Golden Minerals Reports Third Quarter 2010


GOLDEN, CO--(Marketwire - November 3, 2010) - Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE Amex: AUMN) (TSX: AUM) announces results for the third quarter 2010.

Third Quarter 2010 Financial Results

For the third quarter 2010, Golden Minerals recorded a net loss of $10.3 million, which included $4.0 million of expense related to the El Quevar project, $3.8 million of exploration expense and $1.9 million of administrative expense.

At September 30, 2010, Golden Minerals' aggregate cash and short-term investments totaled $30.6 million, which included $30.3 million of cash and cash equivalents and $0.3 million in short term investments. Giving effect to the net proceeds of the Company's public offering and private placement which closed on October 22, 2010, the Company's cash and short-term investments included an additional $103.0 million, for a total of $133.6 million of cash and cash equivalents on a pro forma basis at September 30, 2010.

Golden Minerals closed a public offering of 4,663,250 shares of the Company's common stock, including 608,250 shares issued upon full exercise of the underwriters' over-allotment option, at a public offering price of US$18.50 per share. Concurrent with the closing of the public offering, Golden Minerals closed a private placement with the Company's largest stockholder, The Sentient Group, of an additional 1,190,031 shares of the Company's common stock at the public offering price of US$18.50 per share. The public offering and private placement totaled 5,853,281 shares at a price of US$18.50 per share, resulting in estimated net proceeds to the Company of approximately $103.0 million after deducting underwriting discounts, placement agent fees and estimated offering expenses.

For the remainder of 2010 and through the end of 2011, pursuant to the Company's long term business strategy, Golden Minerals expects to spend up to approximately $16.5 million to fund the completion of the initial feasibility work at the El Quevar project. The Company expects to spend approximately an additional $54 million beginning in 2011 to fund the continuation of exploration drilling, underground drifting, metallurgical studies and related technical, engineering and project assessments to further define the resource. The Company expects to spend approximately $12.5 million to fund exploration on its portfolio of exploration properties through the end of 2011. Depending on the success of the targeted exploration program and generative exploration activities, the Company could spend additional amounts for early and advanced stage drilling programs on its current or new properties. An estimated $9.0 million will be spent through the end of 2011 on general and administrative costs, working capital and other corporate purposes.

Exploration Update

During the quarter and first nine months of 2010 Golden Minerals continued to focus on defining the extent of the Yaxtché deposit and conducting feasibility work at the Company's 100% controlled El Quevar silver project, located in the Salta province of Argentina. The Yaxtché deposit is one of 11 targets currently identified at the El Quevar project. As of mid October 2010, the Company has completed approximately 52,500 meters of diamond drilling in 254 drill holes. Of these holes, 189 were drilled to test the main Yaxtché deposit for potential mineralization. In addition, as of mid October construction of the underground decline at the Yaxtché deposit has advanced approximately 175 meters of the 225 meters expected to be required to access the zone of mineralization. The Company plans to use the production-sized decline to confirm the resource model and mining methods, and take bulk samples for additional metallurgical testing. Other ongoing work includes metallurgical testing and process design.

During the third quarter 2010 the Company determined that additional drilling is warranted at the El Quevar project to further define the extent of the resource and therefore decided to delay completion of the feasibility study originally scheduled to be completed in the fourth quarter of 2010. A larger resource base may support a higher production rate than initially contemplated. Drilling will focus on extending the Yaxtché deposit both east and west along strike, along with infill drilling. Drilling is also underway or being planned for additional targets outside of the Yaxtché deposit, including Carmen (300 meters north of Yaxtché), Mani (500 meters south of Yaxtché) and Sharon (3 kilometers north of Yaxtché). There are currently three drills operating at the El Quevar project with a fourth drill expected to be on site in the fourth quarter.

