Argentina Mining Play

[Ed Monton]

Golden Arrow Resources Corporation: Soil and Talus Fines Anomalies Identified on the Antiguyo Gold Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 12, 2006) - Golden Arrow Resources Corporation (TSX VENTURE:GRG) is pleased to report that it has received results for the first phase of soil grid and composite talus fines sampling on the southern portion of the Antiguyo property in Sierra de Rinconada district of Jujuy Province, Argentina. Three approximately 1 km long areas of anomalous talus fines samples and a number of new gold in soil anomalies have been delineated along with soil anomalies related to known gold-bearing quartz veins. The 100% owned 2,800 hectare Antiguyo I claim, which hosts high-grade gold vein occurrences that assayed up to 384.49 g/t gold from a 2m surface channel sample (see April 13, 2006 News Release), forms the southern portion of the 5,643 hectare Antiguyo property.

Phase I soil sampling comprised 301 samples collected over a 1,900m by 650m grid in the west-central portion of the Antiguyo 1 property where, 24 previously reported rock samples were collected. Soil analytical results ranged from less than 5 ppb up to 189 ppb gold. A total of 110 composite talus fines samples were also collected on the property to identify geochemically anomalous areas for follow-up prospecting and soil sampling; analytical results ranged from less than 5 ppb (approximately 78% of the dataset) to 12 ppb gold.

The results of this first phase of exploration on Antiguyo I confirm the property's potential to host numerous high-grade gold-bearing quartz veins. The next phase of exploration on Antiguyo I will include semi-detailed geological mapping, comprehensive surface rock sampling and channel sampling, infill and expansion of the current soil grid and additional soil grid sampling to follow up on anomalous areas detected by the talus fines sampling program. This work is expected to resume later in July 2006. Preliminary prospecting, rock and talus fine sampling is currently underway on the Antiguyo II claim which comprises 2,843 hectares and is located immediately to the north of Antiguyo I. A program of detailed channel sampling on the Company's San Jose property, located 20 km to the north of Antiguyo has recently been completed and assay results are awaited.

The July 6, 2006 News Release listing Golden Arrow's properties affected by the 36 month metallic mining suspension in western Chubut Province, Argentina incorrectly listed the Company's Las Bayas property. Golden Arrow properties affected include only Laguna de los Toros, Costa and Corcovado.

Technical Summary:

The Antiguyo property is located on the western slope of the Sierra de Rinconada in northern Argentina 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.

Preliminary mapping of the Antiguyo I claim indicates that gold mineralization is hosted by the steeply dipping western flank of a gently plunging (less than 40 degrees) asymmetric anticline. The axial plane strikes northerly (between 0 degrees and 25 degrees) and dips steeply to the east. Saddle reefs (i.e. bedding parallel veins that thicken in the hinge of anticlines) are ubiquitous at Antiguyo due to the tight nature of the fold. These veins can contain medium to coarse-grained gold (1mm to 0.5cm) which occurs along limonite-rich fractures within massive quartz, as fine films near crack-seal laminations, and along vein-wall contacts. An increase in quartz-vein density appears spatially associated with a colour anomaly visible on satellite images that is sub-parallel to bedding.

A total of 110 talus fines samples were collected at the Antiguyo I property on the eastern flank of the range and following the wider valleys. Each sample is a 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 25 km of traverses covering the entire property. Talus fines samples ranged from below detection (approximately 78% of the dataset) to 12 ppb gold.

Talus fines samples collected beneath areas of known vein mineralization, such as the talus fines sampling traverse that was run to the west of rock samples GA1506 (384.49 ppm gold) and GA1500 (17.28 ppm gold) (reported in April 13, 2006 News Release), have gold concentrations over 6 ppb defining the lower threshold of what is considered anomalous in the Antiguyo I claim area. Three areas of talus fines samples with grades that range from 6 to 12 ppb gold occur on the northern half of the claim, one of which is a cluster of samples occurring over approximately 1km, whereas two clusters of anomalous samples, each covering approximately 1km, with grades generally between 6 and 8 ppb were collected on the southern half of the claim (see Figure 1).

The first phase soil sampling comprised 301 samples collected every 50 m along 20 east-west lines spaced 100 m apart. The soil grid covered a 1,900 by 650 m area (Figure 2) centred and following the general N-S orientation of the mineralized veins previously sampled on the Antiguyo I claim. Soil samples ranged from less than 5 ppb up to 189 ppb gold (Figure 2). Soil values over 25 ppb Au correlate with the location of known high-grade veins. Other anomalous areas identified on the soil grid will require follow-up work to identify the source of the anomalies. Multi-station gold in soil anomalies within the grid area are generally 100m to 400m in length and irregular in shape and grade distribution.

In the area of the soil grid on the Antiguyo I property the A-horizon is generally absent and the samples were comprised predominantly of C-horizon material. It is important to note that the soil grid extends over a moderate to steeply west-dipping slope. Thus, the metal distribution might be influenced by soil transport. 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).

Additional maps and photos from the Antiguyo I 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 Gualcamayo 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.

To view Figure 1: Talus fines sample location and Soil grid boundary on the Antiguyo I Claim, please click on the following link: http://www.ccnmatthews.com/docs/0712grg.jpg

To view Figure 2: Soil grid results, Antiguyo I Claim, please click on the following link: http://www.ccnmatthews.com/docs/0712grg1.jpg

2006 Number 6

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