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    TSX-V: ADD
Frankfurt: 82A1.F
OTCQB: ASDZF
July 27, 2020


ARCTIC ASSUMES MANAGEMENT OF THE DIAGRAS PROPERTY, CORPORATE UPDATE

Vancouver, British Columbia / July 27, 2020 / Arctic Star Exploration Corp. (TSX.V: ADD) ("Company") is pleased to ann
--->ounce, the takeover of the management of the Diagras Property in the NWT. The project is a joint venture with Margaret
---> Lake Diamonds ("Margaret"), where Margaret controls 60%, and Arctic owns 40%. Under the new arrangement, Arctic will 
--->propose yearly exploration budgets, and Margaret can elect to participate or not. If Margaret does not participate, th
--->eir interest will dilute using the standard industry formula. Arctic is proposing a $1.6m budget for the next 12 month
--->s. This will allow Arctic to drill test the kimberlite like geophysical targets on the property next spring. Margaret 
--->has elected not to participate in this program and, in doing so, will dilute, once the program completes, and expendit
--->ures met. 

Diagras is located in the prolific Lac de Gras diamond field, positioned between the world-class Diavik diamond mine a
--->nd processing facility (35km to the south) and the Ekati diamond mine and its processing facility (38km to the west). 
--->The Property lies directly on trend with the Diavik deposits currently being mined by a joint venture between Rio Tint
--->o and Dominion Diamond Diavik. Ekati's Jay kimberlite, (owned by Dominion Diamonds) is along with the same N-S trend a
--->nd is within 8kms of the Diagras border and is in the process of being permitted for mining. 

The Diagras project contains 21 kimberlites previously discovered by De Beers. The guiding exploration premise being p
--->roposed by Arctic on this property is the concept that kimberlites, being small volcanic intrusions, can undergo multi
--->ple eruptions and intrusive events, forming complexes. Each eruption event has a variable composition, including diamo
--->nd grade and quality, and importantly different geophysical expressions. The early and very successful exploration met
--->hods for kimberlites during the Lac De Gras diamond rush utilized predominately, magnetics. Over 220 kimberlites were 
--->discovered in the field during this first wave. However due to the necessity to test so many targets on limited budget
--->s most kimberlites only received one or two drill holes. What this approach to exploration failed to realize is that t
--->he kimberlite causing the magnetic anomaly might only be a portion of a larger kimberlite complex, where the other kim
--->berlitic members of the complex might not have a magnetic expression. Arctic and the JV's exploration has focused on r
--->e-visiting the known kimberlite and testing to see if they could part of larger complexes. 

The joint venture's exploration work over the last three years has revealed at least five targets where the gravity an
--->d EM data reveal possible kimberlite complexes that warrant drill testing. For example, at the Black Spruce kimberlite
--->, clearly seen in the magnetic data has distinct gravity and EM, anomalies separate and to the south. At the HL01 kimb
--->erlite previous workers may have thought an EM anomaly was explained by the magnetic kimberlite targeted and drill tes
--->ted, however; our ground EM survey shows a distinct EM anomaly to be separate to the magnetic anomaly and it deserves 
--->a dedicated drill test. Drill targets have also been generated at Jack Pine, Suzanne, Kong, and Penelope kimberlites. 

Drilling is most economical in spring when there is >50% daylight and when the lakes are still frozen allowing drill p
--->lacement, and winter roads can be utilized. In conjunction with this planned drill program, Arctic will also complete 
--->geophysical surveys over the remaining kimberlites that have yet to be surveyed (7 in total) and this work may produce
---> more drill targets. Permits are already in place for this program.

To demonstrate that this exploration work can lead to success, gravity and EM surveys around the known Kelvin and Fara
--->day kimberlites revealed these to be complexes with previously unknown kimberlite phases that were highly diamondifero
--->us. Kennady Lake Diamond Inc. the operator on this project subsequently underwent and merger and acquisition event and
---> these kimberlites are now being incorporated in the Gahcho Kue diamond mine operated by De Beers and Mountain Provinc
--->e. 

Arctic would also like to use this opportunity to give a corporate update. 
Arctic's recently announced $650K private placement at 2.5 cents and the funds will be used to progress and maintain t
--->he Timantti diamond project, and prepare for the Diagras project.

Fieldwork on the Timantti Diamond project in Finland has been put on care and maintenance during the situation caused 
--->by Covid19. Once International travel becomes feasible Arctic intends to recommence fieldwork. In the meantime, Arctic
---> plans to process 150kg of the excavated samples from the new Karhu and Puck kimberlite discoveries for diamonds. Thes
--->e samples will be sent to a Canadian lab where they will undergo caustic fusion for micro-diamond analysis. These kimb
--->erlites are the latest addition to those under our control and found to date, which includes, the three Wolf kimberlit
--->es, White, Grey and Black, the nearby D347 dyke, and the 3 Vasa dykes 4 kilometers to the North, notably all are diamo
--->ndiferous. The addition of these new kimberlite discoveries, Karhu and Puck, makes a total of nine kimberlites and cou
--->nting in this newly discovered field. 

Due to the downturn of activity in Finland, and due to other pressing interests, Roy Spencer is resigning as director 
--->of the company effective immediately. Roy has informed us that once exploration recommences in Finland he will be avai
--->lable to manage and guide the program on a consulting basis. Arctic looks forward to this interaction in the future. 

Qualified Person
 The Qualified Person for this news release is Buddy Doyle, AUSIMM, a Geologist of over 30 years' experience in diamon
--->d exploration, discovery, and evaluation. A Qualified Person under the provisions of National Instrument 43-101.

About Arctic Star
The Company owns 100% of the recently acquired Timantti Diamond Project including a 243 Ha Exploration Permit and a 19
--->3,700 Ha Exploration Reservation near the town of Kuusamo, in Finland. The project is located approximately 550km SW o
--->f the operating Grib Diamond Mine in Russia. Arctic has commenced its exploration in Finland on the Timantti Project, 
--->where four diamondiferous kimberlite bodies may represent the first finds in a large kimberlite field. The Company als
--->o controls diamond exploration properties in Nunavut (Stein), the NWT (Diagras and Redemption) and a rare metals proje
--->ct in BC (Cap).
Arctic Star has a highly experienced diamond exploration team previously responsible for several world-class diamond d
--->iscoveries.

ON BEHALF OF THE BOARD OF DIRECTORS OF ARCTIC STAR EXPLORATION CORP.
Patrick Power, President & CEO
 +1 (604) 218-8772

Neither the TSX Venture Exchange nor it's Regulation Services Provider (as that term is defined in the policies of the
---> TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: Certain statements in this press release are forward-looking statements within the meaning
---> of applicable securities laws. Forward-looking statements in this press release include that the Timantti Project tra
--->nsaction is a pre-eminent opportunity.