During the quarter the Company initiated drilling on the Matehaupil (Rabioso target) and La Pinta projects in northern Zacatecas state in Mexico. Sample results received from the first seven core holes out of a ten hole initial drill program at the Matehaupil project include narrow gold intercepts in three holes. RAB-10-03 intercepted 2.2 meters averaging 2.3 grams per tonne and 3.7 meters averaging 1.4 grams per tonne. RAB-10-06 intercepted 1.3 meters averaging 2.0 grams per tonne and 1.7 meters averaging 4.2 grams per tonne. RAB-10-07 intercepted 1.7 meters averaging 3.0 grams per tonne. The remaining assayed intervals were consistently of low values in gold and other metals. Assay results from additional holes at the Rabioso target are pending. Assay results have been received from the first seven holes out of a planned ten hole rotary drill program at the La Pinta project, directly south of Goldcorp's Peñasquito land position. At La Pinta the Company is selectively drilling rotary holes in an effort to identify the source of intrusive float found at the surface with anomalous base and precious metal values. Results from the first seven holes were uniformly low in gold and base metal values, and the source of the intrusive float has yet to be determined.

All drill assays and intercepts for the holes at the El Quevar project and the Matehaupil project, for which the Company has received and verified results, will be available at http://www.goldenminerals.com/.

Review by Qualified Person, Quality Control and Reports

Results of the Company's drilling program have been reviewed, verified, and compiled under the direction of the Company's Senior Vice President of Exploration, Robert Blakestad, M.Sc., P.Geo, L.P.G., a Qualified Person for the purpose of NI 43-101. Mr. Blakestad has over 35 years of mineral exploration experience, is a Professional Geoscientist registered in Nova Scotia and a Licensed Professional Geologist in the state of Washington.

Drill intercept lengths are down-hole lengths reflecting apparent with true widths ranging from 80% to 95% of the reported down-hole lengths widths of mineralization.

To ensure reliable sample results, Golden Minerals uses a quality assurance/quality control program that monitors the chain-of-custody of samples and includes the insertion of blanks, duplicates, and certified reference standards in each batch of samples. Core is photographed and sawn in half with one half retained in a secured facility for verification purposes. Sample preparation (crushing and pulverizing) is performed at an independent ISO 9001:2001 certified laboratory. Prepared samples are direct-shipped to ISO 9001:2001 certified laboratories. Pulp splits of mineralized intervals are re-assayed at certified independent referee laboratories.

About Golden Minerals

Golden Minerals is a Delaware corporation based in Golden, Colorado, primarily engaged in the advancement of its pipeline of exploration projects in Mexico and South America. The Company has a portfolio of 30 exploration projects, including the feasibility stage El Quevar project in the Salta Province of northwestern Argentina, and advanced stage drilling projects in Mexico and Peru. The Company's experienced management team has proven in-house ability to explore, develop and operate mining projects.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and applicable Canadian securities laws, including statements regarding the anticipated expenditures during the remainder of 2010 and 2011 on the El Quevar project and feasibility study, targeted and generative exploration, property holding costs, and general and administrative costs. These statements are subject to risks and uncertainties, including results of exploration including exploration on additional targets at El Quevar; whether continued exploration results will support engineering and other feasibility work on El Quevar or a larger resource at El Quevar; changes in geological interpretations, including the interpretations regarding the westward extension, continuity and strike length of the Yaxtché deposit, including changes resulting from additional drilling, exploration or feasibility work; whether exploration results will be indicative of future exploration results; delays in construction of the drift at El Quevar, results of El Quevar feasibility study work, exploration at targeted projects and generative exploration, uncertainties regarding whether the results of additional exploration at the Company's projects or feasibility work at El Quevar will be positive; unexpected increases in costs of materials and supplies used in exploration activities; fluctuations in silver and other metal prices; technical and permitting issues; title problems; and the ability and success of the Company to continue raising adequate capital and implementing its plans. Golden Minerals Company assumes no obligation to update this information. Additional risks relating to Golden Minerals Company may be found in the periodic and current reports filed with the Securities Exchange Commission by Golden Minerals Company, including the Annual Report on Form 10-K for the year ended December 31, 2009.

