2010 News Releases

September 14, 2010

Goldgroup Launches US$8.5 Million 30,000 Metre Drilling and Exploration Program at Caballo Blanco

Vancouver, British Columbia (September 14, 2010) - Goldgroup Mining Inc., TSX:GGA, ("Goldgroup" or the "Company") is pleased to announce that a multi-phase drilling and exploration program at its Caballo Blanco gold project in Veracruz, Mexico will commence near the end of September, 2010. The budget for this program is US$8.5 million. Goldgroup's 500 km² Caballo Blanco property hosts multiple mineralized zones comprising numerous geological targets.

The 30,000 metre multi-drill program, using diamond and reverse circulation drilling, has been designed to expand and upgrade the current NI 43-101-compliant mineral resource estimate at the La Paila anomaly (contained in the NI 43-101 technical report dated March 22, 2010) and to test other highly prospective areas for mineralization, including targets at the Red Valley and Highway zones. The NI 43-101 technical report dated March 22, 2010 addresses only the estimated mineral resource of 656,000 oz/Au (139,000 oz/Au indicated; 517,000 oz/Au inferred) from the La Paila area in the Northern Zone and was compiled from 32 diamond drill holes totaling approximately 7,000 meters.

Francisco Escandon, Director of Operations at Caballo Blanco stated: "This extensive exploration program at Caballo Blanco will provide Goldgroup with enough geological knowledge of the area to significantly advance our production planning process. The Company's future annual production target for Caballo Blanco is approximately 100,000 ounces of gold".

As part of the exploration program at Caballo Blanco, the Company also intends to conduct

  • Ground geophysics - a 63 km induced polarization (IP) survey (line cutting has commenced)
  • Geochemical analysis of surface grab samples-in progress
  • Metallurgical testing
  • Construction of several underground adits for bulk sampling and to assess structural geology
  • An environmental impact study

About Caballo Blanco

The Company purchased the option to acquire a 70% interest in Caballo Blanco from NGEx Resources Ltd. ("NGEx"), a member of the Lundin Group, for CDN$6.0 million in cash and 9 million Goldgroup shares. The remaining 30% interest in Caballo Blanco is owned by Almaden Minerals Ltd. NGEx is the Company's second largest shareholder, currently holding approximately 10.5% of the outstanding Goldgroup shares. NGEx also holds a 1.5% NSR royalty on Goldgroup's portion of future mine production. Upon commercial production, NGEx will receive a one-time advance royalty payment in the amount of CDN$5.0 million.

About Goldgroup

Goldgroup is a well-funded Canadian-based gold production and exploration Company focused exclusively on Mexico, targeting growth in gold production, mineral resources, profitability and cash flow from a portfolio of production, development and exploration stage projects. The Company owns and operates the Cerro Colorado Gold Mine in Sonora, Mexico. All gold production is un-hedged and the Company expects to produce approximately 25,000 ounces of gold in 2010. The Company's property portfolio includes its interests in the Caballo Blanco project in Veracruz and the San José de Gracia high-grade gold project in Sinaloa.

Goldgroup is led by a team of highly successful and seasoned individuals with extensive expertise in exploration, corporate finance and mine development in Mexico. Kevin Sullivan, B.Sc., M.AusIMM, the Company's Vice President, Exploration and a qualified person, as defined by NI 43-101, has reviewed the technical information contained in this news release.

For further information on Goldgroup and Caballo Blanco, please visit www.goldgroupmining.com or contact:

Keith Piggott, CEO
T: 604-682-1943

David Fry, Investor Relations
T: 778-330-2759