Mr. Patrick Power reports

ARCTIC STAR AMENDS CLOSED PRIVATE PLACEMENT

Further to its amended Stockwatch news release of Oct. 19, 2010, Arctic Star Diamond Corp. completed its unit private placement on Oct. 21, 2010.

The company on Oct. 19, 2010, announced in Stockwatch the private placement for gross proceeds of $400,000 through the issuance of eight million units at a price of five cents per unit. Each unit consisted 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. Patrick Power, the president, chief executive officer and director of the company, purchased 1.4 million units less than he initially subscribed for. Final gross proceeds for the private placement were therefore $330,000 through the issuance of 6.6 million units.

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 are being used for working capital.