Mr. Patrick Power reports

ARCTIC STAR - NEWS RELEASE ANNOUNCING COMPLETION OF 8000000 UNIT PRIVATE PLACEMENT.DOC

On Oct. 21, 2010, Arctic Star Diamond Corp. completed its unit private placement as previously announced in Stockwatch on Oct. 14, 2010, and Oct. 19, 2010.

The company raised gross proceeds of $400,000 through the issuance of eight million units at a price of five cents per unit. Each unit consists of one common share of the company and one non-transferable common share purchase warrant, each warrant entitling the holder to purchase one additional common share of the company for a period of two years from the closing date at the exercise price of 10 cents per share.

All the securities issued in connection with this private placement are subject to a hold period expiring on Feb. 22, 2011.

The proceeds of the financing will be used for working capital.