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File: NR 2014 09 18 Arrowstar - Port snettisham - Final.docx

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Suite 880 - 800 West Pender Street, Telephone 604-687-7828
Vancouver, British Columbia Facsimile 604-687-7848
V6C 2V6  Canada arrowstarresources@shaw.ca


NEWS  TSX.V: AWS
For Immediate Release

Decision to Relinquish Port Snettisham Iron Ore Property Option
Due Diligence on Copper Concentration Plant - Manzanillo Mexico

September 19, 2014.  Arrowstar Resources Ltd. ("Arrowstar" or the "Company") (TSX-V: AWS) announces that the Company h
--->as decided to relinquish its option over the 49 tenements at Port Snettisham, Alaska. The Company still retains 21 cla
--->ims covering the area where a second magnetic anomaly was identified.  The claim fees are current until August 28, 201
--->5. 

The key reasons why the Board decided to relinquish the option granted by BullRun Prospecting Inc. were as follows:

Unsatisfactory Returns -The return on capital employed and internal rate of return at a 10% discount rate did not meet
---> the Board's threshold of investment return.  The 62% Fe Platts iron ore index price has remained at $84 per tonne, an
--->d the outlook expressed by a range of analysts does not see the average price recovering over $100 per tonne for some 
--->years.  With an expected freight cost of $20 per tonne, a loading cost of $5 per tonne and an $80 million capital expe
--->nditure, the cost of production and management of the waste did not provide sufficient profit at 2 million tonnes a ye
--->ar production of final product to adequately reward shareholders. 
Increase in Production In Australia - Production from Rio Tinto, BHP Billiton Ltd., Fortescue Metals Group Ltd. (FMG) 
--->and the Roy Hill mine will add about 100 million tons a year to Australia's exports of iron ore where the freight cost
---> is less than $10 per tonne to China and CIF cost under $50 per tonne.
Expensive Option Agreement - Negotiations with the option grantor failed to produce a fee arrangement that didn't mate
--->rially impact on the economic success of the project.
Environmentally Sensitive - The deposit is in an environmentally sensitive area with salmon farms located 15 kilometre
--->s away and a very large sea lion colony three kilometres away. Whales have been seen in Stephen's passage and eagles t
--->hat frequent the area could obstruct helicopter operations.  With 90,000 to 110,000 tonne ships visiting the area to l
--->oad, we felt it would be difficult and capital intensive to secure the environment. An archeological site has been ide
--->ntified close to one of the key beach landing areas. Fog can be a major issue in November.
Waste Difficulties -The project will produce a significant amount of waste, approximately 2 million tonnes or 1 millio
--->n cubic metres of silica/pyroxenite per year.  Finding a suitable location close to the proposed mine site to build a 
--->waste stockpile was proving economically unviable. Trucking in the area would have been difficult without considerable
---> road building expenditures and permits.
Double Processing - The geochemistry from the 109 samples taken after extensive testing showed that the grind size wou
--->ld have to be 1mm to produce 63.5% Fe iron ore that would cost an additional $3-4 per tonne in operating costs.  The s
--->amples containing representative magnetite iron ore also showed that the FeO value was low (reducing the price) and th
--->at a dual processing system would have to be implemented as 75% of the iron extracted was hematite or altered magnetit
--->e (non-magnetic) and only 25% was magnetic that could be separated by high speed magnetic drums. High concentrations o
--->f silica and titanium were present in the high Fe samples.
Impact of Snow, Moisture - Processing would have to take place under a large covered area to prevent the high impact g
--->rinders and magnetic drums from getting clogged from high moisture. Melting snow on crushed preprocessed ore and wet o
--->re from the wet magnetic drum system would have been problematic for shipping, adding additional cost.  This covered a
--->rea would be a very substantial construction, some 130 metres by 60 metres by 25 metres high.
Bulk Loading Port Costs - The cost of building bulk loading ports is increasing, and while $30m was budgeted more deta
--->iled studies have shown that the capital cost maybe as high as US$65-125 million based on the depth of the channel and
---> the infrastructure required for shipping two million tonnes in 90 - 110,000 panamax ships, being 20 shipments, or two
---> per month.
Difficult Terrain - The terrain where the mine would be situated if the project had proceeded was very steep and chall
--->enging to mine given the mobile track equipment being proposed.  Road construction in the Tongass Forest is still limi
--->ted.

Copper Concentration Project - Manzanillo Mexico

Due diligence is being conducted on a copper concentrator located close to Manzanillo with the view to start productio
--->n of copper concentrate within three months of acquisition. Discussions are being held with various miners to buy thei
--->r raw ore. This project may provide the company with cash flows from a modest investment and provide a platform for su
--->bstantial expansion.

Respectfully submitted 
ON BEHALF OF THE BOARD                            

"Phillip Thomas"
Phillip Thomas 
President, CEO, and Director
For further information, please contact:
Contact Name: Phillip Thomas  Email: Arrowstarresources@shaw.ca
Neither the TSX Venture Exchange nor its 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 news release.  Forward-Looking State
--->ments: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, 
--->statements concerning Arrowstar's planned acquisitions and other statements that are not historical facts. When used i
--->n this document, the words such as "proposes," "plan," "estimate," "expect," "intend," "may," "potential," "should," a
--->nd similar expressions are forward-looking statements. Although Arrowstar believes that its expectations reflected in 
--->these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can 
--->be given that actual results will be consistent with these forward-looking statements.