Goldgroup Mining

Investor Insight

Goldgroup Mining is advancing a disciplined gold growth strategy in Mexico through production expansion at Cerro Prieto, advancement of program to restart the past-producing San Francisco mine and a potential recently announced merger with Gold Resources Corporation. With established infrastructure, growing production capacity and a potential future portfolio of three producing mines which collectively outline a pathway towards 100,000+ ounces of annual gold production, Goldgroup is positioning itself as a growing Mexican-focused gold producer.

Overview

Goldgroup Mining (TSXV:GGA,OTC:GGAZF) is a Canadian gold company focused on building a growing portfolio of producing and development-stage gold assets in Mexico, one of the world’s leading precious metals jurisdictions. The company’s strategy combines production growth, mine restart initiatives and disciplined project advancement to build operational scale and long-term value.

Goldgroup’s current portfolio is anchored by two core assets in Sonora Mexico: the producing Cerro Prieto and the San Francisco mine, a large-scale past-producing open-pit gold operation with substantial installed infrastructure that Goldgroup is planning to bring back into production late 2026 or early 2027. Together, these two assets provide multiple avenues for production growth, operational optimization and resource expansion. Assuming a successful merger as described above, the company could have three producing mines and an advanced feasibility stage development project capable of providing significant growth for its shareholdeers.

The company is advancing its projects during a strong gold market environment where operating assets, restart opportunities and permitted development projects continue to attract investor attention. Goldgroup’s emphasis on brownfield assets with historical production and existing infrastructure helps reduce development timelines and capital requirements while supporting a disciplined growth profile.

In January 2026, Goldgroup announced a business combination with Gold Resource Corporation to create a larger Mexican-focused precious metals producer, further strengthening the company’s long-term growth strategy and operational scale.

Goldgroup is led by an experienced management and board team with extensive backgrounds in mine development, operations, restructuring and corporate finance. Supported by the Calu Group and executives with proven success in developing and restarting mining operations in Mexico, the company is focused on executing a scalable gold growth strategy across its portfolio.

Company Highlights

• Two Complementary Gold Assets in Mexico: Goldgroup’s portfolio includes the producing Cerro Prieto heap leach gold mine, the fully permitted former producing San Francisco open-pit heap leach gold mine advancing towards a restart, both mines located in Sonora State, Mexico.
• Production Growth Strategy: The company’s operating and development pipeline collectively, post successful merger, outlines a pathway towards more than 100,000 ounces of annual gold equivalent production.
• Expanded Cerro Prieto Throughput Capacity: With the successful installation of a second crushing circuit, Cerro Prieto now has expanded throughput capacity has beyond 4,200 tpd.
• Additional Near-Term Production Potential: Planned tailings re-processing and re-leaching initiatives at Cerro Prieto are expected to contribute up to an additional 9,000 oz/year over approximately five years.
• Large-Scale Restart Opportunity at San Francisco: The San Francisco mine produced 56,099 ounces of gold in 2021, its last full year of production and, historically, from 2010 to 2023, approximately 1.3 million ounces. The mine includes extensive installed infrastructure with a processing capacity of 16,875 tpd.
• Updated San Francisco Resource Base: A 2026 updated NI 43-101 technical report outlined 1.226 million ounces of measured and indicated gold resources and 178,000 ounces inferred at San Francisco. The report also outlines an “Exploration Target based on widespread drilling potentially containing between 40 million tonnes at 0.61g/t Au (possible 788,000 oz Au) to 78 million tonnes at 0.38g/t Au (possible 960,000 oz Au).”
• Infrastructure and Permitting Advantages: Goldgroup’s assets benefit from existing infrastructure, historical production and advanced permitting, supporting a potentially streamlined and very low capital cost path toward expanded operations and production growth.
• Experienced Leadership and Strategic Support: The company is backed by the Calu Group and founders of Luca Mining, bringing extensive expertise in mine development, operations, restructuring and financing in Mexico.
• Recognized Market Performance: Goldgroup was named to the 2026 TSXV Top 50 Performing Companies list.
• Goldgroup is pursuing a business combination through a plan of arrangement to combined with Gold Resources Corporation, expected to complete once shareholder, regulatory and corporate approvals are achieved in the coming months. Once achieved, Goldgroup as a merged company will add another producing Mexican Mining operation plus in advance staged feasibility level VMS project to its assets. (Please see press release dated January 26, 2026 for details of the transaction)

