Canadian Arrow Mines Updates Kenbridge Preliminary Economic Assessment - 89% Increase in Pre-tax NPV

     SUDBURY, ON, Sept. 4 /CNW/ - Canadian Arrow Mines Ltd. (CRO: TSX-V)
(the "Company") is pleased to announce results of an updated Preliminary
Economic Assessment (PEA) for the Kenbridge Nickel Project in northwest
Ontario. The updated PEA was completed by WMT Associates Ltd. and incorporates
two important improvements in the project since the company first issued the
Kenbridge PEA in January 2008. These improvements are;

     -   New NI 43-101 resource estimate, (August 19, 2008 news release),
         prepared by P&E Mining Consultants
     -   Improved metallurgical recoveries (June 26, 2008 news release)

     Highlights of the updated PEA are shown in the table below, relative to
     the January 2008 results:

     -------------------------------------------------------------------------
                                                Aug '08 update    Jan '08 PEA
     -------------------------------------------------------------------------
     Average Ni recovery Life of Mine                 86%              74%
     -------------------------------------------------------------------------
     Recovered Ni (M lbs)                           84.6             71.1
     -------------------------------------------------------------------------
     Annual recovered Ni (M lbs) in 1st 5 years     12.5              8.4
     -------------------------------------------------------------------------
     Cash cost / lb Ni payable net of Cu credit  US$3.47          US$4.40
     -------------------------------------------------------------------------
     NPV 7.5% pre-tax                               $253M            $134M
     -------------------------------------------------------------------------
     IRR% pre-tax                                     65%              33%
     -------------------------------------------------------------------------

     Cost, value and financial assumptions used in the PEA update were
unchanged from the original January '08 PEA including average life of mine
US$10.00/lb nickel and US$2.50/lb copper prices and a CD$1.00:US$0.90 exchange
rate.
     Arrow's President, Kim Tyler, comments "The impact of the new resource
estimate and higher metal recoveries are substantial for the project. Not only
are 13 million additional lbs of recovered nickel expected over the life of
the mine but they will be produced at no extra operating or capital cost
relative to the January '08 PEA. They are also expected to be produced earlier
in the mine life allowing for rapid payback of pre-production capital costs.
The exceptional improved metallurgical recoveries thus contribute to Kenbridge
achieving an 89% increase in pre-tax net present value over the first PEA, all
other assumptions being equal. With expected net cash costs of US$3.47/lb of
nickel, Kenbridge would be one of the lowest cost nickel sulphide operations
in Canada. Given these results and the fact that the deposit remains open at
depth and along strike we are confident to move the Kenbridge project into
feasibility as soon as possible".

     Cautionary Statements:

     Mineral resources are not mineral reserves and do not have demonstrated
economic viability. The PEA update author is not aware of any known
environmental, permitting, legal, title, taxation, socio-economic, marketing
or other relevant issues that could potentially affect this estimate of
mineral resources. The preliminary assessment includes inferred mineral
resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be
categorized as mineral reserves, and there is no certainty that the
preliminary assessment will be realized.
     The PEA update was authored by Mr. Malcolm Buck, P. Eng. of WMT
Associates under the direction of The Company's Vice President of Operations,
Mr. Garett Macdonald, P.Eng, MBA, both qualified persons as defined by
National Instrument 43-101. The information in this release was prepared under
the direction of Mr. R. Kim Tyler, P. Geo., President of the Company, a
qualified person as defined by National Instrument 43-101.
     Currencies are expressed in Canadian dollars unless noted otherwise.

     About Canadian Arrow Mines, Ltd:

     Canadian Arrow Mines, Ltd. is an established Canadian exploration and
development Company committed to developing and advancing base metal deposits
close to existing infrastructure through exploration, development and
acquisition. Shares of Canadian Arrow Mines trade on the TSX Venture Exchange
under the symbol "CRO".
     Investors are invited to visit Canadian Arrow's IR hub at
http://www.agoracom/IR/CanadianArrow where they can post questions and receive
answers within the same day, or simply review questions and answers posted by
other investors. Alternately, investors are able to e-mail all questions and
correspondence to CRO@agoracom.com where they can also request addition to
the investor e-mail list to receive future press releases and updates in real
time.

     If you would like to receive press releases via email please contact:
                              Mirna@chfir.com.

          THIS PRESS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL
                        RESPONSIBILITY FOR ITS CONTENTS.

         THE TSX VENTURE EXCHANGE NEITHER APPROVES NOR DISAPPROVES OF THIS
                                PRESS RELEASE.

     %SEDAR: 00008534E

For further information: visit the website at www.canadianarrowmines.ca, or
call toll free, 1-877-262-6354, or contact: Canadian Arrow Mines, Ltd., R. Kim
Tyler, P. Geo, President, Tel: (705) 673-8259, E-mail:
kim@canadianarrowmines.ca; CHF Investor Relations, Barry Leung, Director
Business Development, Tel: (416) 868-1079 ext. 222, E-mail:
barry@chfir.com; or Alison Tullis, Senior Account Manager, Tel: (416)
868-1079 ext. 233, E-mail: alison@chfir.com