TSX-V: GRG OTC: GARWF FSE: GAC GROSSO GROUP MEMBER … · TSX-V: GRG FSE: GAC OTC:GARWF 16 Business...

TSX-V: GRG OTC: GARWF FSE: GAC

Building Value in Argentina

February 2017

GROSSO GROUP MEMBER COMPANY

www.goldenarrowresources.com

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.

Credit for the slide header photo of Chinchillas to C. Brodie.

Forward Looking Statements

2

A Compelling Story

• Experienced Management Team with

a History of Success

• Early-mover advantage in an

emerging jurisdiction

• An exceptional deposit on the path to

production with a recognized mining

partner

• Additional upside potential from vast

property holdings including new

look-alike project

TSX-V: GRG FSE: GAC OTC:GARWF 3

The Grosso Group

• Pioneers of mineral exploration in Argentina

since 1993

• A track record of success : 3 precious metal

discovery credits

• A focus on community relations

• Member companies benefit from a vast

network of contacts for acquisition,

exploration and development of mineral

projects

• Member companies include:

– Blue Sky Uranium Corp. (TSX-V: BSK, OTC: BKUCF)

– Argentina Lithium & Energy Corp. (TSX-V: LIT, OTC: PNXLF)


Why Argentina?

5

• Excellent mineral potential

• Systematic exploration has led the

Grosso Group to three major

discoveries

• Gualcamayo (Yamana Gold)

• Navidad (Panamerican Silver)

• Chinchillas

• GRG now holds over 200,000

hectares, mostly unexplored

TSX-V: GRG FSE: GAC OTC:GARWF

Renewed Investment Climate

6 TSX-V: GRG FSE: GAC OTC:GARWF

The new mining-friendly government has made significant

changes, making Argentina an emerging market for

investment.

• Lifted currency controls – devalued Peso

• Decreased export taxes on concentrates

• Some import restrictions lifted

• Renewed relationship with IMF

CHINCHILLAS SILVER PROJECT

Jujuy Province, Argentina

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Chinchillas Silver Project

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Location & Infrastructure

• Located in mining-friendly Jujuy

province, NW Argentina

• Two all-season access routes

• On same road as Pirquitas mine,

approximately 42 km away

• Powerline beside the property;

• Access to water from local and

regional wells

• Communications available



9

Property

• Currently 100% owned

by GRG

• No royalties

• Road accessible, local

power, small local

communities

• >2000 hectares, largely

underexplored



10

Geology & Resources

• Primary silver deposit, with lead and zinc:

• 155 Moz AgEq (M&I, 34.2 Mt @ 91 g/t Ag, 0.82% Pb, 0.57% Zn)

• 90 Moz AgEq (Inferred, 39.2 Mt @ 42 g/t Ag , 0.44% Pb,0.76% Zn)

• Mineralization starts at surface – no expensive underground mining


**Mineral Resources for the

Chinchillas Project,

April 12th, 2016

by Rob Sim, P.Geo, Bruce Davis,

FAusIMM, Brian McEwen P.Geol.

Silver Mantos

Mantos Basement



Mineral Resource Estimate

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

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.

**Mineral Resources for the Chinchillas Project, April 12th, 2016

by Rob Sim, P.Geo, Bruce Davis, FAusIMM, Brian McEwen P.Geol.

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


Summary of Overall Metallurgical Test 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



Attractive Mining Scenario

Silver Mantos

Mantos Basement

• Mineralization starts at

surface with flat-lying

geometry

• Higher grade silver core in

Silver Mantos Zone

• Potential for fast start-up

open pit mining and

shipping of material



Growth 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



The Pirquitas Mine

• Silver – Zinc mine

• Owned by Silver Standard Resources

Inc. (NASDAQ: SSRI, TSX-SSO)

• Mined 2009 to 2016; ~68 million

ounces silver produced to Q416

• Currently processing stockpiles

• 42 road kilometres from Chinchillas

• +4000 tpd mill and processing facility

remaining, plus mining fleet and other

infrastructure



Business Combination

• Proposal is for 75% (SSO) 25% (GRG)

mining joint venture in Argentina, with SSO

to be operator.

