Quimbaya Gold Inc. (CSE: QIM) (OTCQB: QIMGF) (FSE: K05) is pleased to announce the closing of its previously announced “bought deal” private placement, with Stifel Canada as sole underwriter and bookrunner, pursuant to which the Underwriter purchased 20,585,000 units of the Company at a price of C$0.70 per LIFE Unit, with a right to arrange for substituted purchasers, pursuant to the listed issuer financing exemption, for aggregate gross proceeds to the Company of C$14,409,500 including the full exercise of the Underwriter’s over-allotment option.

Each LIFE Unit is comprised of one common share and one-half of one common share purchase warrant of the Company. Each Warrant is exercisable to acquire one additional Common Share for a period of 36 months following the closing date of the Offering at an exercise price of C$1.00 per Warrant Share.

The net proceeds of the Offering are expected to be used to advance the Company’s exploration programs, including drilling at the Tahami South project and follow-up work on regional copper-gold and gold targets, as well as for general working capital.

The Offering was made pursuant to the LIFE Exemption available under National Instrument 45-106 – Prospectus Exemptions, in each of the provinces of Canada, other than Québec. The LIFE Units were also offered and sold in certain offshore jurisdictions pursuant to available prospectus or registration exemptions in accordance with applicable laws. The LIFE Units issued to substituted purchasers under the LIFE Exemption are not subject to a statutory hold period pursuant to applicable Canadian securities laws.

In consideration for its services, the Underwriter received a cash commission equal to C$722,769.60 and was issued 1,118,208 broker warrants. Each Broker Warrant entitles the holder thereof to purchase one Common Share for a period of 36 months following the closing date of the Offering at an exercise price of C$0.70 per Broker Share. An eligible finder also received a cash commission of $59,976.

The securities referred to in this news release have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, “U.S. Persons” (as such term is defined in Regulation S under the U.S. Securities Act) absent such registration or an applicable exemption from the registration requirements of the U.S. Securities Act. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the Company and management, as well as financial statements.

About Quimbaya Gold Inc.

Quimbaya aims to discover gold resources through exploration and acquisition of mining properties in the prolific gold mining districts of Colombia. Managed by an experienced team in the mining sector, Quimbaya is focused on three projects in the regions of Segovia (Tahami Project), Puerto Berrio (Berrio Project), and Abejorral (Maitamac Project), all located in Antioquia Province, Colombia.

For further information, contact:

Alexandre P. Boivin, President and CEO
apboivin@quimbayagold.com

Sebastian Wahl, VP Corporate Development
swahl@quimbayagold.com