GOLDGROUP FILES SECOND QUARTER 2026 FINANCIAL RESULTS AND PROVIDES UPDATE ON COMBINED COMPANY Javier Reyes Appointed Chief Executive Officer by Unanimous Decision of the Board of Directors Cash Balance US $59 Million and Zero Debt
NEWS RELEASE
GOLDGROUP FILES SECOND QUARTER 2026 FINANCIAL RESULTS AND PROVIDES
UPDATE ON COMBINED COMPANY
Javier Reyes Appointed Chief Executive Officer by Unanimous
Decision of the Board of Directors
Cash Balance US $59 Million and Zero Debt
Vancouver, British Columbia – August 31, 2026 – Goldgroup Mining Inc. (“Goldgroup” or the “Company”)
(TSXV: GORO; NYSE American: GORO; FSE: 55G0) is pleased to announce that it has filed its financial
statements and management’s discussion and analysis (“MD&A”) for the second quarter ended June 30,
2026.
The Company is also pleased to announce that the Board of Directors of Goldgroup has appointed Mr. Javier
Reyes, who had been serving as Interim Chief Executive Officer, as the Company’s permanent Chief Executive
Officer. Mr. Reyes is a mining entrepreneur and corporate executive with more than 25 years of leadership
experience in the natural resources and financial sectors. Throughout his career, Mr. Reyes has founded,
financed, acquired, and transformed several publicly traded companies, establishing a proven track record of
executing complex recapitalizations, strategic transactions, and corporate turnarounds.
In addition, the Company provides an update on activities across its expanded portfolio following the
completion of its transformational combination with Gold Resource Corporation (“Gold Resource”) on July
17, 2026.
Q2 FINANCIAL REPORTING
Goldgroup’s second quarter financial statements and MD&A cover the three and six months ended June 30,
2026, and relate to Goldgroup’s operations prior to completion of the transaction with Gold Resource.
Importantly, the Q2 financial statements do not include the financial results or operating activities of Gold
Resource. The transaction with Gold Resource was completed after the June 30, 2026 quarter-end and,
accordingly, Gold Resource’s results will be incorporated into Goldgroup’s consolidated financial reporting
beginning with the period in which the transaction closed.
Javier Reyes, Chief Executive Officer and Chair of the Board of Goldgroup, commented:
“The filing of our second quarter financial results marks an important reporting milestone for Goldgroup.
However, shareholders should recognize that these results represent Goldgroup as it existed prior to the
completion of our combination with Gold Resource and therefore do not reflect the financial contribution or
operating performance of Don David or Back Forty. ”
“The real significance for shareholders is what has happened since quarter-end. We have completed the
transformational combination and are now operating a substantially larger company with two producing
mines, a formerly producing operation being evaluated for a potential restart and a major development
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project. At the same time, we are advancing aggressive exploration and development programs across the
portfolio. ”
“Our focus is straightforward: grow production, expand resources, extend mine lives and advance San
Francisco and Back Forty toward their next major milestones. We believe the combined company provides
Goldgroup with a much stronger platform from which to create long-term shareholder value. ”
Goldgroup Operating and Financial Results Summary for the Second Quarter Period Ending June 30, 2026
Operating Statistics Three months
ended
June 30, 2026
Three months
ended
June 30, 2025
Six months
ended
June 30, 2026
Six months ended
June 30, 2025
High-grade ore mined (t) 305,300 159,264 650,000 253,407
Run of mine (“ROM”) (t) 13,955 - 50,889 -
Waste mined (tonnes) 2,623,628 580,021 4,862,937 912,462
Total mined (tonnes) 2,942,883 739,285 5,563,826 1,165,869
Waste-to-ore-ratio 8.22 3.64 6.94 3.6
Ore to pad (t) 318,437 163,063 596,693 388,042
ROM to pad (t) 13,955 - 50,889 -
Recovery 66% 48% 85% 49%
Grade of ore mined (g/t Au) 0.59 0.59 0.55 0.62
Grade of ROM mined (g/t Au) 0.30 - 0.41 -
Grade of ore placed on pad (g/t
Au)
0.56 0.57 0.48 0.55
Grade of ROM placed on pad (g/t
Au)
0.30 - 0.41 -
Gold ounces – produced 3,843 1,446 7,938 3,417
Gold ounces – sold 4,748 1,588 8,996 3,190
Average realized price per
ounce(1)
$ 4,429 $ 3,348 $ 4,669 $ 3,080
(1) This is a non-IFRS measure. For more information, including a reconciliation to the most comparable
IFRS measure, refer to the “Non-IFRS Financial Measures” section of this MD&A.
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The completed combination with Gold Resource brings together Goldgroup’s Mexican portfolio with Gold
Resource’s producing Don David Gold Mine in Oaxaca, Mexico and the Back Forty development project in
Michigan, USA. The combined company now holds four 100%-owned precious-metals assets across Mexico
and the United States, including two producing mines, a formerly producing mine under evaluation for re-
start and an advanced development project.
COMBINED COMPANY ENTERS NEXT PHASE OF GROWTH
Following completion of the merger transaction, Goldgroup has moved rapidly to integrate the businesses
while advancing exploration, production optimization and development activities across the portfolio.
