Mr. Joseph Grosso reports

GOLDEN ARROW REPORTS EXERCISE OF PUT RIGHT OPTION

In connection with Golden Arrow Resources Corp.'s sale of its 1-per-cent net smelter returns royalty on Yamana Gold Inc.'s Gualcamayo gold mine to Premier Royalty Inc. (see news release dated Nov. 12, 2012), Golden Arrow Resources has exercised its put right to acquire all warrants outstanding for cancellation for a total of $1.25-million.

As part of the royalty sale, Golden Arrow received one million warrants to purchase a total of up to one million common shares of Premier at an exercise price per share equal to $2.52 per common share of Premier for a period of two years from issuance. The company had the put right on 30 days of notice to require Premier to acquire all warrants outstanding at the time for cancellation for a purchase price of $1.25 per warrant at any time prior to the expiry date for a total of $1.25-million if all warrants are put to Premier.

"As the expiration date of these warrants approached, management exercised the put right option to receive $1.25-million. This represents additional value to Golden Arrow shareholders, as the company tops up its treasury and avoids dilution to shareholders," stated Joseph Grosso, president and chief executive officer.

During 2013, all the issued and outstanding common shares of Premier were acquired by Sandstorm Gold Ltd., and, as a result of the acquisition, the company was entitled to exercise its warrants of Premier to purchase common shares of Sandstorm. Sandstorm also acquired the put right obligation in favour of the company as a result of its acquisition of Premier.