Overview

Goldgroup Mining Inc. (“Goldgroup” or “The Company”) is a well-funded Canadian-based mining & metals company focused on gold exploration and production in Mexico, one of the world’s best mining jurisdictions. Goldgroup’s goal is to produce +200,000 oz Au per year through organic growth within three years from the Company’s three main assets: Caballo Blanco, San Jose de Gracia and Cerro Colorado.

Goldgroup’s 100% ownership of the Caballo Blanco project, the Cerro Colorado mine, and 50% ownership of the San Jose de Gracia project represents an estimated mineral resource (NI 43-101 compliant) totaling approximately 1.5 million oz Au plus the potential to considerably increase these estimated resources through continued drilling and exploration at the Company’s three main assets. Goldgroup is led by a team of highly successful individuals with extensive expertise in exploration, corporate finance, and mine development in Mexico.

Investment Highlights

• Focused on expanding gold production to +200,000 oz Au/year
• Well funded & no debt : Raised $40 million (at $1.40) in last equity financing
• Developing two advanced – stage NI 43-101 complaint projects: Caballo Blanco & San José de Gracia
• World class Management Team ( 100 + years of proven operating experience )
• Undervalued relative to peers with leverage to:
  • Gold price
  • Increasing production
  • Expanding resources
• Goldgroup’s interests = 1.5 million + oz Au from current assets

Chief Projects

Caballo Blanco Project – Veracruz, Mexico

In September 2011, Goldgroup acquired 100% of the Caballo Blanco 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. In addition, Caballo Blanco 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. Furthermore, the 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, 64.00 m @ 1.20 g/t Au, 144.0 m @ 0.89 g/t Au, and 126.25 @ 0.69 g/t Au.

An on-site column-leach metallurgical testing program is also in progress at Caballo Blanco, along with environmental studies and the design of the mine’s heap-leach pad. The updated NI 43-101 resource estimate expected in Q1 2012 will provide the basis for a Preliminary Economic Assessment expected in Q1 2012. This multi phase, multi-million dollar exploration and work program is designed assist in bringing Caballo Blanco into production by the end of 2012.

San José de Gracia Project – Sinaloa, Mexico

San José de Gracia is a high-grade advanced stage gold exploration project that hosts a NI 43-101 compliant Indicated Resource of 147,000 oz Au and an Inferred Resource of 963,000 oz Au in four veins:  Tres Amigos, San Pablo, La Union, and  La Purisima. Updated in November 2011, the resource estimate includes an Indicated Resource at Tres Amigos of 913,000 tonnes grading 5.00 g/t Au (or 147,000 ounces of gold), and an aggregate Inferred Resource at all four veins of 5,813,000 tonnes grading 5.16 g/t Au (or 963,000 ounces of gold). Goldgroup earned a 50% interest in the San José de Gracia Project in March 2011 upon satisfying its required earn-in expenditures. San José de Gracia was recognized as the ‘Most Significant Gold Project’ in the state of Sinaloa.

In 2011, the 21,000 metre diamond drill program at San José  de Gracia focused on the San Pablo and Tres Amigo vein systems. The program mainly consisted of infill drilling to upgrade the resource category and step-out drilling to expand the known mineralized zones. Goldgroup delineated the San Pablo shoot to a configuration of approximately 550 m down plunge, 170 m along strike, and an average width of 5 m. Tres Amigos is an estimated 800 m along strike on the same structure to the north and is currently open down plunge and showing bigger dimensions than San Pablo. Two other shoots at Purisima and La Union also returned positive results and are open in several directions.

Drilling at San José de Gracia has encountered many high-grade gold intercepts including: 883.91 g/t Au over 0.40 m and 13.93 g/t Au over 4.75 m at Tres Amigos, and 144.08 g/t Au over 1.24 m at La Union. Mapping and sampling of vein structures, as well as environmental base line studies and surface land acquisitions, is ongoing which together with the updated resource estimate completed in Q4 2011 will provide the basis for a Preliminary Economic Assessment (PEA).