                          GOLDEN MINERALS COMPANY
                        CONSOLIDATED BALANCE SHEETS
                   (Expressed in United States dollars)
                               (Unaudited)

                                 Pro-Forma
                                September 30,  September 30,  December 31,
                                  2010 (1)         2010           2009
                                -------------  -------------  ------------
                                    (in thousands, except share data)
Assets
Current assets
  Cash and cash equivalents     $     133,270  $      30,268  $      8,570
  Investments                             335            335           444
  Trade receivables                         -              -         1,460
  Prepaid expenses and other
   assets                               1,518          1,568         2,087
                                -------------  -------------  ------------
    Total current assets              135,123         32,171        12,561
Property, plant and equipment,
 net                                    9,084          9,084         7,774
Assets held for sale                    1,316          1,316           813
Prepaid expenses and other
 assets                                   447            447           552
                                -------------  -------------  ------------
    Total assets                $     145,970  $      43,018  $     21,700
                                =============  =============  ============
Liabilities and Equity
Current liabilities
  Accounts payable and other
   accrued liabilities          $       2,624  $       2,674  $      2,428
  Other current liabilities                67             67            63
                                -------------  -------------  ------------
    Total current liabilities           2,691          2,741         2,491
Other long term liabilities               584            584           651
                                -------------  -------------  ------------
    Total liabilities                   3,275          3,325         3,142
                                -------------  -------------  ------------

Commitments and contingencies

Equity
  Common stock, $.01 par value,
   50,000,000 shares authorized;
   (15,124,567 pro-forma),
   9,271,286 and 3,238,615 shares
   issued and outstanding                 151             93            32
  Additional paid in capital          183,728         80,784        37,854
  Accumulated deficit                 (41,197)       (41,197)      (20,276)
  Accumulated other
   comprehensive income (loss)             13             13           154
                                -------------  -------------  ------------
    Parent company's
     Shareholders' equity             142,695         39,693        17,764
    Noncontrolling interest in
     subsidiaries                           -              -           794
                                -------------  -------------  ------------
    Total equity                      142,695         39,693        18,558
                                -------------  -------------  ------------
    Total liabilities and
     equity                     $     145,970  $      43,018  $     21,700
                                =============  =============  ============


(1) The pro-forma presentation reflects the results of a public offering
    and private placement of common stock which the Company closed on
    October 22, 2010.



                         GOLDEN MINERALS COMPANY
   CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
                   (Expressed in United States dollars)
                              (Unaudited)


