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Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations

General

Golden Minerals Company ("Golden Minerals" or "we") is a mining company with precious metals mining operations in the State of Durango, Mexico, the El Quevar advanced exploration property in the province of Salta, Argentina, and a diversified portfolio of precious metals and other mineral exploration properties located in or near the traditional precious metals producing regions of Mexico and South America.

This discussion should be read in conjunction with Management's Discussion and Analysis included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, filed March 8, 2012.

Overview

During the first quarter 2012 we continued to concentrate on the ramp-up and expansion of existing production at our Velardeña Operations in Mexico and advancement of the evaluation stage El Quevar project in Argentina. An overview of significant achievements during the first quarter 2012 is provided below:

• We continued with the ramp-up of production and achieved significant operational improvements at our Velardeña Operations in Mexico. First quarter 2012 payable production totaled 1,700 ounces of gold and 110,000 ounces of silver, exceeding guidance by approximately 30% for gold and 22% for silver and fourth quarter 2011 production by approximately 55% for gold and 47% for silver. Also during the first quarter, the Velardeña Operations had payable base metals production of approximately 200,000 pounds of lead and 314,000 pounds of zinc.

• Due primarily to a 6 month delay in the planned arrival of underground mobile mining and ancillary equipment from the El Quevar project, including loaders, trucks and drills, we have reduced our forecast silver production for the remainder of 2012. We now expect 2012 payable silver production to total approximately 590,000 ounces, as compared to previous guidance of approximately 740,000 ounces, with payable gold production remaining at approximately 9,400 ounces. Due to customs delays in Argentina, the equipment that was expected to arrive at the Velardeña Operations in January 2012 is now expected to arrive in June. This delay has reduced the amount of mine development originally anticipated for 2012, which has delayed access to higher grade stopes and delayed further reductions in dilution, resulting in lower than anticipated head grades. Our expectations regarding gold production remain unchanged because we expect to be able to use the new bulk flotation process currently being installed at the oxide plant, expected to commence operations in July, to improve gold recoveries more than originally anticipated. The following table shows actual gold and silver production for the first quarter 2012, and currently forecasted production for the remaining 3 quarters of 2012.

Q1 2012

Actual Q2 2012 Q3 2012 Q4 2012 Full Year 2012

Production (payable metals)

Gold (oz) 1,700 1,700 2,200 3,800 9,400

Silver (oz) 110,000 110,000 160,000 210,000 590,000

Assuming metals prices of $30.00 per ounce of silver and $1,500.00 per ounce of gold during the remainder of 2012, we expect that revenue from the sale of metals net of cost of metals sold will be positive at the Velardeña Operations in the fourth quarter 2012.

• We are continuing engineering studies of several alternatives for an additional expansion at the Velardeña Operations, which might take the place of the 1,300 tonne per day expansion still under review. The Company currently expects that the cost of the 1,300 tonne per day expansion to be in the range of approximately $20 million. The timing of a potential expansion is subject to the availability of funds.

• Pincock Allen & Holt ("PAH") has completed an updated estimate of mineralized material at our El Quevar project in Argentina. The estimate assumes mining of oxide material from an open pit on the east end of the Yaxtche deposit and sulfide material from both the open pit and an underground mine on the western portion of the Yaxtche deposit. According to the PAH estimate, based on results from 270 diamond drill holes, mineralized material in the Yaxtche zone, at a cut-off grade of 26 grams per tonne silver for the open pit and 100 grams per tonne silver for underground material, and using a three year average silver price of $24.41 per ounce, was as follows:

Tonnes Average silver

(000s) grade (g/tonne)

6,024 147.5

• The estimate of mineralized material has increased significantly over the previous estimate prepared by Micon International Limited in 2010, based on data from the 168 drill holes then available. The PAH estimate uses preliminary mining pit and underground stope shapes and conceptual economic factors and grade capping parameters that reduced the reported grade from that previously estimated.

"Mineralized material" as used in this report on Form 10-Q, although permissible under SEC's Guide 7, does not indicate reserves" by SEC standards. We cannot be certain that any part of the Yaxtche deposit will ever be confirmed or converted into SEC

Industry Guide 7 compliant "reserves". Investors are cautioned not to assume that all or any part of the mineralized material will ever be confirmed or converted into reserves or that mineralized material can be economically or legally extracted.

Results of Operations

For the results of continuing operations discussed below, we compare the results from operations for the three month period ended March 31, 2012 to the results from operations for the three month period ended March 31, 2011.