Key Projects

Cerro Prieto Open Pit Gold Mine

Cerro Prieto is Goldgroup’s producing open-pit gold mine located in the Cucurpe mining district of Sonora, Mexico. Since commencing production in 2013, the operation has produced more than 120,000 ounces of gold and serves as the foundation of the company’s near-term production growth strategy.

Goldgroup recently completed a major processing expansion through the installation of a second crushing circuit, increasing throughput capacity beyond 4,200 tons per day. The expansion is designed to support annual gold production exceeding 22,000 ounces during 2026 and beyond.

The company is also advancing tailings re-processing re-leaching initiatives expected to contribute up to an additional 8,000 ounces annual gold production over a five-year period, processing 5,000 tonnes per day. Ongoing exploration and definition drilling programs across targets, including Esperanza and Nueva Esperanza, continue to demonstrate additional resource growth potential across the property.

San Francisco Open-Pit Gold Mine

San Francisco is a large-scale past-producing open-pit gold mine located in Sonora, Mexico. The operation historically produced approximately 1.3 million ounces of gold between 2010 and 2019 and represents a significant restart opportunity within Goldgroup’s growth strategy.

The mine includes substantial installed infrastructure, including grid power, water wells, ADR plants, haul roads, assay facilities and two parallel crushing circuits with combined processing capacity of 16,875 tons per day. Historical metallurgical recoveries ranged from 64 percent to 78 percent.

An updated 2026 NI 43-101 technical report outlined measured and indicated gold resources of 1.226 million ounces and inferred resources of 178,000 ounces.

Additionally, the Technical Report states that the moderately drilled El Llano zone, contiguous to the San Francisco pit, presents an Exploration Target based on widespread drilling potentially containing between 40 million tonnes at 0.61g/t Au (possible 788,000 oz Au) to 78 million tonnes at 0.38g/t Au (possible 960,000 oz Au). These potential quantity and grades are conceptual in nature, and there has been insufficient exploration drilling to define a compliant mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.

The company is advancing restart planning activities, including drilling programs designed to support resource upgrades and updated mine planning. San Francisco provides Goldgroup with a potential large-scale production platform supported by extensive historical infrastructure and operational history. The Company is targeting a restart of mining and gold production at San Francisco late 2026 or early 2027 and expects the mine will add more than 40,000 additional ounces gold to Goldgroup’s production profile.

Management Team

Ralph Shearing – Chief Executive Officer

Ralph Shearing is a professional geologist with nearly four decades of mining and exploration experience. He previously founded and led Luca Mining, where he oversaw the exploration, development, construction, and pre-production of the Tahuehueto gold mine, along with the acquisition and successful restart of the Campo Morado polymetallic mine in Mexico.

Anthony Balic – Chief Financial Officer & Director

Anthony Balic has extensive experience in mining finance, accounting and corporate advisory. Before joining Goldgroup, he held senior advisory and assurance roles at Deloitte LLP focused on mining companies and now oversees the company’s finance, accounting and capital strategy functions.

Corry Silbernagel – Director

Corry Silbernagel is a financial and technical specialist with experience across the mining and energy sectors. His background includes serving as CFO of Cabo Drilling and managing large-scale projects at Suncor and TransAlta, contributing expertise in strategic finance, development and operations.

Blair Jordan – Director

Blair Jordan is managing partner at Restructure Advisors with extensive experience in restructuring, turnaround management and investment banking. He has served in executive leadership roles for several public companies, including CFO and interim CEO positions.

Roberto Guzman – Director

Roberto Guzman brings more than 25 years of financial leadership experience in Mexico. He has held finance management positions across numerous public and private companies and contributes significant expertise in corporate finance and Mexican business operations.