Golden Minerals Reports First Quarter 2012 Results

GOLDEN, CO--(Marketwire - May 9, 2012) - Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE Amex: AUMN) (TSX: AUM) announces first quarter 2012 results.

For the quarter ended March 31, 2012, Golden Minerals recorded revenue of $6.4 million from the sale of metals, reflecting a continued ramp-up in production at our Velardeña operations located in Durango State, Mexico. Revenue more than doubled from the fourth quarter 2011. Revenue net of cost of sales of $7.9 million at the Velardeña operations generated a negative gross margin of $1.6 million, which was less than the negative gross margin of $3.3 million recorded in the fourth quarter 2011. The Company's net loss for the first quarter 2012 was $10.1 million. In addition to the negative gross margin, the net loss included $3.4 million of costs related to mine development and expansion activities at the Velardeña operations, $2.4 million of exploration expenses, $1.4 million of expenses at the El Quevar project, $2.0 million of corporate general and administrative expenses, and $1.8 million of depreciation expense.

The Company previously announced its strategic focus for 2012, which includes plans to increase production from Velardeña incrementally. As part of this strategy, the Company plans to monetize where appropriate its large portfolio of exploration properties in Mexico, Peru and Argentina and reduce expenditures at other properties. Expenditures for El Quevar and our exploration properties were significantly lower in the first quarter 2012 as compared to previous quarters in 2011.

The Company's cash and short term investments balance decreased by $16.3 million during the quarter to $32.3 million as of March 31, 2012. The decrease is primarily due to the expenditures described above and to additional capital expenditures of $2.8 million and an increase in net working capital of $3.3 million, both primarily related to the Velardeña operations.

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 operations in Mexico and advancement of the evaluation stage El Quevar project in Argentina.

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 planned increase of production at Velardeña, the monetization of exploration properties where appropriate, and the reduction of expenditures at exploration properties. These statements are subject to risks and uncertainties, including unexpected events at the Velardeña operations, the El Quevar project or the exploration properties; variations in ore grade and relative amounts, grades and metallurgical characteristics of oxide and sulfide ores at the Velardeña operations; delays or failure in receiving required board or government approvals or permits; technical, permitting, mining, metallurgical or processing issues; failure to achieve anticipated increases in production and improvements in head grades, recoveries and concentrate production and quality at the Velardeña operations; timing and availability of external funding on acceptable terms to advance expansion or development opportunities, unfavorable results of new resource estimates; loss of and inability to adequately replace skilled mining and management personnel; possible disputes with customers or joint venture partners; unanticipated difficulties or delays in completing the San Mateo ramp and failure of the ramp or the undeveloped ore accessed by the ramp to meet expectations; delays in the arrival of or loss of equipment being procured for the Velardeña operation; development of unfavorable information or conclusions regarding the economic or technical aspects of anticipated or potential expansions of the Velardeña operations, changes in interpretations of geologic information; problems with drill rigs or availability thereof; volatility or other changes in the U.S. and Canadian securities markets; availability and cost of materials, supplies and electrical power required for mining operations and exploration; fluctuations in silver, gold, zinc and lead prices, costs and general economic conditions; changes in political conditions, tax, environmental and other laws, diminution of physical safety of employees in Mexico, and other conditions in the countries in which the Company operates. 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, 2011.

GOLDEN MINERALS COMPANY
CONSOLIDATED BALANCE SHEETS
(Expressed in United States dollars)
(Unaudited)
				March 31,				December 31,
				2012				2011
Assets
Current assets
	Cash and cash equivalents			$	32,244			$	48,649
	Investments				69				-
	Trade receivables				1,640				-
	Inventories				6,060				5,312
	Value added tax receivable				1,767				1,317
	Prepaid expenses and other assets				2,663				3,119
		Total current assets			44,443				58,397
Property, plant and equipment, net					285,092				284,199
Goodwill					70,155				70,155
Prepaid expenses and other assets					263				264
		Total assets		$	399,953			$	413,015
Liabilities and Equity
Current liabilities
	Accounts payable and other accrued liabilities			$	7,114			$	8,070
	Other current liabilities				7,929				7,505
		Total current liabilities			15,043				15,575
	Asset retirement obligation				3,850				3,781
	Deferred tax liability				52,956				55,603
Other long term liabilities					268				288
		Total liabilities			72,117				75,247
Commitments and contingencies
Equity
	Common stock, $.01 par value, 100,000,000 shares authorized; 35,709,035 and 35,690,035 shares issued and outstanding, respectively				355				355
	Additional paid in capital				453,988				453,756
	Accumulated deficit				(126,352	)			(116,221	)
	Accumulated other comprehensive loss				(155	)			(122	)
		Parent company's shareholder's equity			327,836				337,768
		Total liabilities and equity		$	399,953			$	413,015

GOLDEN MINERALS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Expressed in United States dollars) (Unaudited)
				Three Months Ended
				March 31,
				2012				2011
				(in thousands, except share data)
Revenue:
	Sale of metals			$	6,383			$	-
Costs and expenses:
	Costs applicable to sale of metals (exclusive of depreciation shown below)				(7,927	)			-
	Exploration expense				(2,396	)			(3,686	)
	El Quevar project expense				(1,415	)			(8,737	)
	Velardeña project expense				(3,382	)			-
	Administrative expense				(2,024	)			(2,239	)
	Stock based compensation				(232	)			(1,179	)
	Reclamation and accretion expense				(167	)			-
	Other operating income & (expenses), net				337				444
	Depreciation, depletion and amortization				(1,846	)			(389	)
		Total costs and expenses			(19,052	)			(15,786	)
	Loss from operations				(12,669	)			(15,786	)
Other income and expenses:
	Interest and other income				175				33
	Royalty income				138				56
	Interest expense				-				-
	Gain (loss) on foreign currency				454				(146	)
		Total other income and expenses			767				(57	)
	Loss from operations before income taxes				(11,902	)			(15,843	)
	Income taxes				1,771				(82	)
	Net loss			$	(10,131	)		$	(15,925	)
Comprehensive loss:
	Unrealized loss on securities				(33	)			(139	)
	Comprehensive loss			$	(10,164	)		$	(16,064	)
Net loss per common share - basic and diluted
	Loss			$	(0.29	)		$	(1.08	)
Weighted average common stock outstanding - basic and diluted (1)					35,474,023				14,777,817

(1)	Potentially dilutive shares have not been included because to do so would be anti-dilutive.

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