November 20, 2012 – Arctic Star Exploration Corp. (TSXv:ADD) (the “Company” or “Arctic Star”) is pleased to announce that it has amended the terms of an earn in option agreement on its El Havila prospective copper gold property in Colombia, South America. Under the terms of the amendment, the Company no longer has the obligation to expend $5,000,000 USD over 3 years to earn an 85% interest in the property.
Under the revised terms, Arctic will pay to the property owner $500,000 over one year in order to earn its 85% interest in the property. $175,000 is paid immediately against transfer of 50% of the title to the property, an additional $200,000 in 90 days and the remaining $125,000 at the end of one year against transfer of 35% of the title to the property. Arctic must also expend sufficient exploration expenses to keep the property in good standing and pay $60,000 and issue 300,000 shares to Phoenix Gold S.A.S., the party that assigned the option agreement to the Company.
Once it has earned its 85%, the Company will be able to earn an additional 10% interest, bringing its total interest to 95%, by paying to the property holder a total of 15,246 troy ounces of gold.
On September 11, 2012, Arctic issued a news release updating the status of its exploration on the property.
The proposed issuance of shares is subject to TSX Venture Exchange approval.
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.