September 2016 Clearing a Path to Production Chinchillas - - PowerPoint PPT Presentation

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September 2016 Clearing a Path to Production Chinchillas - - PowerPoint PPT Presentation

September 2016 Clearing a Path to Production Chinchillas Silver-Lead-Zinc Deposit GROSSO GROUP MEMBER COMPANY GOLDEN ARROW RESOURCES CORPORATION Forward-Looking Statements This Presentation contains forward - looking statements within the


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GOLDEN ARROW RESOURCES CORPORATION

GROSSO GROUP MEMBER COMPANY

September 2016

Clearing a Path to Production Chinchillas Silver-Lead-Zinc Deposit

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GOLDEN ARROW RESOURCES CORPORATION

Forward-Looking Statements

This Presentation contains “forward-looking statements” within the meaning of Canadian securities legislation. Such forward-looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned exploration and development of the Chinchillas project, plans related to its business and other matters that may occur in the future. Statements concerning mineral resource estimates and the interpretation of drill results may also constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the Chinchillas project is developed. These statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: assumptions made in the Chinchillas Mineral Resource Estimate, including geological interpretation, grade, recovery rates, silver, zinc and lead price assumptions and operating costs; the availability of financing for exploration and development activities, including Silver Standard Resources Inc. (“SSRI”) meeting certain milestones and exercising its election to proceed with the transactions contemplated under the Business Combination Agreement dated September 30, 2015 among the Company, SSRI and certain other parties; the Company’s ability to attract and retain skilled staff; the Chinchillas project development schedule; the exchange rates of the Canadian dollar and United States dollar to the Argentina peso; market competition; ongoing relations with impacted communities; and general business and economic conditions. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation: risks related to precious and base metal price fluctuations; risks related to the transactions contemplated by the Business Combination Agreement; risks related to fluctuations in the currency markets (particularly the Argentinean peso, Canadian dollar and United States dollar); risks related to the inherently dangerous activity of mining, including conditions or events beyond our control, and operating or technical difficulties in mineral exploration, development and mining activities; uncertainty in the Company’s ability to raise financing and fund the development of the Chinchillas project, including as recommended in the Chinchillas Mineral Resource Estimate; uncertainty as to actual capital costs, operating costs, production and economic returns, and uncertainty that development activities will result in a profitable mining operation at Chinchillas; risks related to mineral resource figures being estimates based on interpretations and assumptions which may result in less mineral production under actual conditions than is currently estimated and to diminishing quantities or grades of mineral resources as properties are mined; risks related to governmental regulations and obtaining necessary licenses and permits; risks related to the business being subject to environmental laws and regulations which may increase costs of doing business and restrict our operations; risks related to the Chinchillas project being subject to prior unregistered agreements, transfers, or claims and other defects in title; risks relating to inadequate insurance or inability to obtain insurance; risks related to potential litigation; risks related to the global economy; and risks related to the Chinchillas project being located in Argentina, including political, economic, social and regulatory instability. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements. The Company’s forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made. For the reasons set forth above, investors should not place undue reliance on forward-looking statements. The information provided in this is not intended to be a comprehensive review of all matters and developments concerning the Company. It should be read in conjunction with all other disclosure documents of the Company. The information contained herein is not a substitute for detailed investigation or analysis. No securities commission or regulatory authority has reviewed the accuracy or adequacy of the information presented. The Company undertakes no obligation to publicly update or revise any forward-looking statements other than as required under applicable law. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. The contents of this presentation have been reviewed and approved Mr. Brian McEwen, P.Geol., VP Exploration and Development of the Company and a Qualified Person as defined in National Instrument 43-101.

GRG.V 2

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GOLDEN ARROW RESOURCES CORPORATION

Corporate Overview & Strategy

  • Member company of The Grosso Group
  • Pioneers in Argentina since 1993
  • Multiple discoveries made in multiple provinces
  • Impeccable corporate citizenship

Golden Arrow Strategy:

  • Build value for investors by rapidly advancing the Chinchillas silver-lead-zinc project to

a production decision through a strategic partnership while leveraging the corporate and exploration expertise of the Grosso Group to find a fourth significant deposit in Argentina

GRG.V 3

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GOLDEN ARROW RESOURCES CORPORATION GRG.V 4

Chinchillas Silver Project Overview

  • Located in mining-friendly Jujuy province, NW Argentina;

Good infrastructure

  • Strategic Partnership with Silver Standard (TSX-

SSO)

