Upgraded Resource Estimate For Chinchillas Silver Project

VANCOUVER, BC - Golden Arrow Resources Corporation reported an updated Mineral Resource Estimate for the Chinchillas Silver Deposit in Jujuy Province, Argentina. The recently completed Phase V drill program successfully converted more than fifty million ounces of silver equivalent (AgEq) resources to the Measured and Indicated (M+I) categories, at the base cut-off grade. This includes 17 million ounces of AgEq as Measured resources in the central part of the Silver Mantos zone, and expansion of Measured plus Indicated to the north, south and at depth. In addition, the average grade of M+I increased from 125 g/t to 142 g/t AgEq.

The updated resource estimate is part of the Chinchillas Project pre-development activities are being undertaken to evaluate the feasibility of creating a combined mining business with Silver Standard's Pirquitas mine. Between October 2015 and February 2016, approximately 15,000 metres of diamond drilling was completed at the deposit in the Phase V program. The main objective of the program was to infill the Silver Mantos area of the deposit with sufficient density to convert a significant portion of the resource estimate reported July 31st, 2015 to M+I, as required for the studies being completed by Silver Standard.

Highlights of the Mineral Resource Estimate:

New Measured Resource of 17 million ounces of AgEq at 149 g/t AgEq grade. (3.6 million tonnes grading 115g/t silver, 0.56% lead, 0.38% zinc at a 45g/t AgEq cut-off). Increase in Indicated Resources by 34 million ounces to 138 million ounces AgEq. (30.6 million tonnes grading 88g/t silver, 0.85% lead, 0.60% zinc at a 45g/t AgEq cut-off). Average grade increased from 125g/t AgEq to 142 g/t AgEq in Measured and Indicated. -- Inferred Mineral Resource of 90 million ounces of AgEq at 85 g/t AgEq grade (32.9 million tonnes grading 42g/t silver, 0.44% lead and 0.76% zinc at a 45g/t AgEq cut-off). Deposit continues to remain open to expansion 

Golden Arrow holds a 100% interest in the Chinchillas project, located in the prolific Bolivian silver-zinc-tin belt which extends into northern Argentina. Chinchillas is a Tertiary aged volcanic complex that has erupted through the Paleozoic basement schists. The resulting depression or basin, filled with volcanic tuffs and tuff breccias. Shallow disseminated silver, lead and zinc mineralization occurs in thick layers or "mantos" within the tuffs and breccias. A second style of silver, lead and zinc mineralization occurs within the fractures of the brecciated Ordivician basement pelite and sandstone schists beneath.

Silver-lead-zinc mineralization included within the resource model occurs in four units which are differentiated based on host rock and geometry. Mineralization occurs in four main zones: to the west the Silver Mantos area includes the Silver Mantos tuff-hosted zone and the Mantos Basement zone; to the east the Socavon del Diablo area includes the Socavon tuff-hosted zone and the Socavon Basement zone, with the Socavon also including some mineralization hosted in dacite intrusions.