NEWS

GOLDEN ARROW REPORTS DRILLING AHEAD OF SCHEDULE AT CHINCHILLAS SILVER DEPOSIT; RESULTS INCLUDE 4M @ 3,748 G/T SILVER, 5.2% LEAD AND 2.0% ZINC.

Golden Arrow Reports Drilling Ahead of Schedule at Chinchillas Silver Deposit; results include 4m @ 3,748 g/t silver, 5.2% lead and 2.0% zinc.

Vancouver, BC / TheNewswire / December 16, 2015 / Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow") is pleased to announce the results of assaying of an additional thirteen drill holes in the Phase V drilling program at the Chinchillas Silver Project in Jujuy Province, Argentina. Results from the first eight drill holes were announced December 2nd, 2015. The drilling program is part of the Chinchillas Project pre-development activities, funded by Silver Standard, which are being undertaken to evaluate the feasibility of creating a combined mining business with Silver Standard's Pirquitas mine, as announced October 1st, 2015. The program is on-going and additional results will be announced as assays are received.

Selected highlights from these drill holes include:

  • 4 metres @ 3,748 g/t silver, 5.2% lead, 2.0% Zn in CGA-193
  • 16 metres @ 273 g/t silver, 4.8% lead, 0.5% zinc in CGA-198G
  • 31 metres @ 159 g/t silver, 1% lead
  • 72 metres @ 162 g/t silver, 0.6% lead
    • including 5 metres @ 873 g/t silver, 1.3% lead

"We are pleased with the latest drill results that continue to indicate the robustness of the deposit. The team has made excellent progress with the program, and we will have completed over fifty percent more drilling than expected by the end of the year. This will accelerate the evaluation of the project and we now anticipate a resource update in the first quarter of 2016." commented Golden Arrow VP Exploration and Development, Brian McEwen.

The Phase V drill program started on October 19th 2015. To date, over 9,400 metres of drilling in 72 core holes has been completed, comprised mainly of infill holes in the Silver Mantos and Mantos Basement zones to upgrade the Mineral Resource categories, plus five geotechnical holes to support slope angle recommendations for the potential future pits. The program is on-going and will include additional infill drilling focused in the Silver Mantos area and drilling to characterize ground waters in the project area.

Table 1 below includes the results from thirteen drill holes totaling 2,600 metres in length. A map of the drill hole locations is available on the Chinchillas map page on the Golden Arrow website at http://www.goldenarrowresources.com/assets/news/2015-12-16_NRM_GRG_6sGFSC.jpg.

Chinchillas Deposit Geology

The Chinchillas deposit is a volcanic vent system in which explosive volcanic activity produced diatreme breccias and tuffs in the upper part of the vent and brecciated the underlying Ordovician basement metasediments. Silver-lead-zinc mineralization in the tuff and tuff breccia units is disseminated within thick mantos (layers), and in the basement is mainly within the fractures of the breccias. Mineralization occurs in four main zones: to the west is situated the Silver Mantos tuff-hosted zone and the Mantos Basement zone; to the east is situated the Socavon del Diablo ("Socavon") tuff-hosted zone and the Socavon Basement zone. The zones are described in detail in the most recent NI 43-101 Technical Report, filed under Golden Arrow's SEDAR profile dated November 2nd 2015.

Drill Hole Details

Mineralized intercepts are reported in Table 1, and all holes reported were collared in the western area of the deposit.

The consulting engineering firm Knight Piésold Ltd. ("KPL") was contracted to design and supervise a drill program to test the geomechanical and hydrogeological features of the future pit. Holes CGA-191G, CGA-194G, CGA-198G and CGA-201G were angled holes (-60°) drilled as part of this program, and logged for geomechanical properties by personnel from KPL. After the geomechanical logging the core was subject to Golden Arrow's standard geological logging, sampling and assaying procedures. Hole CGA-191G tested the south wall of the pit, CGA-194G the east wall, CGA-198G an internal wall and CGA-201G the west wall. The first three holes intercepted several low grade silver intervals in the Silver Mantos zone and CGA-198G also intercepted the known deep mantos layer at 204 metres, which is the northern-most expression of this layer to date.