  • Working towards business combination with

Pirquitas Mine, ~ 30km away

  • US$12.6M program underway to evaluate combined

mining operation

  • Measured & Indicated Resource**:
  • 155 Moz Silver Equivalent
  • (34.2 Mt @ 91 g/t Ag, 0.82% Pb, 0.57% Zn)
  • Inferred Resource**:
  • 90 Moz Silver Equivalent
  • (39.2 Mt @ 42 g/t Ag , 0.44% Pb,0.76% Zn)
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GOLDEN ARROW RESOURCES CORPORATION

Proposed Business Combination with Silver Standard (TSX: SSO, NASDAQ: SSRI)

  • Silver Standard operates the Pirquitas silver mine ~30km from Chinchillas

 Operating since 2009, limited mine life remaining

  • The two projects are to be combined into a 75% (SSO) 25% (GRG) mining joint

venture in Argentina, with SSO assuming the role of operator

  • Prior to the JV, a pre-development study period of up to 18 months:

GRG.V 5

See original news release dated October 1st, 2015

 ~$3.5M spent by SSO in Q415, with an estimate of $7.5M for 2016 for resource update, engineering and metallurgical studies  GRG will accrue a 25% interest in Pirquitas mine’s cash equivalent earnings, less expenses, during the Preliminary Period  C$2M being paid to GRG in stages during the Period

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GOLDEN ARROW RESOURCES CORPORATION

Benefits of the Business Combination

 Advancement of Chinchillas Project with No Shareholder Dilution

 No dilutive financing to complete pre-feasibility  Brings Chinchillas to mine-ready stage, regardless of deal completion

 GRG Jumps from Explorer to Miner with Earnings

 GRG accrues 25% share in Pirquitas’ cash-equiv earnings during the Preliminary Period  GRG becomes 25% owner of Pirquitas mine & infrastructure in new JV

 Combined Operation May Reduce Capital Costs & Finance Risk

 Existing production facilities at Pirquitas and common infrastructure are expected to lower the capital and operational cost at Chinchillas vs a stand-alone operation

 Immediate Strengthened Financial Position

 GRG receives up to C$2M from Silver Standard, during the preliminary period

 Increased Operating Capabilities

 The combined operation will be managed and overseen by a proven operational management team with extensive in-country mine construction and operational expertise.

 Enhanced Community Benefits

 GRG and SSO will maintain extensive engagement with communities and stakeholders to provide long-term employment opportunities and lasting community investment

GRG.V 6

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GOLDEN ARROW RESOURCES CORPORATION

Chinchillas Properties

GRG.V 7

  • 100% owned by GRG
  • Additional payment of

$1.2 million due to vendors upon the commencement of commercial production.

  • No royalties
  • >2000 hectares, largely

underexplored

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GOLDEN ARROW RESOURCES CORPORATION GRG.V 8

NI 43-101 Resource Statement

**Mineral Resources for the Chinchillas Project, April 12th, 2016 by Rob Sim, P .Geo, Bruce Davis, FAusIMM, Brian McEwen P .Geol.

1. Totals may not add correctly due to rounding 2. Mineral resources are contained within a pit shell generated using a silver equivalent price of $25/oz. 3. Silver equivalent calculated using the formula: AgEq = Ag g/t + (Pb% ∗ 36.09) + (Zn% * 36.09) 4. Silver equivalent grades, and the base case cut-off grade of 45g/t AgEq, are based on metal prices of $19/oz silver and $1/lb for lead and zinc. 5. Recovery is assumed as 90% silver equivalent. 6. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. 7. The quantity and grade of reported Inferred resources are uncertain in nature and there has been insufficient exploration to classify these Inferred resources as Indicated or Measured, but it is reasonably expected that a majority of the reported Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

Type Mtonnes AgEq (g/t) Ag (g/t) Pb (%) Zn (%) AgEq (Moz) Ag (Moz) Pb (Mlbs) Zn (Mlbs) Measured

Silver Mantos 3.6 149 115 0.56 0.38 17 13 44 30

Indicated

Silver Mantos 11.9 118 72 0.63 0.64 45 28 166 168 Mantos Basement 13.6 176 125 1.16 0.27 77 55 347 81 Socavon 5.0 97 29 0.54 1.37 16 5 59 152 ALL 30.6 141 88 0.85 0.60 138 87 574 401