                                                     For The     For The
                                                     Period      Period
                                           Nine     March 25,   January 1,
                    Three Months Ended     Months     2009        2009
                       September 30,       Ended     Through     Through
                   --------------------  September  September   March 24,
                     2010       2009     30, 2010   30, 2009      2009
                   ---------  ---------  ---------  ---------  -----------
                                        (Successor)           (Predecessor)
                             (in thousands, except share data)
Revenue:
  Management
   service fees    $      98  $   2,652  $  11,216  $   6,010  $     1,350
Costs and expenses:
  Costs of services      (31)    (1,179)    (2,566)    (2,263)           -
  Exploration
   expense            (3,755)    (3,598)    (9,893)    (7,067)      (3,482)
  El Quevar
   feasibility        (4,031)         -    (10,004)         -            -
  Administrative
   expense            (1,868)    (2,521)    (6,295)    (5,857)      (4,779)
  Stock based
   compensation         (559)      (609)    (1,859)    (1,218)      (2,717)
  Other operating
   income &
   (expenses), net        76        293        186        305            -
  Depreciation,
   depletion and
   amortization         (307)      (232)      (751)      (384)        (102)
                   ---------  ---------  ---------  ---------  -----------
    Total costs
     and expenses    (10,475)    (7,846)   (31,182)   (16,484)     (11,080)
                   ---------  ---------  ---------  ---------  -----------
  Loss from
   operations        (10,377)    (5,194)   (19,966)   (10,474)      (9,730)
Other income and
 expenses:
  Interest and
   other income           90        106        376        204        1,010
  Royalty income          80        272        239        399           88
  Interest and
   other expense           -          -          -          -         (345)
  Gain (loss) on
   foreign currency      (65)        76        (53)       170          (13)
  Gain on
   extingushment
   of debt                 -          -          -          -      248,165
  Loss on auction
   rate securities         -       (867)         -     (2,199)        (828)
  Reorganization
   costs, net              -       (249)         -       (917)      (3,683)
  Fresh start
   accounting
   adjustments             -          -          -          -        9,122
                   ---------  ---------  ---------  ---------  -----------
    Total other
     income and
     expenses            105       (662)       562     (2,343)     253,516
                   ---------  ---------  ---------  ---------  -----------
  Income (loss)
   from continuing
   operations
   before income
   (taxes) benefit   (10,272)    (5,856)   (19,404)   (12,817)     243,786
  Income taxes            20       (284)    (1,517)      (497)        (165)
                   ---------  ---------  ---------  ---------  -----------
  Net income (loss)
   from continuing
   operations        (10,252)    (6,140)   (20,921)   (13,314)     243,621
Income (loss) from
 discontinued
 operations                -          -          -          -       (4,153)
                   ---------  ---------  ---------  ---------  -----------
  Net income
   (loss)          $ (10,252) $  (6,140) $ (20,921) $ (13,314) $   239,468
    Net (income)
     loss
     attributable to
     noncontrolling
     interest      $       -  $       -  $       -  $       -  $    (7,869)
                   ---------  ---------  ---------  ---------  -----------
  Net income (loss)
   attributable to
   the Successor/
   Predecessor
   shareholders    $ (10,252) $  (6,140) $ (20,921) $ (13,314) $   231,599
                   ---------  ---------  ---------  ---------  -----------
Other comprehensive
 loss:
  Unrealized gain
   (loss) on
   securities      $     (74) $    (666) $    (141) $     160  $       940
                   ---------  ---------  ---------  ---------  -----------

  Comprehensive
   income (loss)
   attributable to
   Successor/
   Predecessor
   shareholders    $ (10,326) $  (6,806) $ (21,062) $ (13,154) $   232,539
                   =========  =========  =========  =========  ===========

Net income (loss)
 per Common/
 Ordinary Share -
 basic

  Income (loss)
   from continuing
   operations
   attributable to
   the Successor/
   Predecessor
   shareholders    $   (1.15) $   (2.06) $   (2.81) $   (4.46) $      4.13
  Discontinued
   operations
   attributable to
   the Successor/
   Predecessor
   shareholders            -          -          -          -        (0.20)
                   ---------  ---------  ---------  ---------  -----------
  Income (loss)
   attributable to
   the Successor/
   Predecessor
   shareholders    $   (1.15) $   (2.06) $   (2.81) $   (4.46) $      3.93
                   =========  =========  =========  =========  ===========

Net income (loss)
 per Common/
 Ordinary Share -
 diluted

  Income (loss)
   from continuing
   operations
   attributable to
   the Successor/
   Predecessor
   shareholders    $   (1.15) $   (2.06) $   (2.81) $   (4.46) $     (0.06)
  Discontinued
   operations
   attributable to
   the Successor/
   Predecessor
   shareholders            -          -          -          -        (0.17)
                   ---------  ---------  ---------  ---------  ----------- 
  Income (loss)
   attributable to
   the Successor/
   Predecessor
   shareholders    $   (1.15) $   (2.06) $   (2.81) $   (4.46) $     (0.23)
                   =========  =========  =========  =========  ===========

Weighted average
 Common Stock/
 Ordinary Shares
 outstanding -
 basic             8,919,536  2,987,735  7,455,303  2,987,735   59,000,832
                   =========  =========  =========  =========  ===========
Weighted average
 Common Stock/
 Ordinary Shares
 outstanding -
 diluted           8,919,536  2,987,735  7,455,303  2,987,735   69,171,400
                   =========  =========  =========  =========  ===========

Contact Information: For additional information please visit http://www.goldenminerals.com/ or contact: Golden Minerals Company Jerry W. Danni (303) 764-9160 Executive Vice President