Mr. Patrick Power reports

ARCTIC ASSUMES MANAGEMENT OF THE DIAGRAS PROPERTY, CORPORATE UPDATE

Arctic Star Exploration Corp. has taken over the management of the Diagras property in the Northwest Territories. The project is a joint venture with Margaret Lake Diamonds, where Margaret controls 60 per cent and Arctic owns 40 per cent. Under the new arrangement, Arctic will propose yearly exploration budgets, and Margaret can elect to participate or not. If Margaret does not participate, its interest will dilute using the standard industry formula. Arctic is proposing a $1.6-million budget for the next 12 months. This will allow Arctic to drill test the kimberlite-like geophysical targets on the property next spring. Margaret has elected not to participate in this program and, in doing so, will dilute, once the program completes, and expenditures met.

Diagras is located in the prolific Lac de Gras diamond field, positioned between the world-class Diavik diamond mine and processing facility (35 kilometres to the south) and the Ekati diamond mine and its processing facility (38 km to the west). The property lies directly on trend with the Diavik deposits currently being mined by a joint venture between Rio Tinto and Dominion Diamond Diavik. Ekati's Jay kimberlite (owned by Dominion Diamonds) is along with the same north-south trend and is within eight km of the Diagras border, and is in the process of being permitted for mining.

The Diagras project contains 21 kimberlites previously discovered by De Beers. The guiding exploration premise being proposed by Arctic on this property is the concept that kimberlites, being small volcanic intrusions, can undergo multiple eruptions and intrusive events, forming complexes. Each eruption event has a variable composition, including diamond grade and quality, and importantly different geophysical expressions. The early and very successful exploration methods for kimberlites during the Lac De Gras diamond rush utilized predominately, magnetics. Over 220 kimberlites were discovered in the field during this first wave. However due to the necessity to test so many targets on limited budgets most kimberlites only received one or two drill holes. What this approach to exploration failed to realize is that the kimberlite causing the magnetic anomaly might only be a portion of a larger kimberlite complex, where the other kimberlitic members of the complex might not have a magnetic expression. Arctic and the JV's exploration has focused on revisiting the known kimberlite and testing to see if they could part of larger complexes.

The joint venture's exploration work over the last three years has revealed at least five targets where the gravity and electromagnetic data reveal possible kimberlite complexes that warrant drill testing. For example, at the Black Spruce kimberlite, clearly seen in the magnetic data has distinct gravity and EM, anomalies separate and to the south. At the HL01 kimberlite previous workers may have thought an EM anomaly was explained by the magnetic kimberlite targeted and drill tested, however; our ground EM survey shows a distinct EM anomaly to be separate to the magnetic anomaly and it deserves a dedicated drill test. Drill targets have also been generated at Jack Pine, Suzanne, Kong and Penelope kimberlites.

Drilling is most economical in spring when there is over 50 per cent daylight and when the lakes are still frozen allowing drill placement, and winter roads can be utilized. In conjunction with this planned drill program, Arctic will also complete geophysical surveys over the remaining kimberlites that have yet to be surveyed (seven in total) and this work may produce more drill targets. Permits are already in place for this program.

To demonstrate that this exploration work can lead to success, gravity and electromagnetic surveys around the known Kelvin and Faraday kimberlites revealed these to be complexes with previously unknown kimberlite phases that were highly diamondiferous. Kennady Lake Diamond Inc., the operator on this project, subsequently underwent a merger and acquisition event and these kimberlites are now being incorporated in the Gahcho Kue diamond mine operated by De Beers and Mountain Province.

Arctic would also like to use this opportunity to give a corporate update.

Arctic's recently announced $650,000 private placement at 2.5 cents and the funds will be used to progress and maintain the Timantti diamond project, and prepare for the Diagras project.

Fieldwork on the Timantti diamond project in Finland has been put on care and maintenance during the situation caused by COVID-19. Once international travel becomes feasible Arctic intends to recommence fieldwork. In the meantime, Arctic plans to process 150 kilograms of the excavated samples from the new Karhu and Puck kimberlite discoveries for diamonds. These samples will be sent to a Canadian lab where they will undergo caustic fusion for microdiamond analysis. These kimberlites are the latest addition to those under the company's control and found to date, which includes the three Wolf kimberlites, White, Grey and Black, the nearby D347 dike, and the three Vasa dikes four kilometres to the north, notably all are diamondiferous. The addition of these new kimberlite discoveries, Karhu and Puck, makes a total of nine kimberlites and counting in this newly discovered field.

Due to the downturn of activity in Finland, and due to other pressing interests, Roy Spencer is resigning as director of the company effective immediately. Mr. Spencer has informed the company that once exploration recommences in Finland he will be available to manage and guide the program on a consulting basis. Arctic looks forward to this interaction in the future.

Qualified person

The qualified person for this news release is Buddy Doyle, AUSIMM, a geologist of over 30 years experience in diamond exploration, discovery and evaluation. He is a qualified person under the provisions of National Instrument 43-101.

About Arctic Star Exploration Corp.

The company owns 100 per cent of the recently acquired Timantti diamond project including a 243-hectare exploration permit and a 193,700-hectare exploration reservation near the town of Kuusamo, in Finland. The project is located approximately 550 km southwest of the operating Grib diamond mine in Russia. Arctic has commenced its exploration in Finland on the Timantti project, where four diamondiferous kimberlite bodies may represent the first finds in a large kimberlite field. The company also controls diamond exploration properties in Nunavut (Stein), the Northwest Territories (Diagras and Redemption) and a rare metals project in British Columbia (Cap).

We seek Safe Harbor.