Indicated Resources and 900,000 oz Au of Inferred Resources, plus the potential to considerably increase these estimated resources through continued drilling and exploration. Goldgroup is led by a team of highly successful individuals with extensive expertise in exploration, corporate finance, and mine development in Mexico. Goldgroup is listed on the Toronto Stock Exchange under the symbol "GGA", the OTCBB under the symbol "GGAZF" and the SIC under the symbol GGAN.MX.

Caballo Blanco

Caballo Blanco, Goldgroup's 100%-owned advanced stage flagship gold project, is located 65km northwest of Veracruz, Mexico's largest port city. The project consists of two large areas of epithermal gold mineralization: Northern Zone, where the main La Paila Zone is located, and the Highway Zone. In April 2012, the Company announced its results from a preliminary economic assessment ("PEA"). Based on a base case of US$1,500 per ounce gold and US$30 per ounce silver, the Caballo Blanco project is expected to generate a 66.4% pre-tax internal rate of return ("IRR"), and a US$283.8 million pre-tax net present value ("NPV") at a 5% discount rate and produce nearly 687,000 ounces of gold and 1.3 million ounces of silver, based on current mineral resources. At a higher gold price of US$1,700 per ounce, the project's IRR increases significantly to 83.7% with a pre-tax NPV of US$387.6 million at a discount rate of 5%. According to the results of the preliminary economic assessment performed on the Caballo Blanco Project, as set out in the technical report titled "Preliminary Economic Assessment Caballo Blanco Gold Heap Leach, Veracruz, Mexico" dated May 7, 2012, at full production of 20,000 tonnes per day, Goldgroup expects annual production of 95,000 ounces of gold for years two to seven, for total production of 687,000 ounces of gold and 1.3 million ounces of silver for the expected life-of-mine (LOM) of 7.5 years. The preliminary economic assessment is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The Company has not made a production decision and no assurances can be given as to when production may commence.

In 2011, Goldgroup completed a 30,000 metre drill program and in February 2012, the Company announced an updated NI 43-101 mineral resource estimate on the La Paila Zone. In 2012, the Company is continuing with an additional 30,000 metre diamond drill program. The drill program in 2012 is designed to expand the mineralization of the Northern and Highway Zones and extend the projected mine life of the Caballo Blanco project.

San José de Gracia

San José de Gracia, located in the northeast portion of Sinaloa State, Mexico, is a high-grade advanced stage gold project. Goldgroup holds a 50% interest in DynaResource de Mexico, S.A. de C.V., which owns 100% of San José de Gracia. In November 2011, Goldgroup announced an updated NI 43-101 compliant mineral resource estimate on the San José de Gracia project based on an additional 172 drill holes. This updated NI 43-101 Technical Report hosts an Indicated Resource at the Tres Amigos vein of 147,000 oz Au (913,000 tonnes grading 5.00 g/t Au) and an aggregate Inferred Resource at all four veins of 963,000 oz Au (5.8 million tonnes grading 5.16 g/t Au). This updated mineral resource estimate will be used to support a future Preliminary Economic Assessment (PEA) for mining. Goldgroup is currently reviewing strategic alternatives for development for the San Jose de Gracia project.

Cerro Colorado

Goldgroup owns a 100% interest in the Cerro Colorado gold mine, located in northern Sonora, Mexico. Cerro Colorado produced approximately 20,000 ounces of gold in 2011 and 2012. Exploration drilling has continued in areas immediately adjacent to and also near distant to the Cerro Colorado mine site to enhance the mineralization available for production at this facility.
* Mineral resource estimates for the Caballo Blanco project were prepared as part of a NI 43-101 compliant Technical Report dated February 16, 2012 by Jim F Cuttle, B.Sc., P.Geo. And Gary Giroux, MASc., P.Eng. Of Gary Giroux Consultants Ltd, both of whom are independent Qualified Persons under NI 43-101 standards * Mineral resource estimates for the San Jose de Gracia project were prepared as part of NI 43-101 compliant Technical Report as amended February 28, 2011 by Jim F. Cuttle, B.Sc., P.Geo. And Gary Giroux, MASc, P.Eng. Of Giroux Consultants Ltd. Both of whom are independent Qualified Personas under NI 43-101 standards.