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Arctic Star Identifies Diamond Targets for Drilling in the Prolific Lac de Gras Area, NWT Diamond Fields

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/09/13 -- Arctic Star Exploration Corp. (TSX VENTURE:ADD) (the "Company" or "Arctic Star") is pleased to expand on its plans to reignite its diamond exploration activities in the Lac de Gras diamond fields in the Northwest Territories (NWT), Canada.

The Company's focus involves recently-staked claims in the Lac de Gras area that were acquired, as per the news release dated October 1, 2012. Notably, these claims are at the head of Arctic's prominent diamond indicator mineral train just to the east of the project area that was extensively explored by the Company between 2004 and 2010.

This mineral indicator dispersion train has been named "the South Coppermine Train". Its source has yet to be discovered. The key may lie in Arctic's newly staked ground "The Redemption Project". The Company was aware of a compelling geophysical target after reviewing open file government assessment data. This target is 800 metres from the head of the South Coppermine Train and just 400 metres from the old project boundary. Management waited patiently for the ground to become unoccupied and staked it when it became available.

In the Lac de Gras area, there are already three producing diamond mines, Ekati (32 km from Arctic Property), Diavik (47 km from Arctic property), and Snap Lake (97 km distant). These are comprised of a number of economic diamond kimberlite pipes and dykes within a prolific diamond field consisting of more than 200 kimberlites. The Ekati mine began production in 1998, while Diavik was commissioned in 2003, and Snap Lake in 2008.

Many of the kimberlites in this field exhibit prominent mineral indicator trains, formed during the last Ice Age. This was at a time when thick glaciers eroded the near-surface portions of the kimberlites and disbursed many of the contained minerals "down ice" for many kilometers.

The South Coppermine indicator mineral train has excellent diamond indicator mineral chemistry. It includes numerous pyrope garnets, high-magnesium ilmenites, chrome diopsides, chromite, and eclogitic garnets. All of these indicator minerals exhibit compositions that are related to strong diamond mineralization. Furthermore, micro-diamonds were recovered from this train, confirming the source is mineralized with diamonds. The indicator minerals are also very angular, have soft alteration coats and some are even attached to kimberlite, all evidence that the source is close by.

The new Redemption Project, 100% owned by Arctic Star, encompasses a distinct DIGHEM (frequency domain heliborne electromagnetic) anomaly, titled the "South Coppermine target".

During the Lac de Gras "Diamond Rush" in the 1990s, many kimberlites, including the economic pipes at Diavik were found by drilling similar electromagnetic anomalies. The location of this 180-metre by 120-metre anomaly at the direct head of the South Coppermine Indicator mineral train, provides a compelling reason to management to drill.

It is acknowledged that there can be other geological sources that create EM anomalies and drill success is not guaranteed; however, the South Coppermine target presents a response that has characteristics of a vertical "pipe like" body. Other unwanted EM anomaly sources, such as graphite and massive sulphites, typically have a discernible dip and plunge, which are not apparent in the South Coppermine geophysical data.

The Company also commissioned a Max-Min ground EM survey which successfully pinpointed the target on the ground with enough accuracy to allow a drill set up. Drill testing will commence as soon as the necessary permits are in-hand, which the Company expects to obtain in the latter part of the first quarter of 2013. If a kimberlite is intersected, an approximate one-tonne sample of material will be collected and sent for micro-diamond analysis.

The Company has also identified additional geophysical targets within the Company's claim block, which also will be drill-tested during the upcoming spring exploration program.

The Company feels these developments are well-timed as there is renewed diamond interest in the Lac de Gras area with the November 13, 2012 announcement by Harry Winston detailing an offer to purchase the Ekati Diamond operation from BHP Billiton for $500 million.

In addition, Harry Winston's news release states: "While the current mine plan is for an additional seven years of production, there are additional resources which could become economic with increased diamond prices." Both Diavik and Ekati will need new resources to sustain their business in the long term. To date the Ekati and Diavik mines combined have produced over $25 billion in diamonds.

The author of this new release is Buddy Doyle, MAusIMM, a geologist of 30 years experience, 20 years of which is in diamond exploration. The qualified person is Kevin Kivi, P.Geol., a geologist with 20 years experience in diamond exploration.

The Company also encourages the reader to visit our website for an updated Company presentation, which includes maps, as well as compelling geophysical and geochemical data. To see images of the South Coppermine Target please visit the Company's web site at www.arcticstar.ca.

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

Patrick Power, President

Forward-Looking Statements

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events such as: (a) the closing of the option amendment; and (b) the likelihood that the property has gold or other commercial mineralization. Such forward-looking information can include statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of Arctic. Factors which can materially change the results of the forward looking statements include factors such as the approval of the transaction by the Exchange, our ability to raise financing to pay our obligations, our ability to contract equipment and labor, current economic conditions and the state of mineral exploration and mineral prices in general . These risks and uncertainties could cause actual results and Arctic's plans and objectives to differ materially from those expressed in the forward-looking information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Except as required by law, Arctic assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

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.

Contacts:
Arctic Star Exploration Corp.
Patrick Power
President
(604) 689-1799
(604) 689-8199 (FAX)
info@arcticstar.ca
www.arcticstar.ca

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