Overview

Goldgroup Mining Inc. (TSX:GGA ^[1]) is a well-funded Canadian-based gold production, development and exploration company with a significant upside in a portfolio of projects in Mexico, one of the world's best mining jurisdictions. Goldgroup's goal is to produce 100,000+ ounces of gold per year at its flagship project, Caballo Blanco, to sustain production at its operating mine, Cerro Colorado, and to continue exploration and development at San José de Gracia.

Goldgroup's 100% ownership of the Caballo Blanco gold project and 50% interest in the San José de Gracia project, represents an estimated mineral resource (NI 43-101 compliant) totaling approximately 650,000 oz Au of 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.

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Investment Highlights

• Developing Caballo Blanco into production in 2013
• Caballo Blanco PEA highlights: (@ $1,500 gold)
• $284MM Pre-tax NPV
• 66.4% Pre-tax IRR
• Average annual gold production: 95,000 ounces
• 1.5 year payback period
• 80.7% recovery
• Well-funded and no debt: Raised $40 million at $1.40 in last equity financing
• Undervalued relative to peers
• Highly experienced management team with proven operating and mine production experience in Mexico (combined 100+ years
• Significant management (17%) and institutional (51%) ownership
• Growth in shareholder value through:
• Leverage to the gold price
• Increasing Production
• Increasing Resources
• Mexico: Highly-prospective and mining friendly region

Chief Projects

Caballo Blanco Project - Veracruz, Mexico

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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. The project currently consists of 15 mineral concessions covering over 54,000 hectares. Caballo Blanco has easy port access, as well as paved roads and access to power on-site and clean water. Goldgroup has also developed a large on-site metallurgical and assay facility.

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In February 2012, the Company announced an updated NI 43-101 mineral resource estimate on the La Paila Zone at Caballo Blanco and in April 2012, the Company completed a Preliminary Economic Assessment ("PEA"). Based on a base case of $1,500 per ounce gold, 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%. Initial production at Caballo Blanco is expected to commence in 2013 at an average annual rate of approximately 100,000 ounces of gold.

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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. In the updated mineral resource estimate released in February 2012, approximately 36,000 metres in 145 holes of additional diamond drilling was completed at the La Paila Zone from October 2010 to December 2011 expanding the indicated resource significantly by 314%. Based on a 0.20 g/t Au cut-off grade, the Company's indicated mineral resources at the La Paila Zone at Caballo Blanco grew from 139,000 to 575,000 ounces of gold (28.9 million tonnes grading 0.62 g/t Au).

The inferred mineral resources summed to 419,000 ounces of gold (24.0 million tonnes grading 0.54 g/t Au). Furthermore, this updated mineral resource estimate added silver resources to the mineral resource estimate at Caballo Blanco, including 2,150,000 ounces of silver indicated resources (28.9 million tonnes grading 2.32 g/t Ag) and 1,930,000 ounces of silver (24.0 million tonnes grading 2.5 g/t).

The Caballo Blanco gold project consists of a series of vuggy silica breccias, high sulphidation, fully oxidized epithermal gold zones. The gold is very fine and occurs within a vuggy and brecciated silica alteration of an original Andesite host rock in the upper levels of the surrounding epithermal system. Two large areas of epithermal gold mineralization have been discovered within the current Caballo Blanco property, referred to as the Northern Zone and Highway Zone. The La Paila Zone currently remains open to the south, southwest and northeast.

San José de Gracia Project - Sinaloa, Mexico

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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:

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Cerro Colorado Mine - Sonora , Mexico

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• 100% owned by Goldgroup Mining Inc.
• ~20,000 oz Au production projected in 2012
• Installed new crushing system to increase recoveries
• Ongoing exploration drilling to increase resources

Management

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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.

Patrick Glynn, B.Sc., B.Eng. - Vice-President, Technical & Projects

Mr. Glynn is a graduate metallurgist from The University of the Witwatersrand in Mineral Processing Engineering. Mr. Glynn has 35 years of experience in the operation and design of gold, copper, nickel and PGM's processing facilities. He has worked in Zimbabwe, South Africa, Russia, Australia and Laos providing expertise in mineral processing and project management. From December 2009 to January 2012 he held the position of Project Manager for Rosemont Copper Company managing a billion dollar project. Prior to Rosemont Copper Company, he was the Senior Project Manager at AMEC International on a multibillion dollar Potash expansion project in Saskatchewan. He has also spent a significant part of his career at Bateman Engineering as a Project Manager for the Sepon gold and copper projects in Laos and as a mineral processing engineer/manager.

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