Golden Minerals Announces Private Placement and Filing of Shelf Registration

GOLDEN, CO--(Marketwire - Oct 3, 2011) - Golden Minerals Company (NYSE Amex: AUMN) (TSX: AUM) ("Golden Minerals" or "the Company") today announced that the Company has agreed to sell, in a private offering pursuant to Regulation S under the U.S. Securities Act of 1933 and pursuant to an exemption from the prospectus requirement of applicable Canadian securities laws, 4,118,150 shares of its common stock to The Sentient Group ("Sentient"), at a price of $7.44 per share, the closing price of the Company's stock on the NYSE Amex on September 30, 2011. The transaction is expected to close on or before Friday, October 7, 2011, subject to customary conditions, and is expected to provide net proceeds of approximately $30.6 million to the Company. Following the completion of the transaction, Sentient will hold approximately 19.9% of Golden Minerals' outstanding common stock. Prior to the completion of the Company's business combination with ECU Silver Mining Inc. in early September 2011, both the Company and ECU had reported Sentient's interest in investing additional amounts in the Company to retain its 19.9% interest in Golden Minerals following the transaction.

The Company expects to use the proceeds of the offering to advance its Velardeña mining operations in Mexico, including mine development and optimization and work towards the anticipated expansion of those operations, to advance the exploration and evaluation of its El Quevar project in Argentina, and for general corporate purposes.

The Company also announced the filing on September 30, 2011 of a shelf registration statement with the U.S. Securities Exchange Commission. When the registration statement is effective, the Company would be able to offer up to $250.0 million in various debt or equity securities although there are no current plans to do so.

About The Sentient Group

The Sentient Group is an independent private equity investment firm specializing in the global resources industry that manages over $2.5 billion of investments in the development of quality metal, mineral and energy assets. Sentient is based in the Cayman Islands with subsidiary offices in Sydney, Australia, Montreal and Vancouver, Canada and Munich, Germany. Sentient's ultimate objective is to participate directly in underlying metal, mineral or energy projects. Sentient also takes equity placements in listed companies that are majority owners of an asset.

About Golden Minerals

Golden Minerals is a Delaware corporation based in Golden, Colorado, primarily engaged in the ramp-up and expansion of existing production at the Velardeña Mine in Mexico and advancement of the evaluation stage El Quevar project in Argentina. The Company has a large portfolio of exploration projects, including the advanced stage Zacatecas project in Mexico and drilling stage projects in Argentina 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 purchase of the Company's stock by The Sentient Group, the timing of completion of the transaction and the expected use of proceeds at the Company's Velardeña Mine and El Quevar Project. These statements are subject to risks and uncertainties, including failure or inability to complete or delays in completing the sale of common stock to Sentient and the expenditures of funds on other than the advancement of the Velardeña operations or the El Quevar project. 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, 2010.