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Golden Arrow Commences Phase IV Drill Program at Chinchillas Silver Project

Golden Arrow Resources Corporation is pleased to announce that it has commenced a 6,500 metre Phase VI drilling and exploration program at the Chinchillas silver project in Jujuy Province, Argentina. The drill program will focus on exploration and condemnation drill holes, as well as infill holes as necessary.

The previous Phase V, 15,000 metre, drill program was successful in converting a significant portion of the resources within the high grade Silver Mantos area to the measured and indicated categories required for prefeasibility or feasibility level engineering. (See Golden Arrow New Release, April 12th 2016.) The Phase V and VI drill programs are part of the Chinchillas Project pre-development activities, funded by Silver Standard Resources Inc. (TSX:SSO;NASDAQ:SSRI, "Silver Standard"), which are being undertaken to evaluate the feasibility of creating a combined mining business with Silver Standard's Pirquitas mine, as announced October 1st, 2015.

Paul Benson, President and CEO of Silver Standard commented in The Northern Miner, dated May 18th, 2016, "So far the studies demonstrate that Chinchillas would make quite a simple open pit that could carry the life of Pirquitas into the next decade."

Prior to commencing the Phase IV drill program, the team completed mapping and trenching of several prospective areas to define the drill targets. Drilling has started in the Chinchillas South target area, which extends from the main Chinchillas deposit approximately 1.5 kilometres to the south. The area has been previously tested by only eight drill holes in the Phase III and Phase V drill campaigns. Results included multiple intercepts of silver, lead and zinc in most holes, such as: 69 g/t silver, 1.1% lead and 1.9% zinc over 15 metres in CGA-272W, including 165 g/t silver, 2.0% lead and 3.6% zinc over 3 metres; and 15 metres averaging 181 g/t silver, 1.1% lead in CGA-113 (see news releases dated March 3rd, 2016 and May 29th, 2014).

Brian McEwen, Vice President, Exploration and Development, commented, "Results to date indicate that we could be looking at a much bigger mineralizing system than we originally envisioned. This next phase of drilling along with recently completed exploration program will test the true potential outside of the main Chinchillas area."

Field work will continue and may include additional geophysical surveys in areas of the property not previous covered.

Engineering, metallurgical, and environmental studies continue by Silver Standard as part of the business combination option pre-development activities. (See news release dated October 1st 2015.)

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