Arctic Star Exploration Corp. ("Arctic Star" or the "Company") is pleased to announce, further to its news release dated February 28, 2022, that the Company has closed the first tranche of the Company's non-brokered private placement (the "Private Placement") of 8,186,430 non-flow through units of the Company (the "Non-FT Units"), at $0.07 per Non-FT Unit, and 3,700,000 flow through units (the "FT Units"), at $0.08 per FT Unit, for a total gross proceeds of $869,050.10. The Company intends to complete additional tranche(s) of the balance FT Units and Non-FT Units (collectively, the "Units") offered under the Private Placement.

Upon closing of the first tranche of the Private Placement, the Company issued a total of 11,886,430 common shares in the share capital of the Company (the "Shares") and 10,036,430 non-transferable share purchase warrants (the "Warrants"). 3,700,000 Shares were issued as part of the FT Units and were issued as "flow-through shares" within the meaning of the Income Tax Act (Canada).

The Warrants are exercisable to purchase 8,186,430 Shares, at $0.10 per Share (for the Warrants issued as part of the Non-FT Units), and 1,850,000 Shares, at $0.15 per Share (for the Warrants issued as part of the FT Units), until on March 10, 2024 or earlier subject to an accelerated option clause (the "Acceleration Clause"). Pursuant to the Acceleration Clause, if the Shares close at or above $0.30 for five consecutive trading days on the TSX Venture Exchange (the "TSXV"), then the Warrants must be exercised within a 60-day period by the warrant holders, or failing which, the Warrants shall expire as null and void.

The Company paid aggregate cash finders' fees of $27,042 and issued an aggregate 363,279 non-transferable share purchase warrants (the "Finder's Warrants") to certain eligible finders. The Finders' Warrants are exercisable to purchase 202,029 Shares at $0.10 per Share and 161,250 Shares at $0.15 per Share. The Finder's Warrants expire on March 10, 2024 or earlier subject to the Acceleration Clause.

All securities issued in connection with the first tranche of the Private Placement are subject to a statutory hold period expiring on July 11, 2022 in accordance with applicable securities legislation.

The Company intends to use the net proceeds from the Private Placement to carry out exploration on its Diagras Joint Venture (81.5% Arctic Star) commencing in March. The plan is to complete 10 holes at the diamond-bearing Sequoia Kimberlite complex. This drilling will help define the size of the complex, the micro-diamond grade, and geology. After drilling at Sequoia, the drill is expected to be deployed to discover new kimberlites. Phase 1 of the airborne survey completed coverage of 46% of the property in late 2021. The Company's geophysical consultants have selected over 33 possible kimberlite targets from a review of this work and ground crews are expected to be deployed to follow these up. Phase 2 of the airborne survey is also expected to be completed. A portion of the net proceeds from the Non-FT Units will be used for general and corporate purposes.

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

"Patrick Power"

Patrick Power, President & CEO
+1 (604) 218-8772
ppower@arcticstar.ca