Golden Arrow Resources Corporation
TSX VENTURE : GRG
FRANKFURT : GAC

Golden Arrow Resources Corporation

September 19, 2007 09:30 ET

Golden Arrow Resources Corporation: Letter to Shareholders

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 19, 2007) - Golden Arrow Resources Corporation (TSX VENTURE:GRG)(FRANKFURT:GAC)(WKN:A0B6XQ) -

Dear Shareholder:

As the fall season approaches and as all of us are now back at work, I would like to give you an updated glimpse of some of the Company's planned exploration activity for the next quarter of 2007.

Poncha Gold Project (San Juan Province)

In late April due to the onset of winter in Argentina the Company's first drill program on the Poncha Gold Project (a Golden Arrow 100% interest being acquired from Teck Cominco) came to a halt before a number of the compelling targets could be tested. The Company has evaluated and reported the results of the completed holes and in its news release of September 6, 2007 which can be viewed on the Company's website. Resumption of our drilling program is expected to commence in late October and/or early November weather permitting. Management has good expectations from this project which could become an important asset for the Company.

Gualcamayo (San Juan Province)

Following some very encouraging surface sampling results on Golden Arrow's projects in the Gualcamayo region, the Company will be carrying out a helicopter-borne aeromagnetic survey to provide detailed structural and lithological data which will greatly assist in evaluating the geochemical anomalies identified to date and target new areas with potential. The Gualcamayo projects are located in close proximity to Yamana Gold's Gualcamayo Gold Deposit, a deposit that our Grosso Group team played a significant role in discovering in late 1997.

According to Mr. Juan Carlos Poblete from San Juan government's press office, Yamana plans to begin mining Gualcamayo in the second half of 2008 with initial production of 150,000oz/y of gold, which will later be expanded to 250,000oz/y. The Mine life is estimated at 10 years with the possibility of extending it another 10 years.

Golden Arrow holds a 1% uncapped net smelter right "NSR" on Yamana's Gualcamayo Gold Project and also holds 25,143 hectares of ground in close proximity to Gualcamayo. The NSR is expected to result in an income of over $1,000,000 per year for Golden Arrow once production commences.

San Jose (Jujuy Province)

Selection of a drill contractor is underway to conduct a Phase I drill program at San Jose at the beginning in Q4-07. The 100% owned 1,985-hectare San Jose property hosts high-grade gold quartz vein occurrences and stockwork-related bulk-tonnage style gold mineralization. The Company has now identified four significant zones along a 1.2km trend with bulk-tonnage gold grades on the San Jose project.

Flagship Discovery Objective

In the search for a flagship project, Golden Arrow will be spending approximately $5M in drilling programs in an effort to advance its properties towards a successful deposit discovery. To date the Company has 10 drill ready projects to potentially achieve this objective.

Corporate Communications

The Company has attracted to its Corporate Communications and Marketing department Bruce Korhonen who will undertake a very aggressive public relations campaign in North America and Europe. The introduction of many new markets and institutions will be undertaken to inject increased liquidity to Golden Arrow's shares and expand the shareholder base.

Financially Strong - Property Strong

Golden Arrow is a tightly held company with only 15,202,255 shares outstanding and approximately $7M in the treasury which will enable the Company to advance several of its key properties. Some of the Company's properties may be joint ventured to others but the Company will preserve its key properties to further the objective of a 100% owned flagship project. The Company, due to its extensive network of contacts in South America, has the luxury of having a very large portfolio of properties that it holds at an extremely low carrying cost which include:

To view attached diagram please click on the following link: http://www.ccnmatthews.com/docs/grg0919.pdf

Well-Positioned to Grow

The Company is well funded and therefore has the ability to inject a sizeable added value in executing its numerous exploration programs in 2007/2008 without any dilution to the current 15,202,255 shares outstanding. As a shareholder, we invite you to closely follow your investment in Golden Arrow as the intense activity in the next twelve months unfolds. At current levels Golden Arrow presents a compelling investment value opportunity.

We thank you for your continued support and confidence. I hope that you will introduce Golden Arrow to your friends by providing them with a copy of our letter which can also be viewed on the Company's website at goldenarrowresources.com. We will welcome their call at 1-800-901-0058.

Yours faithfully,

GOLDEN ARROW RESOURCES CORPORATION

Joseph Grosso, President and CEO

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 17

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