Phase I Drill Program Underway on San Jose Gold Project

VANCOUVER, BC - Golden Arrow Resources Corporation reported that it has commenced a minimum 19 hole 2,200m diamond drill program on its 100% owned San Jose gold project in Jujuy Province, northwest Argentina. The San Jose property hosts high-grade gold quartz vein occurrences and stockwork-related bulk-tonnage style gold mineralization. The Company has carried out extensive surface channel sampling on the project over the past two years, identifying three significant mineralized zones along a 1.2km trend within gold-in-soil anomalies. All three zones will be tested during the current drill program.

Highlights from channel sampling include:

- 14.0m @ 0.89 g/t gold, including 5.5m @ 1.66 g/t gold from SJT01(i)
- 17.0m @ 1.15 g/t gold, including 3.0m @ 3.42 g/t gold from SJT02(i)
- 7.0m @ 1.39 g/t gold from SJT04(i)
- 17.5m @ 1.70 g/t gold, including 5.0m @ 5.30 g/t gold from SJT05(i)
- 32m @ 0.77 g/t gold from SJT08(i)
- 23m @ 0.99 g/t gold from SJT23(ii)
- 10m @ 1.70 g/t gold from SJT31(ii)

The San Jose Gold Property is located in the Sierra de Rinconada which comprises a continuous northeast-trending belt covering an area of 30km by 130km. This is underlain by folded Middle Ordovician turbidite sediments that host small orogenic gold deposits at Minas Azules, Rinconada, El Carmen and El Torno and larger examples along its northern extension in Bolivia (Amayapampa - 0.6 Moz and Lipichi) and Peru (Pataz - greater than 6 Moz). These deposits are aligned parallel to the fold trend and generally occupy the flanks of regional anticlines. Although gold deposits in Sierra de Rinconada share many characteristics with well-documented orogenic gold deposits in Phanerozoic fold belts elsewhere this belt has received little modern exploration.
The company's address is Suite 709, 837 West Hastings Street, Vancouver, BC V6C 3N6, 604.687.1828, fax: 604.687.1858, email: [email protected].