2011 News Releases

March 04, 2011

Goldgroup Mining Inc. Announces Exercise of Over-Allotment Option

Vancouver, British Columbia (March 4, 2011) - Goldgroup Mining Inc. (TSX:GGA) ("Goldgroup" or the "Company") is pleased to announce that in connection with its previously announced offering of 25 million common shares at a price of Cdn$1.40 per share (the "Offering"), the underwriters have determined to exercise the over-allotment option in full to acquire an additional 3.75 million common shares at Cdn$1.40 per share to raise additional aggregate gross proceeds of Cdn$5.25 million. The Company expects to close the Offering concurrently with the over-allotment option on or about March 10, 2011.

Dahlman Rose & Company, LLC and Canaccord Genuity Corp. acted as joint book-running managers for the Offering along with Jennings Capital Inc. acting as co-manager. Dahlman Rose & Company, LLC will only be conducting sales into the United States.

The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or under any state securities laws and may not be offered or sold in the United States, absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

About Goldgroup

Goldgroup is a 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)