Measured and Indicated

Silver Mantos 15.5 125 82 0.62 0.58 62 41 210 198 Mantos Basement 13.6 176 125 1.16 0.27 77 55 347 81 Socavon 5.0 97 29 0.54 1.37 16 5 59 152

ALL 34.2 142 91 0.82 0.57 155 100 618 431

Inferred

Silver Mantos 4.1 115 58 0.78 0.83 15 8 71 76 Mantos Basement 1.5 107 78 0.64 0.14 5 4 22 5 Socavon 7.3 79 33 0.37 0.91 18 8 59 146 Socavon Basement 20.0 79 39 0.39 0.73 51 25 170 321

ALL 32.9 85 42 0.44 0.76 90 44 322 548

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GOLDEN ARROW RESOURCES CORPORATION GRG.V 9

Infrastructure

  • Two all-season access routes – on

same road as Pirquitas, approximately 30 km away

 Potential direct transport of ore to Pirquitas mill by road or pipeline

  • Power to property with High

Voltage line 66 km away;

  • Access to water from local and

regional wells

  • Communications available
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GOLDEN ARROW RESOURCES CORPORATION

Attractive Potential Mining Scenario

GRG.V 10

  • Mineralization starts at

surface with flat-lying geometry

  • Higher grade silver core in

Silver Mantos Zone

  • Potential for fast start-up
  • pen pit mining and

shipping of material to Pirquitas

Silver Mantos Mantos Basement

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GOLDEN ARROW RESOURCES CORPORATION GRG.V 11

Metallurgy

  • High recoveries of silver, lead & zinc (bench scale locked-cycle testing)
  • Standard flotation methods can create separate saleable concentrates: silver-

bearing lead, and zinc

  • Pre-feasibility program to evaluate processing of ore through Pirquitas mill

Summary of Overall Metallurgical T est Performance Lead Concentrate

Comp_1 (BAS) Comp_2 (MAN) Comp_3 (SOC) Lead Silver Lead Silver Lead Silver Recovery 96.3% 96.1% 97.5% 94.6% 97.0% 93.4% Grade 69% 4.6 kg/t 62.2% 10.5 kg/t 66.0% 4.2 kg/t

Zinc Concentrate

Comp_1 (BAS) Comp_2 (MAN - low zinc) Comp_3 (SOC) Zinc Silver Zinc Silver Zinc Silver Recovery 84.7% 3.4% 20.3% 2.3% 86.0% 4.9% Grade 52% 307 g/t 3.15% 271 g/t 60.0% 133 g/t

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GOLDEN ARROW RESOURCES CORPORATION GRG.V 12

Exploration Potential

  • Multiple Targets Drilled and

Open for Expansion

  • Includes Chinchillas South: multiple

holes with long intervals of Ag in Zn halo: “Pirquitas-style”

  • Good potential for new resources
  • Majority of the property remains

under explored

  • Future exploration will focus on

rapid building of new resources

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GOLDEN ARROW RESOURCES CORPORATION

Antofalla Project - Overview

GRG.V 13

  • 100% earn-in opportunity on 8,760 hectares, low initial commitments
  • Strong similarities to Chinchillas
  • Epithermal Silver-Gold-Base Metals in silicified/brecciated zones within

tuffs and dacites:

 18 m @ 128 g/t Ag, 0.23 g/t Au, 0.88% Pb in historic drilling  14.9 m @ 271 g/t Ag, 1% Pb in GRG due diligence channel sampling

  • High-grade Gold-Silver structures in Sediments including:

 2 m @ 9.2 Au g/t, 52 Ag g/t, 5 % Pb in historic trenches in Los Españoles Vein

  • 2016 work program US$200-500k to define drill targets
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GOLDEN ARROW RESOURCES CORPORATION

Argentina De-risking

Q4 2015 Presidential election installed new government with interest and will to improve economic and mining policies.

