Goldgroup Hires General Manager for Caballo Blanco and Other Key Personnel

VANCOUVER, May 18 /CNW/ --
TSX: GGA

VANCOUVER, May 18 /CNW/ - 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.






CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION




Certain information contained in this news release, including any
information relating to future financial or operating performance may
be deemed 'forward-looking'. All statements in this news release, other
than statements of historical fact, that address events or developments
that Goldgroup expects to occur, are 'forward-looking information'.
These statements relate to future events or future performance and
reflect Goldgroup's expectations regarding the future growth, results
of operations, business prospects and opportunities of Goldgroup. These
forward-looking statements reflect Goldgroup's current internal
projections, expectations or beliefs and are based on information
currently available to Goldgroup. In some cases forward-looking
information can be identified by terminology such as 'may', 'will',
'should', 'expect', 'intend', 'plan', 'anticipate', 'believe',
'estimate', 'projects', 'potential', 'scheduled', 'forecast', 'budget'
or the negative of those terms or other comparable terminology. Certain
assumptions have been made regarding the Company's plans at the Caballo
Blanco property. Many of these assumptions are based on factors and
events that are not within the control of Goldgroup and there is no
assurance they will prove to be correct. Forward-looking statements are
subject to a variety of known and unknown risks, uncertainties and
other factors that could cause actual events or results to materially
differ from those reflected in the forward-looking statements, and are
developed based on assumptions about such risks, uncertainties and
other factors including, without limitation: fluctuations in precious
and base metal prices; inherent hazards and risks associated with
mining operations; inherent uncertainties associated with mineral
exploration and development activities; uncertainties inherent in the
estimation of mineral reserves and/or resources and precious metal
recoveries; uncertainties related to actual capital costs, operating
costs and expenditures, production schedules and economic returns from
Goldgroup's projects; uncertainties related to current global financial
conditions; uncertainties related to the availability of future
financing necessary to undertake exploration, development, mining and
processing activities on Goldgroup's properties; Goldgroup's
substantial reliance on its Cerro Colorado Mine for revenues; risks
related to the planned expansion of the Cerro Colorado Mine; risks
related to the continued operation and planned expansion of the Cerro
Colorado Mine without a current economic analysis; risks related to the
integration of businesses and assets acquired by Goldgroup;
uncertainties related to the competitiveness of the mining industry;
risks associated with Goldgroup being subject to government regulation,
including changes in law and regulation and risks associated with
Goldgroup's need for governmental licenses and permits; risks
associated with Goldgroup being subject to extensive environmental laws
and regulations, including a change in regulation; risks that
Goldgroup's title to its property could be challenged; political and
country risk; risk of water shortages and risks associated with
competition for water; Goldgroup's need to attract and retain qualified
personnel; increases in off-site transportation and concentrate
processing costs; risks related to the need for reclamation activities
on Goldgroup's properties, including the nature of reclamation required
and uncertainty of costs estimates related thereto; risks associated with
potential conflicts of interest; risks associated with potential labour
disputes; and risks associated with potential blockades of mining
operations as well as 'Risks and Uncertainties' included in the Annual
Information Form and MD&A for Goldgroup available at www.sedar.com. Forward-looking information is not a guarantee of future performance
and actual results and future events could differ materially from those
discussed in the forward-looking information. All of the
forward-looking information contained in this news release is qualified
by these cautionary statements. Although Goldgroup believes that the
forward-looking information contained in this news release are based on
reasonable assumptions, readers cannot be assured that actual results
will be consistent with such statements. Accordingly, readers are
cautioned against placing undue reliance on forward-looking
information. Goldgroup expressly disclaims any intention or obligation
to update or revise any forward-looking information, whether as a
result of new information, events or otherwise, except in accordance
with applicable securities laws.

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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)