Three Months Ended March 31, 2012

Revenue from the sale of metals. We recorded $6.4 million of revenue for the three months ended March 31, 2012, all from the sale of products produced at our Velardeña Operations in Mexico. We had no operations prior to the acquisition of the Velardeña

Operations during September 2011; consequently there were no revenues recorded for the three months ended March 31, 2011.

Costs of metals sold. We recorded $7.9 million of costs of metals sold for the three months ended March 31, 2012, all related to sales from our Velardeña Operations in Mexico. Included in costs of metals sold was a $1.2 million write down of finished goods

inventory to its estimated net realizable value. We had no operations prior to the acquisition of the Velardeña Operations during September 2011; consequently there were no costs of metals sold recorded for the three months ended March 31, 2011.

Exploration. Our exploration expenses, including property holding costs and costs incurred by the local exploration offices, were $2.4 million for the three months ended March 31, 2012, as compared to $3.7 million for the three months ended March 31,

2011. Exploration expenses were incurred primarily on drilling programs, concession payments, and other exploration activities in Mexico, Argentina, and Peru. The decreases in exploration during the first quarter 2012 as compared to the first quarter 2011 is the result of our reduced spending on exploration as we attempt to monetize our exploration portfolio.

Velardeña project expense. During the three months ended March 31, 2012 we incurred $3.4 million of expenses related to our project at our Velardeña Operations in Mexico, primarily related to development of the San Mateo drift, other mine development, and engineering work. In addition to amounts expensed during the three months ended March 31, 2012, we incurred capital expenditures of approximately $2.8 million for plant construction, mining and other equipment and had outstanding approximately $0.8 million of advance payments to equipment manufacturers at March 31, 2012. The Velardeña Operations were acquired during September 2011; consequently there were no Velardeña project expenses recorded for the three months ended March 31, 2011.

El Quevar project expense. During the three months ended March 31, 2012 we incurred $1.4 million of expenses primarily related to furthering our evaluation of the Yaxtché deposit at our El Quevar project in Argentina. During the three months ended

March 31, 2011, we incurred $8.7 million of expenses primarily related to development of the exploration drift, drilling and engineering work on the Yaxtché deposit. The decreases in the first quarter 2012 costs as compared to the first quarter 2011 are primarily the result of the suspension of the drifting and drilling activities at El Quevar during 2012.

Administrative. Administrative expenses were $2.0 million for the three months ended March 31, 2012 compared to $2.2 million for the three months ended March 31, 2011. The administrative expenses for both quarters are comparable and are primarily related to public company costs and corporate activities in support of our Velardeña development and operations during 2012, El Quevar project work during 2011 and our exploration programs during both quarters.

Other Operating Income & Expense, Net. During the three months ended March 31, 2012 we recorded $0.3 million of net other operating income compared to approximately $0.4 million recorded during the three months ended March 31, 2011. Both amounts are primarily related to gains on the sale of certain exploration properties.

Stock based compensation. During the three months ended March 31, 2012 we recorded $0.2 million of stock based compensation expense compared to approximately $1.2 million of stock based compensation expense recorded during the three months ended March 31, 2011. The decreases in the first quarter 2012 costs as compared to the first quarter 2011 is primarily the result of fewer outstanding stock grants at March 31, 2012 as compared to March 31, 2011 because of the accelerated vesting of stock grants at the completion of the merger with ECU on September 2, 2011.

Reclamation Expense. During the three months ended March 31, 2012 we incurred $0.2 million, which included $0.1 million of reclamation costs related to the accretion of an asset retirement obligation at the Velardeña Operations and actual reclamation expenses of $0.1 million incurred at the El Quevar project. We incurred no reclamation expenses during the three months ended March 31, 2011.

Interest and Other Income. During the first three months of 2012 we recorded approximately $0.2 million of interest and other income primarily related to the reduction of a loss contingency liability. We recorded a nominal amount of interest and other income during the first three months of 2011 primarily related to the sale of certain available for sale securities.

Royalty Income. During the first three months of 2012 and 2011 we recorded royalty income of approximately $0.1 million. The royalty income is all related to Excellon's Platosa mine in Mexico, on which we retained a net smelter return royalty; our royalty income varies from period to period depending on production from the mine.

