GOLDEN, Colo., Feb. 27, 2015 /PRNewswire/ — Golden Minerals Company (NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals" or "the Company") today announced financial results for the full year ending December 31, 2014.

For the year ending December 31, 2014 Golden Minerals recorded revenue of $0.2 million and costs of metals sold of $1.7 million at the Velardena Properties in Mexico for a negative gross margin of $1.5 million.  Included in the cost of metals sold is a $1.2 million write down of finished goods inventory to estimated net realizable value.  Revenue and cost of sales figures reflect approximately two months of testing the refurbished plant and processing of low grade material primarily mined for development.  Mining recommenced in July 2014 and processing in November 2014 after mining activity was suspended in June 2013.  The Company recorded a 2014 net loss of $18.8 million. 

In addition to the negative gross margin noted above, the net loss includes the following expenditures:  $5.5 million on exploration expenses; $4.6 million on administrative expenses; $3.1 million on project expenses at Velardena incurred during start-up of mining and processing activities; $3.1 million on non-cash depreciation and amortization-related expense; $2.5 million related to Velardenashutdown, care and maintenance activities prior to the resumption of mining activities in June 2014; and $1.6 million of expense associated with the El Quevar project.  These expenses were partially offset by other operating income of $0.7 million related primarily to the sale of certain exploration properties in the third quarter 2014, $1.6 million related to the reduction of a tax liability contingency, and $1.7 million related to the reduction of a warrant derivative liability.

The Company's cash and cash equivalents balance totaled $8.6 million at December 31, 2014 compared to $19.1 million atDecember 31, 2013.  The Company expects to end 2015 with a cash balance of approximately $2.0 million, which takes into account the December 31, 2014 cash balance and positive gross margin during 2015 from the Velardena Properties of approximately $2.5 million, reduced by expenditures during 2015 of approximately $3.0 million for exploration activities, $1.0 million for El Quevar, $4.5for general and administrative costs, and $0.6 million for sustaining capital and increased working capital related to the Velardena Properties.  In arriving at the forecast of positive gross margin for Velardena, the Company assumed a price for silver and gold of$17.00 and $1,250 per ounce, respectively.

About Golden Minerals

Golden Minerals is a Delaware corporation based in Golden, Colorado.  The Company is primarily focused on operations at its Velardena Properties and the exploration of properties in Argentina and Mexico.

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 legislation, including statements regarding including the Company's anticipated cash and cash equivalents balance at year-end 2015, anticipated positive gross margins from the Velardena Properties in 2015, anticipated expenditures during 2015, assumed silver and gold prices for the forecast of positive gross margins.  These statements are subject to risks and uncertainties,

These statements are subject to risks and uncertainties, including: lower than assumed silver and gold prices, higher than anticipated costs of mining and processing; delays or problems in mining or processing or the anticipated ramp-up in making saleable concentrates at the Velardena Properties; variations in material grade and metallurgical characteristics of processed material; delays or failures in receiving government approvals or permits or suspensions of existing approvals and permits; failure to achieve anticipated metal recoveries or anticipated mining or processing results including expected quantities of anticipated saleable products; failures of new mine plan, stope development and slusher techniques to meet expectations; changes in interpretations of geological, geostatistical, metallurgical, mining or processing information and interpretations of the information resulting from future mining and processing experience; new information from drilling programs; reliability of metallurgical testing results and changes in interpretation based on processing results; technical, permitting, mining, metallurgical, recovery or processing issues; problems that delay or reduce underground mine and stope construction; operational changes or problems; failure of mined material to meet expectations; failure of veins mined to meet expectations; increases in costs and declines in general economic conditions; and changes in political conditions, in tax, royalty, environmental and other laws in Mexico, and financial market conditions.  Golden Minerals assumes no obligation to update this information.  Additional risks relating to Golden Minerals may be found in the periodic and current reports filed with the Securities Exchange Commission by Golden Minerals, including the Company's Annual Report on Form 10-K for the year endedDecember 31, 2014.

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

Golden Minerals Company
Karen Winkler
(303) 839-5060
Director of Investor Relations

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SOURCE Golden Minerals Company

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