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

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, greater than 100 ppm lanthanum, greater than 100 ppm
cerium and greater than 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. 

ON BEHALF OF THE BOARD OF DIRECTORS OF ARCTIC STAR DIAMOND 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 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.