NEWS

GOLDEN ARROW REPORTS ADDITIONAL DRILL RESULTS AT CHINCHILLAS SILVER PROJECT INCLUDING 1,324 G/T SILVER AND 4.8% LEAD OVER 4 METRES.

Golden Arrow Reports Additional Drill Results at Chinchillas Silver Project including 1,324 g/t silver and 4.8% lead over 4 metres.

Vancouver, BC / TheNewswire / January 20, 2016 / Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow") is pleased to announce the results of assaying of an additional 17 drill holes in the Phase V drilling program at the Chinchillas Silver Project in Jujuy Province, Argentina. Previous results from the program were reported in news releases dated December 2nd 2015, December 16th, 2015 and January 11th, 2016. 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:

  • 210 g/t silver and 0.9% lead over 52 metres in CGA-237
    • Including 1,024 g/t silver and 3.1% lead over 3 metres
    • And including 1,324 g/t silver and 4.8% lead over 4 metres
  • 255 g/t silver over 27 metres in CGA-235
    • Including 733 g/t silver over 5 metres
  • 192 g/t silver over 26 metres in CGA-232
    • Including 1,100 g/t silver in 1 metre

The Phase V drill program started on October 19th 2015 and since then over 10,800 metres of drilling has been completed. The program is 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, drilling to characterize ground waters in the project area, and condemnation drilling around the deposit.

Table 1 below includes the assay results from 17 drill holes totaling 1,364 metres in length. A map of the drill hole locations is available on the Chinchillas map page on the Golden Arrow website at: Drill Hole Locations.

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 greater than 20g/t silver and 0.5% lead and 0.5% zinc are reported in Table 1, and all holes reported were collared in the western area of the deposit. (Note that assay results from CGA-231 and 232 were included in Table 1 of the news release dated January 11th, 2016, however their collar data and descriptions were erroneously excluded from that release. Therefore the results are repeated here with the corresponding information included.)

The seventeen holes reported herein were drilled to infill the approximately 100 metre thick Silver Mantos zone, with hole CGA-246 drilled to 212 metres to also test the deep mantos horizon.

All holes encountered silver mineralization in the first 50 to 80 metres, with many showing thick intervals of significant grades as is characteristic of this zone. The most outstanding result is in hole CGA-237, where 52 metres averaged 210 g/t silver starting from surface, including intervals of three and four metres with greater than 1,000 g/t silver each. CGA-246 intercepted the deep mantos horizon, returning an interval of 19 metres averaging 68 g/t silver starting at 181 metres below surface.

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-231 32 37 5.0 30
40 58 18.0 116 1.2
including 52 56 4.0 290 2.9
62 64 2.0 31
73 86 13.0 69 0.5 0.9
87 88 1.0 38 2
91 93 2.0 0.6
98 99 1.0 20 0.7 1.3
Silver Mantos CGA-232 21 25 4.0 24 0.7
38 64 26.0 192
including 53 54 1.0 1110
78 86 8.0 27
Silver Mantos CGA-233 4 35.8 31.8 89
36.65 48 11.4 138
Silver Mantos CGA-234 5 7 2.0 76
13 44 31.0 29
48 50 2.0 32
62 66 4.0 280 0.6
70 78 8.0 64 0.5
Silver Mantos CGA-235 9 36 27.0 255
including 23 28 5.0 733
Silver Mantos CGA-236 2 10 8.0 208 1.4
22 26 4.0 28
Silver Mantos CGA-237 0 52 52.0 210 0.9
including 29 32 3.0 1024 3.1
including 43 47 4.0 1324 4.8
54 61 7.0 89
Silver Mantos CGA-238 10 30 20.0 86
46 48 2.0 218
50 51 1.0 62
58 70 12.0 106
73 76 3.0 82 0.7
79 95 16.0 83 1.4
100 107 7.0 24 0.5
Silver Mantos CGA-239 7 13 6.0 50
Silver Mantos CGA-240 18 20 2.0 0.6 1.6
21 23 2.0 29
27 36 9.0 191
45 48 3.0 315 1.4
48 51 3.0 39 0.5
Silver Mantos CGA-241 3 9 6.0 148 0.6
12 15 3.0 538 2.9
16 17 1.0 209 1.1
23 28 5.0 176 0.5
Silver Mantos CGA-242 5 13 8.0 42 0.7 0.6
25 38 13.0 39
Silver Mantos CGA-243 8 17 9.0 65
24 52 28.0 89 0.5
including 45 47 2.0 335 2.3 1.1
Silver Mantos CGA-244 6 11 5.0 41
13 14 1.0 54
17 29 12.0 126 0.6
31 33 2.0 209 2.4 0.8
34 43 9.0 244 0.5
45 55 10.0 160
Silver Mantos CGA-245 4 41 37.0 46
Silver Mantos CGA-246 5 6 1.0 48 0.6
8 21 13.0 0.5
22 24 2.0 177 0.5
29 55 26.0 95
including 47 51 4.0 246
61 62 1.0 0.6 0.9
62 83 21.0 116 1
including 70 73 3.0 474 0.5 0.5
83 89 6.0 0.9
89 92 3.0 37 0.5 2.3
115 128 13.0 1
181 200 19.0 68 0.5
210 212 2.0 50
Silver Mantos CGA-247 5 44 39.0 147 0.5
including 26 32 6.0 444
48 50 2.0 36
70 92 22.0 220 0.9
98 100 2.0 36

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-231 3472672 7512413 4126 0 -90 100
CGA-232 3472701 7512426 4123 0 -90 86
CGA-233 3472760 7512442 4119 0 -90 62
CGA-234 3472759 7512421 4120 0 -90 80
CGA-235 3472781 7512400 4119 0 -90 80
CGA-236 3472819 7512441 4114 0 -90 47
CGA-237 3472874 7512439 4104 0 -90 62
CGA-238 3472776 7512402 4119 270 -70 122
CGA-239 3472793 7512496 4116 0 -90 50
CGA-240 3472812 7512488 4115 0 -90 62
CGA-241 3472829 7512453 4114 0 -90 50
CGA-242 3472859 7512487 4109 0 -90 62
CGA-243 3472629 7512375 4131 0 -90 54
CGA-244 3472664 7512362 4129 0 -90 72
CGA-245 3472828 7512393 4115 0 -90 62
CGA-246 3472689 7512402 4126 0 -90 212
CGA-247 3472779 7512379 4120 0 -90 101

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 three acid digestion and ICP-OES 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, 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.

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.