• SSO spending ~US$12.6m on pre-

development studies prior to exercising

option

• Advances Chinchillas to Pre-feasibility

• GRG is accruing a 25% interest in

Pirquitas mine’s cash equivalent

earnings, less expenses, during the

study period

• Decision required by end of Q12017



Pre-Development Progress Oct 2015 Business

Combination Announced.

Pre-development studies

commence:

- Resource upgrade

- Detailed Metallurgical testing

- Detailed engineering studies

- Detailed environmental studies

Feb 2016

15,000 m infill drill

program completed

April 2016

Updated Resource

Estimate Announced

May 2016

Exploration and

geotech drill

program initiated –

expands

mineralization to

east and south

Sept 2016

EIA filed to initiate

mine permitting

Sept 2016 – Current

Formal Pre-feasibility

• Mine planning

• Environmental planning

• Process Engineering

• Reserve calculations

Catamarca Province, Argentina

ANTOFALLA PROJECT

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Antofalla Project

• 8,760 hectares in Catamarca Province

• 100% earn-in opportunity low initial commitments

• Epithermal Silver-Gold-Base metal targets

• Strong similarities to Chinchillas

• 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

• 2 m @ 9.2 Au g/t, 52 Ag g/t, 5 % Pb in historic trenches

19 TSX-V: GRG FSE: GAC OTC:GARWF

Antofalla Project

20

US$2 Million exploration program underway

• Geochemical sampling to delineate drill targets

• Remote sensing

• IP/Resistivity geophysics

• 3000 metre drill program


Anticipated Catalysts

21

Advancing of Chinchillas to Production

• Option decision expected Q117.

Continued Blue Sky from Exploration

• Antofalla Project

• Target delineation program results

Q117

• First drill program to follow

Acquisition/Re-Evaluation of Other Projects


Performance

22

Golden Arrow led the market in returns in 2016

and is positioned to continue.


Golden

Arrow Junior Silver

Fund

Global Silver

Miners Fund

Physical

Silver ETF

TSX/S&P

Comp Index

23

Trading Exchange Symbol

Toronto Venture

Exchange GRG

OTCQB Venture Market GARWF

Frankfurt Stock Exchange GAC

Capital Structure

Shares Issued (at Jan 23rd , 2017) 93,821,414

Warrants (avg price $0.57) 12,704,278

Options (avg price $0.36) 4,293,750

Fully Diluted 110,819,442

Market Capitalization ~$70M

Ownership (insiders/friends/family) ~50%

Ownership (Silver Standard Resources) ~5%

Leadership

24

Mr. Joseph Grosso is a respected entrepreneur with extensive international business experience having operated 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 network of contacts which have

been 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, Teck,

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. He became a mining pioneer in Argentina and thereafter led his team to the discovery of the world-class

Gualcamayo deposit, now held by Yamana Gold and the giant Navidad silver deposit now held by Pan American Silver. The Chinchillas silver

project is the third discovery for the Grosso Group.

JOSEPH GROSSO Executive Chairman

CEO and President


Key Management

25

Mr. Brian McEwen, P.Geol.

VP Exploration and 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 globally. 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, Teck, Hochschild and Phelps Dodge

among others.

Dr. David Terry, Ph.D., P.Geo.

Director

Dr. Terry is a Professional Geologist with more than 20 years of

experience focused on exploration for a wide spectrum of

precious and base metal deposits throughout North and South

America. He has held numerous senior positions with both major

and junior mining companies, including Boliden Limited,

Westmin Resources Limited, Hemlo Gold Mines Inc., Cominco

Limited and Gold Fields Mining Corporation. He holds a BSc and

PhD from the University of Western Ontario.

Mr. Darren Urquhart, CA

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 to

TSX Venture Exchange listed exploration companies. 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. Nikolaos Cacos, M.I.M.

VP Corporate Development & Director

Mr. Cacos brings over twenty years of management expertise in

the mineral exploration industry. He has extensive experience in

providing strategic planning to and administration of public

companies. Mr. Cacos serves as a director and officer of several

publicly traded companies. He holds a Master of International

Management degree from Heidelberg, Germany and a Bachelor

of Science degree from the University of British Columbia.


Contact

26

Corporate Head-Office: Suite 411, 837 W Hastings St

Vancouver, BC, Canada V6C 3N6

Telephone: 604 687 1828

Toll free: 1 800 901 0058

[email protected]

www.goldenarrowresources.com

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