Agreement in Principle for Mineral Exploration of Rio Negro, Argentina Signed with Provincial Government

Golden Arrow Resources Corporation (GRG - TSX.V) and the Grosso Group Management Ltd. ("Grosso Group") are pleased to announce that the Grosso Group has entered into an agreement in principle with the Minister Responsible for State Companies in the Province of Rio Negro, Argentina. The agreement is for the purpose of jointly exploring the potential for commercial mining activity to develop mining projects that provide for the acquisition, exploration and exploitation of polymetallic and energy related mineral deposits.

This strategic alliance with the Government of Rio Negro demonstrates their commitment to working together with the Grosso Group and its member companies. Likewise, the Grosso Group and its member companies are strongly committed to developing projects in the Province in conformity and in co-operation with local communities and the Government of Rio Negro.

"Our 16-year track record in Argentina demonstrates transparency and respect for the culture and the very sensitive nature of Patagonia's environment", stated Joseph Grosso, President of the Grosso Group. "This agreement is an excellent platform from which to access world class technology and the labour pool associated with the Province of Rio Negro."

In the agreement, the Province of Rio Negro, Argentina, commits to provide technical advice and put forth their best effort to facilitate the advancement and the development of mining projects implemented at the production stage. In order to promote proper development of mining activities in Rio Negro, the Province will jointly form with the Grosso Group, a mutually beneficial strategy for an association of public and private capital whose objective is the development of mining projects.

The Grosso Group, and its member companies, undertake to provide specialized technical assistance and management and make available for the advancement of projects the most modern and efficient technologies for prospecting and mineral exploration as well as proven expertise in community relations to advance mining projects in a responsible manner.

About Golden Arrow Resources:

Golden Arrow's management team is one of the most experienced in the field today. The Company is focused in Argentina and Peru in highly prospective mining regions with several drill ready projects including Portrerillos and Rio de las Taguas, located adjacent to Barrick Gold Corp.'s Pascua Lama project that is moving into production. With the Company's management and technical teams it is well positioned for continued growth.

ON BEHALF OF THE BOARD

"Joseph Grosso"

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

For further information please contact Joseph Grosso, President & CEO, or Corporate Communications, at 1-800-901-0058, or 604-687-1828 or fax 604-687-1858.

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

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.

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