8 June 2016

Gran Tierra Energy Inc. Announces Colombian Peso Hedging Program

CALGARY, ALBERTA–(Marketwired – June 8, 2016) – Gran Tierra Energy Inc(“Gran Tierra” or the “Company”) (NYSE MKT:GTE)(TSX:GTE) today 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:

Period (millions) USD Amount COP Put (1) Put (2)
Hedged Reference Type (a) (millions) Call LOW HIGH
June 1 to December 31, 2016 Colombian Peso Collar 55,789.2 $18.7 3,000 3,265 3,330
January 1 to May 31, 2017 Colombian Peso Collar 54,294.8 $17.5 3,100 3,300 3,370
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 Bogotá 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.”

About Gran Tierra Energy Inc.

Gran Tierra Energy Inc. together with its subsidiaries is an independent international energy company focused on oil and natural gas exploration and production in Colombia. The Company also has business activities in Peru and Brazil.

Gran Tierra’s Securities and Exchange Commission filings are available on a web site maintained by the Securities and Exchange Commission at http://www.sec.gov and on SEDAR at http://www.sedar.com.

Forward Looking Statements

This press release includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may include, but are not limited to, statements with respect to the Company’s plans and objectives, projections, expectations and intentions. The forward-looking statements contained in this press release reflect several material factors and expectations and assumptions of Gran Tierra including, without limitation, the results of Gran Tierra’s hedging program. Gran Tierra believes the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time but no assurance can be given that they will prove to be correct. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements are made as of the date of this press release and the fact that this press release remains available does not constitute a representation by Gran Tierra that Gran Tierra believes these forward-looking statements continue to be true as of any subsequent date. Actual results may vary materially from the expected results expressed in forward-looking statements. Gran Tierra disclaims any intention or obligation to update or revise any forward-looking statements except as expressly required by applicable securities laws. Gran Tierra’s forward-looking statements are expressly qualified in their entirety by this cautionary statement. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that suggested is contained in the Company’s filings with the Securities and Exchange Commission, copies of which are available on the Web site maintained by the Securities and Exchange Commission at http://www.sec.gov and on SEDAR at www.sedar.com.

Contact Information:

Gran Tierra Energy Inc.
Gary Guidry
Chief Executive Officer

Gran Tierra Energy Inc.
Ryan Ellson
Chief Financial Officer

Gran Tierra Energy Inc.
Rodger Trimble
Director of Investor Relations