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Drilling Commences at Chinchillas Silver Project

May 3, 2012

Golden Arrow Resources Corporation (TSX-V: GRG, FSE: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce that a 3,000 m drill program is now underway at its Chinchillas Silver Project, in Jujuy, Argentina. The Phase 1 program will include infill and expansion drilling around the historically defined mineralized zones as well as new mineralized zones.

The target at Chinchillas is a bulk tonnage silver-lead-zinc deposit located within the southern extension of the well-known Bolivian silver-zinc-tin belt. Examples of similar projects in the district include Silver Standard's Pirquitas silver mine, 148 Moz Proven and Probable reserves at 140.6 g/t Ag from which 7.1 Moz silver was produced in 20111, located 30 km southwest of Chinchillas and Golden Mineral's El Quevar project, with a Measured and Indicated Resource of 59.9 Moz grading 310 g/t Ag2, located 200 km south.
(see map: http://www.goldenarrowresources.com/assets/docs/nr/Chinchilla_location.pdf)

New Surface Sampling Results

Highlights from recently completed rock chip sampling within mineralized breccia zones by the Company's team include:

  • 5,040 grams per tonne (g/t) Ag and 1.6% Pb over 1 m
  • 99.7 g/t Ag over 0.6 m
  • 251.1 g/t Ag, 3.1% Pb and 2.1% Zn over 0.5 m
  • 530 g/t Ag and 4.3% Pb over 1 m

Previous Drilling Results

14 drill holes were completed previously of which 11 holes cut potentially economic mineralized intercepts. Highlights include:

  • 112 m at 86 g/t AgEQ* (silver equivalent), 38.9 g/t Ag, 0.80% Pb, 1.6% Zn including 44 m at 111 g/t AgEQ* in CH-1 Socavon del Diablo
  • 14 m at 8.06% Zn in CH-6 Zinc Zone
  • 20 m at 183.1 g/t Ag and 8 m at 228.8 g/t Ag in CHD-15 Silver Manto

*Silver Equivalents (AgEQ) were calculated using US$ 31.70/oz for Silver, US$ 0.93/lb for lead and US$0.91/lb for Zn; metallurgical recoveries and net smelter returns are assumed to be 100%.

Additional project information can be viewed at the Company's web site at www.goldenarrowresources.com.


The Company has also received a quarterly royalty payment of US$608,451 from its 1% NSR on Yamana Gold Inc.'s Gualcamayo Gold mine in San Juan, Argentina.

The technical information contained in this release has been prepared by Bruce Smith, Chartered Professional MAusIMM Geologist and Golden Arrow's Exploration Manager and has been reviewed by Dr. Gerald G. Carlson, Ph.D., P.Eng., Head of Exploration for Golden Arrow, both Qualified Persons as defined in National Instrument 43-101., and the work is believed to have been carried out in a professional manner.

Analyses of the surface samples were performed by Alex Stewart Assayers, in Mendoza, Argentina, an internationally recognized assay service provider. The Company followed industry standard procedures for the work carried out on the Chinchillas Project with a quality assurance/quality control (QA/QC) program. Golden Arrow detected no significant QA/QC issues during review of the data.

About Golden Arrow:

Golden Arrow is a Vancouver-based explorer and prospect generator focused on identifying, acquiring and advancing precious and base metal projects in Argentina with the goal of achieving a world class discovery. The Company is well positioned for growth of shareholder value with a royalty income from its 1% NSR on Yamana Gold Corp.'s Gualcamayo Gold mine in San Juan, Argentina, a joint-venture with Vale on two properties, an attractive portfolio of highly prospective exploration projects and a pipeline of new opportunities under review. Golden Arrow will continue to execute its strategy to leverage the Company's exploration exposure by attracting partners to fund work on its portfolio of high quality mineral projects. Golden Arrow is a member of Grosso Group, a management company specialized in resource exploration, and working in Argentina where it is highly regarded and trusted since 1993. Golden Arrow offers exceptional exposure to Argentina's vast mining potential.

1Pirquitas Mine Reserves from Silver Standard Resources Inc.'s website.
2El Quevar Mine Resources from Golden Mineral's website.


"Joseph Grosso"
Mr. Joseph Grosso, President & CEO

For further information please contact:

Corporate Communications
Tel: 1-604-687-1828
Toll-Free: 1-800-901-0058
Email: info@goldenarrowresources.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any forward-looking statements. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.


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