTCQX: TPRFF TSX: GCM OTCQX: TPRFF Source: Company filings. September 2020 September 2020 9
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