Astral Media : Arctic Star Announces JV Transaction With Margaret Lake Diamonds Inc. In Respect Of 23 Mineral Claims Formerly Comprising Part Of T-Rex Property, N.W.T.

November 15, 2016, Vancouver, British Columbia - Arctic Star Exploration Corp, ('Arctic' or the 'Company') (TSXV:ADD) is pleased to announce that it has entered into an option and joint venture agreement with Margaret Lake Diamonds Inc. ('Margaret Lake') (TSXV:DIA) whereby Margaret Lake has earned a 60% interest in certain mineral claims in the Northwest Territories, Canada comprising part of Arctic's T-Rex Property. The T-Rex Property is comprised of a total of 62 claims totaling 54,000 hectares, of which Margaret Lake has earned a 60% interest in 23 mineral claims totaling 18,699 hectares (the 'Diagras Property') by making a payment of approximately $200,000 worth of bond to the Government of the Northwest Territories, to obtain an extension of the 23 contiguous mineral claims comprising the Diagras Property such that they are maintained in good standing until August 13, 2017. Margaret Lake has made the required payment and the claim extension application has been filed such that the Company has effectively exercised its option, earned its 60% interest in the Diagras Property and formed a joint venture with Arctic (the 'Diagras JV'). The Company and Margaret Lake will jointly explore the new property package on a 40-60 joint venture basis, with Margaret Lake acting as operator.

LOCATION/ DIAMOND STRUCTURAL CORRIDOR.

The Diagras Property is located in the prolific north-northeastern (NNE) part of the Lac de Gras kimberlite field, 22 kilometers NNE of the Diavik diamond mine (Rio Tinto 60%, Dominion Diamonds 40%) and 36 kilometers east of the Ekati diamond mine (Dominion Diamonds) along a corridor of economic diamond deposits that include kimberlite pipes A21, A418, A154S, A154N, A841, Piranha, Lynx, Misery, Point Lake and Jay. All these >1 carat per tonne diamondiferous kimberlites lie within a very tight NNE corridor, thought to represent a structure and/or feeder dyke that formed these kimberlites, most which are being mined or are planned to be mined. The nearest of these kimberlites, the Jay pipe, is 8.9km from the Diagras Property boundary. The corridor is currently known to be about 20 kilometers long with groupings of minable kimberlites every 7-8 kilometers.

MANY PRE-EXISTING DIAMONDIFEROUS KIMBERLITES

Historical work on the Diagras Property has shown that there are 13 known diamondiferous kimberlites present on the Diagras Property predominantly discovered by De Beers when they held the land during the 1990's Lac de Gras diamond rush. The Hardy Lake kimberlites are Cretaceous aged, and most report micro-diamonds in core. The kimberlites have been named, Hardy Lake 2, Hardy Lake 4, Lyndsey, Dodi, Kong West, Kong East, Naomi, Nadine, Jack Pine, Tabatha, Krista, Black Spruce and Susan. Most of these discoveries were from airborne magnetic surveys conducted in the 1990's. De Beers optioned the property to Majescor Resources Inc. in 2004. Majescor conducted work programs at an approximate cost of $1M and included drilling 2 core holes that sampled the southern lobe of the Jack Pine kimberlite and at least one more that sampled Black Spruce, which significantly increased the size of both kimberlites. Jack Pine is believed to be the largest by area in the Lac de Gras field, with multiple kimberlite phases.

THE NEW or 'KENNADY' STYLE EXPLORATION APPROACH.

The Diagras JV partners are inspired by the discoveries and developments by Kennady Diamonds Inc. ('KDI'). Essentially, KDI spun out of Mountain Province in 2012 with known kimberlites that had been dropped by the De Beers/Mountain Province joint venture, specifically the Kelvin and Faraday kimberlites. These were not integral to De Beers who had the view these were small low grade occurrences based on drill targeting prominent magnetic anomalies. KDI returned to these bodies in 2013 and applied ground geophysics, gravity and Ohm mapper EM which revealed extensions to these kimberlites that were not revealed in the magnetics. Subsequent drilling and bulk sampling has shown that these non-magnetic phases of the kimberlites have superior diamond grades to the magnetic phases and significantly increase the tonnage potential.

The Diagras joint venture intends to revisit the 13 known kimberlites on the Diagras Property and conduct similar surveys to test if any of the numerous kimberlites on the Diagras Property have non-magnetic phases, like those discovered by KDI. Most of the kimberlites only have 1 to 3 drill holes into the magnetic anomaly. Any one of the kimberlites on the Diagras Property has the potential to reveal a new diamondiferous phase similar to the success shown at Kennady North over the last 3 years.

The Kennady kimberlites are in a different and older family of kimberlites to those on the Diagras Property, however it is known that certain kimberlites in the Diavik mine and the high-grade portions of the DO-27 kimberlite are non-magnetic, proof that a magnetic only approach in the Lac de Gras field could miss significant diamondiferous kimberlite bodies. Buddy Doyle VP Exploration of both Arctic and Margaret Lake states that this proposed exploration approach found more diamondiferous kimberlite on the Diavik property and also it was successful in finding the Pellat Lake diamondiferous kimberlite on ground De Beers dropped in the T-Rex area. Mr. Doyle managed diamond exploration in the Lac de Gras area for Rio Tinto from 1993-2004.

OTHER EXPLORATION OPPORTUNITIES
As well as conducting new ground geophysical surveys and with a focus on detecting non-magnetic properties over the 13 known kimberlites on the Diagras Property, a review of the public assessment data on the Diagras Property has revealed two untested geophysical targets and several diamond indicator mineral anomalies that are not clearly sourced from the known pipes. The Diagras JV also plans to do detailed ground geophysics along the diamond corridor structural zone where it intersects the property in the southwest.

EXCELLENT ACCESS AND NEAR TERM EXPLORATION

Although the Diagras Property occurs in the tundra of the remote north, it lies in such close proximity to the mining complexes of the Ekati and Diavik diamond mines that you can see the glow of their lights at night. The winter road services these mines and continues to the old Lupin mine, passing through the Diagras Property just north of the Ekati turn-off. The Diagras JV plans to begin ground geophysical work in Spring 2017.

Buddy Doyle Bc App Sc Geol. MAUSIMM, the author of this press release, has 31 years' experience in geology, with much of this time focused on successful diamond exploration. Kevin Kivi, PGeol and Qualified Person, approves the technical content of this press release.

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

'Patrick Power'

Patrick Power, President
[phone]

Forward-looking Information

This news release contains forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company. Actual results and future events could differ materially from anticipated in such 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 expressed qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

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