NEWS

DRILLING EXPANDS MINERALIZED ZONES AND DISCOVERS NEW AREAS. PHASE II PROGRAM ONGOING

Drilling Expands Mineralized Zones and Discovers New Areas. Phase II Program Ongoing

Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company) is pleased to announce the results of nine additional drill holes from the Phase II program at the Chinchillas silver project in Jujuy, Argentina, 30 km northeast of Silver Standard's Pirquitas silver mine Two drill holes confirm mineralization in a new area 150 metres north of the main Silver Mantos and Socavon del Diablo zones, thereby greatly increasing the prospective area for additional resources at the project. Infill holes in the Silver Mantos zone continue to encounter silver, lead and zinc, including several intersections of "Pirquitas-style" mineralization at depth. Step-out drilling at the Socavon del Diablo zone increased the footprint of mineralization by 40 metres to the west and north.

"We are excited by the new mineralization we are finding on the north slope of basin, as it is within area of about 15 hectares that is geologically similar, and is previously untested. Finding new mineralization in an area of this size significantly expands the potential for additional resources at the project. Furthermore, around the Silver Mantos and Socavon zones we are pleased to see the potential resource area growing through step-out drilling and the discovery of new Pirquitas-style silver-lead-zinc mineralization in the basement rocks. Several more recent drill holes have been pushed deeper into the basement rocks and significant mineralization has been observed in drill core, particularly below Silver Mantos, so we are looking forward to the results from additional upcoming holes." stated Brian McEwen, VP Exploration and Development.

The focus of drilling to date has been shallow disseminated silver mineralization within the volcanic breccias and tuffs, as defined at Silver Mantos, Socavon del Diablo and the new north slope area. In deeper drilling in the center of the volcanic basement and along the shallow margins the geological team is starting to see significant "Pirquitas-style" mineralization. This 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). Drill hole CGA-56 is an example, with 2 metres grading 90 g/t silver at depths of 184-185 metres.

Drilling Summary

The Company's Phase II drill program at Chinchillas includes up to 6,500 metres of drilling. Results from the program, along with the results from the previous 41 holes, will be used to define a NI 43-101 compliant silver-lead-zinc resource in the first half of 2013. To date, the Phase II program has completed 34 drill holes for a total of 4784 metres (up to CGA-77). Nine holes totaling 1158 metres of drilling are reported here.

Table 1. Highlights of Drilling


ZONE HOLE Goal From
(m)
To
(m)
Length
(m)
Ag g/t Pb % Zn %
SOCAVON CGA-51 Step-out 6 22 16.0 - - 1.9
22 30 8.0 58 1.1 2.3
41 54 13.0 - - 0.9
54 63 9.0 49 1.0 3.3
63 74 11.0 - - 1.0
88 150 62.0 - - 1.0
SOCAVON CGA-52 Step out 23 29 6.0 - - 0.7
80 84 4.0 49 1.5 -
86 87 1.0 64 - -
SOCAVON CGA-53 Infill 4 9 5.0 30 0.5 1.5
23 40.3 17.3 79 1.0 4.0
SILVER MANTOS CGA-54 Infill 9 17 8.0 81 0.6 -
27.6 35 7.4 449 3.8 1.1
37 40 3.0 130 1.6 1.1
86 87 1.0 40 0.7 3.8
SOCAVON CGA-55 Step-out 29 41 12.0 - - 2.1
72 78 6.0 31 - -
94 98 4.0 62 - -
105 107 2.0 25 - -
108 110 2.0 73 - -
114 118 4.0 41 - -
SILVER MANTOS CGA-56 Infill 8 10 2.0 60 - -
10 12 2.0 no recovery
12 16 4.0 114 - -
22 40 18.0 82 - -
43 45 2.0 36 - -
51 56 5.0 72 - -
134 137 3.0 52 - -
184 186 2.0 90 - -

New target

CGA-57 New target

No significant mineralization, hole did not reach target depth.

New target CGA-58 New target 112 114 2.0 27 0.8 -
New target CGA-59 New target 10 12 2.0 68 - -
22 35 13.0 108 - -

(*Note: True widths have not yet been confirmed, pending completion of the geological model. Intercepts are believed to approximate true width.)

New Targets

Drill holes CGA-58 and CGA-59 targeted a new area on the north slope of the Chinchillas basin, 150m north of Silver Mantos and Socavon del Diablo zones. Both CGA58 and CGA59 encountered significant disseminated mantos style mineralization, including 13m at 108 g/t Ag. This area covers approximately 15 hectares where the volcanic host rock is covered by recent talus. Finding new mineralization in an area beneath talus cover significantly expands the potential area and size of the mantos style mineralization.

A separate target was tested in hole CGA-57, (400 metres east of holes 58 and 59) but the hole failed to reach its target depth and no notable mineralization was encountered.

Silver Mantos

The Silver Mantos zone is situated in the western third of the 1.5km wide Chinchillas maar diatreme basin, approximately 500 metres west of the Socavon del Diable zone. To date, drilling has outlined mineralization within a footprint of 23 hectares (480 m x 480 m) and to depths of up to 188 metres. In the Silver Mantos zone, there are two and locally three mineralized layers or mantos ranging between 2 and 48 m thick, averaging 12 metres in thickness. Mineralogical studies on Phase 1 drill core indicate that the silver occurs mostly in silver sulphosalts, boulangerite and tetrahedrite, that occur disseminated with galena and sphalerite in the volcanic tuffs.

Holes CGA-54 and CGA-56 are infill holes that confirmed the continuity of the mineralization in the horizontal mantos and at the brecciated basement. Hole CGA-54 encountered significant mineralization confirming the horizontal continuity of the mineralization in Silver Mantos at shallow depths, including 7.4 metres grading 449g/t silver, 3.8% lead and 1.1% zinc in CGA-54.

Socavon del Diablo

The Socavon del Diablo zone is situated in the eastern third of the 1.5km wide Chinchillas maar diatreme 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. Within the zone there are typically between two and four mineralized layers, averaging approximately 12 m thick.

Drill hole CGA-53 in-filled between previous holes, while CGA-51 and CGA-55 are step-outs of 40m from the Socavon del Diablo zone. All holes encountered short intersections of mantos style mineralization, increasing the footprint of mineralization by 40 metres to the west and north. Hole CGA-52 tested the Socavon zone by drilling back from a step-out of over 100 metres, and while it returned several mineralized intersections, it did not reach its goal.

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 (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.

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.

(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.

Table 2. Drill hole location and orientation data


Hole Easting Northing Elevation
(m)
Azimuth Dip Total Length (m)
CGA-51 3473529 7512165 4099 90° 150
CGA-52 3473741 7512376 4080 250° 60° 96
CGA-53 3473643 7512260 4084 90° 99
CGA-54 3472829 7512494 4127 90° 75° 150
CGA-55 3473581 7512295 4084 90° 132
CGA-56 3472616 7512355 4146 90° 70° 198
CGA-57 3473855 7512397 4084 210° 50° 90
CGA-58 3473326 7512470 4088 290° 70° 141
CGA-59 3473457 7512481 4108 320° 65° 102

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, 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.