Mr. Ralph Shearing reports

GOLDGROUP ACQUIRES THE MAJORITY OF CREDITORS' RIGHTS IN MOLIMENTALES DEL NOROESTE RESTRUCTURING PROCEEDING

Goldgroup Mining Inc. has acquired approximately 52.7 per cent of the creditor rights in Molimentales del Noroeste SA de CV's concurso mercantil (restructuring proceeding equivalent to Chapter 11 in the United States). Molimentales's primary asset is the San Francisco mine concessions, located in Sonora, Mexico.

Goldgroup paid approximately $3.74-million (U.S.) for this acquisition, which includes payments made directly to creditors as well as expenses related to the transaction. The company anticipates incurring additional costs as it continues acquiring further creditor rights and works with Molimentales's court-appointed liquidator to complete the restructuring under the concurso mercantil.

By securing majority control of Molimentales's creditor rights, Goldgroup is now positioned to file a plan of arrangement seeking approval of Molimentales's remaining creditors and the liquidator under the concurso mercantil process. The plan of arrangement, if successful, together with the settlement of outstanding liabilities owed to the Mexican government in order to maintain the San Francisco mine in good standing, will allow Goldgroup to obtain ownership of the San Francisco mine and its associated assets -- including mining concessions, processing plants and all related infrastructure -- free of liens and liabilities.

"This acquisition represents Goldgroup's first steps towards acquiring the San Francisco mine and its associated assets," said Ralph Shearing chief executive officer of Goldgroup Mining. "With majority creditor rights, we now have the legal foundation to move forward and submit a plan of arrangement, pursuant to which registered creditors of Molimentales will be offered settlement terms to extinguish the amounts owed to them, and, subject to approval of the liquidator and the Mexican court having jurisdiction over the concurso mercantil, Goldgroup hopes to acquire Molimentales."

The San Francisco mine, historically one of the significant gold producers in Sonora, has substantial existing infrastructure and potential for future exploration, development, expansion and production. Securing control of this asset is aligned with Goldgroup's vision of becoming a leading Mexican-focused mining company with operational expertise and a strong commitment to responsible mining practices.

Cautionary statement: While the acquisition of the 52.7 per cent of the creditor rights represents an important milestone toward resolving long-standing conflicts and advancing the recovery of the San Francisco mine, there is no assurance that Goldgroup will obtain the necessary approvals required under the concurso mercantil process (including liquidator and Mexican court approvals and satisfactory settlement of outstanding concession fees, taxes and labour-related expenses) to vest Molimentales in Goldgroup's control. Further, there remain inherent risks and uncertainties associated with taking full control of the project. These include, but are not limited to, the approval of the proposed plan of arrangement, potential challenges within the concurso mercantil process, regulatory approvals, and the operational and financial requirements needed to successfully restart and operate the mine.

The completion of the plan of arrangement and proposed acquisition of Molimentales is subject to the prior approval of the TSX Venture Exchange.

The company will provide further updates as the concurso mercantil process unfolds.

About Goldgroup Mining Inc.

Goldgroup is a Canadian-based mining company with two high-growth gold assets in Mexico. The company has a 100-per-cent interest in the producing Cerro Prieto heap-leach gold mine located in the state of Sonora. An optimization and exploration program is under way at Cierro Prieto to significantly increase existing production and resources.

In addition, the company holds a 100-per-cent interest in the Pinos underground gold development project in Zacatecas state. Pinos is an advanced preliminary-economic-assessment-level development project. Formerly a producing mine, the company is commissioning an updated PEA with a view to restarting mining operations.

Goldgroup is led by a team of highly successful and seasoned individuals with extensive expertise in mine development, corporate finance and exploration in Mexico.

We seek Safe Harbor.