Golden Arrow Resources Corporation

Golden Arrow Resources Corporation

March 30, 2007 15:38 ET

Golden Arrow Resources Corporation: Letter to Shareholders

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 30, 2007) - Golden Arrow Resources Corporation (TSX VENTURE:GRG)(FRANKFURT:GAC) (WKN A0B6XQ) -

Dear Shareholder,

It gives me a great deal of pleasure to inform you that together with the Board of Directors and Management, we are planning to undertake an aggressive exploration program to be implemented during 2007 and 2008. Golden Arrow Resources Corporation (the "Company") has in place over 37 excellent properties in some of the most prolific locations of Argentina and Peru.

The market is only beginning to recognize the exciting potential offered by Golden Arrow Resources Corporation. The Company is now ready to capitalize on its quality properties and locations most of which have several generations of surface work including drilling and hold a high potential for discovery.

We would like to share with you some of the highlights of the Company. These should provide a glimpse of the accomplishments and opportunities that Management will be focusing on and which have the potential to dramatically increase shareholder value.

Some of the notable highlights include:

- Low share capitalization: less than 10 million shares issued and outstanding held by over 4,000 shareholders.

- A treasury with $2 million in cash and no debt.

- Yamana Gold has announced they plan to commence production of 200,000 ounces per year in 2008 and Golden Arrow will receive a 1% NSR royalty on all production from Yamana Gold's Gualcamayo Gold Project for 10 years.

- A property portfolio containing over 37 precious and base metal projects that cover 184,130 hectares of highly prospective ground in both Argentina and Peru.

Our Projects

Eight of the Company's projects in the Valle de Cura region of Argentina are adjacent to, or in close proximity to, some of the largest deposits in South America. Golden Arrow's Rio de las Taguas property is adjacent to Barrick's Pascua-Lama deposit (23.7 million ounces of gold resource), and the Potrerillos Property adjoins Barrick's Veladero discovery (15 million ounces of gold equivalent resource).

The Gualcamayo gold deposit, jointly discovered by Golden Arrow and Viceroy, now owned and managed by Yamana Gold Inc., (measured and indicated resource of 1.43 million ounces of gold, with further inferred resource of 611,000 ounces of gold) is another one of our successes. As mentioned above, the Company expects to see its interest generating cash next year.

In the mid 1990s, the Company and its management team staked an additional 40,000 hectares on trend to the south and west of Yamana's Gualcamayo project. These properties contain three areas that show intrusive style mineralization and similar characteristics as the Gualcamayo deposit. The Company has completed preliminary surface work and will initiate an airborne survey with ground follow-up to advance the project to the drill stage.

Our Team

The most important ingredient for any company is its management and Golden Arrow's Management is second to none. The Board is comprised of individuals with more than 15 years of experience operating in South America, and especially in Argentina. In 2005, I was named "Exploration Man of the Year" by Panorama Minero of Argentina which serves to highlight the Company's management team and expertise in Argentina.

The Board has been further strengthened with the recent addition of Dr. John Gammon as a director. Dr. Gammon has 40 years of experience in mineral exploration and management, including Assistant Deputy Minister Mines and Minerals with the Government of Ontario. His knowledge of the Spanish language and South American culture and societies brings a depth, in addition to his industry experience, that can assist the Company with the advancement of its South American projects in Peru and Argentina.

Through Management, its contacts and associations (including its participation in Grosso Group Management), we are continually reviewing and evaluating new opportunities. The Company is in a position, financially and technically, to act quickly in realizing important opportunities.


Golden Arrow is a company with a tremendous land package that took over ten years to accumulate. It is well positioned to undertake systematic exploration on all its properties, either directly or with joint venture partners. The Company is a mineral explorer with excellent assets, skilled management and few shares outstanding. An ambitious work program is planned over the next 12 to 18 months on the most promising of these properties.

We believe that the current share price undervalues the assets and opportunities in your company, Golden Arrow Resources. With a small market cap, its strong treasury enhanced with additional cash flow starting in 2008, an excellent property portfolio, work programs about to commence and possible joint ventures pending the future looks very bright for Golden Arrow Resources.

We thank you for your loyalty and continued support as we take the Company through to its next stage of successful development.


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.

2007 Number 6

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
    Golden Arrow Resources Corporation
    Jack Barnes
    Manager Investor Relations
    1-800-901-0058 or (604) 687-1828
    (604) 687-1858 (FAX)