NEWS

DRILLING COMMENCES AT CHINCHILLAS SILVER PROJECT

Drilling Commences at Chinchillas Silver Project

Golden Arrow Resources Corporation (TSX-V: GRG, FSE: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce that a 6,500 m drill program is now underway at its Chinchillas Silver Project, in Jujuy, Argentina. The drill program is designed to define a NI 43-101 compliant silver-lead-zinc resource. Drilling will include infill and expansion holes as well as the targeting of new areas. Previous drill results are reported on the company's web site www.goldenarrowresources.com and in the news release dated July 24, 2012.

About Chinchillas:

Of the total 41 drill holes completed at Chinchillas to date, 37 holes cut potentially economic mineralized near-surface intersections, including multiple high grade drill holes at the Silver Mantos target.

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

* 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%.

The Chinchillas project is located in the prolific Bolivian silver-zinc-tin belt which extends into northern Argentina. The Company believes that Chinchillas has the potential to host a large silver-zinc-lead deposit. Chinchillas is a Tertiary aged maar diatreme volcanic center that has intruded Paleozoic basement sedimentary horizons. The resulting volcanic vent, filled with breccias, tuffs and local dacite domes, is approximately 1.5 km in diameter. Mineralization occurs within the vent, 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 sediments and across the sediment volcanic contacts. The mineralization occurs mostly as disseminations, veinlets and matrix filling. The Chinchillas project geology is similar to the San Cristobal Mine in Bolivia where Ag-Zn-Pb mineralization is mined from an open pit within a similar volcanic 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.


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 core focus will be on advancing its flagship Chinchillas Silver Project located in Jujuy, Argentina. Golden Arrow has a strong treasury which will allow the company to drill its Chinchillas Silver Project over the coming months with the aim of publishing the first NI43-101 resource calculation on Chinchillas in the first half of 2013. Golden Arrow will continue to execute its strategy to leverage the Company's exploration exposure by attracting partners to fund work on its other 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.


ON BEHALF OF THE BOARD

"Joseph Grosso"

Mr. Joseph Grosso, Chairman, 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.