The remaining holes reported were drilled to infill the Silver Mantos and Mantos Basement zones and test the limits of mineralization.

Hole CGA-192 is collared at the north edge of the deposit. It intercepted the basement rocks at 247 metres, deeper than nearby holes because it is located close to the throat of the volcanic system. Silver-lead mineralization was encountered at different horizons within the Silver Mantos and at the contact between the tuffs and the basement rocks.

At the north edge of the Silver Mantos zone, previous holes have shown erratic mineralization, but hole CGA-193 shows almost continuous mineralization from 30 to 108 metres, with a very high grade interval at 47 metres (4 metres @ 3,748 g/t silver).

In the central-north part of the Silver Mantos holes CGA-195 and CGA-196 encountered traces of mineralization, which increases to the south and east as demonstrated in holes CGA-197 and CGA-199. Hole CGA-197 was drilled deeper to test the basement breccias and confirmed the presence of the deep mantos layer at 178 metres and below that the mineralized Mantos Basement zone. Hole CGA-199 confirmed near-surface mineralization similar to the nearby previously released holes CGA-37, CGA-38 and CGA-54.

Holes CGA-200, CGA-202 and CGA-203 are located in the high grade core of the Silver Mantos and they all confirmed mineralization in layers between 5 and 100 metres deep.

