Gran Tierra Energy (GTE) Enters Colombian Peso Hedging Program; Announces Resolution of Chaza Contract Arbitration

Gran Tierra Energy Inc. (NYSE: GTE) announced that the Company, through one of its wholly owned subsidiaries, recently transacted Colombian peso ("COP") hedges with two banks, providing additional stability to forecasted cash outflows for approximately 110 billion COP or $36 million USD from June 2016 to May 2017. To complement the recently announced commodity hedges for forecasted production which cover the same period, Gran Tierra has hedged certain forecasted COP denominated costs, with multiple underlying contracts to provide downside protection from an appreciation in COP at foreign exchange rates below 3,000 COP per USD to December 31, 2016 and 3,100 COP per USD to May 31, 2017, but also allow upside participation in a depreciation of the COP at foreign exchange rates up to 3,265 COP per USD and ranging as high as 3,370 COP per USD.

Gran Tierra management believes that the added protection from fluctuations in these USD equivalent costs is prudent and the recent weakening of COP rates provides an opportunity to stabilize cash flows.

The following table summarizes the foreign exchange contracts recently completed:

                              COP Hedged                         COP     COP

Period                        (millions)  USD Amount     COP Put (1) Put (2)

Hedged      Reference   Type         (a)  (millions)    Call     LOW    HIGH

----------------------------------------------------------------------------

June 1 to   Colombian Collar    55,789.2       $18.7   3,000   3,265   3,330

 December        Peso

 31, 2016

January 1   Colombian Collar    54,294.8       $17.5   3,100   3,300   3,370

 to May          Peso

 31, 2017

                            ------------------------

                               110,084.0       $36.2

                            ------------------------

                            ------------------------



  (a) Foreign exchange hedges were split evenly at 55 billion COP for each

      bank and put levels noted above with (1) and (2) varied based on

      market conditions May 31 and June 1.

Chaza Contract Arbitration Final Resolution

Gran Tierra also announced today the receipt of a positive decision from the Chamber of Commerce of Bogota Center for Arbitration and Conciliation tribunal (the "Tribunal") relating to its dispute with the Agencia Nacional de Hidrocarburos (National Hydrocarbons Agency) of Colombia ("ANH") with respect to whether all production from the Moqueta Exploitation Area of the Chaza Block exploration and production contract ("Chaza Contract") was subject to an additional royalty (the "HPR Royalty").

In its decision, the Tribunal found that the HPR Royalty under the Chaza Contract was only payable when the accumulated oil production from the Moqueta Exploitation Area exceeded five million barrels. That production threshold was reached on April 30, 2015, and since that time the Company has been paying the HPR Royalty on production from the Moqueta Exploitation Area.

Gary Guidry, President and Chief Executive Officer of the Company, commented: "Gran Tierra values the cooperative relationship that it has with the ANH and we are pleased that this issue has been resolved."

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