Mr. Patrick Power reports

ARCTIC STAR ANNOUNCES NON-BROKERED PRIVATE PLACEMENT OF UNITS

Arctic Star Exploration Corp. has arranged a non-brokered private placement of up to 30 million units at a price of one cent per unit for gross proceeds of up to $300,000.

Each unit will be composed of one common share in the capital of the company and one non-transferable share purchase warrant. Each warrant is exercisable to purchase one additional share for a period of 24 months from the closing date at an exercise price of five cents per warrant share.

The warrants contain an accelerated option clause that states that if the shares close at or above 10 cents for a period of 20 consecutive trading days on the TSX Venture Exchange, then the company may accelerate the expiry date of the warrants by issuing a news release announcing the reduced warrant term, pursuant to which the warrants will expire on the 30th calendar day after the date of such news release.

The company may pay a finder's fee on the offering within the maximum amount permitted by the policies of the TSX-V. The company may complete multiple closings of the offering as subscriptions are received. Each closing is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals.

No insiders (as such term is defined under the policies of the exchange) or persons conducting investor relations activities are expected to participate in the offering.

Closing of the offering is subject to certain customary conditions, including, without limitation, approval of the TSX-V. The securities to be issued under the offering will be offered by way of private placement in the provinces of British Columbia, Alberta and Ontario, and such other provinces or territories of Canada as may be determined by the company, in each case, pursuant to applicable exemptions from the prospectus requirements under applicable securities laws. Securities issued under the offering will be subject to a hold period, which will expire four months and one day from the date of closing of the offering.

Among other costs, the company will use the proceeds from the offering as follows: (i) 18 per cent will be used to pay legal expenses; (ii) 14 per cent will be used to pay accounting expenses, including an officer of the company; (iii) 10.6 per cent will be used to pay for geological services, including to a director of the company; (iv) 13.3 per cent will be used to pay for consulting work; and (v) 33.3 per cent will be used for general working capital. Other than as disclosed above, there are no payments to non-arm's-length parties or to any persons conducting investor relations activities.

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. The company continues to look for appropriate diamond opportunities elsewhere.

We seek Safe Harbor.