Canacol Energy Ltd. to Upsize Senior Secured Term Loan to US$220 Million

Canacol Energy Ltd. ("Canacol" or the "Corporation")
(TSX:CNE)(OTCQX:CNNEF)(BVC:CNEC) is pleased to announce that it has entered into
discussions to upsize its existing senior secured term loan with a syndicate of
banks led by Credit Suisse as Lead Arranger, Sole Bookrunner and Administrative
Agent. 


The existing US$140 million term loan, which was entered into on April 3, 2013,
is for a five-year term, with interest payable quarterly and principal repayable
in 15 equal quarterly instalments starting in October 2014, following an initial
18 month grace period. The term loan carries interest at LIBOR plus 4.50% and is
secured by all of the material assets of the Corporation. Canacol is currently
in advanced discussions to upsize this existing term loan by an additional US$80
million on substantially the same commercial terms and with no changes to the
timing of principal repayments. Proceeds from the upsizing will be used for
future capital expenditures in Colombia, costs of the transaction and for
general corporate purposes. Closing of the transaction is subject to credit and
legal approvals from all the syndicate member banks, Canacol Board of Directors
approval, and other customary closing conditions. The transaction is expected to
close and be funded by late March or the beginning of April 2014.


Charle Gamba, President and CEO of Canacol, stated: "The anticipated upsizing of
the syndicated term loan represents another milestone in the execution of
Canacol's business plan by securing non-dilutive cost-effective additional
long-term funds for future capital expenditure activities and providing
additional balance sheet liquidity. Should our exploration and appraisal
drilling programs in 2014 continue to yield success, Canacol will be well
capitalized to develop and bring them on stream quickly."


Canacol is an exploration and production company with operations focused in
Colombia and Ecuador. The Corporation's common stock trades on the Toronto Stock
Exchange, the OTCQX in the United States of America, and the Colombia Stock
Exchange under ticker symbols CNE, CNNEF, and CNEC, respectively.


This press release contains certain forward-looking statements within the
meaning of applicable securities law. Forward-looking statements are frequently
characterized by words such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate" and other similar words, or statements that certain
events or conditions "may" or "will" occur, including without limitation
statements relating to estimated production rates from the Corporation's
properties and intended work programs and associated timelines. Forward-looking
statements are based on the opinions and estimates of management at the date the
statements are made and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ materially
from those projected in the forward-looking statements. The Corporation cannot
assure that actual results will be consistent with these forward-looking
statements. They are made as of the date hereof and are subject to change and
the Corporation assumes no obligation to revise or update them to reflect new
circumstances, except as required by law. Prospective investors should not place
undue reliance on forward looking statements. These factors include the inherent
risks involved in the exploration for and development of crude oil and natural
gas properties, the uncertainties involved in interpreting drilling results and
other geological and geophysical data, fluctuating energy prices, the
possibility of cost overruns or unanticipated costs or delays and other
uncertainties associated with the oil and gas industry. Other risk factors could
include risks associated with negotiating with foreign governments as well as
country risk associated with conducting international activities, and other
factors, many of which are beyond the control of the Corporation. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Canacol Energy Ltd.
Investor Relations
+1 888.352.0555
[e-mail]
www.canacolenergy.com