Drilling highlights at San José de Gracia include :

Cerro Colorado Mine – Sonora , Mexico

• 100% owned by Goldgroup Mining Inc.
• ~25,000 oz Au production projected in 2011
• Measured & Indicated Mineral Resource: 170,000 oz Au (9.7 million tonnes at 0.54 g/t Au)
• Inferred Mineral Resource: 74,000 oz Au (5.6 million tonnes at 0.41 g/t Au)
• Installed new crushing system to increase recoveries
• Ongoing exploration drilling to increase resources

Management

Keith Piggott, ACSM – President & CEO, Director

Mr. Piggott initially made his name by developing innovative mining systems in the copper & cobalt mines of Zambia at Luanshya, and at Chibuluma, Chambishi and Kalengwa as Mine Superintendent.  He then operated an exploration company in Australia and Papua New Guinea, identifying the gold cap of the Ok Tedi copper ore body, which was then dealt to BHP, which recovered two million ounces of gold in the first three years of production.  Over the past 30 years, he has started and produced (mostly through companies that he has controlled) numerous gold/silver, tin, tungsten, rutile/zircon open pit and heap leach mines in Australia and Mexico utilizing innovative technology to maximize profits. He sold his Australian operations in 1987 to concentrate on developing metallurgical technologies, one of which is a patented dry processing for heavy minerals, which is used today in Australia and Mexico.

For the last twelve years, he has focused on gold production in Mexico and on exploration opportunities for near-term gold/silver production in Mexico and Latin America.  He has launched two Mexican gold mines which have each been in continuous production for twelve and five years, respectively.  Mr. Piggott graduated in Mining Engineering from the Camborne School of Mines in the UK and from the Executive Development Program at the London Business School.

Gregg J. Sedun, LLB – Executive Chairman, Director

Mr. Sedun is an independent venture capital professional based in Vancouver, Canada with 27 years of mining & industry-related finance experience. Upon graduating with a Bachelor of Law Degree (LLB), he practiced corporate finance/securities & mining law in Vancouver until retiring from law in 1997. Thereafter, he founded two private venture capital firms, including Global Vision Capital Corp., where he continues to carry on venture capital investing.

Mr. Sedun has been involved as a director and/or founding shareholder in a number of successful companies including Diamond Fields Resources Inc. (Founding Director) which was acquired by Inco in 1996 for $4.3 billion in the largest takeover of a junior mining company in Canadian history; Adastra Minerals Inc. (Founding Director) which was acquired by First Quantum Minerals in 2006 for $275 million; and Peru Copper Inc. (Founding Shareholder) which was acquired by Chinalco in 2007 in an all-cash $840 million takeover. Mr. Sedun is also currently Chairman & CEO of Uracan Resources (TSX.V:URC), President of Oceanic Iron Ore Corp. (TSX.V:FEO) and former President and CEO of Diamond Fields International Ltd. (TSX:DFI).

John Sutherland, CGA – Vice President & CFO

Mr. Sutherland is a Vancouver-based specialist in corporate finance, resource and growth companies. He was CFO of Arequipa Resources leading up to its acquisition by Barrick Gold for $1.1 billion. He was also a partner in a venture capital company specializing in worldwide marketing ventures and previous to that, Site General Manager in building a $118 million gold mine in California. Most recently, he was co-founder, Vice-President and CFO of Tekion, Inc., a micro fuel cell developer, and was a key partner in its growth from 4 to 75 employees in under three years and raising US$18 million for this private company. Prior to Tekion, he was President and CEO of ASC AVCAN Systems Inc. and built the company into an international operation. He currently is a Corporate Director of four public companies. Mr. Sutherland is a Certified General Accountant and has a diploma in Operations Management from the B.C. Institute of Technology.

Kevin Sullivan, B.Sc, MAusIMM – Vice-President, Exploration

Mr. Sullivan is a graduate geologist from Victoria University of Wellington, New Zealand and a member of the Australasian Institute of Mining and Metallurgy. He has twenty years of gold exploration experience in Australia, during which time he was instrumental in the discovery of the Mt. Leyshon gold deposit which subsequently produced in excess of 2.5m oz of gold. For the past ten years, Mr. Sullivan has worked in Mexico, Nevada, Arizona and Chile exploring for and assessing various gold projects, two of which he has helped put into production.

Francisco Escandon, Geol. Eng. MMSA – Technical Director

Mr. Escandon is a graduate geological engineer from the National University of Mexico, with more than 40 years of experience in exploration and mining. Mr. Escandon’s varied experience includes mine design, metallurgical research, feasibility studies and environmental studies. Mr. Escandon was the Director in charge of the Consejo de Recursos Minerales, Mexico’s national Mining Bureau for six years. He is a qualified professional as defined by Canadian NI 43-101 regulations.