Golden Arrow Signs 6500m Drilling Contract for Chinchillas Silver Project and Provides Update on Royalty Sale

(via Thenewswire.ca)

Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce it has signed a drill contract with Energold Argentina S.A. to complete a minimum 6,500 m diamond drilling program on its Chinchillas silver project located in Jujuy Province, Argentina. Of the total 41 drill holes completed at Chinchillas to date, 37 holes cut potentially economic mineralized intercepts near surface, including multiple high grade drill holes at the Silver Mantos target.

Silver Mantos Highlights Include:

CGA-35 29m at 685 g/t AgEQ* including 6m at 1918 g/t AgEQ*

CGA-3822m at 630 g/t AgEQ* including 10m at 1318 g/t AgEQ*

CGA-3929m at 553 g/t AgEQ* including 7m at 1498 g/t AgEQ*

A full summary of Chinchillas drill highlights can be viewed at (http://www.goldenarrowresources.com/i/pdf/Chinchillas-Drill-Results-120723.pdf).

* Silver Equivalents (AgEQ) were calculated using US$28/oz. for silver, US$0.85/lb. for lead and US$0.85/lb. for zinc. Metallurgical recoveries and net smelter returns for the purpose of this calculation are assumed to be 100%.

Drilling Plan:

Golden Arrow plans to start its 6,500 m Phase II drill program in November. The program is designed to define a NI43 -101 compliant silver-lead-zinc resource. Drilling will include infill and expansion holes as well as the targeting of new areas

Targets Summary:

The Silver Mantos target covers a minimum area of roughly 6 ha (300 m x 300 m) defined by 16 mineralized drill holes. Drill centers range from 50 m to 100 m apart. Mineralization is disseminated mainly in two near surface (to 90 m depth), flat lying manto layers, individually ranging from 2 to 48 m thick, within strongly clay altered volcanic tuffs and breccias. A high grade corridor at Silver Mantos has been defined by drill holes CGA-35, CGA-38 and CGA-39, highlighted above. The mineralization at Silver Mantos is open to expansion in all directions.

Drill holes completed on the margins of the volcanic basin indicate the potential to greatly expand the Silver Mantos area. CGA-32, located 160 m west of Silver Mantos, intersected four mineralized layers including 15 m at 218 g/t Ag. CGA-33, located 100 m south of Silver Mantos, cut 26 m at 116 g/t AgEQ*. Planned drilling at Silver Mantos will expand west and south to connect with these drill holes, as well as north toward high grade surface mineralization.

The Socavon del Diablo target drilling has defined a mineralized area approximately of 3.5 ha (250 m by 150 m) containing 12 drill holes. Drill holes are between 30 m and 70 m apart. Mineralization includes manto-style within favorable shallow dipping volcanic tuff horizons and crosscutting feeder structures and hydrothermal breccias. All nine drill holes intersected significant near surface mineralization, with thicknesses between 2 m and 77 m. Within the zone there are typically between 2 and 4 mineralized layers, averaging approximately 12 m thick. Grades for the mineralized intercepts for silver and zinc average approximately 52 g/t silver and 1.7% zinc. Lead is somewhat less consistent but contributes significant value. High grade intervals occur, with individual one meter samples grading up to 485 g/t Ag, 11.1% Pb and 8.5% Zn. The Socavon del Diablo target is open to expansion and future drilling will concentrate on extending this favorable area and targeting feeder zones.

New Target Areas:

Besides defining and expanding resources at Silver Mantos and Socovon del Diablo, planned drilling will target the untested dacite domes, large areas along strike from Silver Mantos on the northern side of the basin which are covered by talus as well as previously defined mineralization at Charge Sur in the area of the historic Chinchillas mine workings.

Royalty Sale Update:

The Company is in the process of finalizing documentation and is anticipating the transaction will close imminently.

About Chinchillas Project:

The Chinchillas project is located in the prolific Bolivian silver-zinc-tin belt which extends into northern Argentina. The Company believes that Chinchillas has the potential to host a large silver-zinc-lead deposit. Chinchillas is a Tertiary aged maar diatreme volcanic center that has intruded Paleozoic basement sedimentary horizons. The resulting volcanic vent, filled with breccias, tuffs and local dacite domes, is approximately 1.5 km in diameter. Mineralization occurs within the vent, hosted in favorable volcanic tuff units, hydrothermal breccias and along faults and structural zones as well as on the margins of the basin within footwall sediments and across the sediment volcanic contacts. The mineralization occurs mostly as disseminations, veinlets and matrix filling. The Chinchillas project geology is similar to the San Cristobal Mine in Bolivia where Ag-Zn-Pb mineralization is mined from an open pit within a similar diatreme breccia environment. San Cristobal mine has estimated reserves (June 30, 2011) of 285 million tonnes, grading 1.41% Zn, 0.48% Pb, and 53.0 g/t Ag or 484 million ounces of silver, 4Mt zinc and 1.3 Mt lead1.

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 Dr. Gerald G. Carlson, Ph.D., P.Eng., Head of Exploration for Golden Arrow, both Qualified Persons as defined in National Instrument 43-101.

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 Company is well positioned for growth of shareholder value with the pending close of the sale of its 1% NSR on Yamana Gold Inc.'s Gualcamayo Gold Mine to Premier Royalty for $17.75 million. The Company also has an attractive portfolio of highly prospective exploration projects and a pipeline of new opportunities under review. Golden Arrow will continue to execute its strategy to leverage the Company's exploration exposure by attracting partners to fund work on its portfolio of 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, 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.

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