2011 News Releases

Vancouver, British Columbia (March 2, 2011) - Goldgroup Mining Inc. (TSX:GGA) ("Goldgroup" or the "Company") is pleased to announce that it has entered into an underwriting agreement with a syndicate of underwriters to complete an increased offering of 25.0 million common shares at a price of Cdn$1.40 per share (the "Offering Price") to raise aggregate gross proceeds of Cdn$35.0 million (the "Offering"). This represents an increase of 5.0 million common shares from the previously announced financing. The Company has also granted the underwriters an option to purchase up to 3.75 million additional common shares at the Offering Price within 30 days following closing to cover over-allotments, if any, and for market stabilization purposes. A final short form prospectus has been filed in connection with the Offering with the securities regulators in Alberta, British Columbia and Ontario. The Company expects to close the Offering on or about March 9, 2011.

Dahlman Rose & Company, LLC and Canaccord Genuity Corp. are acting 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 Offering has been conditionally approved by the Toronto Stock Exchange (the "TSX") and listing is subject to fulfilling all of the requirements of the TSX on or before May 10, 2011. The Offering also remains subject to the satisfaction and/or waiver of certain conditions set forth in the underwriting agreement.

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)