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May 28, 2009
Golden Arrow's Royalty Cash Flow Begins
Golden Arrow Resources Corporation (GRG -- TSXV) ("Golden Arrow" or the "Company") is pleased to announce that the Company has received notice from Yamana Gold Inc. ("Yamana") that it will receive US$138,658 as first payment of its 1% net smelter returns royalty ("NSR") from the initial production at its Gualcamayo gold mine, located in San Juan, Argentina.

Regular quarterly payments will be made on January 31st, April 30th, July 31st, and October 31st, of each year for the life of mine, with the next payment scheduled for July 31st, 2009. At the current spot gold price Golden Arrow anticipates annual cash flow from the NSR ranging from CDN $2,000,000 to CDN $2,500,000 per year. At the current spot gold price, the approximate net present value "NPV" at a 5% discount rate of Golden Arrow's 1% NSR ranges from CDN $15,000,000 to CDN $22,000,000. The current fully diluted market capitalization of the Company is CDN $18,000,000. Golden Arrow's treasury has over CDN $2 million.

"When the 45,000 hectare Gualcamayo project was under our management, the several years of exploration work we carried out makes us strong believers that the current deposit has great potential to increase in the future years," stated Joseph Grosso, President & CEO. "Golden Arrow considers the royalty to have an exciting future growth potential."

Royalty Background

In February 1994, Grosso Group management created Minas Argentinas S.A., which accumulated 97,500 hectares of property in highly prospective regions of Argentina, including the 45,000 hectare Gualcamayo project. During 1996 and 1997 two successful phases of exploration drilling were carried out by Minas Argentinas S.A., under the stewardship of Joseph Grosso, which resulted in the initial discovery that has now grown into the producing Gualcamayo gold mine.

These projects were subsequently acquired by Yamana. Golden Arrow holds an uncapped 1% NSR on these properties, which are located in high potential areas in proximity to Barrick Gold's Pascua-Lama and Xstrata/New Gold's El Morro deposits. All these properties have notable exploration results and hold promise for future discoveries.

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.


"Joseph Grosso"

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

For further information please contact Joseph Grosso, President & CEO, or investor relations, 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.

2009 Number 9

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