NEWS

VALE COMMENCES 7,500 M SECOND PHASE DRILL PROGRAM AT MOGOTE, ARGENTINA

Vale Commences 7,500 m Second Phase Drill Program at Mogote, Argentina

Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), the "Company" or "Golden Arrow") is pleased to announce that it has been informed by Vale S.A. ("Vale") that it has commenced a 10-hole, 7,500 m drill program on the Company's Mogote copper-gold-silver porphyry/epithermal project in San Juan Province, Argentina. The drill program will target both porphyry copper-gold and precious metal epithermal mineralized zones identified during Vale's 2011-12 field program.

"Mogote is situated in one of the most important emerging mining districts in the world," stated Joseph Grosso, President & CEO. "We are pleased to be partnered with Vale, who is able to provide this project with the depth of technical expertise it requires."

The planned drilling follows from the 2011 - 2012 season where Vale completed an extensive amount of exploration work: 37 line km of IP/ Resistivity surveys; 114 line km of ground magnetic survey; and, 3,695 m of drilling. During the 2011 - 2012 season, multiple gold copper porphyry targets were identified and this season's 7,500m drill program plans to test the following targets:

  • Filo Este: 3 holes
  • Filo Central: 3 holes
  • Zona Colorida: 2 holes
  • Stockwork Hill: 2 holes
Click to view map for planned drill hole locations or visit www.goldenarrowresources.comhttp://www.goldenarrowresources.com/docs/Vale-NR-Dec-2012-MAP-upright-final.pdf. Note that drilling plans may change during the season. Final results are expected in the second quarter of 2013.

The 100% owned 83 km2 (8,300 ha) Mogote copper-gold-silver porphyry/epithermal project is centrally-located in the prolific Vicuna District of northern San Juan Province which includes NGEx Resources Inc.'s Jose Maria copper-gold deposit in Argentina and Goldcorp Inc./New Gold's El Morro gold-copper porphyry deposit in Chile. The Mogote property covers multiple large porphyry/epithermal targets. Included in the agreement with Vale are additional claims totaling 31 km2 (3,150 ha) on the Chilean side of the international border adjacent to Mogote to cover potential extensions to mineralized zones.

Golden Arrow and Vale have signed a modification to the original agreement which keeps unchanged the amount of the cash payments and exploration expenditures, but changes the schedule.

Under the revised terms, Vale is earning a 70% interest in Golden Arrow's Mogote project by completing $US 6.8 million in exploration expenditures and making $US 2.8 million in cash payments to Golden Arrow over 4 years.

About Vale S.A.:

Vale is one of the largest metals and mining company in the world and the largest in the Americas, based on market capitalization. Vale is the world's largest producer of iron ore and iron ore pellets and the world's second-largest producer of nickel. Vale also produces copper, thermal and metallurgical coal, phosphates, potash, cobalt and platinum group metals (''PGMs''). To support Vale's growth strategy, it is actively engaged in mineral exploration efforts in several countries around the globe. Vale operates large logistics systems in Brazil and other regions of the world, including railroads, maritime terminals and ports, which are integrated with its mining operations. Vale is committed to transform natural resources into prosperity and sustainable development by operating with respect for the natural environment and being an ethically and socially responsible company. Vale's target is to be the number one global natural resources company in creating long term value, through excellence and passion for people and the planet.

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 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

"Joseph Grosso"

_______________________________________

Mr. Joseph Grosso, Chairman, 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.