GOLDEN, CO--(Marketwire -04/10/12)- Golden Minerals Company (AMEX: AUMN - News) (TSX: AUM.TO - News) ("Golden Minerals" or "the Company") is pleased to report first quarter 2012 results for the Velardeña Operations that continue to reflect significant operational improvements and the ramp up of production. From January 1 through March 31, 2012, month over month during the quarter, gold production increased by approximately 25% and silver production increased by more than 40%.

First quarter 2012 payable production totaled 1,500 ounces of gold and 95,000 ounces of silver, exceeding guidance by approximately 15% for gold and 6% for silver. Silver equivalent production for the quarter, calculated based on only gold byproducts (excluding zinc and lead) and using a silver to gold ratio of 50:1, totaled 170,000 ounces. Also during the first quarter, the Velardeña Operations had payable base metals production of approximately 200,000 pounds of lead and 275,000 pounds of zinc.

The following table shows actual precious metals production compared to guidance for January through March 2012 and our previous guidance for the remainder of 2012.

 
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             Q1 2012   Q1 2012                             Full Year
             Guidance   Actual   Q2 2012  Q3 2012  Q4 2012    2012
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Production (payable metals)
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Gold (oz)       1,300     1,500    2,000    2,600    3,100     9,000
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Silver (oz)    90,000    95,000  150,000  230,000  270,000   740,000
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Since the merger with ECU Silver on September 2, 2011, Golden has continued to make operational improvements at the Velardeña Operations, located in the State of Durango, Mexico. The Company's primary focus has been on improving head grade and optimization to improve recoveries and product quality in both the oxide and sulfide processing plants. Construction of a flotation circuit ahead of the current oxide plant to improve recoveries of sulfides mixed with the oxides is well underway, with projected completion in the third quarter.

Engineering studies are also underway for the phased expansion, which will consist of adding an additional ball mill, flotation cells, tailings dam and concentrate handling equipment. The additional ball mill has been purchased. The phased expansion is expected to increase combined oxide and sulfide plant throughput to 1,300 tonnes per day in early 2013, with annualized production estimated to be approximately 2 million ounces of silver and 29,000 ounces of gold.

The Company now expects to complete an updated NI 43-101 compliant resource estimate for the Velardeña Operations during the second quarter 2012. In line with the Company's emphasis on the higher classes of mineral resources (measured and indicated), management and their qualified advisors have decided to narrow the definition of the lowest resource class (inferred resources) to include only that material meeting strict and readily-justifiable geostatistical and conservative geologic criteria. Because of this, we expect to report a smaller inferred resource base at Velardeña compared to the inventory carried in the past. Management and their advisors do not believe that this stricter interpretation of inferred resources reflects upon the quality of the resource at Velardeña or the likely longevity of the operations.

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