Mr. Robert Card reports

ARROWSTAR BEGINS SNETTISHAM GROUND MAGNETIC SURVEY

Arrowstar Resources Ltd. has initiated the next step in its exploration program, the ground magnetics survey on its Snettisham iron ore property in Alaska. The company has engaged Geotronics Consulting Inc., of Surrey, B.C., Canada, under the direction of David G. Mark, PGeo. The crew and equipment are scheduled to begin work this week.

The size of the survey is estimated 28 lines at 100-metre spacing by one kilometre which is 28 km with additional 50 m spacing around the historically surveyed high anomalies for another seven km to total of 35 km. The magnetics survey is designed to highlight areas of concentrated magnetite and magnetic iron silicates. This will assist in the selection of the best drill sites for the proposed diamond drill program. The company plans to drill at least 10 holes to twin or check the results of the previous 49 holes drilled on the property. If good correlation can be obtained, the historic information from the previous estimated 20,000 feet of drilling may then be used to include in a new NI 43-101 report. The company plans to drill the additional holes this fall once a drilling permit has been received from the State of Alaska.

Previous work on the property under the direction of Phillip Thomas, the company's director and vice-president of exploration, has encountered excellent showings of magnetite. Further tests have confirmed that the magnetite-bearing material is amenable to a dry benefication process to yield a shipable concentrate acceptable to users. This property was originally proposed for production in 1970 by Marubeni Corp. of Japan. At that time iron ore was proposed to be shipped to Korea and Japan. A decline in metal prices caused the program to be halted. Since then, China and Europe have become the major buyers of iron ore. Iron ore prices have risen more than tenfold since the 1970s. Phillip Thomas, BSc, MBusM, MAIG, a qualified person under NI 43-101, has reviewed the content of this release.

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