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Drilling Returns Multiple Bonanza Silver Intercepts at Chinchillas, Including 29 Metres at 631 g/t Silver

July 10, 2012

Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company) is pleased to announce multiple near surface bonanza grade intercepts over significant lengths from drilling at the Silver Mantos target on its Chinchillas Silver Project, in Jujuy, Argentina. The majority of the results reported herein are 50 to 100 m step-out drill holes that significantly expand the previously outlined mineralized zone at Silver Mantos. Silver Mantos remains open to expansion in all directions.

Drill Highlights Include:

CGA-35 685 g/t AgEQ* over 29 m; including 1918 g/t AgEQ* over 6 m.
CGA-38 630 g/t AgEQ* over 22 m; including 1318 g/t AgEQ* over 10 m.
CGA-39 553 g/t AgEQ* over 29 m; including 1498 g/t AgEQ* over 7 m.

The new high grade silver results, believed to closely approximate true thickness, demonstrate the potential of Golden Arrow's Chinchillas project. The project is located near the Pirquitas mine and the world class Mina Aguilar mine, both of which are currently in production and have the support of the Jujuy government. The Company's exploration team is currently evaluating all of the drill results and planning to resume exploration and resource drilling promptly.

Click to view drill location map or visit www.goldenarrowresources.com

Silver Mantos Target.
At Silver Mantos, Golden Arrow has identified a flat-lying zone of mineralization defined by 14 mineralized drill holes, 10 of which have been completed by Golden Arrow in this Phase I drill program. Drill centers are between 50 m and 100 m apart. The mineralization is open to expansion in all directions. Mineralization is hosted as disseminations in two or more flat lying manto layers in strongly clay altered volcanic tuffs and breccias. Mineralization occurs near surface and up to 90 m in depth. Holes CGA-34 to CGA-39 were all drilled vertically and therefore reported lengths are close to true width. The silver is thought to occur primarily in the silver sulphosalts: boulangerite and tetrahedrite. Galena and sphalerite are also disseminated in the volcanic tuffs. Drill holes CGA-35, CGA-38, and CGA-39 define high grade areas within the mantos. Results for two remaining drill holes at Silver Mantos (CGA-40 and CGA-41) are pending.

Table 1. Recent Drill Results: Silver Mantos, Chinchillas Project.

Ag EQ*
CGA-34 16 39 23 217 0.64 0.48 240
  44 57 13 88   2.32 135
  61 71 10     2.63 54
CGA-35 6 35 29 631 1.72 0.93 685
includes 26 32 6 1873 2.2   1918
  39 56 17 323     323
  61 67 6 148 2.02 1.93 229
  71 73 2 246     246
  91 95 4 63     63
CGA-36 6 20 14 39 0.5   49
  33 39 6 99     99
  46 49 3 42     42
  65 93 28 155 1.38   183
CGA-37 12 23 11 122     122
  25 28 3 40     40
  31 34 3 107     107
CGA-38 15 21 6 45 0 0 45
  37 59 22 591 1.9 0 630
includes 39 49 10 1234 4.09 0 1318
CGA-39 8 12 4 46     46
  15 44 29 515 0.68 1.18 553
includes 37 44 7 1463 0.49 1.2 1498

*Values below 20 g/t for Ag and 0.5% for Zn and Pb are not shown. The current results are thought to approximate true width. Silver Equivalents (AgEQ) were calculated using US$28/oz. for silver, US$0.85/lb. for lead and US$0.85/lb. for zinc. Metallurgical recoveries and net smelter returns for the purpose of this calculation are assumed to be 100%.

Drilling Progress
Golden Arrow completed its Phase I drill program with total 3224 m in 27 holes. Analyses of the first 23 drill holes have been received and verified (CGA-17 to CGA-39). The first 17 holes targeted Silver Mantos, Socavon del Diablo and several new exploration targets, reported in press releases dated June 14th, June 20th, and July 5th 2012. The six holes reported in this press release were drilled as definition and step out holes at the Silver Mantos target.

Chinchillas Project
The Chinchillas project is located in the prolific Bolivian silver--zinc-tin belt which extends into northern Argentina. Golden Arrow has the option to earn a 100% interest in the Chinchillas (details in GRG News Release dated August 3rd, 2011). The Company believes that Chinchillas has the potential to host a large silver-zinc-lead deposit. Chinchillas is a Tertiary aged maar diatreme volcanic complex that has erupted through the Paleozoic basement schists. The resulting depression or basin, filled with volcanic breccias and tuffs is approximately 1.5km in diameter. Mineralization occurs within the basin, hosted in favorable volcanic tuff units, hydrothermal breccias and along faults and structural zones as well as on the margins of the basin within footwall schists and across the schist volcanic contacts. The mineralization occurs mostly as disseminations, veinlets and matrix filling. The Chinchillas project geology is most similar to the San Cristobal Mine in Bolivia where low grade Ag-Zn-Pb mineralization is mined from an open pit within a similar diatreme breccia environment. San Cristobal mine has estimated reserves (June 30, 2011) of 285 million tonnes, grading 1.41% Zn, 0.48% Pb, and 53.0 g/t Ag or 484 million ounces of silver, 4Mt zinc and 1.3 Mt lead1.

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.

Analyses of the drill core 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. Blank, duplicate and international standard samples were inserted into the drill core sample sequence sent to the laboratory for analysis. Golden Arrow detected no significant QA/QC issues during review of the data.

(1) San Cristobal Mine reserves were obtained from the San Cristobal website http://www.minerasancristobal.com. The mine is owned and operated by Sumitomo Corporation. The reserves are believed to be reliable.

The Company intends to carry out a significant follow-up drilling program to further expand on these step out holes and to complete an initial 43-101 compliant resource estimate. The Company intends to finance this program assuming the sale of its 1% royalty on the Gualcamayo Gold Mine closes which would result in no dilution to shareholders.

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 the pending sale of its 1% NSR on Yamana Gold Inc.'s Gualcamayo Gold Mine to Premier Royalty for $17.75 million pending shareholder approval (details in GRG News Release dated May 24th, 2012), ongoing drilling at the advanced Chinchillas Silver project, 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.


"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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