Golden Arrow Resources Corporation
TSX VENTURE : GRG

Golden Arrow Resources Corporation

May 29, 2006 11:00 ET

Golden Arrow Resources Corporation: Significant Gold Soil Anomalies Identified on the San Jose Gold Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 29, 2006) - Golden Arrow Resources Corporation (TSX VENTURE:GRG) is pleased to report that the first phase of soil sampling and composite talus fines sampling has identified several significant anomalies on the San Jose gold property in the Sierra de Rinconada district of Jujuy Province, Argentina. The Company has also completed 1:2,500 scale geological mapping over the central portion of the property. The 100% owned 1,985 hectare San Jose property hosts high-grade gold vein occurrences and has potential for stockwork-related bulk tonnage gold mineralization.

Phase I soil sampling comprised 195 samples collected over a 1,600m by 600m grid in the central portion of the San Jose property where, as previously reported, 10 rock samples were collected along strike over 1,400 metres of a veined alteration zone with results ranging from 18 ppb gold to 12.18 g/t gold; all but two having greater than 0.3 g/t gold (see April 13, 2006 News Release). A 900m long and 100m-300m wide greater than 100ppb gold soil anomaly occurs in the southern portion of the surveyed area (see Figure 1). In addition, a 300m by 300m greater than 100 ppb gold soil anomaly also occurs in the northern portion of the survey area. Geological mapping demonstrates that soil anomalies are closely related to domains of structurally-bounded hydrothermal alteration comprising stockwork-style to pervasively silicified rocks with variable amounts of sericitization and up to 6% pyrite-arsenopyrite mineralization.

Due to the strong correlation between soil sampling results and mapped alteration and mineralization at the San Jose property, and the fact that the detected soil anomalies are open to the north and east, the soil grid and semi-detailed mapping coverage are being expanded. Additionally, infill samples are being collected within anomalous zones on 25m centres to better define geochemical targets. A comprehensive program of detailed surface channel sampling is also underway. As well geological mapping, surface rock sampling and soil grid sampling is underway on the Company's high-grade Antiguyo gold property, also located in the Sierra de Rinconada region.

Technical Summary:

San Jose is located in the Sierra de Rinconada which comprises a continuous 30km by 130km northeast-trending belt of folded Middle Ordovician turbidites that host epizonal orogenic gold deposits. 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 (e.g., Tasmanides, eastern Australia; Meguma Terrane, Nova Scotia; Tien Shan, central Asia) this belt has received little modern exploration.

The first phase soil sampling consists of 195 samples collected every 50 m along 17 east-west lines spaced 100 m apart. The soil grid covered a 1,600 by 600 m area (Figure 1) located in the central portion of the San Jose property. Soil samples ranged from less than 5 ppb up to 2,020 ppb gold. Statistically, values higher that 40 ppb Au are considered anomalous and represent 31% of the samples (Figure 1). Of 195 samples, 18 (approximately 9%) assayed below the 5 ppb detection limit.

In the area of the soil grid on the San Jose project the A-horizon is generally absent and the sampled material is a mixture of B and C horizons. The sampling procedure involved collecting approximately 1 kg of material finer than a Tyler mesh #9 (2.05mm) from 5-20cm below the surface in order to reduce the influence of aeolian transported particles. The sampled material was submitted to the lab, where it was dried and processed. Reported results are from material finer than a #80 Tyler mesh (0.18mm).

A total of 141 talus fines samples were collected at the San Jose property along the main valleys and at the base of prominent hills. Each sample is the composite of material finer than a Tyler mesh #9 collected every 10-15m over a distance of approximately 250m at the base of the slope. Samples were collected over 31km of traverses covering the entire property. Talus fines samples ranged from below detection (approximately 70% of the dataset) to 314 ppb gold. Where talus fines were collected within the area covered by the soil grid, anomalies correspond to anomalies observed in the soil data and contain over 25 ppb Au. Other talus fines samples with grades above 25 ppb Au collected away from the area of the soil grid represent anomalies that will be followed up with more detailed sampling.

Additional maps and photos from the San Jose gold property are available on the Company's website (www.goldenarrowresources.com).

Analyses for the samples reported herein were performed by SGS Lakefield Research, an internationally recognized assay service provider, in Santiago, Chile. Exploration work reported on in this release was carried out under the supervision of Golden Arrow's Argentine Exploration Manager Diego Charchaflie, M.Sc. and Senior Geologist Gustavo Rodriguez, Ph.D.. The technical information contained in this release has been reviewed by Dr. David A. Terry, P.Geo., Vice President Exploration for Golden Arrow, a Qualified Person as defined in National Instrument 43-101.

Golden Arrow is in a strong position for growth with only 7.8 million shares outstanding, a market capitalization of CDN $5.5 million, a treasury with CDN $2.5 million in cash and marketable securities (as of Dec. 31, 2005), no debt and a 1% net smelter royalty ("NSR") on Viceroy Exploration Ltd.'s exciting Gualcamyo gold project that is currently at the feasibility stage. Golden Arrow's property portfolio contains 28 precious and base metal projects that cover over 125,000 hectares of prospective ground in both Argentina and Peru.

Through the Company's alliance with The Grosso Group, new opportunities are continuously being presented and reviewed. Other members of The Grosso Group include IMA Exploration Inc., Amera Resources Corporation, Astral Mining Corporation and Gold Point Energy Corp.

ON BEHALF OF THE BOARD

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

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.

2006 Number 3

To view Figure 1: Simplified Geology, Soil and Rock Geochemistry of Central Portion of San Jose Property, please click the following link: http://www.ccnmatthews.com/docs/grg0529.pdf

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

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