Mr. Ralph Shearing reports

GOLDGROUP UPDATES CERRO PRIETO GOLD MINE OPERATIONS

Goldgroup Mining Inc. has provided an update to mining operations at its 100-per-cent-owned Cerro Prieto open-pit, heap leach gold mine located in Sonora, Mexico.

Cerro Prieto mine

The Cerro Prieto mine is an open-pit heap leach gold mine located in Sonora, Mexico. Goldgroup commenced mining operations at Cerro Prieto in 2013 based upon a measured and indicated resource of 8.22 million metric tonnes of 0.81 gram per tonne gold, 17.22 g/t silver, 0.21 per cent lead and 0.54 per cent zinc, published in a 2013 technical report. These resources have been fully exploited as of mid-2023 whereafter the company mined additional mineralization identified during subsequent exploration but not yet included in a published resource calculation (under National Instrument 43-101). From the start of mining operations in 2013 to date, Cerro Prieto has produced 117,033 ounces of gold. Continuing mining operations continue to produce approximately 1,000 to 1,200 ounces of gold monthly.

Mining was focused within the El Centro, Union and South Pit zones along a mineralized structurally controlled shear zone, the Cerro Prieto shear, over a strike length of approximately 1,600 metres. A fourth zone, Puma, offset from the Cerro Prieto shear, was discovered and drilled in 2019 to 2023 and mined since 2020 to 2023.

The published and exploited 2013 resources and new mineralized zones referred to herein were/are located within or near the Cerro Prieto shear, a major north-trending, near-vertical shear zone up to 65 metres wide, that contains a series of major veins near the edges of the zone, secondary veins, stringers zones, breccia zones and silicification, which, with the veins, forms a mineralized system from 15 to 65 metres thick.

Cumbre-Esperanzas zone 2023 exploration drilling

Highlights of some significant drill hole intersections

DDH CP362:

• 19.70 metres of 1.03 g/t gold;
• 5.5 metres of 0.75 g/t gold;
• 20.98 metres of 1.02 g/t gold.

DDH CP374:

• 13.20 metres of 2.05 g/t gold;
• 4.50 metres of 1.16 g/t gold;
• 1.55 metres of 4.78 g/t gold.

DDH CP367:

• 24.96 metres of 0.69 g/t gold;
• 7.70 metres of 1.35 g/t gold;
• 17.97 metres of 1.13 g/t gold;
• 11.80 metres of 0.61 g/t gold.

Diamond drilling sample fire assay analytical results for gold and silver for 23 holes drilled on the Cumbre and Esperanza are shown herein.

Quality assurance/quality control

An industry standard quality assurance/quality control program was followed by the company for all drilling samples with 41 sample duplicates, standards and blanks inserted into the sample stream of 268 drill hole samples, all of which were analyzed by ALS Chemex, located in Hermosillo, Mexico, a certified independent laboratory.

The company has internally modelled an open-pit shell containing the identified mineralization and has chosen to advance these two zones into production. Mine ramp preparation and waste stripping were completed during January and February, 2024, and production blasting and mining of mineralized material commenced at the end of February, 2024.

The company cautions that it has chosen to advance the Cumbre and Esperanza zones into production without the benefit of completing a feasibility study demonstrating economic and technical viability or an independent technical report confirming resources or reserves. Accordingly, readers should be cautioned that Goldgroup's production decision has been made without a comprehensive feasibility study of established reserves or resources such that there is greater risk and increased uncertainty as to future economic results from the Cerro Prieto mine and a higher technical risk of failure than would be the case if a feasibility study were completed and relied upon to make a production decision.

Metallurgy

Metallurgical testing as presented in the 2013 published technical report, Section 6.2, Metallurgy, showed varying recoveries up to 77 per cent from samples of four zones within the Centro, Union and South pits of the exploited 2013 published resource.

Starting in 2021, the mine experienced continuing difficulties in maintaining consistent crushing operations resulting in run-of-mine mineralization being deposited to leach pads. ROM deposition increased in 2022 to as high as 47 per cent of total mineralization deposited to the leach pads. This ROM deposition to leach pad resulted in an expected, significant decrease in gold recoveries.

The company has recently brought back into full service its 2,500-tonne-per-day crushing circuit using a primary jaw crusher with secondary and tertiary cone crushers crushing to final size of five-eighths of an inch, which the company anticipates will allow improved recoveries to the traditional 60-per-cent range.

Planned production expansion

The company is seeking to arrange financing to purchase a second full crushing circuit and expand irrigation of leaching pads to double mine production to 4,500 to 5,000 tonnes per day and, if successful, expects to double its current gold production from that stated above.

Craig Gibson, PhD, CPG, is the qualified person under National Instrument 43-101 who has reviewed and approved the technical disclosure contained in this news release.

Technical report update in progress

Goldgroup has retained an independent qualified person who is preparing an updated comprehensive technical report for the Cerro Prieto mine. Completion and publication of this report are expected near the end of June, 2024.

About Goldgroup Mining Inc.

Goldgroup is a Canadian-based mining company that owns and operates the Cerro Prieto heap leach gold mine located in the state of Sonora, Mexico, and is led by a team of successful and seasoned individuals with extensive expertise in mine development, corporate finance and exploration in Mexico.

We seek Safe Harbor.