Mr. Patrick Power reports

ARCTIC STAR ANNOUNCES HELICOPTER BORNE MAGNETIC AND FREQUENCY DOMAIN "RESOLVE" EM SURVEY AND NON-BROKERED PRIVATE PLACEMENT

Arctic Star Exploration Corp. geophysical crews are mobilizing to the Diagras diamond project to fly over the entire project with a helicopter-borne magnetic and frequency-domain Resolve electromagnetic survey at 75-metre line spacings.

The entire survey will be approximately 6,000 line kilometres. The work will give Arctic Star's exploration team a coherent dataset to explore for previously undiscovered kimberlites. The Resolve system was designed in particular to detect Lac de Gras kimberlite-derived EM responses. Arctic Star's team will also utilize recently derived filters that highlight magnetic remanence, again a property that many of the Lac de Gras kimberlites exhibit, unique when contrasted against the background country rocks. The survey also has the added benefit of meeting the expenditure commitments required to hold the mineral claims that make up the Diagras project.

In conjunction to this, the company has arranged a non-brokered private placement of four million units at a price of 15 cents per unit for gross proceeds of $600,000. Each unit comprises one common share in the capital of the company and one non-transferable share purchase warrant. Each warrant will entitle the holder to purchase one additional share in the capital of the company at an exercise price of 20 cents for a period of 18 months from the closing date.

The warrants contain an accelerated option clause that states that if the shares of Arctic Star Exploration close at or above 35 cents for three consecutive trading days on the TSX Venture Exchange, then the warrants must be exercised within a 60-day period by the warrantholders, otherwise the warrants shall expire as null and void.

All securities will be subject to a four-month hold period from the closing date. The private placement is subject to TSX-V approval.

The company intends to use the proceeds from the private placement for the helicopter-borne magnetic and frequency-domain Resolve electromagnetic survey on the Diagras diamond project.

We seek Safe Harbor.