Mr. Joseph Grosso reports

MANAGEMENT AND SUCCESSES

Golden Arrow Resources Corp. has achieved some significant milestones over the last 18 months during a time when the resource market has seen one of the most difficult down trends in recent memory. Markets are cyclical by nature and management's focus has been building shareholder value in the ground to position Golden Arrow for exceptionally rapid growth during an unprecedented time of austerity.

One often hears the term "experienced management" -- but what really counts is how management applies its experience to execute and achieve what it commits to for shareholders. The company believes that Golden Arrow's management team's record stands out.

Selling gold royalty at peak gold prices

In the fall of 2012, the company monetized the 1-per-cent royalty on the Gualcamayo gold mine when the spot gold price was approximately $1,700 compared with the current price of under $1,400. The timing and the sale allowed the company to capture significantly more share value, and capitalize on a higher cash leverage.

Discovering a world-class silver deposit

Using the proceeds of the royalty sale, management made a world-class discovery of the Chinchillas silver deposit in a newly emerging region in Argentina, which has district-wide potential. This mirrors management's previous record involving the discovery of Gualcamayo and Navidad. Despite the present mining economy, Chinchillas is quickly becoming a much bigger deposit than initially envisioned and still continues to have significant growth potential. The company began drilling at Chinchillas in November, 2012, and in just seven months, filed a National Instrument 43-101-compliant resource estimate of over 100 million silver equivalent ounces and recently filed an NI 43-101-compliant preliminary economic assessment that showed an after-tax net present value of $98.5-million at 8-per-cent discount rate (see news releases dated Dec. 5, 2013, and Jan. 20, 2014). The company's team should be congratulated for taking a grassroots project to the PEA stage in only 13 months. The next stage of growth for Chinchillas is currently under way, with a commitment to complete 25,000 metres (82,000 feet) of drilling. This program is focused on increasing the size of the current resource and advancing the project to feasibility study stage.

Financing drilling at $2.38 (U.S.) per share

Good management entails care in managing the share capital of a corporation.

Golden Arrow recently announced a $3-million (U.S.) drilling contract for shares at $2.38 (U.S.) per share to pay for 15,000 metres of drilling on Chinchillas. This is at a significant premium to the current market that not only minimizes dilution, but the drill program has potential to materially grow the deposit.

Since selling the royalty in October of 2012, management has reduced the shares outstanding by 24 per cent by acquiring the shares of dissenting shareholders, and currently has in place a normal course issuer bid to purchase and cancel up to an additional one million shares of the company.

Buying and cancelling shares at 30 cents or less, and reissuing a smaller amount for 10 times their current market value will, no doubt, make good business sense.

Award-winning experience in Argentina

Management has a very long history in Argentina that is now over 22 consecutive years in length. This gives the organization a trusted profile and open access to immense geological opportunities in that country. The recent devaluation of the peso has created an economic advantage on which it can be capitalized. In this current market the company's dollar goes further, allowing it to secure solid assets at discounted prices. The company is confident that a turnaround is imminent and it will stand with the more-than-200 foreign companies still operating in the country.

The company's continuing commitment is to increase shareholder value and new opportunities are presenting themselves within the current market environment. Golden Arrow, with a strong treasury, looks forward to carrying out its objectives.

We seek Safe Harbor.