NEWS

PHASE II DRILLING INTERCEPTS 108M @ 125 G/T AG AT CHINCHILLAS SILVER DEPOSIT; MINERALIZED ZONES CONTINUE TO EXPAND

Phase II Drilling Intercepts 108m @ 125 g/t Ag At Chinchillas Silver Deposit; Mineralized Zones Continue to Expand

Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce the results of the final 19 drill holes from the 35 hole Phase II program at the Chinchillas silver project in Jujuy, Argentina, 30 kilometres northeast of Silver Standard Resources Inc.'s Pirquitas silver mine and 85 kilometres north of Glencore International plc's Aguilar silver-lead-zinc mine. Golden Arrow has drilled 13,500 meters (76 holes) during Phase I and II drilling. The mineralized zone begins at surface and continues at depth and remains open to expansion at depth and to the north, east and west.

Drilling highlights include:

  • 108m @ 125 g/t Ag, 1.2% Pb in CGA-77, including:
    • 3m @ 712 g/t Ag, 7.7% Pb
    • And 10m @ 308 g/t Ag, 1% Pb and 0.7% Zn
  • 20m @ 379 g/t Ag, 2.1% Pb in CGA-89, including:
    • 3m @ 1593 g/t Ag, 2.2% Pb
  • 93m @182 g/t Ag, 1.4% Pb, 0.5% Zn, in CGA-90 including:
    • 2m @ 2614 g/t Ag, 5.3% Pb, 1.6% Zn

The Company's Phase II drill program at Chinchillas has successfully concluded, with a total of 7,286 metres completed. Results from the program will be combined with results from the previous 41 drill holes, for a total of over 13,500 metres of drill data. This data will be used to define the first NI 43-101 compliant silver-lead-zinc resource and complete the associated technical report, which is underway. The technical report will include the results of metallurgical testing, for which the final results are pending. A Phase III drill program is also being planned, and will proceed following the completion of the resource estimate work.

"We are excited with these results which expand the known mineralization by as much as 220 metres from the previously defined Silver Mantos zone, and indicates a large high grade silver area in the basement of the zone, which will be included in our next drill program." stated Brian McEwen, VP Exploration and Development.

Drilling Highlights

The latest drill results continue to expand the Silver Mantos zone to the west, southwest and south. Drilling encountered both near-surface disseminated manto-style mineralization hosted within volcanics and Pirquitas-style breccias and infill mineralization associated with feeder structures within the basement schists.

At Silver Mantos, drill hole CGA-77 tested the feeder zone to mineralization, and successfully encountered 108 metres at 125 g/t silver and 1.3% lead with three higher grade intersections, including 3 metres at 712 g/t silver and 7.7% lead. Hole CGA-88 stepped out 65 metres from the zone, and intersected 60 metres at 104 g/t silver and 1.1% lead, and includes a section in the basement rocks of 3 metres at 905 g/t silver and 4.8% lead. The western step-out holes returned the highest grade silver results of the Phase II program: CGA-89 stepped out 75 metres and had several long intersections of silver, most notably 20 metres at 379 g/t silver and 2.1% lead, including 3 metres with 1593 g/t silver and 2.2% lead. CGA-90 approximately 100 metres north of CGA-89 and stepped out 65 metres from the previously defined zone, returned 93 metres at 182 g/t silver, including 2 metres at 2614 g/t silver, 5.3% lead and 1.6% zinc.

Preliminary modeling of all drill data indicates that holes CGA-88; -77; -89; -60; -45; -90 confirm an area of 160 metres by 200 metres of high grade silver in the basement. This northeast-southwest corridor is open to expansion along strike and at depth.

Table 1 summarizes the highlights from the latest 19 drill holes. A map showing locations is available at http://www.goldenarrowresources.com/Chinchillas .

Table 1. Highlights of Drill Results

ZONE HOLE Note From
(m)
To
(m)
Length
(m)
Ag
(g/t)
Pb
(%)
Zn
(%)
SILVER
MANTOS
CGA-77 Feeder zone 75 183 108 125 1.3
including 75 78 3 523 3.9 2.5
and 92 95 3 712 7.7
and 132 142 10 308 1.0 0.7
CGA-78 275m SW drilled off target no significant mineralization
CGA-79 150m SW step-out 82 87 5 137 1.0
CGA-80 West edge 30 56 26 125
183 202 19 161 0.8
CGA-81 50m S step out 20 22 2 39 0.8 3.0
CGA-82 50m S step-out 10 18 8 69 0.6
CGA-83 190m NW step-out No significant mineralization, hole incomplete.
CGA-84 infill 146 184 38 76 0.5 0.6
CGA-86 80m SW step-out 119 125 6 171 0.8
167 171 4 437 0.5
CGA-87 210m SW step-out 6 25 19 101
34 52 18 91
CGA-88 65m SW step-out 24 34 10 100 0.6
45 105 60 104 1.1
including 86 89 3 905 4.8
CGA-89 75 m W step-out 3 41 38 67 0.7 1.3
49 66 17 255 1.9
72 92 20 379 2.1
including 87 90 3 1593 2.2
100 144 44 133 1.0
158 159 1 225
CGA-90 65m W step-out 72 165 93 182 1.4 0.5
including 83 85 2 2614 5.3 1.6
179 184 5 102 1.0
CGA-91

50m E step-out

71 90 19 119 0.6 1.4
including 71 73 2 620
Central
Block
CGA-63 Between zones 130 133 3 54 1.5
CGA-64 Between zones 25 30 5 1.7
Socavon
del Diablo
CGA-67 55m W step-out 58 74 16 1.2
CGA-85 Feeder 44 49 5 62 1.4 0.7
230m W Socavon 155 187 32 0.8
CGA-92 re-drill of CGA-51 35 47 12 113 1.7 1.6
55 71 16 72 1.3 3.4

Intercepts are calculated using a cut-off grade of 20g/t for Ag and 0.5% for Pb and Zn. True widths have not yet been confirmed, pending completion of the geological model.

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 Golden Arrow's 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 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 Inc.'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 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 ID Easting Northing Elevation (m) Azimuth Depth Total Length (m)
CGA-63 3473169 7512138 4113 116 -50 156
CGA-64 3473035 7512158 4119 116 -50 141
CGA-67 3473474 7512158 4084 276 -75 81
CGA-77 3472597 7512295 4137 0 -90 206
CGA-78 3472410 7512112 4169 0 -90 99
CGA-79 3472511 7512176 4151 300 -65 120
CGA-80 3472690 7512400 4125 0 -90 231
CGA-81 3472783 7512049 4145 250 -55 101
CGA-82 3472700 7512130 4147 230 -55 104
CGA-83 3472489 7512522 4126 270 -65 37
CGA-84 3472732 7512215 4130 300 -65 231
CGA-85 3473979 7512228 4065 36 -60 235
CGA-86 3472589 7512188 4149 300 -65 204
CGA-87 3472451 7512158 4158 300 -65 150
CGA-88 3472595 7512237 4142 300 -65 186
CGA-89 3472529 7512301 4136 74 -79 198
CGA-90 3472574 7512410 4128 270 -78 201
CGA-91 3472867 7512244 4118 0 -90 150
CGA-92 3473531 7512168 4083 0 -90 201

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.