Gran Tierra Energy (GTE) to Sell 43.3M Shares of Common Stock in Bought-Deal Offering

November 21, 2016 5:02 PM EST

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Gran Tierra Energy Inc. (NYSE: GTE) announced that it has entered into an agreement to sell 43,335,000 shares of its common stock, on a bought deal basis, at a price of US$3.00 per share, for aggregate gross proceeds to the Company of approximately US$130.0 million (the "Offering"). The Company intends to use the net proceeds from the Offering to repay borrowings outstanding under the Company's revolving credit facility, which amounts may be reborrowed for general corporate purposes, including to fund appraisal and development and to finance potential acquisitions.

The Offering will be made to the public in the United States and Canada through a syndicate of underwriters (the "Underwriters") led by Scotia Capital Inc., RBC Capital Markets and Dundee Capital Markets. Completion of the Offering is subject to, and conditional upon, the receipt of all necessary approvals, including approval of the NYSE MKT and the Toronto Stock Exchange. The Offering is expected to close on or about November 29, 2016.

The Company has also granted the Underwriters an over-allotment option to purchase up to an additional 6,500,250 shares of its common stock solely to cover over-allotments, if any, on the same terms and conditions as the Offering, including the offer price, exercisable at any time, in whole or in part, until 30 days after the date of the execution of the definitive agreement in respect of the Offering. If the over-allotment option is exercised in full, the aggregate gross proceeds from the Offering will be approximately US$149.5 million.

The offering of securities to which this communication relates is being made in the United States pursuant to an effective shelf registration statement (including a prospectus) filed with the Securities and Exchange Commission (the "SEC") and, in Canada, pursuant to a supplement to the Company's MJDS base shelf prospectus filed with Canadian securities regulatory authorities. You can get copies of these documents for free by visiting EDGAR on the SEC website at www.sec.gov and SEDAR at www.sedar.com. Alternatively, copies of these documents may be obtained, when available, from Scotia Capital (USA) Inc., Attention: Equity Capital Markets (tel: 212-225-6853), 250 Vesey Street, 24th Floor, New York, New York, 10281 or RBC Capital Markets, LLC, 200 Vesey Street, 8th Floor, New York, NY 10281-8098; Attention: Equity Syndicate; Phone: 877-822-4089; Email: equityprospectus@rbccm.com, or in Canada from Scotia Capital Inc., Attention: Equity Capital Markets (tel: 416-862-5837), Scotia Plaza, 66th Floor, 40 King Street West, M5W 2X6, Toronto, Ontario,RBC Capital Markets, Attn: Simon Yeung, Distribution Centre, RBC Wellington Square, 8th Floor, 180 Wellington St. W., Toronto, Ontario, M5J 0C2 (Phone: 416-842-5349; E-mail: Distribution.RBCDS@rbccm.com) or Dundee Capital Markets, Attn: Equity Capital Markets 416 350 6654 ecm@dundeesecurities.com, 1 Adelaide Street East, Suite 2100, Toronto, ON M5C 2V9.



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