The Company owns a 100% interest in the Cerro Colorado mine, located in northern Sonora, Mexico. The property consists of six mineral concessions covering the area of the mine and 44 concessions in the immediate vicinity of the mine totalling 33,767 hectares. Gold is produced in doré in Mexico and then shipped to a refiner in the United States for final processing prior to sale. The remaining life of the Cerro Colorado mine is estimated to be approximately five years. The project is subject to a net smelter royalty ("NSR") of 3%. 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. Highlights of the Cerro Colorado Mine include:

• 100% owned by Goldgroup Mining Inc.
• 2011 Projected Production - 20,000 oz Au
• Measured and Indicated Mineral Resource: 170,000 oz Au
• Inferred Mineral Resource: 74,000 oz Au
• Resources are sufficient for a 5 year mine life based on current production levels
• Installed new crushing system to increase recoveries
• Ongoing exploration drilling to increase resources