Goldgroup recently acquired 100% of the Caballo Blanco gold project, which is located 65km northwest of Veracruz, Mexico. The project currently consists of 15 mineral concessions covering 55,000 hectares. Caballo Blanco has easy port access, as well as paved roads and access to power and clean water. Caballo Blanco also has on-site metallurgical and assay facilities. Goldgroup is targeting a resource sufficient to sustain 100,000 ounces of annual gold production commencing in late 2012.

The Company is continuing its 30,000 meter multi-million dollar multi-drill program in 2011, utilizing five large diameter HQ diamond drills. This program is designed to expand and upgrade the NI 43-101 compliant mineral resource estimate from 2009 at the La Paila anomaly, which is expected to be completed in Q1 2012. The Company's 2011 drill program is designed to test other highly prospective areas for mineralization, including other targets at the Northern Zone and Highway Zone. Drilling highlights include: 48.50 m @ 3.47 g/t Au, 100.10 m @ 0.88 g/t Au, 154.00 m @ 0.59 g/t Au, 216 m @ 0.6 g/t Au, 94.5 m @ 2.09 g/t Au, and 64.00 m @ 1.20 g/t Au.

Goldgroup's current Indicated Mineral Resource of 139,000 ounces of gold (6.7 million tonnes grading 0.65 g/t Au) and Inferred Mineral Resource of 517,000 ounces of gold (27.6 million tonnes grading 0.58 g/t Au) covers only the La Paila area in the Northern Zone. All resources are in totally oxidized material. At this time, the NI 43-101 Technical Report was compiled from 32 diamond drill holes totaling approximately 7,000 meters completed by NGEx Resources in 2009.

Caballo Blanco highlights include:

• Inferred Resource:517,000 oz Au; Indicated Resource: 139,000 oz Au
• Revised NI 43-101 resource estimate expected Q1 2012
• Environmental Impact Study submitted - Pending government approval
• Excellent infrastructure
  • 65km Northwest of Veracruz, Mexico's largest port city
  • Paved roads, power, water
  • Onsite metallurgical & assay facilities
• Oxide gold zones contained within a cluster of high-sulphidation epithermal alteration zones
• Extensive exploration upside potential
• Bottle roll tests yielded recoveries of 88% -100%
• Anticipated annual production of ~ 100,000 oz Au in two years

Drill Results

• Caballo Blanco Drill Results - Holes 54-139 - December 2011
• Caballo Blanco Drill Results - Holes 118-128 - October 2011
• La Paila Drill Location Map - October, 2011
• Caballo Blanco Drill Results - Holes 105-117 - August 2011
• Caballo Blanco La Paila Drill Location Map - August 2011
• Caballo Blanco La Paila Drill Hole Location Map - Holes 87-104
• Caballo Blanco Drill Results - Holes 87-104 - June 2011
• Caballo Blanco La Paila Drill Hole Location Map - May 2011
• Caballo Blanco Drill Results - Holes 54-86 - April/May 2011