Mr. Phillip Thomas reports

ANNOUNCES PRIVATE PLACEMENT

Arrowstar Resources Ltd. proposes to undertake a private placement of up to 10 million special warrants at a price of 11.25 cents per special warrant for gross proceeds of up to $1,125,000. Upon the completion of the company's proposed consolidation as announced on March 26, 2014, each special warrant will automatically convert into one unit without any further effort or consideration on the part of the purchaser. Each unit comprises one postconsolidation common share in the capital of the company and one transferable share purchase warrant exercisable at any time into a share at a price of 15 cents per share until the close of business on the fifth anniversary of the issuance of the units. The proceeds raised from the offering will be used for general working capital and to perform exploration work on the Port Snettisham project. The offering is subject to approval of the TSX Venture Exchange. The consolidation remains subject to the approval of the exchange and the company's shareholders.

We seek Safe Harbor.