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Golden Arrow Intersects Silver-Zinc Mineralization in Three New Zones at Chinchillas Project

July 5, 2012

Golden Arrow Resources Corporation (TSX-V: GRG, FSE: GAC (WKN: A0B6XQ)), "Golden Arrow" or the "Company") is pleased to announce significant silver-lead-zinc mineralization from drilling and channel sampling on new exploration targets at its Chinchillas Silver Project, in Jujuy Argentina. Six drill holes (CGA28 to CGA33) were drilled on new targets around the volcanic basin margin outside the principal targets of Silver Mantos and Socavon del Diablo. The expanded program defined three new mineralized zones, Labor 4, Contact Sur and Chinchillas, with highlight results intersecting 218 g/t Ag over 15 m (CGA-32) and 34 m grading 79 g/t Ag, 0.76% Pb and 0.82% Zn, or 111 g/t AgEQ (silver equivalent*). Summary results are included in the table below.

Table 1. Summary Chinchillas Project Results: Outside Exploration Targets.

Ag EQ*
Chinchillas CGA-28 139 173 34 79 0.76 0.82 111
Chinchillas CGA-29 67 69 2 0 0 1.63 33
    69 72 3 113 0 1.89 152
    72 100 28 0 0 1.06 22
  includes 90 98 8 34 1.07 1.12 79
    153 159 6 47 0.5 0 57
Charge N CGA-30 no significant mineralization
Deep-240 CGA-31 205 210 5 35 0 0.51 45
Labor 4 CGA-32 10 25 15 218 0 0 218
    31 35 4 72 0 0 72
    57 63 6 48 0 0 48
    68 70 2 38 2.16 0 82
Contact Sur CGA-33 4 30 26 46 0.73 2.73 117

* 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%.

Three New Mineralized Zones
At the historical Chinchillas mine workings, 300 m east of Socavon del Diablo, three drill holes were completed (CGA-28, -29, -30). Drill holes 28 and 29 are located 150m apart and targeted an east-west structural zone below the old workings, with a coincident chargeability geophysical anomaly. Both holes intersected large intervals of breccia with sulphide matrix and corresponding silver-lead-zinc mineralization. Between the two drill holes, a composite chip sample across an outcropping shear zone graded 257 Ag g/t, 4.19 % Pb and 0.85 % Zn, or 360 g/t AgEQ* over 4 m.

At Labor 4 on the western margin of the volcanic basin, 250m west of Silver Mantos, CGA-32 cut multiple mineralized intercepts including15m of 218 g/t Ag from 10 m.

At Contact Sur, 200 m south of Silver Mantos, CGA-33 intersected 26 m of 117g/t AgEQ* from 4 m. Both Labor 4 and Contact Sur targets are along the contact between the volcanic breccias, the principal mineralization host, and the basement sediments. Management believes there is good potential to connect the mineralization at Silver Mantos with Labour 4 and Contact Sur, greatly increasing the size potential of this near-surface mineralized zone.

Drilling Progress
Golden Arrow has now completed the Phase I drill program, which included 3,224 m in 27 holes, with an average depth of 120 m. Analyses from the first 17 drill holes have now been received and verified (CGA-17 to CGA-33). The first 11 holes targeted Silver Mantos and Socavon del Diablo and were recently reported (details in GRG News Releases dated June 14th, and June 20th, 2012). The ten remaining drill holes from the Phase I program, providing additional testing of the Silver Mantos and Socavon del Diablo zones, will be reported as soon as results are received and confirmed.

A number of exploration targets remain un-tested and these will be examined in future drill programs.

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.

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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