NEWS

PRELIMINARY METALLURGICAL TESTING AT GOLDEN ARROW'S CHINCHILLAS PROJECT REPORTS 98.7% RECOVERY OF SILVER

Preliminary Metallurgical Testing at Golden Arrow's Chinchillas Project Reports 98.7% Recovery of Silver

Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce the results of the preliminary bench-scale metallurgical test program on representative samples from the Chinchillas silver-zinc-lead project in Argentina. Conclusions from the metallurgical report include: "The samples responded very well to sulphide flotation, with silver recoveries averaging 98.7%, accompanied by very high lead and zinc recoveries."

"We are very pleased that this initial program indicates that we can expect excellent recoveries of silver and base metals using conventional flotation methods with standard reagents. These results, together with our upcoming resource estimate, will aid in evaluating the economics and viability of mineral production at Chinchillas." stated Brian McEwen, VP Exploration and Development.

Metallurgical Program

The test work was completed by Inspectorate Exploration & Mining Services Ltd. ("Inspectorate") of Richmond, B.C Canada under the direction of the Company's consulting metallurgist, Mr. John Fox. Three samples of approximately 50kg each were shipped to Inspectorate. The samples included representative composite samples of drill core from the Silver Mantos and Socavon del Diablo zones, as well as the mineralized basement, described in previous news releases as "Pirquitas-style".

Initially, a rougher flotation test was done at three different grind levels and sampled in four stages. The Chinchillas samples responded very well to flotation and were found not to be sensitive to grind size. Maximum rougher silver recoveries were 99.8, 97.0 and 99.3% in the Basement, Socavon and Silver Mantos composites, respectively. The lead recoveries were also very high, at between 96.5 and 98.1% for all rougher tests, while zinc recoveries were generally lower, between 66.0% and 96.1%. Following the rougher tests, cleaner flotation testing returned silver grades from 554 g/t in the zinc-rich Socavon composite to 11,268 g/t in the Silver Mantos composite, with silver recoveries for all three in the range of 89-92%.

Metallurgical test work will continue, in particular to optimize the flowsheet to produce a separate high-grade silver-bearing lead concentrate and a zinc concentrate.

Qualified Person

The technical information contained in this release has been prepared under the supervision of and reviewed by Mr. John R. W. Fox, B.Sc., P.Eng. of Laurion Inc., independent consultant to the Company and a Qualified Person as defined in National Instrument 43-101. Mr. Fox is a metallurgical engineer with 40 years experience in the design, start-up and operation of mine metallurgical process plants. The contents of this release have been reviewed and approved Mr. Brian McEwen, P.Geol., VP Exploration and Development of the Company and a Qualified Person as defined in National Instrument 43-101.

About Golden Arrow:

Golden Arrow is a Vancouver-based explorer 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 of the Company is 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 NI 43-101 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.