Tolima Gold Announces US$500,000 Private Placement of Debentures

TORONTO, ONTARIO--(Marketwired - Oct. 28, 2013) -

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Tolima Gold Inc. (TSX VENTURE:TOM) (the "Company" or "Tolima"), is pleased to announce a private placement offering of secured debentures in the principal amount of US$500,000. The Company has issued US$250,000 principal amount of secured debentures and expects to issue a further US$250,000 principal amount of secured debentures in the next week. Tolima will use the proceeds for working capital and general corporate purposes.

The debentures are secured by a first ranking security interest against Tolima's assets, bear interest at a rate of 18% annually and mature on October 25, 2014. In addition, holders of debentures were also issued 2,000,000 common shares in the capital of Tolima (the "Common Shares").

PowerOne Capital Markets Limited acted as arranger and collateral agent for the lenders and received a US$25,000 fee in consideration therewith.

Information Concerning Tolima

Tolima is a gold exploration and development company with contractual interests in gold properties in Colombia. Tolima's mineral properties are the Remedios Project, located in the Remedios/Segovia mining district, including the San Pablo and Bartola mines, located in the Antioquia Department of Colombia; the Ancal/Marmato Project, located in the Marmato/Caramanta district in the Caldas and Antioquia Departments of Colombia; and the Nortol project, including the newly acquired Papayo property, located in the Northern part of the Tolima Department of Colombia. Tolima continues to explore opportunities for the acquisition of additional mining interests in prospective mining districts in Colombia.

Forward-Looking Statements

Certain statements in this press release that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, are forward-looking statements within the meaning of securities law.

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