The Company is focused on building a larger-scale, diversified precious-metals producer through a
combination of organic production growth, exploration success, mine optimization and disciplined project
development.
(tabled amounts are expressed in thousands of U.S
dollars)
Three months ended June 30, Six months ended June 30,
2026 2025 2026 2025
Revenue
Gold sales $ 21,031 $ 5,317 $ 41,998 $
9,82
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Silver sales 75 47 303 119
Cost of operation
21,106 5,364 42,301 9,944
Cost of sales (14,512) (3,476) (32,112) (6,230)
Depreciation and depletion (365) (183) (848) (352)
6,229 1,705 9,341 3,362
Depreciation (6) (3) (7) (5)
Share-based compensation - (10) - (31)
General and administrative (49) (739) (498) (898)
Salary and consulting (212) (154) (612) (311)
Professional fees (1,548) (425) (3,298) (899)
Care and maintenance – San Francisco (1,711) - (2,542) -
Impairment of Pinos Project - (27,648) - (27,648)
Finance cost (910) (31) (1,263) (62)
Exploration costs - (193) (161) (306)
Unrealized derivative gain (loss) – warrant liability (4,777) (8,013) 2,827 (15,743)
Foreign exchange gain (loss) (1,455) 301 (1,321) 107
Other income 84 72 144 87
(Loss) income before income taxes (4,355) (35,138) 2,610 (42,347)
Income taxes (expense) recovery – current (1,725) 8 (2,338) 4
(Loss) income and comprehensive (loss) income
(6,080)
(35,130)
272
(42,343)
Loss per share – Basic and diluted
$ (0.02)
$ (0.68)
$ 0.00
$ (0.96)
Weighted average shares outstanding (000’s)
Basic 74,624 51,888 74,193 44,040
Diluted 74,624 51,888 82,077 44,040
Total shares issued and outstanding (000’s) 75,515 54,821 75,515 54,821
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As of June 30, 2026, prior to the completion of the merger, Goldgroup had a cash balance of US$15.7 million
and Gold Resource had a cash balance of US$43.3 million. On a pro forma basis, assuming the companies
had been combined as of June 30, 2026, the combined company would have had a cash balance of US$59
million and no material debt. Sales data for the first half of the year, on a combined basis, is shown in the
table below.
Combined Sales June 30, 2026
Mine Metal Sold
Don David Gold (oz) 2,903
Silver (oz) 732,819
Lead (lbs) 1,806,843
Zinc (lbs) - 4,081,793
Copper (lbs) 318,370
Gold Equivalent* 18,365
Cerro Prieto Gold (oz) 8,996
Silver (oz) 3,775
Lead (lbs) -
Zinc (lbs) - -
Copper (lbs) -
Gold Equivalent* 9,060
Total Gold Equivalent* 27,425
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Project Location Map
Don David Gold Mine – Oaxaca, Mexico
The Don David Gold Mine is now the Company's largest producing asset and is the focus of an aggressive
exploration and resource-expansion program.
The Company completed 25,726 metres of diamond drilling in 123 holes at the Don David complex with
highly encouraging results (see news release dated August 17, 2026). The program focused primarily on infill
and expansion drilling at the producing Arista and Alta Gracia mines, with the majority of the drilling directed
toward resource definition and expansion. Up to six drill rigs were operating concurrently during the program.
The Company is also advancing exploration of several highly prospective targets surrounding the existing
mine infrastructure, with the objective of replacing and expanding resources, extending mine life and
identifying additional mineralized structures.
San Francisco – Sonora, Mexico
Goldgroup is advancing the 100%-owned San Francisco Gold Project toward a potential production restart.
A 26,000-metre diamond drilling program is underway, alongside technical studies and mine-planning
activities designed to establish the optimal pathway toward a potential restart of the formerly producing
open-pit operation.
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Existing infrastructure, including two open pits and heap-leach processing facilities, provides a significant
foundation for evaluating a potential restart.
The Company is targeting a potential restart in 2027, subject to completion of technical studies, mine
planning, financing and other applicable requirements that support the Company restarting operations.
Cerro Prieto – Sonora, Mexico
The 100%-owned Cerro Prieto heap-leach gold mine continues to produce gold while the Company advances
exploration and development drilling aimed at extending and potentially expanding the resource base.
Cerro Prieto has been in production since 2013 and provides the Company with an existing operating platform
in Sonora while exploration continues along the mineralized trend.
Back Forty – Michigan, USA
Goldgroup is also advancing the 100%-owned Back Forty project, a large-scale, gold-rich volcanogenic
massive sulphide (“VMS”) development project in Michigan, subject to the resolution of matters relating to
the stream agreements described below and in the MD&A.
Work is progressing on a feasibility study and related development activities. Back Forty provides the
Company with a significant longer-term development opportunity and further diversifies Goldgroup's portfolio
geographically and by deposit type.
