Mr. Patrick Power reports

ARCTIC STAR ANNOUNCES CLOSING OF FINAL TRANCHE OF PRIVATE PLACEMENT

Further to Arctic Star Exploration Corp.'s news release dated Oct. 12, 2023, and Dec. 15, 2023, the company has closed the second and final tranche of the previously announced non-brokered private placement of units of the company at a price of one cent per unit. Each unit consists of one common share in the capital of the company and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one additional share at a price of five cents per share for a period of 24 months from the date of issuance.

The first tranche closing of the private placement consisted of 19.3 million units for aggregate gross proceeds of $193,000. All securities issued in connection with the first tranche of the private placement are subject to a statutory hold period of four months plus a day in accordance with applicable securities legislation ending on April 16, 2024.

The second tranche closing of the private placement consisted of 700,000 units for aggregate gross proceeds of $7,000. All securities issued in connection with the second tranche of the private placement are subject to a statutory hold period of four months plus a day in accordance with applicable securities legislation ending on May 16, 2024. The total amount of the private placement consists of 20 million units for aggregate gross proceeds of $200,000.

The warrants issued under the private placement contain an accelerated option clause. Pursuant to the acceleration clause, if the shares of the company close at or above 10 cents for 10 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 60th calendar day after the date of such news release.

Among other costs, the company will use the proceeds from the private placement as follows: (i) 18 per cent will be used to pay legal expenses; (ii) 14 per cent will be used to pay accounting expenses; (iii) 10.6 per cent will be used to pay for geological services; (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.

No finders' fees were paid in connection with the private placement.

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.