Golden Arrow Resources Corporation
TSX VENTURE : GRG
FRANKFURT : GAC

Golden Arrow Resources Corporation

January 17, 2008 09:02 ET

Airborne Survey Underway on Golden Arrow's Pescado Gold Project, Argentina

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 17, 2008) - Golden Arrow Resources Corporation (TSX VENTURE:GRG)(FRANKFURT:GAC)(WKN A0B6XQ) ("Golden Arrow" or the "Company") is pleased to announce that it has commenced a helicopter-borne aeromagnetic survey of its 100% owned Pescado Gold Project, in San Juan Province, Argentina. The Pescado Gold Project is located immediately to the south of Yamana Gold Inc.'s Gualcamayo gold deposit that contains Measured and Indicated resources of 2,284,400 ounces gold and Inferred resources of 698,000 ounces.(1)

The northern boundary of the Pescado Gold Project is 10km south of the main gold zone on the Gualcamayo deposit in a similar geological environment. Previously announced stream sediment sampling on Pescado has defined a 4.8-kilometre-long gold anomaly covering all of the Pescado I property and the northern portion of Pescado II. Follow-up soil sampling has defined a large gold anomaly measuring 2,800m by 1,100m (see July 31, 2007 News Release).

The Project comprises the Pescado I and II, Quebrada del Durazno and Yanso claims. It is between 1,500m and 3,000m elevation and is accessible for year-round exploration. The survey over the project is being flown by New Sense Geophysics Limited and will comprise 1870 line kilometres covering the entire 18,000ha property with 200m spaced lines.

On the Gualcamayo deposit (members of the Golden Arrow team previously played a key role in discovering) Golden Arrow has an uncapped 1% Net Smelter Royalty "NSR", and Yamana has scheduled to begin production in Q3 2008. The NSR is anticipated to bring over $1 million dollars annually to the Company over the course of the mine life at current metal prices.

In addition to the projected revenue stream from the NSR, Golden Arrow has over $6 million in the treasury and no debt, allowing the Company to continuously advance its property portfolio with a minimum of dilution to its share structure of just over 15 million shares outstanding. This low capitalization would be conducive to an appropriate share appreciation should there be a discovery on any of the large number of properties that are ready to drill.

The Company's property portfolio contains 40 precious and base metal projects that cover over 200,000 hectares of prospective ground in both Argentina and Peru. Ten of the Company's properties are in the drill-ready category, of which 4 will be drilled in sequence over the next 12 months.

Golden Arrow's Management Team is one of the most experienced in the field today. The Company is a member of the Grosso Group, industry leaders in exploration and precious metal discovery, who have earned a reputation for creating shareholder value by identifying new opportunities through their extensive experience in the exploration industry and their diverse network of contacts in South America.

ON BEHALF OF THE BOARD

Mr. Joseph Grosso, President & C.E.O.

(1) Yamana Gold Inc.'s Website

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

2008 Number 1

The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • Golden Arrow Resources Corporation
    Joseph Grosso
    President & CEO
    1-800-901-0058 or (604) 687-1828 ext.248
    or
    Golden Arrow Resources Corporation
    Bruce Korhonen
    Investor Relations Manager
    1-800-901-0058 or (604) 687-1828 ext.248
    (604) 687-1858 (FAX)
    Email: info@goldenarrowresources.com
    Website: www.goldenarrowresources.com