Serafino Iacono, Executive Co-Chairman of Gran Colombia Gold, purchases 260,000 shares of the company

TORONTO, May 16, 2012 /PRNewswire/ - Gran Colombia Gold Corp. (TSX: GCM) announced today that its Executive Co-Chairman, Serafino Iacono, has purchased an aggregate of 260,000 common shares of the Company on May 16, 2012 at an average price $0.39 per share, on the open market.  As at today's date, Mr. Iacono holds 8,681,416 shares of the Company (representing 2.27% of the issued and outstanding shares).

Mr. Iacono commented, "I am very encouraged by the recent exploration results at the Company's flagship project at Marmato.  As disclosed in the Company's May 14, 2012 press release, the ongoing deep drilling has produced the best results to date and indicates the presence of a deep zone mineralization that is open at depth and shows increasing grades with depth."

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.