Mr. Patrick Power of Arctic Star reports

SEQUOIA KIMBERLITE COMPLEX'S INDICATOR MINERAL CHEMISTRY POINTS TO LARGE DIAMONDS, DIAGRAS PROJECT, NWT

Arctic Star Exploration Corp. has received diamond indicator mineral results and an interpretation of these from Chuck Fipke for the first hole into the Sequoia kimberlite complex. The results demonstrate the existence of a number of indicator types that occur with diamonds and strongly suggest the presence of diamonds. Furthermore, indicator minerals of identical multielement chemistry to those found as inclusions in large over-50-carat diamonds worldwide are abundant. The indicators from different kimberlite types are starkly different. These observations are in agreement with the caustic diamond results, which show the different kimberlite types have different stone-per-kilogram counts and also hints at a coarse diamond distribution. Ultimately, a bulk sample will be required to confirm the diamond distribution and this is the normal path of progress for diamond exploration. Prior to this, a drill program defining the volumes of the different kimberlite types and their caustic fusion diamond distribution is planned for spring 2022.

Samples of kimberlite core were sent to C.F. Mineral Research Ltd. in Kelowna, B.C., for indicator mineral analysis. C.F. Minerals is a global-leading kimberlite and diamond analytical research facility lead by Mr. Fipke, one of the founders of the Ekati diamond mine. At the lab, the samples were lightly crushed with heavy minerals separated by dense media gravity methods. Oxides and silicates are split using magnetic separation. Candidate diamond indicator minerals are selected by a minerologist, mounted and scanned for chemical composition using a scanning electron microscope (SEM). Mineral grains that light up under different element scans are mapped and then assayed by electon microprobe. The microprobe results are presented here.

Mineral grains that grow concurrently while touching or within diamonds have distinct chemistry and are diagnostic of the presence diamonds and also of the rock types that host the diamonds at great depths.

Readers should note the following deep-mantle, high-pressure rock types associated with diamond mineralization that are noted in this release:

• Lherzolite -- garnet, clinopyroxene and olivine (certain types host over-50-carat diamonds);
• Harzburgite -- garnet (low calcium and high chrome), orthopyroxene and olivine (source of the desirable G10 garnets and P-type diamonds);
• Chromite -- harzburgite (a garnet-poor, chromite-rich variety of the above);
• Eclogite -- garnet and pyroxene (source of E-type diamonds).

The samples analyzed thus far are from the Sequoia kimberlite, hole DG-2021-04, located in the geographical centre of the complex. One sample from the interval 51 metres (m) to 89 m (5.1 kilograms (kg)) from the coherent kimberlite (CK), another sample from the interval 105 m to 136 m (5.1 kg) logged as volcanoclasitc kimberlite transitional (VKt) into coherent kimberlite and a sample from the interval 136 m to 150 m (5.3 kg) logged as volcanoclastic kimberlite (VK).

Mr. Fipke reports:

"The two volcanoclastic samples are dominated by diamond inclusion minerals (high-calcium G10 garnets (classifying as G10-2 and G10-3) found in lherzolite, (G11) garnets and diamond inclusions (CP5) clinopyroxenes that have been found as inclusions in big diamonds ranging from 52 to 102 carat from the Ekati diamond mine (coined Di$), as well as chromite-rich harzburgite containing diamond inclusion chromites and orthopyroxenes. Current research suggests these larger diamonds come from great depths over 400 km [kilometres].

"The diamond inclusion minerals from lherzolite (DI$, CP5 G9/G11 indicators mentioned above) found in Sequoia are identical to those present in Letseng (in Lesotho), Victor (in Canada) and Lucara's Karowe mine (Botswana). These kimberlites are typically lower grade but contain very large high-quality diamonds routinely recovered during run-of-mine operations. This is based on analysis of inclusions from over 335 diamonds from these sources, as well as Ekati's large stones. The classification scheme relies on the multielement analysis of the Sequoia indicator minerals having the same chemical composition as the indicators from known large diamond sources.

