Highlights

• Caustic Fusion results show all the kimberlites discovered from the Spring 2021 drilling program contained Diamonds.
• Sequoia stands as having the highest diamond counts and it is also the largest kimberlite in the group with a geophysical signature up to 1,000m long and up to 300m wide, the two holes drilling in 2021 were 220m apart.
• The relatively small samples from the Alder and Birch kimberlites have coarse diamonds and deserve further exploration
• An airborne EM survey over the entire property has commenced

Arctic Star Exploration Corp. (“Arctic Star” or the “Company”) (TSXV:ADD) (Frankfurt:82A2) (WKN:A2DFY5) (OTC:ASDZF) is pleased to announce it has received all the diamond results from its Spring drilling program where 5 new kimberlites were discovered. Four of these kimberlites were processed by Caustic Fusion. The fifth kimberlite was not sampled being a small 1m dyke like intercept. The results are listed in the order of the sequence they were discovered. The Sequoia results were previously released and are shown here for comparison.

Table 1. Caustic Fusion Results

 -----------------------------------------------------------------------------
 |Kimberlite|0.105|0.15|0.212|0.30|0.425|0.60|0.85|1.18|Weight|Total |Stones/|
 |          |mm   |mm  |mm   |mm  |mm   |mm  |mm  |mm  |Kg    |Stones|100kg  |
 |---------------------------------------------------------------------------|
 |Birch     |10   |7   |7    |3   |1    |1   |0   |0   |141.5 |29    |    20 |
 |---------------------------------------------------------------------------|
 |Sequoia   |282  |117 |39   |23  |10   |6   |1   |1   |505.3 |499   |99.8   |
 |---------------------------------------------------------------------------|
 |Alder     |3    |6   |1    |2   |1    |0   |1   |0   |223.72|14    |6      |
 |---------------------------------------------------------------------------|
 |Cedar     |1    |0   |0    |0   |0    |0   |0   |0   |90.6  |1     |1      |
 |---------------------------------------------------------------------------|
 |Black     |7    |3   |2    |2   |0    |0   |0   |0   |167.5 |14    |8      |
 |Spruce*   |     |    |     |    |     |    |    |    |      |      |       |
 -----------------------------------------------------------------------------

• - Black Spruce are historic results.

Notes on the results: The Sequoia Kimberlite was sent to SRC laboratory, Saskatoon, Saskatchewan with a direct chain of custody. The other Kimberlites were originally sent to CFM laboratory in Kelowna, however, when after three weeks this lab informed Arctic Star that these samples were behind a previous client and that there would be a long delay the company decided to move the samples to other laboratories. The Birch Kimberlite samples were redirected to the SRC lab and the Alder and Cedar Kimberlite samples were redirected to the Microlithics Laboratory in Thunder Bay. The samples arrived intact, with seals, and chain of custody preserved. SRC is an independent laboratory that is SCC accredited, ISO/IEC 17025. Microlithics is also an independent laboratory. The processing methods of these laboratories are similar. The samples are assayed using the caustic fusion process, where up to 8-kilogram samples are fused in a kiln containing caustic soda at temperatures of >500oC. The hot residue is then poured through sieves and the remaining material is further chemically treated to reduce the residue to a manageable size. The residues are then observed, and the diamonds are recovered. The labs add unique diamonds to each sample which are recovered as part of a quality assurance program. All were recovered from these batches.

Sequoia stands out as having the highest diamond count. As previously described in the NR dated September 9th and September 15th, the diamond results at Sequoia hint at a coarser diamond size distribution as does the diamond indicator chemistry. The diamond results from assaying the second half of the DG 2021 05 drill core have not yet been received and will be reported when at hand.

The Alder and Birch kimberlites also have a coarser than usual diamond population but have lower stone counts than Sequoia which will equate to lower grades. The indicator chemistry (Processed at CFM laboratory), for these pipes has been received and will be released once interpreted. The Alder kimberlite is part of a larger complex that includes the HL02 kimberlite discovered in the 1990s, there is some justification to drilling more of this complex to see if the stone counts vary, between different rock types.

At the Birch Kimberlite, which expresses as a gravity low south of the Black Spruce kimberlite, the drilling tested the eastern edge of the gravity low. The Western portion of the gravity low remains untested. Table 1 also lists the published historic diamond results for the Black Spruce kimberlite whose counts are lower and contrast to that received from Birch, Birch has three times the diamond count and this is evidence that it is a separate event and rock type to the Black Spruce kimberlite.

The Cedar kimberlite only reported one microdiamond, the rock here a volcanoclastic kimberlite dominated by mudstone matrix and mudstone fragments. The mudstone falls into the crater formed by the eruption and dilutes the grade. The EM anomaly tested here is 150m in diameter. It is possible that non-diluted kimberlite occurs either laterally or at depth.

The Fall 2021 EM survey over the Diagras project has commenced. This survey is designed to generate new geophysical targets for future drill testing and utilizes new technology and data processing techniques that were not available in the 1990s when that last detailed exploration was conducted.

Once the data from the EM survey has been received the plan for the Spring 2022 program will be formulated and budgeted. This will include a drill program to expand our knowledge of the Sequoia Kimberlite complex and exploration drilling based on the EM survey and this year’s ground geophysics.

The Diagras project is a Joint Venture between Arctic Star and Margaret Lake Diamonds Inc. (DIA). Arctic Star took over management in early 2021 proposing a $2.1 million budget for the Spring drilling 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. A Qualified Person under the provisions of the National Instrument 43-101.

About Arctic Star

Arctic Star is predominantly a diamond explorer, recently discovering 5 new kimberlites in the prolific Lac De Gras kimberlite field that supports 2 multi-billion dollar kimberlite mining complexes. The company also has a 958Ha 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 diamonds who plan work once Covid restrictions lift. The company continues to look for appropriate diamond opportunities elsewhere.