RESPECT TO THE CERRO COLORADO MINE AND ANNOUNCES RESTATEMENT OF INTERIM FINANCIAL STATEMENTS AND MD&A

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/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS
NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES/


VANCOUVER, March 1 /CNW/ - As a result of a review by the British
Columbia Securities Commission, Goldgroup Mining Inc. (TSX: GGA)
("Goldgroup" or the "Company") is issuing the following news release to
clarify its disclosure with respect to its Cerro Colorado Mine in
Sonora, Mexico. The Company also announces that it has restated its
previously filed interim consolidated financial statements for the
three and nine month periods ended September 30, 2010 and 2009 and
related MD&A. The Company advises that the clarified disclosure with
respect to the Cerro Colorado Mine is being made in connection with its
previously announced filing of a preliminary short form prospectus and
represent items that were in the Company's disclosure record prior to
the Company's reverse take-over of Sierra Minerals Inc. completed in
April 2010.


Clarification of Technical Disclosure Relating to the Cerro Colorado
Mine


The technical report entitled "Independent Technical Report, Cerro
Colorado Gold Mine, Sonora Mexico" prepared by Michelle Stone, Ph.D.,
P.Geo., with an effective date of April 29, 2009 and a submission date
of March 15, 2010 (the "Cerro Colorado Report"), incorrectly referred
on page 26 to "known reserves". The Cerro Colorado Report also stated
on page 91 that "Mineral reserves have not yet been calculated from the
2009 resource estimates" and stated on page 103 that "Mineral Reserves
have not been calculated". The reference to "known reserves" on page 26
was in error.


In addition, the Cerro Colorado Report incorrectly referred at page 111
to a life of mine analysis (the "Estimate-Valuation") which was
extracted from an estimate valuation report prepared by Evans & Evans
Inc. dated July 6, 2009. The Estimate-Valuation is not an economic
analysis compliant with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and therefore could not be relied upon by the author of
the Cerro Colorado Report. Readers of the Cerro Colorado Report should
not rely upon the Estimate-Valuation.


The reference to "known reserves" on page 26 and references to the
Estimate-Valuation have been retracted and an amended NI 43-101
compliant technical report will be filed by the Company on SEDAR. The
Cerro Colorado Mine currently does not have estimated mineral reserves
or a NI 43-101 compliant economic analysis. Therefore, there can be no
assurance that further exploration at, and planned expansion of, the
Cerro Colorado Mine will result in economically mineable reserves,
increased production or recovery of the capital costs of
expansion. Further, as there are no estimated mineral reserves, there
can be no assurance of continued economic production at the Cerro
Colorado Mine.


Restated Interim Financial Statements and MD&A


The Company, following a review by the Company's auditors of its interim
financial statements for the period ended September 30, 2010, has
elected to restate the Company's previously filed interim consolidated
financial statements for the three and nine month periods ended
September 30, 2010 and 2009. The adjustments relate to:



the reclassification of a general and administrative expense as a cost
of sales;






the reclassification of a cost of sales as an exploration expense; and






to record the unrealized gain on change in fair value of the Company's
held-for-trading investment that was previously not recorded.



The Company has also restated its management discussion and analysis for
such period to reflect the foregoing adjustments. The restated
financial statements and MD&A have been filed with the applicable
securities regulatory authorities on SEDAR.


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 Jose de
Gracia Project in Sinaloa.


Kevin Sullivan, B.Sc., MAusIMM, Goldgroup's Vice President, Exploration
and a qualified person (as defined by NI 43-101) has reviewed the
technical information contained in this news release and reviewed the
release.




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 in respect of its mineral resource properties. 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. Such factors include, without limitation: capital
requirements, fluctuations in the international currency markets and in
the rates of exchange of the currencies of Canada, the United States
and Mexico; price volatility in the spot and forward markets for
commodities; discrepancies between actual and estimated production,
between actual and estimated reserves and resources and between actual
and estimated metallurgical recoveries; changes in national and local
governments in any country Goldgroup currently or may in the future
carry on business; taxation; controls; regulations and political or
economic developments in the countries in which Goldgroup currently or
may in the future carry on business; the speculative nature of mineral
exploration and development, including the risks of obtaining necessary
licenses and permits, diminishing quantities or grades of reserves;
competition; loss of key employees; additional funding requirements;
actual results of current exploration or reclamation activities;
changes in project parameters as plans continue to be refined;
accidents; labour disputes; defective title to mineral claims or
property or contests over claims to mineral properties. In addition,
there are risks and hazards associated with the business of mineral
exploration, development and mining, including environmental hazards,
industrial accidents, unusual or unexpected formations, pressures,
cave-ins, flooding and gold bullion losses (and the risk of inadequate
insurance or inability to obtain insurance, to cover these risks) as
well as "Risks and Uncertainties" included in the Annual Information
Form and MD&A for Goldgroup available at >www.goldgroupmining.com or contact: David Fry, Corporate Development TF: 1-877-655-ozAu (6928)