Gran Tierra Energy Inc. Announces Strategic US$525 M Acquisition of PetroLatina Energy Ltd. in Colombia

Gran Tierra Energy Inc. is pleased to announce that the Company has entered into an agreement (the "Acquisition Agreement") to acquire PetroLatina Energy Ltd. ("PetroLatina") for cash consideration of $525 million (the "Acquisition"), consisting of an initial payment of $500 million at closing, subject to closing adjustments, and a deferred payment of $25 million prior to December 31, 2016. PetroLatina is a private, independent exploration and production company with assets primarily in the Middle Magdalena basin of Colombia.

"The Acquisition represents a unique material opportunity in Colombia in terms of scale and upside potential, and will add a new core area for Gran Tierra in the prolific Middle Magdalena Basin," commented Gary Guidry, Gran Tierra's President and CEO, "The combination of Gran Tierra's strong, positive cash-flowing asset base and PetroLatina's attractive portfolio of development opportunities will create a premier Colombia-focused exploration and production company."

The Acquisition is expected to be funded through a combination of Gran Tierra's current cash balance, available borrowings under Gran Tierra's existing credit facilities, a new $130 million debt facility, and a private placement of up to $173.5 million of subscription receipts ("Subscription Receipts") priced at $3.00 per Subscription Receipt entitling each holder thereof to one share of common stock in the capital of the Corporation ("Common Shares"). The pricing reflects a 7.9 percent discount from the five day volume weighted average price of $3.26.

"Our balance sheet and financial strength along with low cost operations allow us to execute on our growth strategy in a low oil price environment," said Guidry. "We are acquiring significant proved, probable and possible reserves in a new core area in the Middle Magdalena basin which we expect to enhance our long-term growth strategy and to be an excellent fit with Gran Tierra's current reserves and resources base in the Putumayo basin."