Mr. Nikolaos Cacos reports

GOLDSTORM METALS PROVIDES UPDATES ON THE ONGOING PHASE I DRILLING AND RECONNAISSANCE PROGRAM AND COMPLETED GEOPHYSICAL SURVEY AT THE CROWN PROJECT, LOCATED IN THE GOLDEN TRIANGLE OF BRITISH COLUMBIA

Golden Arrow Resources Corp. has successfully completed the transaction announced on June 23, 2026, and has sold copper assets at the San Pietro project (copper assets) to Capstone Copper Corp. and its wholly owned subsidiary. The transaction was approved by disinterested shareholders of the company on Aug. 21, 2026.

The full details of the transaction were set out in our news release dated June 23, 2026. As consideration for the sale of the copper assets, New Golden Exploration Chile SpA (NGE), a joint venture indirectly owned by Golden Arrow (75.019 per cent) and its joint venture partner, Sociedad de Servicios Andinos SPA (24.981 per cent), received 2,200,012 common shares of Capstone for a value of approximately $25-million (U.S.), calculated using the volume-weighted average closing price of Capstone's common shares for the 10 trading days ending two business days prior to closing, calculated on the Bank of Canada exchange rate two business days prior to closing. The approximate transaction costs and taxes payable for the transaction are expected to be $6.55-million, with such fees being deducted from the consideration received. New Golden Explorations Atlantida Ltd., a Golden Arrow subsidiary, received 1,666,914 Capstone shares but had 165,042 Capstone shares withheld for taxes payable in Chile, and 66,000 Capstone shares deducted for the advisory fee (as defined below). Sociedad de Servicios Andinos SPA received 533,098 Capstone shares.

"We are pleased to complete this transaction to unlock value from the San Pietro project. We now have a solid treasury that allows us to immediately expand our exploration efforts in Chile and Argentina, including planning the first drill program at our Atakama gold project this autumn. This closing marks a new chapter for the company, and we look forward to building on this momentum to make our next discovery and deliver additional value to our shareholders," stated Nikolaos Cacos, Golden Arrow president and chief executive officer.

As compensation for the services provided by Southern Cone Partners (SCP) in connection with the transaction, the company paid a transaction fee equal to $750,000 (U.S.) to SCP. The advisory fee was satisfied through the issuance of 66,000 Capstone shares, which were deducted from the consideration received by NGE. The entire transaction was arm's length and no other finders' fees were paid.

About Golden Arrow Resources Corp.

Golden Arrow is a mineral 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 a portfolio of projects in Chile and Argentina. The company is an affiliated company of the Grosso Group, a resource-focused management organization that provides operational support to its affiliated companies as they advance quality resource projects.

We seek Safe Harbor.