2011 News Releases

April 20, 2011

Goldgroup Cuts Several 90-Plus Metre Intercepts of Oxide Gold at Caballo Blanco, Mexico

DDH 10 CBN 54: 91 m @ 0.70 Au (and 67 m @ 0.82 g/t Au)

DDH 11 CBN 68: 134 m @ 0.61 g/t Au
DDH 11 CBN 72: 122 m @ 0.80 g/t Au

Vancouver, British Columbia (April 20, 2011) -- Goldgroup Mining Inc. ("Goldgroup" or the "Company") is pleased to announce that, further to the news release of April 7, 2011, additional diamond drill holes at its Caballo Blanco gold project in Veracruz, Mexico, have yielded significant gold intercepts. All the drill holes reported below (see Tables 1 and 2) are exploration holes collared on the eastern and southwestern flanks of the La Paila zone.

Keith Piggott, President and CEO of Goldgroup, stated: "These latest results follow on from the high-grade hole DDH 10 CBN 73 (48.5 m @ 3.47 g/t Au) announced April 7, 2011, and enlarge the La Paila zone to the southwest and northeast by a minimum of 100 metres. Importantly, the drill-hole intercepts all occur at shallow depths, consist exclusively of oxide material, and are consistent with our strategy of developing an open-cut, run-of-mine, heap-leach gold operation. The zone remains open to the southwest, northeast, and southeast where further exploration drilling is ongoing to expand the size of La Paila."

Table 1. Drill-Hole Results for the Caballo Blanco Project, Mexico

Diamond Drill Hole Mineralization
From (m) To (m) Interval (m) Au grade (g/t)
10 CBN 54 15.20 106.25 91.05 0.70
and 122.25 128.25 6.00 0.30
and 150.25 217.05 66.80 0.82
10 CBN 61 79.10 117.10 38.00 0.42
and 129.10 229.10 100.00 0.33
and 259.10 267.10 8.00 0.58
11 CBN 68 37.00 171.00 134.00 0.61
11 CBN 69 29.80 203.80 174.00 0.45
and 241.00 257.00 16.00 0.32
11 CBN 70 22.00 151.50 129.50 0.49
11 CBN 72 56.00 178.00 122.00 0.80

Holes 52, 53, 56, 58-60, 62-67, are reverse-circulation ("RC") drill holes and are not being reported until a full analysis and interpretation is completed. Hole 71 is a diamond drill hole that was abandoned in a fault zone above its target depth. For a drill hole location map, click here.

The holes presented above intersected mineralization are well in excess of the 0.2 g/t Au cut-off grade used in estimating the inferred mineral resource presented in the current Caballo Blanco NI 43-101 technical report, as amended February 28, 2011 and available on SEDAR. These results are part of the current drill program that commenced in October, 2010 and areintended to be used in the preparation of an updated mineral resource estimate.

Table 2. Drill-Hole Data, Caballo Blanco Project, Mexico

Hole Number East UTM Coord (metres) North UTM Coord(metres) Elevation(m.a.s.l) Azimuth(degrees) Plunge(degrees) Total Length(metres)
10 CBN 54 768378 2184354 519 090 -45 217.05
10 CBN 61 768200 2184100 503 na -90 287.10
11 CBN 68 768323 2184287 525 090 -80 235.50
11 CBN 69 768370 2184252 489 090 -60 287.80
11 CBN 70 768402 2184297 529 090 -50 191.50
11 CBN 72 768344 2184209 477 090 -50 212.00
m.a.s.l = metres above sea level; Coord = Coordinate; na = not applicable
About Caballo Blanco

Goldgroup owns a 70% interest in Caballo Blanco. The remaining 30% interest is owned by Almaden Minerals Ltd. The Caballo Blanco project consists of a series of oxide gold zones located in the Veracruz province of eastern Mexico. The principal gold zone at Caballo Blanco is the La Paila prospect located within a cluster of high-sulphidation epithermal gold deposits referred to as the Northern Zone. The current estimated mineral resource for La Paila consists of 139,000 ounces of gold (6.7 million tonnes grading 0.65 g/t Au) contained in indicated resources and 517,000 ounces of gold (27.6 million tonnes grading 0.58 g/t Au) contained in inferred resources. This estimate was compiled from 32 diamond drill holes totaling approximately 7,000 metres completed by NGEx Resources Inc. prior to Goldgroup's acquisition of its interest in the project from NGEx in November, 2009. Other known gold zones at Caballo Blanco occur approximately 7 km to the southeast at the Highway Zone. These gold zones have yet to be drill tested.

Assaying and Qualified Person

After project geologists logged and marked the core, technicians cut the individual lengths with a diamond saw, then tagged the bags and secured them with security clips. The samples were then collected by Inspectorate America Corp. ("Inspectorate") and transported to their preparation facility at Durango, Mexico where they were dried and crushed to -150 mesh. The rejects remained with Inspectorate while the pulps were air couriered to Inspectorate's Richmond, BC, Canada facility and analyzed for gold by fire assay with Atomic Absorption ("AA") finish. In addition, a 30 element Inductively Coupled Plasma ("ICP") analysis (aqua regia digest) was conducted on all samples. A QA/QC program was implemented as part of the sampling procedure for the drill program. One standard, one blank or one duplicate was inserted per group of 15 samples sent the laboratory. This news release has been prepared under the supervision of Mr. Kevin Sullivan, B.Sc. MAusIMM, and the Company's Vice President of Exploration who serves as the qualified person as defined by National Instrument 43-101 responsible for ensuring that the geological information in this release is accurate.

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. Goldgroup's property portfolio includes its interests in its flagship project, Caballo Blanco in Veracruz and the San José de Gracia project in Sinaloa.

Goldgroup is lead by a team of highly successful and seasoned individuals with extensive expertise in exploration, corporate finance and mine development in Mexico.

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

Keith Piggott, President & CEO
T: 604-682-1943

David Fry, Corporate Development
Toll Free: 1-877-655-ozAu(6928)