Table 1. Drill Intercepts >20g/t for Ag and >0.5% for Pb and Zn

TARGET HOLE Note From
(metres)
To
(metres)
Length
(metres)
Ag
(g/t)
Pb
(%)
Zn
(%)
Silver Mantos CGA-191-G 13 25 12.0 32
28 30 2.0 24 1.0
34 38 4.0 27
42 43 1.0 22 0.9
44 47 3.0 0.5
49 50 1.0 61 1
53 57 4.0 0.7
68 72 4.0 32 0.6
74 75 1.0 24
78 84 6.0 20 0.8 3.3
84 86 2.0 0.7
Manto Basement CGA-191-G 108 109 1.0 35
110 112 2.0 62 0.5
125 126 1.0 32 0.6
165 166 1.0 71 1
Silver Mantos CGA-192 113 114 1.0 54
130 134 4.0 30 0.9
136 142 6.0 49 0.6
143 147 4.0 90 1.3
188 198 10.0 37
238 245 7.0 27
247 252 5.0 43 0.7
260 264 4.0 1
Silver Mantos CGA-193 28 30 2.0 1.0
30 40 10.0 89 0.9
46 47 1.0 30 0.8
47 51 4.0 3748 5.2 2.0
51 52 1.0 28 0.7
54 65 11.0 58 0.6 0.7
87 89 2.0 22 0.6
97 100 3.0 0.6
102 105 3.0 322 2.4
106 108 2.0 313 3.5
112 114 2.0 29 0.7
118 122 4.0 36
124 126 2.0 22
131 132 1.0 67 0.7 0.8
136 138 2.0 27
145 147 2.0 35 0.5
183 189 6.0 60 0.9
190 193 3.0 106 0.6
Silver Mantos CGA-194-G 23 25 2.0 21
36 42 6.0 53
56 62 6.0 27
65 66 1.0 28 0.5
70 72 2.0 70
74 82 8.0 33
103 106 3.0 39
108 109 1.0 21
112 113 1.0 26
115 119 4.0 49 0.5
194 196 2.0 0.6
196 198 2.0 28 0.5 1.5
198 200 2.0 1.3
Mantos Basement CGA-194-G 204 209 5.0 1.0
219 226 7.0 229 4.6 0.6
235 237 2.0 31 0.8
239 249 10.0 46 1
250 251 1.0 24
Silver Mantos CGA-195 No significant mineralization
Silver Mantos CGA-196 82 88 6.0 0.5
100 101 1.0 41 0.6
Silver Mantos CGA-197 37 43 6.0 60 1.1
46 62 16.0 61
79 88 9.0 150 0.7
89 90 1.0 20
91 92 1.0 23
122 126 4.0 0.7
146 153 7.0 0.8
178 196 18.0 132
including 185 186 1.0 1355 1.6 0.5
Mantos Basement CGA-197 198 213 15.0 152 0.8
including 205 208 3.0 479 1.6
215 216 1.0 24
218 224 6.0 25
231 242 11.0 110
245 246 1.0 86
249 258 9.0 99
259 264 5.0 189 2.2 1.0
Silver Mantos CGA-198-G 41 71 30.0 41 0.6
98 116 18.0 76
118 124 6.0 46 0.5
152 154 2.0 35
155 156 1.0 42 0.6
161 164 3.0 32 0.6
188 200 12.0 31
204 220 16.0 273 4.8 0.5
including 215 217 2.0 842 7.7 0.9
236 237 1.0 160 0.7
Silver Mantos CGA-199 7 9 2.0 44 0.6 1.0
15 17 2.0 22
21 23 2.0 21
25 28 3.0 63
29 35 6.0 351
including 30 31 1.0 1140 1.1
Silver Mantos CGA-200 9 33 24.0 117 0.5
35 37 2.0 30
39 55 16.0 72
70 74 4.0 20
77 91 14.0 152 0.6
100 108 8.0 30 0.5
Silver Mantos CGA-201G No significant mineralization
Silver Mantos CGA-202 5 12 7.0 55 0.8
15 46 31.0 159 1
including 26 29 3.0 405 3.8
and 34 37 3.0 437 2.3
50 52 2.0 43
60 62 2.0 22
63 72 9.0 424 1.9 0.8
82 86 4.0 38
89 91 2.0 0.7
91 96 5.0 23 1.3
96 98 2.0 0.6
104 117 13.0 0.7
117 122 5.0 42 0.5
Silver Mantos CGA-203 5 77 72.0 162 0.6
including 42 43 1.0 1075 1.2
and 57 62 5.0 873 1.3
Mantos Basement CGA-203 171 177 6.0 52
207 209 2.0 36
211 212 1.0 50
222 227 5.0 46
Notes to Table 1:
  1. The reported intervals are downhole lengths and are believed to approximate true width; this will be confirmed with geologic modeling.
  2. All grades are uncut

Table 2. Drill hole location and orientation data

Hole Easting Northing Elevation
(m)
Azimuth
(deg)
Inclination
(deg)
Final depth
(m)
CGA-191G 3472656.57 7512177 4143 180 -65 201
CGA-192 3472628.29 7512705 4106 0 -90 267
CGA-193 3472796.4 7512576 4107 0 -90 209
CGA-194G 3472650.61 7512239 4141 90 -65 271
CGA-195 3472702.52 7512563 4115 0 -90 200
CGA-196 3472749.97 7512470 4118 0 -90 101
CGA-197 3472670.72 7512432 4124 0 -90 302
CGA-198G 3472620.48 7512476 4123 90 -65 243
CGA-199 3472821.18 7512471 4114 0 -90 101
CGA-200 3472804.39 7512370 4117 0 -90 122
CGA-201G 3472486.87 7512526 4125 315 -65 210
CGA-202 3472746.47 7512372 4122 0 -90 146
CGA-203 3472691.63 7512373 4127 0 -90 227

Methodology and QA/QC

Analyses of the drill core were performed by ALS Minerals, in Mendoza, Argentina, an internationally recognized assay service provider. All samples were analyzed by method ME-ICP61 that consists of a four acid digestion followed by ICP-OES detection. Silver results >100 g/t Ag 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 method OG62 that consists of a 4 acids digestion and ICP-OES or AAS detection. The Company follows industry standard procedures for the work carried out on the Chinchillas Project, with a quality assurance/quality control (QA/QC) program. Blank 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.

