at least they responded to my email, any comments.

Zak

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Sent: Thursday, August 29, 2013 2:01 PM
To: IR Mailbox
Subject: concerned (under stated!) share holder.

Dear Karen

I am a long time share holder in this co, in fact recall ECU at .01c in the mid 90’s. I bought in at about .50 to .70c and rode the wave to

$3 range always expecting a bright future for this company, alas the very opposite has transpired and the SP has been annihilated including

My investment of 100k+, I take full responsibility for my poor investment decisions and outcomes.

The descent from dollars In SP to pennies has been personally painful and deeply disappointing, I suspect I am not alone in this saga,

You only have to visit a few popular online investment sites to glean an insight into investor sentiment about this company.

So my question really is about management responsibility to ensure shareholder value, how is this being addressed? How are they attracting new investors with the dismal results to date? How can you reassure share holders this company is not heading for Chap 11.

Thanks in advance.

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Thank you for your email and for your support of Golden Minerals.

If I may, let me start by providing a bit of perspective and history.

Gold and silver prices dropped by roughly 30% and 42%, respectively, during 2013 from peak to trough. Prices have come back from their bottoms but are still down by roughly 17% for gold and 26% for silver from their peaks earlier this year. The depression in prices has impacted companies across the industry, both large and small, as multiple companies including Golden have recorded non-cash impairment charges to reflect a write-down in asset values associated with this decline in metals prices. Barrick reported over $8 billion in impairment charges in its latest financial reports; Anglo Gold Ashanti over $2 billion; Newmont over $2 billion; Kinross over $2 billion; Glencore Xstrata $7.7 billion. Golden recorded an impairment charge of a net $204 million. This is not an inclusive list of companies that've taken impairment charges due to depressed precious metals prices.

In early 2013, Golden forecast our Velardeña Mexican operations would break even during the third quarter 2013, assuming prices of $1600 gold and $30 silver. As prices dropped, the operations did not reach profitability - due also in part to legacy inefficiencies in mining operations and worker productivity that Golden inherited when we bought the property in late 2011. Golden therefore suspended production at Velardeña on June 19th and placed the operations on care and maintenance. This was done to preserve the asset and best preserve cash during this period of low prices, while mine planning and re-engineering are undertaken. We had $30M cash on hand as of June 30 and when we released Q2 2013 results, estimated we will have $16M on hand at year-end. The $16M does not include assumptions around a re-start of operations.

This leads into your question about what management is doing to ensure shareholder value. Near-term, we will conduct planning and testing to devise a scenario/scenarios under which we may resume operations under cash positive terms. We do not want to re-start production until we are confident we can do it profitably at then-current and anticipated metals prices. This work is underway and includes testing gold recovery methods (including bio-oxidation or ferric chloride leaching, autoclave and roasting technologies), underground mapping and sampling to validate mine planning data & verify high-grade shoots that've been identified by mine modeling. Our decision to resume production will be tied to a number of interdependent factors: silver/gold prices, mining method, recovery and processing technologies, plant utilization and workforce utilization decisions. Additionally, in May we completed construction of a production-sized ramp that enables 30+ ton trucks to access the mining areas for ore removal. This ramp will play a role in the decision to resume production, as it should facilitate lower cost, higher-efficiency ore removal.

Concurrently, we continue to reduce G&A expenditures and are on target to achieve an annual run rate reduction (going forward) of roughly 25%. This is being achieved through reductions in corporate executive and employee compensation, audit fees (we recently changed auditors, which should reduce our annual audit expenses by well over half), insurance costs, and other consulting and outside service expenses. Additionally, Golden has reduced exploration expenditures (2013 totals are expected to be down by 75% from 2011 levels) and has sold or disposed of exploration properties that have generated roughly $9M in income.

In other work, we've previously announced we are seeking a partner to move our El Quevar silver project forward; we have signed confidentiality agreements with several parties who have been reviewing the property.

Our website contains a current corporate presentation as well as our second quarter 10-Q quarterly filing made August 8, 2013. All this information and more may be found in those documents.

Please let us know if we can answer any additional questions for you.

Best regards,

Golden Minerals Investor Relations