Silver Standard Exercises Option to Form Joint Venture With Golden Arrow for the Chinchillas-Pirquitas Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 31, 2017) - Golden Arrow Resources Corporation (TSX VENTURE:GRG) (FRANKFURT:GAC) (OTCQB:GARWF), "Golden Arrow" or the "Company") is pleased to announce that the Company has received the required notice from Silver Standard Resources Inc. (TSX:SSO) (NASDAQ:SSRI) ("Silver Standard") to exercise its option on the Chinchillas project and form a joint venture to combine the Chinchillas project with the producing Pirquitas Mine into a single new operation. The joint venture will be owned on a 75% / 25% basis by each company, respectively. Silver Standard will be the operator.

"This is a landmark achievement for our Company," stated Joseph Grosso, Executive Chairman, President and CEO of Golden Arrow. "As Golden Arrow transitions an exploration discovery into a mining operation, our shareholders stand to benefit from this profile and strengthened financial position."

"I wish to thank management, the board of directors and our shareholders for their patience and support during this 18 month wait. In particular thanks go to our VP Exploration and Development, Brian McEwen and his technical team for developing Chinchillas to the current permitting stage. We look forward to working with Silver Standard's proven and skilled operational team. We thank all levels of federal and provincial authorities as well as the communities and their leaders in Argentina for their support. We can all benefit with this outcome."

Transaction Highlights

The full details of our Business Combination Agreement with Silver Standard dated September 30, 2015, setting out the terms and conditions for the formation of the joint venture were set out in our news release dated October 1, 2015. The following is a summary of the key provisions and benefits of the transaction:

• Creates a joint venture comprised of the Pirquitas operation and the Chinchillas property with Silver Standard and Golden Arrow holding 75% / 25% interest, respectively, with Silver Standard being the operator.
  
  
• Provides Golden Arrow an opportunity to fast-track development of the Chinchillas property, in a capital efficient manner, through use of the existing production facilities at the Pirquitas Mine and establishment of common infrastructure.
  
  
• Near-term production from Chinchillas based on construction beginning in the third quarter of 2017, followed by ore delivery to the mill in the second half of 2018.