2011 News Releases

October 17, 2011

Goldgroup Closes Acquisition of 100% of the Caballo Blanco Project

VANCOUVER, BRITISH COLUMBIA - (October 17, 2011) - Goldgroup Mining Inc. (TSX:GGA) ("Goldgroup" or the "Company") is pleased to announce that, further to its news release of September 26, 2011, Goldgroup has completed the acquisition of the remaining 30% interest in the Caballo Blanco project held by Almaden Minerals Ltd. ("Almaden"). Goldgroup now owns 100% of the Caballo Blanco project.

The aggregate consideration paid by Goldgroup to Almaden in connection with the transaction consisted of: US$2,500,000 in cash; 7,000,000 Goldgroup common shares at closing; the right to receive up to an additional 7,000,000 Goldgroup common shares upon the achievement of certain project milestones (1,000,000 common shares upon commencement of commercial production, 2,000,000 common shares upon measured and indicated resources, including cumulative production, reaching 2,000,000 ounces of gold, 2,000,000 common shares upon measured, indicated and inferred resources, including cumulative production, reaching 5,000,000 ounces of gold and 2,000,000 common shares upon measured, indicated and inferred resources, including cumulative production, reaching 10,000,000 ounces of gold); a 1.5% net smelter return royalty; and the transfer of the Company's 40% interest in the El Cobre property.

Keith Piggott, Goldgroup's President and CEO said: "The closing of this transaction represents one of Goldgroup's most significant milestones to date. The Caballo Blanco gold project is Goldgroup's flagship project and an asset that has the potential to contribute an additional 100,000 ounces of low cost annual gold production to Goldgroup's growth profile, with initial production scheduled for Q4 2012. The project also has tremendous upside exploration potential which, if realized, could allow production to be expanded from this initial rate. Our Caballo Blanco team has built strong relationships with local stakeholders, including the Government of Veracruz and many local partners. We collectively look forward to fast-tracking the development of the Caballo Blanco gold project."

About Caballo Blanco

The Caballo Blanco project covers an area of approximately 55,000 hectares and is centered next to the Gulf of Mexico, 65 kilometres northwest of the city of Veracruz in the state of Veracruz, Mexico. In November, 2009, Goldgroup acquired from NGEx an option to acquire a 70% interest in the Caballo Blanco project from Almaden. In August, 2011, the Company satisfied its obligations to earn its 70% interest in the Caballo Blanco project. Further information related to the Caballo Blanco project is available in the technical report entitled "NI 43-101 Technical Report Caballo Blanco Project and a Resource Estimate at the La Paila Zone" dated February 28, 2011 available under Goldgroup's profile on SEDAR atwww.sedar.com.

About Goldgroup

Goldgroup is a well-funded Canadian-based gold producer and is focused on the acquisition, exploration and development of advanced stage gold-bearing mineral properties in the Americas. The Company's current gold production and exploration and development related activities are conducted exclusively in Mexico, one of the world's most advantageous mining jurisdictions. Goldgroup owns and operates the Cerro Colorado Mine in Sonora along with a property portfolio that includes its interests in the Caballo Blanco project in Veracruz and the San José de Gracia project in Sinaloa.

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

Keith Piggott, President & CEO

T: 604-682-1943

David Fry, Corporate Development

TF: 1-877-655-ozAu (6928)