Arctic Star Announces Status of Private Placement and Grant of Stock Options

Vancouver, British Columbia--(Newsfile Corp. - March 21, 2019) - Arctic Star Exploration Corp. ("Arctic Star" or the "Company") announces that further to its News Releases of January 24, 2019, January 25, 2019, January 30, 2019 and March 11, 2019, that its Private Placement of $850,000 has been over-subscribed and the second tranche is anticipated to close in the next few days.

The Company previously closed a first tranche of the Private Placement whereby the Company issued 5,840,000 units (the "Units") for aggregate gross proceeds of $292,000.

The terms of the Private Placement provide for the issuance of up to 17,000,000 Units at a price of $0.05 per Unit, for gross proceeds of up to $850,000. Each Unit is comprised of one common share in the capital of the Company (each, a "Share") and one non-transferable share purchase warrant (each, a "Warrant"). Each Warrant will entitle the holder to purchase one additional Share in the capital of the Company (each, a "Warrant Share") for a period of 24 months from the closing date at an exercise price of $0.08.

The Company intends to use the proceeds from the Private Placement for development of the Company's Timantti Diamond project in Finland and for general working capital.

The Company also announces that it has granted an aggregate of 3,450,000 stock options to its directors, employees and consultants for the purchase of up to 3,450,000 common shares of the Company pursuant to its Stock Option Plan. Each option is exercisable for a period of 5 years at a price of $0.08 per common share.

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

This news release contains "forward-looking statements" including but not limited to statements with respect to Arctic Star's plans, the estimation of a mineral resource and the success of exploration activities. Forward-looking statements, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the risk that the Company is unable to close further tranches of the planned private placement and the Company's plan to use all or some portion of the proceeds for exploration of the Foriet Diamond Property. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Arctic Star undertakes no obligation or responsibility to update forward-looking statements, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/43582