Arctic Star Diamond Corp.

Arctic Star Diamond Corp.

November 17, 2010 13:14 ET

Arctic Star Options Multiple Claim Blocks in the Carbo Rare Earth Element Area of British Columbia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2010) - Arctic Star Diamond Corp. (TSX VENTURE:ADD) (the "Company" or "Arctic Star") is pleased to announce that it has entered into two separate option agreements to acquire interests in three properties located in the Carbo area of northeastern British Columbia. The Cap, Seebach and Javorsky rare earth element ("REE") and rare metal properties are all located within the immediate vicinity of Spectrum Mining Corporation's Wicheeda REE Discovery as well as the Carbo Project which is currently being drilled by Canadian International Minerals Inc. (TSX VENTURE:CIN) and Commerce Resources Corp. (TSX VENTURE:CCE).

The group of claims are located 80 km northeast of Prince George and together comprises 20 mineral claims covering approximately 9,129 hectares, making it one of the largest land positions in the camp.

The Cap and Seebach claims cover distinct, circular, regional aeromagnetic geophysical anomalies within the Carbo area. Known REE and rare metal mineralization in the Carbo camp such as the Wicheeda Carbonatite-Syenite Complex, is known to be related to regional magnetic highs and lows.

According to Graf et al. (2009) the Wicheeda REE Discovery owned by Spectrum is comprised of several intrusive carbonatite bodies which form a northwest to southeast trend about 2 km wide by 15 km long. The Wicheeda "Main Zone" is coincident with an area of anomalous soil geochemistry of more than 400 ppm cerium, measuring about 500 by 1,000 m. The north side of the "Main Zone" is coincident with a magnetic geophysical anomaly measuring approximately 500 by 1,000 m. During 2008 and 2009, the "Main Zone" was drill tested with 15 drill holes at three sites. Highlights included:

- 2008-02: 3.55% REE across 48.64 m

- 2009-07: 2.92% REE across 72 m

- 2009-09: 2.2% REE across 144 m

The Cap Property encompasses five claims totalling 2,354 hectares located about 10 km southeast of the Wicheeda Property or about 25 km southeast of the Wicheeda "Main Zone" along the trend of the known Wicheeda Carbonatite-Syenite Complex. The property was staked to cover an approximately 3 to 5 km diametre, circular, airborne magnetic geophysical anomaly. A brief field examination during September, 2010 identified two narrow, syenite dykes near the crest of the ridge that trends from northwest to southeast across the property. The dykes contained highly anomalous geochemistry, including 481 to 981 ppm niobium, 1125 to 3,191 ppm zirconium, >100 ppm lanthanum, >100 ppm cerium and >50 ppm neodymium. These "high-level" dykes indicate that the source of the magnetic geophysical anomaly may be associated with a carbonatite or similar intrusion.

The Seebach Property is about 15 km southwest of the Wicheeda "Main Zone" and covers a distinct, circular, aeromagnetic geophysical anomaly. The property consists of one mineral claim totalling approximately 471 hectares.

The Javorsky claims are within about 10 to 15 km west to northwest of the Wicheeda "Main Zone". They consist of fourteen claims encompassing approximately 6,304 hectares. The properties cover an area of elevated magnetic relief with anomalous REEs in stream sediment samples.

Arctic Star has an option from Zimtu Capital Corp. and 877384 Alberta Ltd. to earn a 60% interest in the Cap and Seebach properties by making staged cash payments totalling C$175,000, issuing 5,000,000 common shares and completing staged, exploration expenditures over five years totalling $5,000,000. Zimtu Capital Corp. and 877384 Alberta Ltd. will retain a 2% Net Smelter Royalty ("NSR") on the properties and shall be operators until Arctic Star has earned its 60% interest.

Arctic Star has a separate option agreement from Zimtu Capital Corp. and prospector David Javorksy to earn a 100% interest in the Javorsky Properties by making staged cash and shares payments totalling $50,000 and 2,000,000 common shares. The vendors will retain a 2% NSR on the properties.

NI 43-101 Disclosure

Darren L. Smith, M.Sc., P.Geol., a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.

The proposed transaction is subject to TSX Venture Exchange approval.


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 to acquire an interest in a rare earth property; (b) the likelihood that the property has rare earth; (c) the work program to be conducted by Arctic; and (d) the establishment of the joint venture. 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 such as the willingness of the parties to close the transactions, the approval of the transaction by the Exchange, satisfactory results of the due diligence investigation on the Property, our ability to raise financing, geological information resulting in changed plans for exploration, our ability to contract equipment and labor, current economic conditions and the state of mineral exploration and mineral prices in general. Discoveries of minerals on other properties are not necessarily an indication of any commercial mineralization on nearby properties. 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. Due to conditions precedent to closing, and the risk that these conditions precedent will not be satisfied, Arctic can offer no assurance that it will close the Transaction. 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.

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