Mr. Joseph Grosso reports

GOLDEN ARROW INITIATES NEXT PHASE OF DRILLING IN PRE-DEVELOPMENT PROGRAM AT CHINCHILLAS SILVER PROJECT, ARGENTINA

Golden Arrow Resources Corp. has commenced a 6,500-metre phase VI drilling and exploration program at the Chinchillas silver project in Jujuy province, Argentina. The drill program will focus on exploration and condemnation drill holes, as well as infill holes as necessary.

The previous phase V, 15,000-metre drill program was successful in converting a significant portion of the resources within the high-grade Silver Mantos area to the measured and indicated categories required for prefeasibility-level or feasibility-level engineering (see Golden Arrow news release dated April 12, 2016). The phase V and phase VI drill programs are part of the Chinchillas project predevelopment activities, financed by Silver Standard Resources Inc., which are being undertaken to evaluate the feasibility of creating a combined mining business with Silver Standard's Pirquitas mine, as announced Oct. 1, 2015.

Paul Benson, president and chief executive officer of Silver Standard, commented in The Northern Miner, dated May 18, 2016, "So far, the studies demonstrate that Chinchillas would make quite a simple open pit that could carry the life of Pirquitas into the next decade."

Prior to commencing the phase IV drill program, the team completed mapping and trenching of several prospective areas to define the drill targets. Drilling has started in the Chinchillas South target area, which extends from the main Chinchillas deposit approximately 1.5 kilometres to the south. The area has been previously tested by only eight drill holes in the phase III and phase V drill campaigns. Results included multiple intercepts of silver, lead and zinc in most holes, such as: 69 grams per tonne silver, 1.1 per cent lead and 1.9 per cent zinc over 15 metres in CGA-272W, including 165 grams per tonne silver, 2 per cent lead and 3.6 per cent zinc over three metres, and 15 metres averaging 181 grams per tonne silver and 1.1 per cent lead in CGA-113 (see news releases dated March 3, 2016, and May 29, 2014).

Brian McEwen, vice-president, exploration and development, commented: "Results to date indicate that we could be looking at a much bigger mineralizing system than we originally envisioned. This next phase of drilling, along with [the] recently completed exploration program, will test the true potential outside of the main Chinchillas area."

Fieldwork will continue and may include additional geophysical surveys in areas of the property not previous covered.

Engineering, metallurgical and environmental studies continue by Silver Standard as part of the business combination option predevelopment activities (see news release dated Oct. 1, 2015).

Qualified person

The technical information in this news release has been reviewed and approved by Brian McEwen, PGeol, vice-president, exploration and development, and a director of the company. Mr. McEwen is a qualified person as defined in National Instrument 43-101 and has reviewed and approved the contents of the news release.

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