Mr. Keith Piggott reports

GOLDGROUP PROVIDES CERRO PRIETO UPDATE

Goldgroup Mining Inc. has released production and sales results for January to September, 2015, for the Cerro Prieto project located in the Cucurpe mining district, Sonora, Mexico, which is composed of the San Felix (205 hectares), San Francisco (10 hectares), Elba (5.82 hectares), Huerta de Oro (20 hectares), Reyna de Plata (9.79 hectares), Cerro Prieto North (2,508 hectares) and Argonauta 6 (4,120 hectares) mineral concessions. Cerro Prieto is 52 road kilometres from the regional centre of Magdalena de Kino (population 40,000) and 150 kilometres northeast of the city of Hermosillo.

Cerro Prieto commenced small-scale trial mining and leaching in December, 2013, and until commercial production is achieved, all costs and revenues are capitalized to the mineral property. During the nine-month period ended Sept. 30, 2015, Cerro Prieto produced 6,250 ounces of gold.

                      PRODUCTION AND SALES RESULTS OVER NINE MONTHS

Cerro Prieto          January February March April May June July August September

Gold ounces, produced     541      581   512   492 444  846  818  1,095       921
Gold ounces, sold         280      642   677   416 378  805  870    961       922

As depicted in the attached table, the project has shown a positive trend in gold production over the previous two quarters.

Keith Piggott, chairman, president and chief executive officer of Goldgroup, commented: "The company has continued its effort to bring better efficiency into Cerro Prieto to allow profitability at lower metal prices. Our key focus for the rest of the fiscal year is to ramp up gold production and lower crushing and mining costs. Although there's still lots of work to be done, I would like to take this opportunity to thank all of the team members for their efforts during these volatile times."

The company wishes to make clear that it is not basing its production decision on a preliminary economic assessment, demonstrating the potential viability of mineral resources, or a feasibility study of mineral reserves, demonstrating economic and technical viability, and as a result, there is increased uncertainty, and these are multiple technical and economic risks of failure, which are associated with this production decision. These risks, among others, include areas that are analyzed in more detail in a preliminary economic assessment or a feasibility study, such as applying economic analysis to resources or reserves, more detailed metallurgy, and a number of various specialized studies.

We seek Safe Harbor.