Golden Minerals Continues to Drill High Grade Silver With Wide Intercepts at the Yaxtche Deposit

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GOLDEN, CO--(Marketwire -12/08/11)- Golden Minerals Company (AMEX: AUMN - News) (TSX: AUM.TO - News) ("Golden Minerals" or "the Company") is pleased to provide additional assay results from the Company's drilling program at the Yaxtché deposit on the El Quevar project, located in the Salta Province in northwestern Argentina.

Recent infill drilling at the west Yaxtché deposit, located on the 58,000 hectare El Quevar project, continues to intersect high grade silver with relatively wide intercepts. Drill hole QVD-344 contained 11 meters of 467 grams per tonne silver, including two meters of 1,204 grams per tonne. Drill hole QVD-348 contained 16 meters of 889 grams per tonne silver, including 11 meters of 1,160 grams per tonne. Drill hole QVD-352 contained 26 meters of 535 grams per tonne silver, including three meters of 1,046 grams per tonne, and an additional six meter intercept of 1,151 grams per tonne.

Jeffrey Clevenger, Golden Minerals Chairman, President and CEO, commented, "We continue to be encouraged by the drilling of relatively wide, high grade silver intercepts at the Yaxtché deposit." In addition, Mr. Clevenger noted, "This further suggests that the Yaxtché deposit may be amenable to bulk mining, which data from the current infill drilling program is designed to support."

Bulk mining could include a potential open pit on the east and central areas of the Yaxtché deposit, along with bulk underground mining in the west. In addition to the surface infill drilling, an underground drill program has been developed for the east and central Yaxtché deposit, with a 1,300 meter fan drilling program planned for the next several months.

The surface infill drilling is part of up to a 50 hole diamond core drilling program on the Yaxtché deposit, which is the main zone at the El Quevar project. The Company has received assay results for 16 holes to date, with assays pending for an additional 13 holes.

Select drill intercepts for the 16 drill holes for which assays have been received and quality assurance/quality control ("QA/QC") verified, are provided below. Four of the holes shown on the following table were drilled outside of the mineralized zone and did not show any significant results.

 
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                                                  INTERVAL          Ag
DRILL HOLE NO.   FROM (meters)   TO (meters)      (meters)    (grams/tonne)
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Yaxtché West Zone
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QVD-337                            No significant results
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QVD-338               232            243             11            173
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Including             235            237             2             513
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and                   254            258             4             501
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QVD-339               266            271             5             207
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QVD-340                            No significant results
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QVD-341               244            246             2             295
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and                   254            257             3             151
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and                   268            272             4             220
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and                   279            281             2             385
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and                   284            294             10            211
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and                   309            322             13            440
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including             317            321             4             878
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and                   355            360             5             136
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QVD-342               237            262             25            653
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including             239            249             10            1168
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QVD-343               267            269             2             294
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and                   277            282             5             215
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and                   295            312             17            252
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including             298            301             3             862
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QVD-344               275            277             2             594
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and                   289            300             11            467
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including             293            295             2             1204
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and                   322            326             4             175
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and                   353            355             3             327
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QVD-345                            No significant results
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QVD-346               233            243             10            401
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and                   253            256             3             244
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and                   272            274             2             285
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and                   278            279             1             853
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and                   298            303             5             148
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QVD-347               320            329             9             216
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and                   389            391             2             324
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QVD-348               243            248             5             632
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and                   253            254             1             311
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and                   262            263             1             1113
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and                   334            350             16            889
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including             339            350             11            1160
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and                   365            370             5             329
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QVD-349                            No significant results
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QVD-350               297            308             11            285
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QVD-351               300            315             15            309
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QVD-352               245            271             26            535
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including             245            248             3             1046
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and                   256            262             6             1151
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and                   268            271             3             158
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and                   280            281             1             390
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and                   285            287             2             207
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and                   299            301             2             289
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and                   323            328             5             178
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and                   342            347             5             270
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Drill intercepts are based on a 100 gram per tonne silver cut-off with some internal intervals of lower grade for continuity and no upper cut-off. Drill intercept lengths are down-hole lengths reflecting apparent widths of mineralization with true widths ranging from 75% to 95% of the reported down-hole lengths.

All drill intercepts for the holes at El Quevar for which the Company has received and verified results are available at http://www.goldenminerals.com/.

An updated Canadian National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate on El Quevar is being prepared by the independent consulting firm of Pincock, Allen and Holt (PAH). The updated resource estimate for the El Quevar project is expected about year-end 2011.

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 and is a Professional Geoscientist and a member of the Society for Mining, Metallurgy and Exploration.

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 in Mendoza, Argentina. Prepared samples are direct-shipped to ISO 9001:2001 certified laboratories in Santiago, Chile or Vancouver, B.C. Pulp splits of mineralized intervals are re-assayed at certified independent referee laboratories in Chile and Canada.

Velardeña Resource

The Company previously announced that the independent consulting firm of Chlumsky Armbrust and Meyer (CAM) has been retained to provide an updated NI 43-101 compliant resource estimate for the Velardeña Operations, located in the Durango State of Mexico, with completion expected about year-end 2011. As a result of the need to re-assay a significant number of samples to ensure that required quality control and quality assurance is maintained for a NI 43-101 compliant report, the updated resource estimate is now expected to be completed towards the end of the first quarter 2012.

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 and Chicago Mines 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, including statements regarding the exploration results and programs at the El Quevar project, including planned and potential exploration and development activities, anticipated timing and scope of further drilling activities, anticipated amenability of the Yaxtché deposit to open pit and underground bulk mining, and possible interpretations of the results of infill drilling; and the timing of completion of the El Quevar and Velardeña resource estimate. These statements are subject to risks and uncertainties, including results of exploration, including the additional planned drilling at El Quevar; changes in geological, geostatistical and other interpretations of the Yaxtché and Velardeña deposits; unfavorable interpretations of geologic information, including interpretations that the Yaxtché deposit is not amenable to bulk mining; delays in obtaining results of Velardeña re-assays and other delays in completing the planned updated Canadian National instrument 43-101 compliant resource estimates for Velardeña and El Quevar; availability of drills; unexpected variations in ore grade, types and metallurgy; uncertainties regarding whether the El Quevar and Velardeña resource and mine models will be confirmed; fluctuations in silver, gold, zinc, lead and other metal prices; technical and permitting issues; increases in cost or other problems that might negatively affect the Company in conducting planned drilling and exploration activities and otherwise advancing the El Quevar project; and financial market conditions. 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 Company's Annual Report on Form 10-K for the year ended December 31, 2010. For additional information please visit http://www.goldenminerals.com/ or contact:

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