Golden Arrow Announces Updated Preliminary Economic Assessment for the Chinchillas Silver Project, with $226M After-tax NPV and 24.3% IRR

About this update from Golden Arrow Resources Corp.

Golden Arrow Announces Updated Preliminary Economic Assessment for the Chinchillas Silver Project, with $226M After-tax NPV and 24.3% IRR(via Thenewswire.ca) Vancouver, BC / TNW-ACCESSWIRE / October 30, 2014 / Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce the results of an updated Preliminary Economic Assessment ("PEA") for the Chinchillas silver-lead-zinc project in Jujuy Province, Argentina ("Chinchillas" or "the Project"). The new PEA has more than doubled the after-tax net present value ("NPV") of the project to US$226 million. The update is based on the expanded resource estimate announced August 29th 2014. Highlights All values are quoted in US dollars, using base case metal prices of $22 per ounce of silver, $1.00 per pound of lead, $1.00 per pound of zinc. -A processing rate of 2.9 million tonnes per year (8,000 tonnes per day) and open-pit mining scenario, at a 2.4:1 strip ratio, and 12 year mine life -After-tax net present value of $226 million at an 8% discount rate -Internal rate of return ("IRR") of 24.3% -Payback period of 3.4 years -Pre-production capital costs of $237 million, including a 20% contingency -Cash operating costs of $9.22 per ounce of silver, without lead and zinc credits -Average annual silver production of 8 million ounces "We are very pleased with this economic assessment as it provides an even stronger demonstration of the potential of Chinchillas as a viable mining project," stated Brian McEwen, VP Exploration and Development. "We are now looking forward to moving into a feasibility assessment in 2015, while continuing to explore the property and expand resources." The project demonstrates positive economics at a range of silver price scenarios: Silver Price Per Ounce $US (Lead and Zinc at US$1.00) After-tax NPV8% (millions) After-tax IRR After-tax Payback Period (years) $17.00 $ 90.2 14.9% 5.2 $22.00 $ 225.5 24.3% 3.4 $25.00 $ 305.0 29.2% 2.6 Management plans to advance the Chinchillas project to a feasibility stage in 2015, with a goal to commence mining within three years. The Chinchillas deposit remains open to expansion in all directions, and approximately 70% of the property remains untested. Mineral Resources The PEA is based on the mineral resource estimate reported on August 29th, 2014, and subsequently filed on SEDAR in a NI 43-101...

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