  • Policy shifts since the election:

 Lifted currency controls – devalued Peso may result in lower costs for project development  Eliminated export taxes on concentrates and gold/silver doré  Some import restrictions lifted – may allow better sourcing of equipment

  • Several Provincial governments following with

improved policies

  • Golden Arrow well positioned to be a fore-

runner in exploration

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GOLDEN ARROW RESOURCES CORPORATION

Anticipated Growth

Clearing a Path to Production with a Recognized Mining Partner

  • US$12.6 pre-feasibility level program initiated to evaluate options for combining the Chinchillas

& Pirquitas operations

 15,000 m Phase 5 drill program completed  Resource estimate updated  $7.5M program in 2016: Metallurgical, engineering, permitting and environmental studies

  • ngoing;

 7,000 m Phase VI condemnation & exploration drill program completed

  • Option decision expected Q416; Chinchillas could be production-ready in 2017
  • Exercise of option by Silver Standard will trigger immediate payments to GRG, formation of JV

company, and 25% participation of GRG in Pirquitas

  • Decline of option leaves Chinchillas at production-ready stage with no dilution to GRG

Continued Blue Sky from Exploration

  • Potential for more resources at Chinchillas project
  • Antofalla Project offers opportunity to define a 4th exceptional deposit
  • Additional new projects under evaluation

GRG.V 15

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GOLDEN ARROW RESOURCES CORPORATION GRG.V 16

Capital Structure (at June 30th 2016)

Shares Issued 88,162,711 Warrants (avg price $0.30) 11,802,196 Options (avg price $0.35) 6,602,500 Fully Diluted 106,567,407 Market Capitalization (at Sept 1, 2016) ~$102M Ownership (insiders/friends/family) ~50% Ownership (Silver Standard Resources) ~5%

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GOLDEN ARROW RESOURCES CORPORATION GRG.V 17

Contact

Corporate Head-Office:

Suite 411, 837 W Hastings St Vancouver, BC, Canada V6C 3N6 T elephone: 604 687 1828 T

  • ll free: 1 800 901 0058

info@goldenarrowresources.com

www.goldenarrowresources.com

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GOLDEN ARROW RESOURCES CORPORATION GRG.V 18

Appendix A – Key Management

  • Mr. Joseph Grosso is a respected entrepreneur with extensive international business experience having
  • perated for decades in North/South America as well as in various European and Asian countries. Of

Italian descent and fluent in Italian, English and Spanish, Mr. Grosso lived in Argentina and Peru where he acquired a very deep appreciation for Latin culture and successfully developed a vast network of contacts which have been very beneficial to the associated companies of the Grosso Group.

  • Mr. Grosso has developed a strong network of long-term national and international financial
  • relationships. He has experience in financing, marketing strategies and has successfully formed strategic

alliances and negotiated with mining industry majors such as Barrick, T eck, Newmont, Yamana Gold and Vale S.A. During a family visit to Argentina in 1993, Argentina’s undeveloped geology east of Chile was the great motivator for Mr. Grosso’s career change into the mining industry where he became a mining pioneer in Argentina and thereafter discovered the world-class Gualcamayo project, now in production by Yamana Gold. Mr. Grosso’s additional discoveries include the world-class Navidad silver deposit now held by Pan American Silver; the Rio Tabaconas gold project and now he is on the trail of yet another discovery with the Chinchillas silver project. Led 3 major discoveries:

  • Navidad (Pan American Silver)
  • Gualcamayo (Yamana)
  • Chinchillas (Golden Arrow)

JOSEPH GROSSO Executive Chairman CEO and President

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GOLDEN ARROW RESOURCES CORPORATION

Key Management

GRG.V 19 BRIAN McEWEN PGeol. - VP Exploration & Development

  • Mr. McEwen is a professional geologist with more than 30 years of exploration and production experience in open-pit and underground

mining projects and operations. The extent of his experience is global in managing numerous projects in Canada, US, Europe, Asia, Africa and throughout Latin America. Mr. McEwen’s previous roles include more than a decade with MRDI (AMEC Peru) where he was responsible for project management, economic resource and reserve calculations for various precious and base metal companies worldwide, including BHP Billiton, CM Antamina, T eck, Hochschild and Phelps Dodge among others. DARREN C. URQUHART, C.A.– CFO & Corporate Secretary

  • Mr. Urquhart is a Chartered Accountant with more than 10 years of experience working in both public practice and industry. Mr.

Urquhart is presently engaged in public practice accounting offering CFO and accounting services to TSX Venture Exchange listed exploration companies in the Vancouver area. Mr. Urquhart began his career working as an audit accountant with Grant Thornton LLP, then later worked as a senior tax accountant with Lohn Caulder Chartered Accountants and more recently served as a consultant to an international private equity company. Mr. Urquhart obtained his Chartered Accountant designation in 2001 and is a member of the Institute of Chartered Accountants of British Columbia. In 1995, Mr. Urquhart obtained his B.A.Sc. (Electrical Engineering) from the University of British Columbia.