NEWS

CHINCHILLAS PHASE II DRILL RESULTS CONTINUE TO EXPAND MINERALIZED ZONES

Chinchillas Phase II Drill Results Continue to Expand Mineralized Zones

Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company) is pleased to announce the results of 14 additional drill holes from the Phase II program at the Chinchillas silver project in Jujuy, Argentina, thirty kilometres northeast of Silver Standard's Pirquitas silver mine and eighty-five kilometres north of Glencore's Aguilar silver-lead-zinc mine.

"Our results continue to expand the near-surface mineralized zones at Chinchillas in most directions, which will impact our upcoming resource estimate. Furthermore, we are starting to define Pirquitas-style feeder zones beneath the Silver Mantos and Socavon del Diablo mineralization, indicating the potential to further expand the project" stated Brian McEwen, VP Exploration and Development.

The Company's Phase II drill program at Chinchillas has successfully concluded, having exceeded the planned 6500 metres of drilling with a total of 7286 metres completed. Results from the program will be combined with results from the previous 43 drill holes, for a total of over 13,500 metres of drill data. This data will be used to define a NI 43-101 compliant silver-lead-zinc resource and technical report in the coming months. Results are pending for 19 remaining holes from the Phase II program.

Drilling Highlights

The latest drill results highlight the definition of large feeder zones beneath the Silver Mantos and Socavon zones and the expansion of the Silver Mantos Zone onto the north side of the Chinchillas basin. This area is concealed by cover and until recently was not known to host mineralization.

At Silver Mantos, drill hole CGA-60, stepped out 50 metres west and cut through the typical near surface disseminated manto mineralization hosted within volcanics filling the basin, and continued into older basement schists. Within the basement schist CGA-60 cut three well mineralized zones with a combined width of 74 metres, including 20 metres at 141 g/t silver, 35 metres at 104 g/t silver and 19 metres at 86 g/t silver. At Silver Standard's nearby Pirquitas deposit mineralization is hosted entirely within the basement schists. The high grade flat lying near-surface volcanic hosted mineralized mantos does not exist at Pirquitas, as at Chinchillas.

CGA-62 was drilled under cover 200 metres north of the Silver Mantos on the north basin slope. Strong mineralized intercepts including, 4 metres at 197 g/t silver and 2 metres at 368 g/t silver demonstrate the potential to greatly expand the Silver Mantos zone north under the cover rocks.

At Socavon del Diablo, CGA-71 was drilled 175 metres east of the main zone and targeted deeper feeder zones in the basement schists. CGA-71 successfully intercepted 32 metres at 112 g/t silver, 1.1% lead and 0.9% zinc of feeder zone mineralization.

Table 1 summarizes the results from the latest 14 drill holes. A map showing locations is available at http://www.goldenarrowresources.com/assets/maps/plan_map_v3.jpg.

Table 1. Results of Drilling

AREA HOLE Note From (metres) To (metres) Length (metres) Ag g/t Pb % Zn %
SILVER MANTOS ZONE CGA-60 50m step out west 24 31 7 55
43 55 12 51 1.7
Mantos Feeders 91 110 19 86 1.0 2.0
113 133 20 141 1.9 0.5
137 172 35 104 0.8 0.3
CGA-62 200m North from Silver Mantos 1 6 5 103
42 46 4 197
63 65 2 368 3.2
68 70 2 213 4.3
CGA-65 50m step out south 13 25 12 60
69 73 4 48 0.6
78 84 6 70 2.4 1.7
CGA-69 Repeat old RC CH-5 26 36 10 43
40 66 26 274 0.7
68 74 6 87
90 92 2 220
CGA-70 Repeat old RC CH-6 10 14 4 63
32 41 9 12 0.1 1.6
53 58 5 1.7
68 73 5 1.5
CGA-72 44m step out north 21 26 5 113 0.5
34 37 3 262 6.9
CGA-73 50m step out west 33 41 8 51
52 56 4 116
CGA-74 80m step out NW 75 80 5 90
CGA-76 100m step out SW 25 40 15 158 2.6 0.7
Mantos Feeders 57 77 20 84 0.5
Intermediate Block CGA-61 Between main zones 16 21 5 33
72 74 2 50 1.3 3.4
Socavon del Diablo CGA-66 50m step out west 85 99 14 53 1.1 0.9
120 156 36 0.8
159 172 13 50 0.9 1.4
CGA-68 Repeat old RC CH-1 9 44 35 43 1.0 3.0
61 68 7 1.5
128 145 17 1.3
145 181 36 61 1.0 0.6
200.3 208 7.7 1.2
CGA-71 Feeder 175m east 117 149 32 112 1.1 0.9
CGA-75 160m NW of Socavon 84 90 6 1.7
113 160 47 71 0.7 1.6
Including 118 to 120m dacite intrusive 119 120 1 394 5.5 1.2
And Basement schist 146 148 2 358 6.2 1.4

