Golden Minerals Provides First Half 2012 Production Results for Velardena Operations
Ticker Symbol: U:NYSE U:AUMN ?:MKT:AUMN C:AUM

GOLDEN, CO -- (Marketwire) -- 07/19/12

Golden Minerals Company (NYSE MKT: AUMN) (NYSE Amex: AUMN) (TSX: AUM) ("Golden Minerals" or "the Company") today provided production results for the three and six month periods ending June 30, 2012 as well as an update for the Velardeña Operations, located in Durango State in Mexico.

During the second quarter 2012, the Velardeña Operations had payable production of 1,500 ounces of gold and 90,000 ounces of silver, as compared to 1,700 ounces of gold and 110,000 ounces of silver in the first quarter 2012. First quarter payable production included a positive adjustment of 10,000 ounces of silver from prior periods. In the first half of 2012, payable production was 3,200 ounces of gold and 200,000 ounces of silver. Additionally, the Velardeña Operations had payable production of 200,000 pounds of lead and 300,000 pounds of zinc in the second quarter, and 400,000 pounds of lead and 600,000 pounds of zinc in the first half of 2012. The Company does not plan to provide further production guidance until additional mine development has been completed.

Production during the first six months was negatively impacted by less than planned mine development due primarily to delays in the arrival of underground mine equipment from Argentina and by plant optimization efforts. Nearly all of the equipment from Argentina has now arrived at Velardeña or has been shipped, and the Velardeña Operations are no longer constrained by the lack of underground mining equipment. Mine development, which should permit the Company to open new stopes for mining in the fourth quarter 2012, and ramp-up of production are underway as planned.

As previously announced, the new Canadian National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for the Velardeña Operations prepared during the quarter by Chlumsky, Armbrust and Meyer ("CAM") demonstrates significantly higher grades with fewer tonnes than previous estimates, resulting in relatively the same measured and indicated resource gold and silver ounces as the prior estimate. The new estimate of inferred resource is reduced from the previous estimate as a result of a conservative geostatistical approach for classifying the inferred category. Most of the previous inferred resource is now classified in the potential category.

Although the range in the potential category is similar to the previous estimate of inferred resource, potential cannot be considered in a NI 43-101 Preliminary Economic Assessment ("PEA"). The Company is also considering various options for the long term expansion of Velardeña. The Company has therefore determined that preparing a PEA at this time would not accurately reflect what management believes to be the potential of the Velardeña deposit.

Golden Minerals is continuing to ramp up production at the oxide and sulfide plants to achieve the combined design capacity of 850 tonnes per day, anticipated during the second quarter of 2013. Studies to determine the optimal plant throughput and to evaluate alternatives and timing for possible expansion beyond 850 tonnes per day are ongoing. Potential plant expansion is subject to the availability of funding.