Golden Arrow Resources Corporation provided an update for the Chinchillas Silver Project in Argentina. Golden Arrow's recent PEA on Chinchillas demonstrated positive economics based on the Project's near-surface mineralization, good silver grades, access to infrastructure and amenability to conventional mining and processing. A 6,000 metre diamond drill program is scheduled to commence on February 15, 2013, and is designed to increase the size of the current resource and define new resources throughout the recently expanded property.

In addition to the Chinchillas Project, Golden Arrow has acquired the rights to continue to review new project acquisition opportunities that can potentially integrate with Chinchillas defining a new silver region. This geophysical program has successfully identified several new exploration target areas where the Company believes the resources could be expanded. This includes a new zone approximately 1 km south-east of the current resource area where coincident magnetic destruction (indicating alteration) and a large, deeply penetrating conductive zone shown in the CSAMT is interpreted to be similar to the Silver Mantos resource area with tuff overlying a chargeable basement.

This has the potential to host mineralization similar in style to the Silver Mantos or Basement zones, or a new style hosted in a deeper intrusive. The company plans to drill 10 holes or 2,300 metres into these targets. The remaining 3,700 metres will be drilled in 28 holes designed to expand current resources.

The Chinchillas deposit remains open to expansion in most directions. The completed geophysics has expanded the targets below the currently defined resources, at depths of 150 to 300 metres. In addition, several areas within the deposit were not drilled at sufficient spacing to be included in the 2013 resource estimate.

There is significant potential that this drill campaign can increase the overall size of the Chinchillas resource by: expanding the known resources at the Chinchillas deposit by "infill' drilling; and, 2. expanding resources through discovery with the new exploration targets identified both the original Chinchillas property and on the adjacent newly acquired property. The Phase III program is expected to last approximately six months, and if successful, the Company plans an infill drilling program to upgrade the resource categories in order to move the Chinchillas project to a feasibility stage.