Qualified Persons

The results of the Company's drilling program have been reviewed, verified (including sampling, analytical and test data) and compiled by the Company's geological staff under the supervision of Brian McEwen, P.Geol., VP Exploration and Development to the Company. Mr. McEwen is a Qualified Person as defined in National Instrument 43-101, and has reviewed and approved the contents of the news release.

About Golden Arrow:

Golden Arrow Resources is a Vancouver-based exploration company focused on creating value by making precious and base metal discoveries and advancing them into exceptional deposits. The Company is currently focused on its Chinchillas Silver Project located in the mining-friendly Province of Jujuy, Argentina. Exploration has progressed rapidly since the acquisition of the project in late 2011. The innovative transaction announced October 1st 2015, positions the Company to maximize shareholder value by fast-tracking Chinchillas to production and becoming a 25% owner of the world-class Pirquitas silver mine.

ON BEHALF OF THE BOARD

"Joseph Grosso"

_______________________________

Mr. Joseph Grosso
Executive Chairman, President, CEO and Director

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.

FORWARD-LOOKING STATEMENTS

This news release contains "forward-looking statements" within the meaning of Canadian securities legislation. Such forward-looking statements concern the Company's anticipated results and developments in the Company's operations in future periods, planned exploration and development of the Chinchillas project, plans related to its business and other matters that may occur in the future. Statements concerning mineral resource estimates and the interpretation of drill results may also constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the Chinchillas project is developed. These statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: assumptions made in the Chinchillas Mineral Resource Estimate, including geological interpretation, grade, recovery rates, silver, zinc and lead price assumptions and operating costs; the availability of financing for exploration and development activities, including Silver Standard Resources Inc. ("SSRI") meeting certain milestones and exercising its election to proceed with the transactions contemplated under the Business Combination Agreement dated September 30, 2015 among the Company, SSRI and certain other parties; the Company's ability to attract and retain skilled staff; the Chinchillas project development schedule; the exchange rates of the Canadian dollar and United States dollar to the Argentina peso; market competition; ongoing relations with impacted communities; and general business and economic conditions.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation: risks related to precious and base metal price fluctuations; risks related to the transactions contemplated by the Business Combination Agreement; risks related to fluctuations in the currency markets (particularly the Argentinean peso, Canadian dollar and United States dollar); risks related to the inherently dangerous activity of mining, including conditions or events beyond our control, and operating or technical difficulties in mineral exploration, development and mining activities; uncertainty in the Company's ability to raise financing and fund the development of the Chinchillas project, including as recommended in the Chinchillas Mineral Resource Estimate; uncertainty as to actual capital costs, operating costs, production and economic returns, and uncertainty that development activities will result in a profitable mining operation at Chinchillas; risks related to mineral resource figures being estimates based on interpretations and assumptions which may result in less mineral production under actual conditions than is currently estimated and to diminishing quantities or grades of mineral resources as properties are mined; risks related to governmental regulations and obtaining necessary licenses and permits; risks related to the business being subject to environmental laws and regulations which may increase costs of doing business and restrict our operations; risks related to the Chinchillas project being subject to prior unregistered agreements, transfers, or claims and other defects in title; risks relating to inadequate insurance or inability to obtain insurance; risks related to potential litigation; risks related to the global economy; and risks related to the Chinchillas project being located in Argentina, including political, economic, social and regulatory instability. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements. The Company's forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.

The information provided in this news release addresses the drill results from the Chinchillas project and is not intended to be a comprehensive review of all matters and developments concerning the Company. It should be read in conjunction with all other disclosure documents of the Company. The information contained herein is not a substitute for detailed investigation or analysis. No securities commission or regulatory authority has reviewed the accuracy or adequacy of the information presented. The Company undertakes no obligation to publicly update or revise any forward-looking statements other than as required under applicable law.

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.