Golden Minerals Announces Sale of Platosa Royalty for $2.4 Million and Engages Canaccord Genuity for the Sale of the Zacatecas Land Package

GOLDEN, CO -- (Marketwire) -- 05/31/12 -- Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE MKT: AUMN) (NYSE Amex: AUMN) (TSX: AUM) is pleased to announce the sale of the Company's 1% net smelter royalty interest in the Platosa property to Excellon Resources Inc. ("Excellon") for US$2.4 million. The Platosa property, which is located north of Torreon, Mexico, is a silver, lead and zinc mine owned by Excellon. At current metal prices, the Company was realizing approximately $400,000 per year in royalty payments. Closing of the transaction is anticipated within thirty days with an effective date of June 1, 2012.

Additionally, Golden Minerals has engaged Canaccord Genuity to solicit purchasers for the Company's land package in the Zacatecas mining district just north of the city of Zacatecas, Mexico. Golden Minerals controls approximately 15,000 hectares of mining claims in the district containing key portions of recognized vein systems. A data room for prospective buyers will be open in June. Interested parties are asked to contact Craig Warren, Managing Director - Investment Banking -- Canaccord Genuity, at (416) 869-7316.

The Company also announced other progress toward the overall rationalization of Golden Minerals' exploration portfolio. In Mexico, in addition to the engagement of Canaccord Genuity for the Zacatecas package and the sale of the Platosa royalty, the Company has closed its regional exploration office in Guadalajara along with commensurate reductions in staff. Approximately 21,000 hectares of properties have been optioned to other companies and an additional 54,000 hectares will be dropped by July 1. In Peru, the Company has farmed out the Palca property in Puno with the counterparty entitled to earn 60% over a three year period by spending $2.5 million. The Company avoided a $1.0 million property payment by returning the Cochabamba property to the vendor as drilling did not produce results that warranted taking the project forward. Staff reductions in Argentina have reduced an additional $500,000 per year of ongoing expense.

Jeffrey Clevenger, Chairman, President and CEO, commented, "Our agreement with Excellon is step two in our exploration rationalization program. We previously announced that Golden Tag, our partner at the San Diego property in Durango State, Mexico, would carry the cost of moving that project forward. We will have more to report about our exploration activity as the year progresses and we are pleased with our efforts to date with the objective of establishing Golden Minerals as an internally funded entity."

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 anticipated completion and timing of the sale of the Platosa 1% net smelter royalty interest to Excellon Resources, the anticipated commencement and timing of a sales process with respect to the Zacatecas property in Mexico and the involvement of Canaccord Genuity, the intended rationalization of the Company's exploration portfolio and anticipated progress during 2012, arrangements under which third parties can earn interests or additional interests in the Palca and San Diego projects, and the Company's objective of establishing itself as an internally funded entity. These statements are subject to risks and uncertainties, including delays or failure to complete the sale of the Platosa net smelter royalty interest to Excellon; delays, failure to commence or lack of success in the anticipated sales process with respect to the Zacatecas property; cessation of participation of Canaccord Genuity in the Zacatecas sales process; inability to sell other exploration properties or make progress in rationalizing the exploration portfolio during 2012; exercise by Golden Tag and other third parties of their rights not to proceed with the expenditures required to earn an additional interest in the San Diego and other projects; problems at the Velardeña Operations or elsewhere, or acquisition or expansion opportunities that require more expenditures than can be internally funded; reductions in silver, gold, zinc and lead prices; increases in materials, supplies and operating costs at the Velardeña Operations; declines in 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 its Annual Report on Form 10-K for the year ended December 31, 2011.

For additional information please visit http://www.goldenminerals.com/ or contact:

Golden Minerals Company

Jerry W. Danni

(303) 839-5060

Executive Vice President