Highlights

• The Karhu Kimberlite near Kuusamo, Finland is diamond-bearing.

• The results are encouraging; the Company has applied for renewal of its Exploration Permit.

• There is a backlog in processing applications. There is no reason to expect that the permit will not be renewed.

• Once the renewal is processed, the Company can apply for a drilling permit. The Company expects to carry out this drilling in early 2023.

• The Karhu Kimberlite was discovered by excavator in 2019, it is part of a string of magnetic anomalies that might represent kimberlite dykes and sills and these will be targeted by the planned drilling.

Arctic Star Exploration Corp. ("Arctic Star" or the "Company") (TSXV:ADD) (Frankfurt:82A2) (WKN:A2DFY5) (OTC:ASDZF) is pleased to announce it has received the first diamond results from its Karhu Kimberlite discovery.

Table 1. Caustic Fusion Results, Karhu Kimberlite, Bottom Sieve Size, Number of Stones.

Notes on the results: The kimberlite was sent to SRC laboratories of Saskatoon by chain of custody. SRC is an independent laboratory that is SCC accredited, ISO/IEC 17025. 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 >5000C. The hot residue is then poured through sieves and the remaining material is then chemically treated to reduce the residue to a manageable size. The residues are then observed, and the diamonds are recovered. The lab adds unique diamonds to each sample which are recovered as part of a quality assurance program.

The Karhu Kimberlite was discovered in summer 2019 and sampled in the fall by excavator. The sample consisted of 18 separate, approximately 8kg samples, taken sequentially from the bucket as the excavator dug into the exposed kimberlite, which was obscured by a thin till layer.

The sample was recovered in November 2021; the hiatus between sampling and processing was caused predominantly by the pandemic and also in part due to the need to focus funding our Diagras project which took priority. Once travel restrictions are lifted and with funding in place, the samples were recovered from storage, seals intact, and dispatched to the laboratory.

Buddy Doyle VP Exploration and Director said, "The results are very encouraging! So far, the company has found several kimberlites near Kuusamo, Finland, and expects to find more, in this new Kimberlite field. All the kimberlites found to date have contained diamonds. We look forward to drilling this target and others once we have the permits in hand."

An application to renew the Exploration Permit, on which all our kimberlite discoveries occur, was filed in February 2021. The industry is experiencing delays processing Exploration Permits and ours is no exception in part due to the pandemic causing public service staffing shortages because of intense gold exploration activity creating a large workload. The Company has no reason to think that the application for a three-year extension will not be granted. Once in hand, the Company will apply for a drill permit.

Buddy Doyle further said, "The Company has 2 excellent diamond exploration projects with Diagras and Timantti, however; the prime focus remains Diagras where we plan a spring 2022 drill program. The pandemic-led break from exploration in Finland has allowed a re-examination of our results. When we located the kimberlites near Kuusamo we assumed they were pipe-like bodies and they were drill tested in this manner. The thinking now is that they are dykes and sills. For example drilling at our White Wolf kimberlite suggest it is dipping to the north forming a sill, up to 30m thick with the Black and Grey Wolf kimberlites being fault displaced nearby members of the same sill. Karhu belongs to a string of magnetic anomalies that are now thought to represent a similar sill, 2km to the north of the Wolf Kimberlites. Drilling will tell. This is planned for early 2023."

The Company also announced the possible discovery of the "Pug" kimberlite by excavator in 2019. Here the excavator intersected blue green clay beneath till cover as part of the string of magnetic anomalies that includes Karhu. Similar clays had been noted over our other kimberlite discoveries. Subsequent examination the clay revealed no coarse material. No diamond indicator minerals or any minerals other than clay were recovered >0.25mm. The decision was made not to send this sample for caustic fusion. It is still possible this is the weathered top of a kimberlite as it is a contrasting linear sill-like clay zone surrounded by unweathered greenstone. The base of the clay zone was beyond the reach of the excavator. The magnetic anomaly at Pug will be targeted by the planned drill 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.

ON BEHALF OF THE BOARD OF DIRECTORS OF ARCTIC STAR EXPLORATION CORP.

Patrick Power, President & CEO
+1 (604) 218-8772

[email protected]