July 21, 2014 – Arctic Star Exploration Corp. (TSXV: ADD) (the “Company” or “Arctic Star”) announces that it has closed the first tranche of a non-brokered private placement financing (the “Offering”) it previously announced by news release dated July 9, 2014.

The Company issued 965,000 flow-through units (each, a “FT Unit”) at a price of $0.14 per FT Unit for gross proceeds of $135,100. Each FT Unit consists of one flow-through common share in the capital of the Company and one-half of one non-transferable common share purchase warrant (each a “Warrant”), with one whole Warrant entitling the holder to acquire one additional non flow-through common share (each, a “Warrant Share”) at a price of $0.20 per Warrant Share until July 21, 2016.

The Company also issued 4,173,332 non-flow-through units (each, a “NFT Unit”) at a price of $0.12 per NFT Unit for gross proceeds of $500,800. Each NFT Unit consists of one common share in the capital of the Company and one-half of one Warrant, with one whole Warrant entitling the holder to acquire one Warrant Share at a price of $0.20 per Warrant Share until July 21, 2016.

The Company paid cash finders’ fees to certain finders in the aggregate amount of $16,966 and issued 88,000 warrants (the “Finders’ Warrants”) exercisable into additional common shares (“Finders’ Warrant Shares”) until July 21, 2016 at a price of $0.20 per Finders’ Warrant Share.

All securities issued in the Offering will be subject to a statutory hold period expiring November 22, 2014.

The Company intends to use the proceeds from the Offering for general corporate purposes and to investigate potential new projects for the company. The Company will use the flow through funds for a new project in Canada, which the Company has yet to acquire

The Company is also pleased to announce that as a result of demand, it has arranged to sell an increased number of NFT Units from what was previously announced, to 8,658,333 NFT Units for gross proceeds of $1,039,000. The remainder of the FT Units and NFT Units not closed in the first tranche announced today will be closed in the coming days.

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

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.