Mr. Nikolaos Cacos reports

GOLDEN ARROW OPTIONS THIRD PROJECT IN ARGENTINA

Golden Arrow Resources Corp. has signed the definitive option agreement with Latin Metals Inc. granting the option to acquire up to a 100-per-cent interest in the company's Huachi property. Huachi is a 3,500-hectare copper-gold property that is part of Golden Arrow's portfolio of over 120,000 hectares of prospective properties in Argentina. The Huachi project is located in San Juan province and is immediately contiguous with Latin Metals' Esperanza copper-gold project.

Golden Arrow president and chief executive officer Nikolaos Cacos commented: "This agreement marks the third strategic option agreement we have signed in recent years as part of our efforts to advance our non-core assets. Success on any of these projects is good for Golden Arrow and our shareholders. Huachi now joins our Mogote copper-gold project that is under option to Mogotes Metals as part of their Filo Sur project, and our Caballos copper-gold project that is under option to Hanaq Argentina S.A."

Definitive option terms

Latin Metals has the right to acquire an initial 75-per-cent interest in Huachi by completing $1-million (U.S.) in exploration expenditures and $1-million (U.S.) in cash payments to Golden Arrow over a four-year period. Upon earning the 75-per-cent interest, Latin Metals has a top-up right to acquire the remaining 25-per-cent interest (for an aggregate 100-per-cent ownership) by paying $2-million (U.S.) in cash to Golden Arrow within 90 days (Table 1).

Should Latin Metals choose not to exercise the top-up right, the parties will form a joint venture (JV) with Latin Metals holding 75 per cent and Golden Arrow 25 per cent. Each party will finance its pro-rata share of future expenditures. A party diluting below 15 per cent will have its interest converted to a 1-per-cent net smelter return (NSR) royalty.

Work commitments and cash payments commence on the first anniversary of approval of the environmental permit (Declaracion de Impacto Ambiental or DIA), approving the start of exploration activities including drilling.

About Golden Arrow Resources Corp.

Golden Arrow Resources 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.