Mr. Joseph Grosso reports

GOLDEN ARROW ANNOUNCES INITIAL CLOSING OF OPTION ON MOGOTE PROJECT AND PRIVATE PLACEMENT

Golden Arrow Resources Corp. and Mogotes Metals Inc. have completed the initial closing of the previously announced option on the Mogote copper-gold project, in San Juan province, Argentina. Upon exercising the option, Mogotes Metals will acquire a 100-per-cent interest in the project.

At the initial closing:

• Mogotes Metals paid $550,000 in cash to the company;
• Mogotes Metals purchased nine million units of the company by way of a private placement at a price of five cents per unit, with each unit consisting of one common share of the company and one warrant of the company for gross proceeds of $450,000. Each warrant will entitle the holder to purchase one share at an exercise price of eight cents per warrant share for a period of three years from the date of issuance;
• Mogotes Metals issued 10,714,285 common shares of Mogotes Metals to the company.

The company will use the proceeds of the private placement for general working capital purposes.

To acquire a 100-per-cent interest in the project, Mogotes Metals must issue additional Mogotes shares to the company having a value of $1.5-million on or before the first anniversary of the initial closing. The number of additional shares will be determined by the volume-weighted average trading price (VWAP) of the Mogotes shares on the TSX Venture Exchange for the 15 trading days immediately preceding the final closing date, subject to a minimum price of 11.25 cents per additional share. If the VWAP is below the minimum price, Mogotes Metals will pay the difference in cash or, with the approval of the TSX-V, issue additional Mogotes shares. Mogotes Metals may also elect, at its discretion, to pay the entire final amount in cash.

Additionally, on the final closing date, Mogotes Metals will grant the company a 1.5-per-cent net smelter returns royalty on the project. Mogotes Metals will have the right to purchase 0.5 per cent of the royalty for $2-million (such that the resulting royalty will be reduced to 1 per cent of the net smelter returns).

Mogotes Metals is an arm's-length party and no finders' fees were paid by the company in connection with the transaction.

Early warning report

Pursuant to National Instrument 62-103 -- The Early Warning System and Related Take-Over Bids and Insider Reporting Issues (NI 62-103), Mogotes Metals has informed the company that it will be filing an early warning report pursuant to NI 62-103. Mogotes Metals acquired nine million units in the private placement. Prior to the completion of the private placement, Mogotes Metals did not own or control any securities of the company. Following the completion of the private placement, Mogotes Metals owns and controls nine million shares and nine million warrants, representing approximately 5.31 per cent of the company's issued and outstanding shares on an undiluted basis and approximately 10.09 per cent on a partially diluted basis.

The units were acquired for investment purposes. Mogotes Metals may, depending on market and other conditions, or as future circumstances may dictate, increase or decrease some or all of the existing or additional securities it holds or will hold, or may continue to hold its current position. In the future, Mogotes Metals will evaluate its investment in the company from time to time and may, based on such evaluation and the market conditions and other circumstances, increase or decrease its holdings through market transactions, private agreements or otherwise.

The disclosure in this news release is being issued in accordance with NI 62-103 in connection with the filing of an early warning report by Mogotes Metals on the company's SEDAR+ profile. All the information in this section of the news release was provided to the company by Mogotes Metals. A copy of the early warning report of Mogotes Metals can be obtained by contacting Allen Sabet, president and chief executive officer of Mogotes Metals (217 Queen St. West, suite 401, Toronto, Ont., M5V 0R2), at 647-846-3313.

About Golden Arrow Resources Corp.

Golden Arrow is a mining exploration company with a successful record of creating value by making precious and base metal discoveries and advancing them into exceptional deposits.

Golden Arrow is actively exploring its flagship property, the advanced San Pietro iron-oxide-copper-gold-cobalt project in Chile, and a portfolio that includes nearly 125,000 hectares of prospective properties in Argentina.

The company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.

We seek Safe Harbor.