Arctic Star Commences Drilling on Nickel Discovery, Credit Lake NT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 23, 2008) - Arctic Star Diamond Corp. (TSX VENTURE:ADD) ("Arctic Star" or the "Company") is pleased to announce that it has commenced drilling on its Nickel discovery, Credit Lake property NT. As reported in our news releases dated May 26 and June 4, 2008, the Company intercepted nickel mineralisation after drilling a single angled hole (08CR-10) targeting a MaxMin HLEM conductor within the Providence Lake Greenstone (PLG) Belt.

This hole intersected disseminated, stringer and massive sulphides over a 32.7m drill interval within amphibolite-grade metamorphosed mafic to ultramafic lava flows. Massive sulphides were intersected at two intervals (0.2-metre and 0.6-metre width). Assays returned maximum values of 2.92% copper, 1.77% nickel and 0.16% cobalt from the massive sulphides.

The drilling will initially test of extensions of the nickel zone at depth and along strike using 30m step outs.

VTEM (heli-borne time domain electromagnetic survey) results have been received. This work has generated several targets in the New Bigg and Credit Lake properties and these will be ground verified.

The Credit Lake and New Bigg projects are supervised by Mr. K. R. Kivi, P.Geol., a Qualified Person as defined by National Instrument 43-101. Mr. Kivi has reviewed the content of this news release.

ON BEHALF OF THE BOARD OF DIRECTORS

ARCTIC STAR DIAMOND CORP.

PATRICK POWER, President

This News Release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.