Mr. Patrick Power of Arctic Star reports

ENCOURAGING DIAMOND INDICATOR CHEMISTRY REPORTED FROM THE ARBUTUS KIMBERLITE DISCOVERY, DIAGRAS PROJECT, NT

Arctic Star Exploration Corp.'s diamond indicator mineral DIMS analysis and classification have been completed by C.F. Mineral Research Ltd. on core sample from the Arbutus kimberlite discovery of the Diagras project, Northwest Territories. The Diagras project is a joint venture between Arctic Star Exploration Corp. (81.5 per cent) and Margaret Lake Diamonds Inc. (18.5 per cent).

Patrick Power, president of the company, commented: "Indicator minerals are an important adjunct when first encountering a new kimberlite discovery. Dr. Fipke's results and interpretation are telling us that:

• "That the kimberlite is multiphase, with one of the phases having superior chemistry to the others;
• "The chemistry is some of the best Dr. Fipke has seen when compared to his global database of diamond inclusions; the results here have a higher percentage and are more abundant by weight of samples than he has encountered previously;
• "The chemistry is also permissive for large diamonds.

"We provide the full report from Dr. Fipke below."

Three small core samples of kimberlite weighing 0.97, 0.81 and 1.22 kilograms were submitted by Arctic Star to C.F. Mineral for extraction, microprobing and classifying of any contained diamond indicator minerals.

According to Arctic Star, the three pieces originated from various parts of the Arbutus kimberlite in which 143.05 kilograms of kimberlite from two drill holes contained 61 diamonds.

Sample DG-2022-08, weighing 970 grams, contained only a single G10 pyrope and a single G1 eclogitic garnet. However, the sample contained 92 Di chromites and 36 Di olivines. Moreover, the sample contained a clinopyroxene and five G9/11 pyrope garnets that are sourced from lherzolite, which is known to contain small quantities of very large diamonds. Such lherzolite minerals are included in diamonds greater than 52 carats from the Ekati diamond mine, Canada, and are present at the Premier mine, South Africa, the Lacara mine, South Africa, and the Letzing mine, Lesotho. The last mine is known to contain huge diamonds with no or rare small diamonds.

Sample DG-2022-09B, weighing 810 grams, also only contained a single G10 pyrope garnet and no G9/11 pyrope garnets but contained 68 Di chromites, 41 Di olivines and 67 G1 ecologitic garnets. Thus, this sample is dominated by G1 ecologitic garnets from a diamond-bearing ecologite source but also contains three clinopyroxenes from a lherzolite source.

Sample DG-2022-09A, weighing 1220 grams, contained 73 G10* pyropes, 110 Di chromites, 44 Di olivines and 32 G1 ecologitic garnets. In addition, the sample contained two G9/11 pyropes and a single clinopyroxene. Thus these indicator minerals were sourced from diamond-bearing pyrope and chromite sources, as well as a diamond-bearing ecologite source, as well as from a lherzolite source of large diamonds.

C.F. Mineral has never previously encountered such a rich source of G10-10 and G10-9 composition pyropes along with significant diamond inclusion minerals from diamond-bearing chromite, Group 1 ecologite and lhzerolite sources of diamond. According to the late Dr. John Gurney, head of the department of geochemistry, South Africa, G10-10 and G10-9 composition pyropes are associated with the highest of diamond grades. The kimberlite phase of DG-2022-09A is expected to be loaded with diamonds and additionally contain some very large diamonds.

Unfortunately, only four picroilmenites were recovered from all three samples submitted. Picroilmenites do not actually form with diamond but form from the kimberlite magma itself. When 40 to 50 picroilmenites are present, it is possible to predict whether or not the kimberlite magma may have oxidized diamonds, thus destroying small diamonds but leaving large diamonds only partially oxidized. Of course, diamonds encapsulated in xenoliths would be insulated against an oxidizing kimberlite magma and thus be recovered unoxidized.

If more of the DG-2022-09A phase is present, correspondingly high diamond grades are expected. All three samples contain lherzolite sources of diamond in which large diamonds are expected with or without small diamonds. Over all, the DG-2022-09A phase Di indicator results are the best C.F. Mineral has ever encountered.

Note: Dr. Fipke personally owns Arctic Star shares.

Buddy Doyle, vice-president, exploration, for Arctic Star, also commented: "Our general exploration strategy is to locate new kimberlite discoveries. If the results of this work is encouraging, we return to the kimberlite and drill more to define its size and get a larger diamond samples. The Arbutus kimberlite discovery has proven to be diamond bearing, with relatively larger stones from a small sample. (See the news release dated Sept. 14, 2022.) This, along with the excellent diamond chemistry reported here, demonstrates that this kimberlite deserves further attention. Also notable is that Arbutus lies to the south of the Finlay kimberlite. A historic kimberlite was discovered in the 1990s; however, the previous workers never made the diamond content public. We therefore also plan to test this kimberlite in the 2023 exploration program."

Qualified person

The qualified person for this news release is Buddy Doyle, AusIMM, a geologist with over 35 years of experience in diamond exploration, discovery and evaluation and a qualified person under the provisions of the National Instrument 43-101. Mr. Doyle has relied on the technical expertise of Dr. Fipke for portions of this news release.

About Arctic Star Exploration Corp.

Arctic Star is predominantly a diamond explorer, recently discovering six 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. Arctic Star has optioned its Stein diamond project in Nunavut to GGL Diamond, which plans to work once COVID restrictions lift. The company continues to look for appropriate diamond opportunities elsewhere.

The Diagras project is a joint venture between Arctic Star (currently 81.5 per cent) and Margaret Lake (currently 18.5 per cent).

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