2010 News Releases

VANCOUVER, BRITISH COLUMBIA, May 17, 2010 - Goldgroup Mining Inc. (TSX: GGA) ("Goldgroup" or the"Company") today announced its unaudited financial results for the first quarter ended March 31, 2010. The consolidated interim financial statements along with management's discussion and analysis are available on SEDAR at www.sedar.com and on the Company's website at www.goldgroupmining.com. All currency references are to United States dollars unless otherwise noted.

Commentary

Keith Piggott, Chief Executive Officer of Goldgroup, stated:

"We are extremely pleased with the Company's first quarter results which resulted in our highest ever quarterly production, net earnings supported by record metal sales revenue and cash flow from operations before changes in non-cash working capital. Goldgroup is scheduled to produce between 25,000 and 30,000 ounces of gold in 2010 and is realizing record gold sale prices. With the additional production upgrades being implemented at the Cerro Colorado mine, the Company expects to continue delivering strong operating results. Goldgroup became debt free during the quarter and now, having completed the business combination with Goldgroup Resources Inc. on April 30th, the Company is well positioned as a junior gold producer possessing one of the best project portfolios in Mexico relative to our peers."

Summary of financial and operating results

(a) See "Supplemental Information on Non-GAAP Financial Measures"

(b) Cost of sales excludes, accretion, depreciation, depletion and amortization

Net earnings for the first quarter of 2010 were $708,821 compared to $611,837 during the first quarter of 2009.

Revenue from metal sales increased in the first quarter of 2009 compared to the first quarter of 2009 from $4,496,701 to $7,168,658 or 59%. Gold ounces sold increased 30% from 4,911 to 6,375 and the average realized price of gold sold rose 22% from $909 to $1,112 per ounce.

First quarter 2010 production was 6,382 ounces compared to 4,599 in the first quarter of 2009 or an increase of 39%. Cost of sales was $782 per ounce sold for the first quarter of 2010 compared to $572 for the first quarter of 2009. Much of the increase was due to the rental of a secondary crusher, increased cyanide use associated with leaching ore on two leach pads and increased maintenance and labour costs associated with a larger fleet of mining equipment. In April 2010, the Company purchased a secondary crusher for $1.4 million out of cash flow from operations. This is expected to reduce cash operating costs. In addition, the Company expects to perform an overall operating cost review with the aim of further reducing costs.

General and administrative costs were $319,114 for the quarter ended March 31, 2010 compared to $264,434 during the first quarter ended March 31, 2009. The increase is principally due to the additions of two individuals to the Toronto office compared to 2009.

During the quarter ended March 31, 2010, the Company incurred $99,374 in exploration expenditures relating to geological labour, drilling, exploration supplies and assaying costs compared to $93,827 for the same period in 2009. Stock-based compensation for the three months ended March 31, 2010 was $171,125 compared to $29,261 for the first quarter of 2009. This resulted entirely from recognition of part of the fair value of options granted during 2009. Interest expense was $15,568 during the quarter ended March 31, 2010 compared to $39,025 during the quarter ended March 31, 2009. Lower interest costs were primarily the result of lower loan balances than during the similar period of 2009. The Company incurred a foreign exchange gain of $32,102 during the first quarter of 2010 compared to a gain of $13,942 during the same period in 2009. The Q1 2010 gain is mainly the result of a strengthening Canadian dollar relative to the US dollar on Canadian dollar denominated cash balances held in Canada. Income tax expense was $506,923 during the first quarter of 2010 compared to $376,905 during the first quarter of 2009 as a result of higher operating earnings for tax purposes in the current period.

Liquidity and Capital Resources

As at March 31, 2010, Goldgroup had cash and cash equivalents of $1,617,651, a decrease of $664,066 from the balance at December 31, 2009 of $2,281,717. In addition, working capital stood at $2,103,181, down slightly from $2,281,416 at December 31, 2009.

Cash flow provided by operating activities before changes in non-cash working capital for the first quarter of 2010 was $1,360,710 compared to $858,974 during the first quarter of 2009 or a 58% increase. High gold prices and increased gold ounces sold resulting from increased gold production continued to drive strong operating cash flow during the first quarter of 2010.

During the three months ended March 31, 2010, the Company spent $1,514,200 on property, plant and equipment ($483,061), mineral property costs ($14,927), a deposit on mining equipment ($465,000) and merger related costs ($551,212) compared to $282,283 in the first quarter of 2009. Mining equipment expenditures included the purchase of an additional CAT 992C loader ($145,000), a motor rebuild on one of the existing loaders ($45,000), the purchase of an additional CAT 773B haul truck ($95,000) and a motor rebuild on one of the existing haul trucks ($35,000). In addition the mine spent approximately $138,000 on additional liner and piping for expansion of the new leach pad.

During the three months ended March 31, 2010, the Company made the final $450,000 principal repayment against the Warman loan.

