January 25th, 2016 - Arctic Star Exploration Corp, ('Arctic Star' or the 'Company') (TSXvADD) is pleased to announce that its partner, North Arrow Minerals Inc. (TSXV-NAR) has reached an agreement with Umgeni Holdings International Limited ('Umgeni') under which Umgeni has agreed to acquire a royalty interest in North Arrow's Redemption Diamond Project for $800,000. Umgeni is a private company of which Christopher Jennings, a director of North Arrow, is a beneficiary of the sole shareholder. The Redemption Diamond Project is located in the Lac de Gras region of the Northwest Territories, approximately 32 km southwest, and 47 km west of the Ekati and Diavik diamond mines, respectively.

Under the terms of the agreement with Umgeni, Umgeni has agreed to pay North Arrow $800,000 to acquire the following royalty interests in North Arrow's Redemption Diamond Project:

• a 1.5% gross overriding royalty on diamonds ('GOR') and a 1.5% net smelter returns royalty on base and precious metals ('NSR') for three mineral claims owned 100% by North Arrow;
• a 1.25% GOR and 1.25% NSR on 12 mineral claims and 5 mining leases (the 'ADD Claims') that are currently under option from Arctic Star Exploration Corp. (TSXV-ADD). These 1.25% royalties will be payable from North Arrow's ultimate interest in the ADD claims and NAR will have sole responsibility for paying them. Under the option agreement with Arctic Star, North Arrow can earn a 55% interest in the properties by incurring $5 million in exploration expenditures prior to July 1, 2017. If North Arrow decides not to proceed beyond 2016 with further exploration under the option agreement with Arctic Star, Umgeni has the right to acquire North Arrow's interest in the option. If Umgeni does not acquire North Arrow's interest in the option agreement and the option agreement terminates, then Umgeni will have no further right to receive royalties for any ADD Claims in which North Arrow does not retain an interest. Arctic Star has consented to the granting of these 1.25% royalties on the ADD Claims and the possible future transfer to Umgeni of North Arrow's interest in the option agreement.

It is a further term of the agreement with Umgeni that North Arrow must conduct a minimum $800,000 exploration program at the Redemption Project before August 2016.

Closing of the agreement with Umgeni is subject to the receipt of all required regulatory approvals including the approval of the TSX Venture Exchange.

Patrick Power, President and CEO of Arctic Star, commented, 'I am very pleased that Dr. Chris Jennings has made such a significant investment into Arctic Star's redemption diamond project. This agreement will allow the team to immediately move ahead with exploration drilling programs at the Redemption diamond property without impacting Arctic Star's treasury at all. Planning is underway to conduct a drilling program at Redemption starting in mid-March.'

Buddy Doyle Bc App Sc Geol. MAUSIMM, the author of this press release, has 31 years' experience in geology, with much of this time focused on successful diamond exploration. Kevin Kivi, PGeol and Qualified Person, approves the technical content of this press release.

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

'Patrick Power'

Patrick Power, President
(604) 689-1799

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.

Forward Looking Statements:

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: risks related to the successful integration of acquisitions; risks related to general economic and market conditions; closing of financing; the timing and content of upcoming work programs; actual results of proposed exploration activities; possible variations in mineral resources or grade; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; changes in national and local government regulation of mining operations, tax rules and regulations. Although Arctic Star has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. 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.