Successful Drill Program At Chinchillas Silver Project

VANCOUVER - Golden Arrow Resources Corporation reported final results for the Phase I drill program at its Chinchillas Silver Project in Jujuy, Argentina. Results for the last 4 of 27 drill holes have been received, The highlight of the final 4 holes was CGA-40 that intersected 282 g/t AgEQ* over 14 m and 83 g/t AgEQ* over 35 m. In summary, 26 of the 27 holes from the Phase I drill program contained significant mineralization.

"The entire Golden Arrow Team is extremely pleased with our Phase 1 drill program at Chinchillas. The results have been outstanding, with all of the holes at the Silver Mantos target returning significant mineral intercepts. Going forward, our immediate objectives will be to expand on our drilling success and to outline a 43-101 compliant mineral resource. The Phase 1 program has greatly enhanced the value of our Chinchillas project with a relatively modest amount of drilling and I believe that the project holds substantial exploration upside," stated Dr. Gerry Carlson, Head of Exploration.

The Company's Phase I drill program included 3,224 m of core in 27 drill holes (CGA-17 to CGA-43): 26 of the 27 holes contained significant mineralization. Two known zones were tested by the majority of the drilling: Silver Mantos (12 holes) and Socavon del Diablo (9 holes). In addition, new targets were tested by 6 holes.

Silver Mantos zone is currently defined by 16 drill holes (12 completed by Golden Arrow) that tested an area of approximately 6 ha (300 m x 300 m). Mineralization is disseminated in two or more flat lying layers composed of strongly clay altered volcanic tuffs and breccias.

The mineralization at Silver Mantos occurs between surface and 90 m depth and is open to expansion in all directions. There are two and locally three mineralized layers or mantos ranging between 2 and 48 m thick, averaging 12 m in thickness. The silver is thought to occur mostly in the silver sulphosalts, boulangerite and tetrahedrite, that occur disseminated with galena and sphalerite in the volcanic tuffs. Two mineralized drill holes on the margins of the volcanic basin suggest the potential to greatly expand Silver Mantos area. CGA-32 is located 160 m west of Silver Mantos at Labour 4 and intersected four mineralized layers including 218 g/t Ag over 15 m. CGA-33, located 100 m south of Silver Mantos at Contact Sur, cut 26 m at 116 g/t AgEQ*. There is good potential for continuity between mineralization at Silver Mantos and exploratory drill holes.

At Socavon del Diablo, 12 drill holes (9 by Golden Arrow), have defined a mineralized area of approximately 3.5 hectares (250 m by 150 m). Drill holes are between 30 m and 70 m apart. Mineralization includes manto-style within favourable 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 two and four mineralized layers, averaging approximately 12 m thick. Grades for the mineralized intercepts average approximately 52 g/t silver and 1.7% zinc. Lead is somewhat less consistent, but locally 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.

At Charge Sur (previously called Chinchillas target) in the area of the historic Chinchillas mine workings, two drill holes (CGA28 and CGA29) targeted an east-west structural zone below the old workings, with a coincident chargeability geophysical anomaly. Both holes intersected large intervals of breccia with sulphide matrix and corresponding silver-lead-zinc mineralization (see press release July 5, 2012). The two drill holes are spaced 150m apart and this new zone has significant potential to add to a future Chinchillas resource.

Golden Arrow plans to focus future work on expanding the known mineralization and drilling untested targets in a Phase II drill program.