Liquidity Outlook

The Company is now debt free. In addition, during April 2010, Goldgroup Resources exercised 3,750,000 warrants to purchase common shares in the Company at C$0.30 per share for gross proceeds of C$1,125,000. Further, the second and final down payment on the purchase of the secondary crusher of $929,500 was made out of operating cash flow. Subsequent to the receipt of the proceeds of the exercise of the warrants, the Company repaid approximately $509,000 still owing as a result of the purchase of the Cerro Colorado gold mine in 2006, to a related party.

The Company believes that between its current cash balances and cash flow from operations, it has the necessary funds available to meet its operating, investing and financing obligations and execute its current business plans.

Results of Mining Operations
Cerro Colorado Gold Mine (100% ownership)

Gold production for the first quarter was 6,382 ounces compared to 4,599 in the year earlier period representing a 39% increase over Q1 2009. Average grade mined during the first quarter of 2010 decreased slightly at 0.64 g/t Au compared to 0.75 g/t Au in the year earlier period. Tonnes mined increased 26% over the prior year quarter due to the purchase of additional haul trucks.

As noted above, subsequent to the end of the quarter, the mine completed the purchase of the secondary crusher for a total of $1.4 million. This replaces a rental secondary crusher, the rental costs of which had been included in cash operating costs. The new crusher is assembled and expected to be commissioned within the next week.

The Company continues to target 2010 annual production of between 25,000 to 30,000 ounces of gold.

Corporate Development

On April 30, 2010, the Company announced the completion of a planned business combination with Goldgroup Resources Inc. For further information about the Company's mineral resource properties following completion of this transaction, please see the joint management information circular of the Company and Goldgroup Resources Inc. dated March 25, 2010, available on SEDAR at www.sedar.com and the Company's news release dated May 10, 2010 which provided a corporate and mineral property update.

About Goldgroup

Goldgroup is a Canadian based debt-free gold production and exploration company focused in Mexico. 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 to 30,000 ounces of gold in 2010. The Company's portfolio of Mexican focused exploration and development properties includes its flagship project, Caballo Blanco in Veracruz, along with the San José de Gracia high-grade underground project in Sinaloa and the 100% owned El Porvenir project in Aguascalientes. Further information about Goldgroup and the Company's properties can be found at www.goldgroupmining.com.

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

Keith Piggott, CEO
David Fry, Corporate Development
T: 604-682-1943
Michael Farrant, President
T: 416-278-4149

SUPPLEMENTAL INFORMATION ON NON-GAAP FINANCIAL MEASURES

Cash Costs

The Company's MD&A often refers to cash costs per ounce, a non-GAAP performance measure in order to provide investors with information about the measure used by management to monitor performance. This information is used to assess how well the producing gold mine(s) are performing compared to plan and prior periods, and also to assess the overall effectiveness and efficiency of gold mining operations. "Cash cost" figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is still an accepted standard of reporting cash costs of gold production in North America. Adoption of the standard is voluntary and the cost measures presented herein may not be comparable to other similarly titled measures of other companies. Costs include mine site operating costs such as mining, processing, administration, royalties and production taxes, but are exclusive of amortization, reclamation, capital, exploration and development costs. These costs are then divided by ounces of gold sold to arrive at the total cash costs per ounce of gold sold. The measure, along with sales, is considered to be a key indicator of a company's ability to generate operating earnings and cash flow from its mining operations.

These gold cash costs differ from measures determined in accordance with GAAP. They are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. These measures are not necessarily indicative of net earnings or cash flow from operations as determined under GAAP.

The following table provides a reconciliation of total cash costs per ounce sold for the Cerro Colorado gold mine to the cost of sales, excluding accretion, depreciation, depletion and amortization as per the unaudited interim consolidated statements of operations.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain information contained in this news release, including any information relating to future financial or operating performance may be deemed "forward-looking". All statements in this news release, other than statements of historical fact, that address events or developments that Goldgroup expects to occur, are "forward-looking information". These statements relate to future events or future performance and reflect Goldgroup's expectations regarding the future growth, results of operations, business prospects and opportunities of Goldgroup. These forward-looking statements reflect Goldgroup's current internal projections, expectations or beliefs and are based on information currently available to Goldgroup. In some cases forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "budget" or the negative of those terms or other comparable terminology. Certain assumptions have been made regarding the forecast 2010 production at Cerro Colorado of between 25,000 to 30,000 ounces of gold. Many of these assumptions are based on factors and events that are not within the control of Goldgroup and there is no assurance they will prove to be correct. Such factors include, without limitation: capital requirements, fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States and Mexico; price volatility in the spot and forward markets for commodities; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local governments in any country Goldgroup currently or may in the future carry on business; taxation; controls; regulations and political or economic developments in the countries in which Goldgroup does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits, diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance, to cover these risks) as well as "Risks and Uncertainties" included in the Annual Information Form and MD&A for Goldgroup available at www.sedar.com. Forward-looking information is not a guarantee of future performance and actual results and future events could differ materially from those discussed in the forward-looking information. All of the forward-looking information contained in this news release is qualified by these cautionary statements. Although Goldgroup believes that the forward-looking information contained in this news release are based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Accordingly, readers are cautioned against placing undue reliance on forward-looking information. Goldgroup expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.