Back Forty is subject to gold and silver stream agreements under which a current Goldgroup subsidiary
received US$37.2 million in exchange for a portion of future production. The agreements include funding,
default and security provisions. The permitting milestone, previously extended to August 31, 2026, was not
met, and Goldgroup is discussing a further amendment. If no amendment is obtained and the Company
defaults, it may be required to repay amounts advanced, plus interest, and the counterparty may exercise
secured party rights over the Back Forty assets.
TECHNICAL REPORTS REFILED UNDER GOLDGROUP PROFILE
Following completion of the merger with Gold Resource, the Company has filed the current technical reports
for the Don David Gold Mine and the Back Forty Project under its SEDAR+ profile in accordance with National
Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The reports support the
previously disclosed technical and scientific information for the respective projects.
EXPLORATION PIPELINE PROVIDES ADDITIONAL UPSIDE
Beyond the Company's producing and advanced development assets, Goldgroup is continuing to evaluate
and advance exploration opportunities across its portfolio.
At Don David, the Company is pursuing multiple exploration targets, including some high-grade zones, with
potential to extend known mineralized systems and identify new discoveries. The Company has also
identified significant exploration potential at San Francisco and Cerro Prieto.
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The Company's objective is to create a portfolio in which existing production provides a foundation for
growth, near-term development opportunities add additional production, and exploration provides the
potential to expand resources and extend mine lives.
BUILDING TOWARD INTERMEDIATE-PRODUCER SCALE
Goldgroup's strategy is to build on its newly expanded portfolio to establish a diversified precious-metals
company with increasing production, a growing resource base and multiple avenues for organic and inorganic
growth.
The combined portfolio now includes:
Two producing gold mines – Don David in Oaxaca and Cerro Prieto in Sonora; San Francisco, a formerly
producing open-pit gold mine in Sonora with substantial existing resources and infrastructure that is being
studied for a potential restart of mining operations; and Back Forty, a VMS gold/silver development project in
Michigan.
The Company believes this combination creates a compelling platform for growth by bringing together current
production, cash flow, near-term restart potential, advanced development and substantial exploration upside
within a single company.
MARKETING SERVICES AGREEMENT
Goldgroup has entered into an arm’s-length consulting services agreement, effective as of August 31, 2026,
with First Globe Capital International Inc. (“FGC”) of Vancouver, British Columbia, to support Goldgroup’s
investor outreach program. The Contractor is wholly owned by Mr. Anish Sunderji (the “Principal”). The term
of the agreement is 12 months, unless the Company elects to renew it. The agreement is also subject to the
acceptance of the TSX Venture Exchange (the “TSXV”).
As compensation for the services provided by FGC pursuant to this agreement, the Company shall grant the
Principal 500,000 stock options in accordance with the Company’s omnibus equity incentive plan and the
policies of the TSXV and the NYSE American and pay the Contractor a monthly cash retainer of
CAD$5,000.00.
FGC is a capital markets advisory and investor relations firm that assists public issuers with investor
outreach, marketing initiatives, roadshows, and introductions to potential investors. To the knowledge of the
Company, FGC and the Principal are arm's length to the Company and currently do not own any securities of
the Company, nor do they have any right or intent to acquire such securities, except as may be acquired
through normal market transactions.
QUALIFIED PERSON
The scientific and technical information contained in this news release was prepared under the supervision
of and has been reviewed and approved by Christopher Richings, P .Eng, Vice President Technical Services of
Goldgroup Mining Inc., a Qualified Person as defined by National Instrument 43-101. Mr. Richings is an
employee of the Company and is not independent of the Company.
On behalf of the Board of Directors
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"Javier Reyes"
Javier Reyes, Chairman and CEO
For more information:
+1 (604) 306-6867
410 – 1111 Melville St.
Vancouver, BC, V6E 3V6
www.goldgroupmining.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
NON-IFRS PERFORMANCE MEASURES
This news release discloses average realized price per ounce, which is a non-IFRS financial measures. The
measure is calculated by dividing the net consolidated gold sales by the consolidated gold ounces sold. The
measure is calculated on a consistent basis for the periods presented on a consolidated basis. Average
realized price per ounce statistics are intended to provide additional information only, do not have any
standardized meaning prescribed by IFRS and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. The measures are not necessarily indicative of
operating profit or cash flow from operations as determined under IFRS. Other companies may calculate
these measures differently.
The following table provides a reconciliation between non-IFRS average realized price per ounce to the most
directly comparable IFRS measure for the three and six months ended June 30, 2026:
ABOUT GOLDGROUP MINING INC.
Goldgroup Mining Inc. is a precious-metals producer and growth-oriented mining company with four 100%-
owned assets across Mexico and the United States.
The Company owns and operates the Don David Gold Mine in Oaxaca, Mexico and the Cerro Prieto Gold Mine
in Sonora, Mexico, while advancing the San Francisco Gold Project in Sonora toward a potential production
restart and the Back Forty Project in Michigan toward development.
Three months ended June 30, Six months ended June 30,
2026 2025 2026 2025
Gold sales revenue (Denominated in ‘000 USD) $ 21,031 $
5,31
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$ 41,998 $ 9,825
Ounces of gold sold 4,748 1,588 8,996 3,190
Average realized price ($/oz) $ 4,429 $ 3,348 $ 4,669 $ 3,080