NEWS

DRILL PERMIT GRANTED FOR CHINCHILLAS

Drill Permit Granted for Chinchillas

Golden Arrow Resources Corporation (TSX-V: GRG, FSE: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce it has received the necessary permit for the 3,000 metre drill program on its Chinchillas Silver Project located in Jujuy Province, Argentina. The Company has begun mobilization and expects to commence drilling this month.

Chinchillas Silver Project

Chinchillas is an advanced stage silver project, where Golden Arrow plans to expand on the 11 previous successful drilled holes. The project is located within the southern extension of the well-known Bolivian silver-zinc-tin belt (see map:http://www.goldenarrowresources.com/assets/docs/nr/Chinchilla_location.pdf) which extends into northern Argentina Chinchillas has the potential to host a large silver-zinc-lead deposit, where the geology is similar to Silver Standard Resources Inc.'s Pirquitas mine, located 30 kilometres southwest of Chinchillas, which produced 6.3 million ounces of silver in 2010 and contains a reported 195.1 million ounces of proved and probable reserves at 200 grams per tonne Ag.1

1Pirquitas Mine Reserves from Silver Standard Resources Inc.'s website.

"We are very excited at the prospect of commencing the second drilling campaign on our Chinchillas property," stated Joseph Grosso, President & CEO. "Additionally, we continue to attract potential joint venture partners for our 100% owned properties that are ideally located in Argentina, as per our recently announced strategy on March 26, 2012."

The technical information contained in this release has been prepared by Bruce Smith, MAusIMM (Chartered Professional) Geologist, Golden Arrow's Exploration Manager, and has been reviewed by Dr. Gerald G. Carlson, Ph.D., P.Eng., Director of Exploration for Golden Arrow, both Qualified Persons as defined in National Instrument 43-101.

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.

ON BEHALF OF THE BOARD

"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.