Gain/Loss on Foreign Currency. During the three months ended March 31, 2012 we recorded $0.5 million of foreign currency gain compared to $0.1 million foreign currency loss for the same period in 2011, primarily related the effect of currency fluctuations on monetary assets net of liabilities held by our foreign subsidiaries that are denominated in other than US dollars.

Income Taxes. Our income tax for the three months ended March 31, 2012 was $1.8 million related to Mexico net operating losses. Our income tax for the three months ended March 31, 2011 was $0.1 million related to the reversal of the tax effects of other comprehensive income reported as of December 31, 2010.

Liquidity, Capital Resources and Going Concern

At March 31, 2012 our aggregate cash and short-term investments totaled $32.3 million, which were comprised of $32.2 million of cash and cash equivalents and $0.1 million of short term investments. Our cash and short-term investment balance at March 31,

2012 is lower than the $48.6 million in similar assets held at December 31, 2011 due primarily to the operating loss of $1.5 million at the Velardeña Operations; Velardeña Operations capital and development expenditures during the quarter of approximately $6.2 million; $3.3 million in additional working capital, primarily related to increased inventories and receivables associated with the Velardeña Operations; $2.4 million on exploration; $2.0 million on general and administrative activities; and $1.4 million on the El Quevar project. These expenditures were offset partially by $0.5 million in royalties and the sale of non strategic property interests.

In accordance with our updated guidance, we expect to produce approximately 590,000 ounces of silver and 9,400 ounces of gold during 2012 from the Velardeña Operations. Assuming metals prices of $30.00 per ounce of silver and $1,500 per ounce of gold the Company expects to generate a negative gross margin from the sale of metals of approximately $1.0 million during the remaining three quarters of 2012. With the cash and investment balance at March 31, 2012 of $32.3 million and an anticipated $1.0 million of negative gross margin from the sale of metals at the Velardeña Operations and approximately $1.0 million from royalties and other income during the remainder of 2012, the Company plans to spend the following amounts during the remaining three quarters of 2012 pursuant to its long-term business strategy:

• Approximately $13.5 million on capital and development costs related to the continued development of the San Mateo drift and other mine development and capital expenditures intended to increase the capacity and productivity of mine operations and plant facilities;

• Approximately $2.5 million at the El Quevar project to fund maintenance activities and the continuation of project evaluation costs;

• Approximately $4.0 million on other exploration activities and property holding costs related to our portfolio of exploration properties located in South America and Mexico as we pursue strategies to monetize portions of the portfolio; and

• Approximately $6.0 million on general and administrative costs. Based on these projections, and assuming no cash generated by monetization of the exploration properties, we would have at year-end 2012 a cash and investment balance of approximately $6.0 million. Assuming metals prices of $30.00 per ounce of silver and $1,500 per ounce of gold during the remainder of 2012 we expect that gross margin from the sale of metals will be positive at the Velardeña Operations in the fourth quarter 2012.

The actual amount that we spend through year-end 2012 may vary significantly from the amounts specified above and will depend on a number of factors, including metals prices, the results of continuing operations and the timing of possible phased expansion projects at the Velardeña Operations and the results of our continued project assessment work at El Quevar and other exploration properties, and whether the Company is able to monetize portions of its exploration portfolio and the amount and timing of cash generated by these activities or other external funding efforts. There can be no assurance that the current expenditures planned for the Velardeña Operations will result in the anticipated silver and gold production. If the anticipated production does not occur, or metals prices decline from the levels noted previously, we would be required to preserve our cash and investments by reducing project evaluation, exploration work, and general and administrative expenses; relying on the monetization of non-core assets; or securing external funding from debt or equity. There can be no assurance that we would be successful in obtaining sufficient funding from any of these actions or sources in the future on terms acceptable to us or at all.

In 2012, we plan to continue evaluating the expansion of the Velardeña Operations beyond the current capital and development program and to continue the further advancement of the El Quevar project. If economic studies for either the Velardeña Operations phased expansion or El Quevar projects are positive, significant additional funding would be required to complete development and plant construction associated with the projects. To fund completely either project would require additional equity or debt from external sources or funding from monetization of non-core assets. There can be no assurance that we would be successful in funding or obtaining funding in the future on terms acceptable to us or at all. If we were unable to obtain additional funding during 2012 or beyond, the potential further development of the Velardeña Operations or El Quevar projects could be delayed.

Significant Accounting Policies

We did not adopt any new accounting standards during the quarter ended March 31, 2012, nor were there any new accounting pronouncements during that period that would have an impact on our financial position or results of operations.