Values below 20 g/t for Ag and 0.5% for Zn and Pb are not shown. True widths have not yet been confirmed, pending completion of the geological model. Intercepts are believed to approximate true width.

About the 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 project (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 at least 1.5km in diameter.

The Silver Mantos zone is situated in the western third of the basin. Shallow disseminated silver mineralization occurs within the volcanic breccias and tuffs. This is concentrated in two and locally three mineralized layers or "mantos" ranging between 2 and 48 metres thick, averaging 12 metres in thickness. In this Phase II drill program, a second style of mineralization has been identified in, and at the contact with, the Ordivician basement pelites and sandstones. This "Pirquitas-style" is characterized by silver, lead and zinc in structures and breccias within the basement schists, occurring beneath the volcanic hosts, as seen at Silver Standard's Pirquitas silver deposit located 30 kilometres southwest of Chinchillas (www.silverstandard.com).

The Socavon del Diablo zone is situated in the eastern third of the basin and mineralization was previously defined by drilling over an area of 3.5 hectares (250 m by 150 m). Mineralization includes mantos style within favourable shallow dipping volcanic tuff horizons and crosscutting feeder structures and hydrothermal breccias.

Qualified Person

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 Brian McEwen, P.Geol., VP Exploration and Development, both Qualified Persons as defined in National Instrument 43-101.

Methodology and QA/QC

Analyses of the drill core were performed by Alex Stewart Assayers, in Mendoza, Argentina, an internationally recognized assay service provider. All samples were analyzed by method ICP-MA-39 that consists of a four acid digestion followed by ICP-OES detection. Silver results >200 Ag g/t were re-analyzed by fire assay with a gravimetric finish on 50-gram samples. Lead and zinc results >10,000 ppm were re-analyzed by a 3 acids and ICP-OES detection. 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.

Table 2. Drill hole location and orientation data

Hole Easting Northing Elevation (m) Azimuth Dip Length (m)
CGA-60 3472660.24 7512288.35 4134 276 -75 177.0
CGA-61 3473287.13 7512070.25 4112 116 -50 141.5
CGA-62 3473069.91 7512631.71 4099 326 -70 214.5
CGA-65 3472653.06 7512178.71 4145 296 -75 145.5
CGA-66 3473500.87 7512114.46 4089 270 -75 192.0
CGA-68 3473631.42 7512168.39 4081 0 -90 222.0
CGA-69 3472707.37 7512455.00 4121 0 -90 111.0
CGA-70 3472920.30 7512410.15 4097 0 -90 99.0
CGA-71 3473844.04 7512265.13 4067 30 -65 165.0
CGA-72 3472917.58 7512572.93 4088 0 -90 122.0
CGA-73 3472633.88 7512405.76 4128 0 -90 157.75
CGA-74 3472615.32 7512476.14 4123 0 -90 102.0
CGA-75 3473493.00 7512447.60 4090 340 -65 162.0
CGA-76 3472529.04 7512238.68 4143 270 -80 141.0

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

"Carlos H. Fernandez Mazzi"

_______________________________

Mr. Carlos H. Fernandez Mazzi, 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.