Mr. Patrick Power reports

ARCTIC STAR ANNOUNCES CLOSING OF SECOND AND FINAL TRANCHE OF OVER-SUBSCRIBED PRIVATE PLACEMENT

Further to its news releases of Jan. 24, 2019, Jan. 25, 2019, Jan. 30, 2019, March 11, 2019, and March 21, 2019, Arctic Star Exploration Corp. has closed the second and final tranche of its oversubscribed private placement of $850,000. In the second tranche the company issued 11.76 million units at a price of five cents per unit for gross proceeds of $588,000. Each unit consists of one common share in the capital of the company and one non-transferable share purchase warrant. Each warrant is exercisable into one additional share at a price of eight cents per share for a period of two years from the closing date.

The company previously closed a first tranche of the private placement whereby the company issued 5.84 million units for aggregate gross proceeds of $292,000, so in total, the company sold 17.6 million units for gross proceeds of $880,000.

The securities issued under the private placement, and the shares that may be issuable on exercise of the warrants, are subject to a statutory hold period expiring after four months.

The company paid cash finders' fees of $9,200 to certain finders and issued 128,000 share purchase warrants to one finder in connection with the second tranche of the private placement. Each finder's warrant is exercisable into one share at a price of eight cents per share for a period of two years from the date of issuance.

The company intends to use the proceeds from the private placement for development of the company's Finland project and for general working capital.

A director of the company subscribed for a total of 400,000 units under the second tranche, which is a related-party transaction within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions. The issuances to the insiders are exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in Section 5.5(b) as the company's shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in Section 5.7(a) of MI 61-101 in that the fair market value of the consideration of the securities issued to the related parties did not exceed 25 per cent of the company's market capitalization.