2011 News Releases

May 18, 2011

Goldgroup Hires General Manager for Caballo Blanco and Other Key Personnel

Vancouver, British Columbia (May 18, 2011) - Goldgroup Mining Inc. ("Goldgroup" or the "Company") is pleased to announce that it has hired Mr. Rick Irvine, P.Eng, as the General Manager of the Caballo Blanco gold project in Veracruz, Mexico. The Company also announces that it has promoted Francisco Escandon, Geol. Eng. MMSA, from his former position as Director of Operations of Caballo Blanco to Technical Director of Goldgroup and hired the following: Dustin VanDoorselaere as Projects Manager, Dr. Roger Newell as a Consulting Geologist in charge of Northern Mexico exploration (all of whom will report to Keith Piggott, President and CEO) and Brigitte McArthur as Corporate Secretary. These appointments are consistent with the Company's growth strategy of increasing its gold production significantly in Mexico over the next three years.

Keith Piggott, Goldgroup's President and CEO, said: "We are very pleased Mr. Irvine, Mr. VanDoorselaere, Dr. Newell and Ms. McArthur have joined the Goldgroup team. They will all greatly enhance our operational expertise and help ensure that our flagship gold property Caballo Blanco continues to complete its milestones to production in 2012."

Francisco Escandon, 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 Geological Survey, for six years. He is a member of the Mexican Academy of Engineering and the winner of the National Award in Geology. He is a qualified person (QP) as defined by Canadian NI 43-101 regulations.

Rick Irvine, General Manager, Caballo Blanco
Mr. Irvine is responsible for the development of Caballo Blanco into an operating mine. Rick is an experienced and accomplished mine engineer in operations at senior managerial levels. He has a proven history as a mine builder, having brought three projects from the grass roots stage through to production. He is a self described team-builder, fluent in Spanish and well aware of the cultural differences and working environments of Latin America (Peru, Mexico, Bolivia, Nicaragua, Argentina, Honduras) having lived there for more than 10 years. In addition to a mine engineering background, he possesses a very strong grasp of geology both in education and professionally. Mr. Irvine has received B.Sc. degrees in Geology, University of New Brunswick and Mining Engineering, Queen's University.

Dustin VanDoorselaere, Projects Manager
Mr. VanDoorselaere is responsible for assisting Keith Piggott with all of Goldgroup's projects: Caballo Blanco, San José de Gracia and Cerro Colorado. Dustin is an experienced mining professional who has held a variety of roles including operations, technical and management in underground gold mines in Mexico and West Africa and open pit gold mines in Ghana, Mexico and Canada. He has held upper management positions in Canada, Western Australia, Ghana and Mexico. Dustin has civil construction and contract mining experience, working with a variety of companies in projects throughout Canada as well as contract mining management experience gained throughout the world. Mr. VanDoorselaere received his B.Sc., Mining Engineering, cum laude, from Laurentian University, Ontario.

Dr. Roger Newell, Consulting Geologist
Dr. Newell will direct Northern Mexico exploration with the objective of increasing resources for the Cerro Colorado mine operation. Dr Newell has considerable experience in the Sonora/California gold belt, and as president of Capital Gold's Mexican subsidiary Minera Santa Rita, he most recently assisted in the development of the El Chanate mine that was recently sold to Gammon Gold for $350 million. He is currently Board Chairman of Lake Victoria Mining Company and a Director for Midway Gold Corporation. He was also a senior geologist exploration manager with Newmont and Gold Fields.

Brigitte M. McArthur, Corporate Secretary
Ms. McArthur has served in multiple capacities such as corporate secretary, director and treasurer for several publicly traded companies and has over 22 years experience in corporate and regulatory compliance. She is a member of the Canadian Society of Corporate Secretaries and has wide-ranging international experience in the administration and regulatory compliance of public companies.

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)