Mr. Craig Dalziel reports

OROCO ENTERS INTO AGREEMENTS WITH GOLDGROUP

Oroco Resource Corp. has agreed to assign to Goldgroup Mining Inc. the company's right to the refund obtained by Minas de Oroco Resources SA de CV of value-added tax paid during the years 2008 through 2012. In consideration of the assignment, Goldgroup will pay the company 1.2 million common shares and 50 per cent of any VAT recovered in excess of $400,000, which sum Goldgroup may elect to pay in Goldgroup shares valued at their five-day weighted-average trading price at the time of payment. The company will reimburse Goldgroup for 60 per cent of any amount less than $400,000 of VAT recovered by Aug. 30, 2015, though it will remain entitled to recover that amount back from any future VAT recoveries. The company is of the opinion that Goldgroup's in-country resources, expertise and contacts will substantially sustain and enhance MOR's efforts and ability to recover the VAT in a timely fashion. Closing of the agreement is conditional upon receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.

The company also announces that, in support of a $10-million (U.S.) loan facility agreement between Goldgroup and two lenders, RMB Resources Inc. and Credipresto SAPI de CV Sofom ENR, it has also entered into a subordination agreement with Goldgroup and RMB, with regard to the production royalty, the $1.5-million interest-bearing promissory note and the $4,125,000 promissory note remaining to be paid by Goldgroup pursuant to the terms and conditions of the Aug. 30, 2013, agreement by which MOR was sold to Goldgroup. Pursuant to the subordination agreement, Goldgroup shall pay the production royalty and redeem the $1.5-million promissory note in accordance with the terms of the MOR sale agreement. However, Goldgroup may only redeem the $4,125,000 promissory note with either: (a) cash proceeds from the sale of Goldgroup shares; or (b) 16.5 million Goldgroup common shares in lieu of cash (as is Goldgroup's right pursuant to the terms of that promissory note). The terms of the $4,125,000 promissory note have also been amended such that the company shall have the right, in the event that Goldgroup does not redeem the promissory note on time, to demand payout by way of the 16.5 million Goldgroup common shares in lieu of cash. However, other than with regard to the demand for payout of the $4,125,000 promissory note with shares, the company may only demand or enforce payment of any of the Goldgroup payment obligations after either the current credit facility has been repaid in full or RMB has granted its consent, which consent is not to be unreasonably withheld.

Goldgroup has announced that it will use its first drawdown of the loan facility to repay the lenders to Goldgroup a $4.25-million loan on Aug. 30, 2013, which payout will result in the release of the company from the Aug. 30, 2013, subordination agreement, which prohibited the company from accepting any cash payment related to the production royalty and the two promissory notes, other than the 16.5 million shares in lieu of cash as payout of the $4,125,000 promissory note.