Golden Arrow Closes Sale of 1% NSR on Gualcamayo Gold Mine in a Transaction Valued at $17,750,000

Golden Arrow Resources Corporation (TSX-V: GRG, FSE: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce the closing of the sale by Golden Arrow and purchase by Premier Gold Mines Limited (PG:TSX, "Premier Gold") through its wholly-owned subsidiary, Premier Royalty Corporation ("Premier Royalty"), of a 1% NSR on Yamana Gold Inc.'s Gualcamayo Gold mine (the "Royalty"). Premier Royalty has purchased the Royalty for $16,500,000 in cash plus 1 million warrants to purchase an aggregate of up to 1 million shares of Premier Royalty. Premier Royalty has agreed to guarantee a purchase price of $1.25 per warrant making the total transaction price a minimum of $17,750,000.

"I am very gratified that since our group played a major role in the discovery of Gualcamayo in 1998 and due to management's commitment to this asset our current shareholders will ultimately reap the benefits. We are very pleased to complete this transaction and I would like to thank the team of professionals from both Premier Royalty and Golden Arrow for their efforts and their diligence in negotiating this sale. With a significantly stronger treasury, Golden Arrow is in a position to increase shareholder value substantially and minimize shareholder dilution. Our objective is to advance our Chinchillas project quickly, efficiently and define a significant resource in the near term."Mr. Joseph Grosso, President & CEO.

Golden Arrow plans to start its 6,500 m drill program in the coming days on the Chinchillas sliver project where of the 41 drill holes completed to date, 37 holes cut potentially economic mineralized intercepts near surface, including multiple high grade drill holes at the Silver Mantos target. The objective of the program is designed to define a significant NI43 -101 compliant silver-lead-zinc resource. Drilling will include infill and expansion holes as well as the targeting of new areas. Completion of royalty sale transaction provides the Company with the means to fund its primary objective of advancing the Chinchillas project whilst minimizing dilution and to continue to evaluate advanced stage projects that are near resource definition or have a NI43-101 - Standards of Disclosure for Mineral Projects compliant resource definition.

The target at Chinchillas is a bulk tonnage silver-lead-zinc deposit located within the southern extension of the well-known Bolivian silver-zinc-tin belt. Examples of similar projects in the district include: Silver Standard's Pirquitas silver mine, 148 Moz Proven and Probable reserves at 140.6 g/t Ag from which 7.1 Moz silver was produced in 20111, located 30 km southwest of Chinchillas; Golden Mineral's El Quevar project, with a Measured and Indicated Resource of 59.9 Moz grading 310 g/t Ag2, located 200 km south; 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 lead3. The Chinchillas project geology is most similar to the San Cristobal Mine in Bolivia where low grade Ag-Zn-Pb mineralization is mined from an open pit within a similar diatreme breccia environment. The Company believes that Chinchillas has the potential to host a large silver-zinc-lead deposit.

Golden Arrow has the option to earn a 100% interest in the Chinchillas (details in GRG News Release dated August 3rd, 2011).

A full summary of Chinchillas drill highlights can be viewed at:

(http://www.goldenarrowresources.com/i/pdf/Chinchillas-Drill-Results-120723.pdf )

Warrant Terms - The 1 million share purchase warrants have an exercise price per share equal to 120% of the IPO or "go public" price for a period of two (2) years after the date of issue of the warrants (the "expiry date"). Golden Arrow also has the right (the "Put Right") on 30 days' notice to require Premier Royalty to acquire all warrants outstanding at that time for cancellation for a purchase price of $1.25 per warrant at any time prior to the expiry date for a total of $1,250,000 if all warrants are put to Premier Royalty. Premier Gold has agreed to guarantee Premier Royalty's payment obligation upon Golden Arrow's exercise of the Put Right. The transaction received shareholder approval on September 11, 2012, and received approval by the TSX Venture Exchange on October 26, 2012.

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 a strong treasury which will be used to advance its flagship Chinchillas Silver Project. 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.

1Pirquitas Mine Reserves from Silver Standard Resources Inc.'s website.

2El Quevar Mine Resources from Golden Mineral's website.

3San Cristobal Mine reserves were obtained from the San Cristobal website http://www.minerasancristobal.com. The mine is owned and operated by Sumitomo Corporation.

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 includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation.

Forward-looking information includes, but is not limited to, statements about strategic plans. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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