NEWS

GOLDEN ARROW ANNOUNCES POSITIVE INITIAL RESULTS FOR FIRST DRILL HOLES AT CHINCHILLAS SILVER PROJECT

Golden Arrow Announces Positive Initial Results for First Drill Holes at Chinchillas Silver Project

Golden Arrow Resources Corporation (TSX-V: GRG, FSE: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce the results from the first four (502 meters) diamond drill holes at its 100% owned Chinchillas Silver Project, in Jujuy Argentina. All holes intersected significant silver-zinc-lead mineralization with the highlights to date including CGA-17 averaging 132 g/t silver over 31 m from 3 to 34 m and CGA-18 averaging 215 g/t silver equivalent* over 20.7 m from 17 to 37.7 m.

Drilling
Golden Arrow has to date completed a total of 1800 m in 14 holes of a planned 3000 m drill program. Assay results for the first four holes drilled into the Silver Mantos target have been received and verified (CGA-17 to CGA-21). Significant mineralized intercepts are tabulated below.

Table 1. Initial Results: Silver Mantos Target, Chinchillas Project.

HOLE From
(m)
To
(m)
Length
(m)
Ag
(g/t)
Pb
(%)
Zn
(%)
Ag EQ*
(g/t)
CGA-17 3 34 31 132 - - 132
includes 22 26 4 382 - - 382
and 39 43 4 84 - - 84
and 73 74 1 104 - - 104
CGA-18 17 37.7 20.7 163 2.47 - 214
includes 19 23 4 557 7.85 - 718
and 46 68 22 64 0.70 1.03 99
CGA-19 5 22 17 49 - 1.9 87
and 34 49 15 31 - 2.36 79
and 66 74 8 - - 3.13 64
CGA-20 4.55 14 9.45 31 0.84 - 48
and 23 26 3 80 0.83 - 97
and 46 50 4 61 0.66 - 74
and 57 62 5 67 - - 67
and 79 81 2 40 1.00 - 61
and 102 106 4 82 - - 82
and 139 149 10 23 - - 23

(*) Ag cutoff of 20 Ag g/t and 0.5% for Zn and Pb. 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 are assumed to be 100%.

Discussion of Results
The first four holes (CGA-17 to CGA-20) were drilled within the Silver Mantos target and confirm continuity of mineralization between 3 historical holes drilled by previous operators (see press release Aug 03, 2011). Silver Mantos is an area of flat lying near surface (0-70m) mineralization in the western basin where favorable volcanic tuff horizons have been mineralized by crosscutting feeder structures. Future drilling will concentrate on infilling and expanding this zone.

The second principal target drilled is Socovon del Diablo, 600 meters east of Silver Mantos, where 7 holes (833 m) have been completed, focusing on an area of mineralized hydrothermal breccias. Assay results are pending for the Socovon del Diablo holes. The drill rig is currently testing new targets on the margins of the volcanic center. Once the results and interpretation have been completed for the two principal targets (Silver Mantos and Socovon del Diablo) the rig will return to those zones to complete infill and step-out drill holes.

See map http://www.goldenarrowresources.com/assets/docs/nr/ChinchillasDrillUpdate-Jun2012.pdf

Chinchillas Project:

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 the Paleozoic basement schists. The resulting depression, 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.

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.