"As well as passing through and sampling of lherzolite, the Sequoia kimberlite has sampled diamond-bearing chromite harzburgite as evidence by the abundant 99-diamond-inclusion composition chromites and 45-diamond-inclusion orthopyroxenes present. These additional mineralogies could account for any smaller diamonds recovered. The two volcanoclastic samples have relatively few eclogitic-type garnets which can also be associated with diamond mineralization.

"In contrast to the VK samples, the CK sample from 51 to 89 metres has abundant group 1 eclogitic garnets where the EMP yields 51 diamond-inclusion eclogite grains. This sample also has the large diamond inclusion llerzolite minerals and the subordinate diamond-bearing (low-calcium high-chrome G10-7 and G10-9) pyrope garnet-bearing harzburgite not present in the VK, as well as chromite harzburgite present in the VK. A total of 80-diamond-inclusion composition chromites and 10-diamond-inclusion olivines were recovered from the chromite harzburgite.

"It is also worthy to note that the overall abundance of the lherzolite (DI$, CP5 G9/G11 indicators) large diamond inclusion minerals recovered from the three Sequoia DG-2021-04 drill hole samples exceeds, per sample weight, that of any of the diamond bearing (lherzolitic) kimberlites in the C.F. Minerals database. These results indicate that large diamonds should be present if sufficiently large tonnages of this kimberlite are processed by methodology that recovers large diamonds. The presence of abundant diamond inclusion chromites and orthopyroxenes, as well as abundant diamond inclusion group 1 eclogitic garnets, and subordinate low-calcium high-chrome G10 garnets and diamond inclusion olivines indicate smaller potentially commercial diamonds may also be present."

Buddy Doyle, vice-president of exploration for Arctic Star, commented: "It is interesting that the caustic fusion microdiamond results also hint at a coarser diamond distribution. Table 1 shows the published results from the Jack Pine kimberlite which makes up the southern 200 m of the Sequoia complex and the diamond results received from Arctic Star's caustic fusion results from the centre of Sequoia. These results, plotted on a size versus frequency plot, clearly show a coarser diamond population for our recent Sequoia results. Table 3 shows the diamond counts from the different rock types from this drill hole. Like the indicators, there seems distinct populations of diamonds from the different rock types. The company has decided to send the remaining half-split core of Sequoia to the lab to get more diamond results to help construct a more robust curve of the size distribution. It is likely we will need more samples than this to get a good view of the grade and the presence of the larger stones. Given the evidence presented by Chuck Fipkes's analysis, if big diamonds are proven to be there, it will be worth it."

Mr. Doyle further commented: "The next step for the Sequoia kimberlite complex is to do more small-diameter drilling to further understand the geology; we already have diamond and indicator mineral data that suggests the different types of kimberlite in this complex have different diamond populations and grade. Drilling this body at 100 m then, where needed, 50-metre centres and conduct caustic fusion analysis would achieve this and fill out the size frequency curve shown in figure 1. Should this prove encouraging and confirm the possibility of large diamonds, a bulk sample using either a large diameter drill rig or underground bulk sampling would be the next step. Which, on completion, would allow for a feasibility study. Given that there are two operating diamond mines within 35-kilometre Arctic Star could also seek out scenarios involving these, along the way."

Analysis of mineral indicator minerals from the other kimberlites is awaited. The rest of the caustic fusion diamond results from the other kimberlite discoveries are expected before the end of this week. The second round of Sequoia results where the company has sampled the other half of drill holes DG-2021-04 and DG-2021-05 should also be in the next weeks.

Qualified person

The qualified person for this news release is Mr. Doyle, AUSIMM, a geologist with over 35 years of experience in diamond exploration, discovery and evaluation. Mr. Doyle is a qualified person under the provisions of the National Instrument 43-101.

About Arctic Star Exploration Corp.

Arctic Star is predominantly a diamond explorer, recently discovering five new kimberlites in the prolific Lac De Gras kimberlite field that supports two multibillion-dollar kimberlite mining complexes. The company also has a 958-hectare exploration permit containing several diamond-bearing kimberlites on its Timantti project, Kuusamo, Finland. Arctic Star has optioned its Stein diamond project in Nunavut to GGL, which is planning for work once COVID restrictions lift. The company continues to look for appropriate diamond opportunities elsewhere.

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