Mr. Phillip Thomas reports

ARROWSTAR RESOURCES ANNOUNCES PRIVATE PLACEMENT

Arrowstar Resources Ltd. proposes to undertake a private placement of up to 17 million units at a price of six cents per unit for gross proceeds of up to $1.02-million. Each unit will consist of one common share and one transferrable share purchase warrant, with each warrant entitling the holder to purchase one common share for a period of 60 months at a price of 15 cents.

The proceeds of the private placement will be used for general working capital purposes and for due diligence on exploration targets.

The securities issued pursuant to the private placement will be subject to a hold period of four months and one day from the date of issuance of the securities. The company may pay finders' fees in connection with the private placement, subject to compliance with the policies of the TSX Venture Exchange. Completion of the private placement and the payment of any finders' fees remain subject to the receipt of all necessary regulatory approvals, including the approval of the exchange.

We seek Safe Harbor.