TSX-V: ADD | FRA: A182.F CORPORATE PRESENTATION MARCH 2019 - - PowerPoint PPT Presentation

TSX-V: ADD | FRA: A182.F CORPORATE PRESENTATION MARCH 2019

These presentation materials (“the Presentation Materials”) are being supplied to you for information purposes only on Arctic Star. (the “Company”). These Presentation Materials have been prepared by and are the sole responsibility of the Company. The Company have taken all reasonable care to ensure that the facts stated herein are true to the best of their knowledge, information and belief. / These Presentation Materials are being distributed only to and are directed at (a) persons who have professional experience in matters relating to investments being investment professionals as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the “FPO”), (b) high net worth companies, unincorporated associations and other bodies within the meaning of Article 49 of the FPO or (c) persons to whom it may otherwise lawfully be communicated (together “Relevant Persons”). Any person who is not a Relevant Person or who does not have professional experience in the matters relating to investments should not act or rely on this document or any of its contents. / These Presentation Materials do not constitute, or form part of, a prospectus relating to the Company, nor do they constitute or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in the Company or advise persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis of or be relied on in any connection with any contract. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this document or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this document or its contents otherwise in connection therewith. Prospective investors are encouraged to

• btain separate and independent verification of information and opinions contained in the Presentation Materials as part of their own due diligence. / By

accepting these Presentation Materials, the Recipient agrees that the information contained herein or sent herewith or made available is for information purposes only. Without prejudice to the foregoing, neither the Company, nor its advisers nor its representatives accept liability whatsoever for any loss howsoever arising, directly or indirectly, from use of this document or its contents or otherwise arising in connection therewith. / The distribution of these Presentation Materials in certain jurisdictions may be restricted by law and persons into whose possession these Presentation Materials come should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of any such other

• jurisdictions. / Some statements contained in these Presentation Materials or in documents referred to therein are or may be forward-looking statements.

Actual results may differ from those expressed in such statements, depending on a variety of factors. Past performance of the Company or its shares cannot be relied on as a guide to future performance. Any forward-looking information contained in these Presentation Materials has been prepared on the basis of a number of assumptions which may prove to be incorrect, and accordingly, actual results may vary.

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CAUTIONARY STATEMENT ON FORWARD LOOKING INFORMATION

3 Scott Eldridge

DIRECTOR

Buddy Doyle

VP EXPLORATION, DIRECTOR

Roy Spencer

COUNTRY MANAGER, DIRECTOR

Patrick Power

PRESIDENT & CEO, DIRECTOR

Thomas Yingling

DIRECTOR

Sean Charland

DIRECTOR

Bill Ferreira

DIRECTOR

Binny Jassal

CFO, DIRECTOR

BOARD OF DIRECTORS & MANAGEMENT

4 Gains made in early 2018 have been lost in the later part of that year, stabilizing now.

• Most of the price pressure is in the

small good, less than 3 pointers (0.3 carats).

• Mainly due to producers reprocessing
• ld tailing where smalls dominate,

therefore short lived.

• USA & China demand strong

WORLD DIAMOND ROUGH PRICES

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WORLD DIAMOND PRODUCTION FORECAST ↓

The world consumes 127 million carats of rough diamonds per year. That’s equivalent to the reserve of a medium size diamond mine per year. Argyle diamond mine is scheduled to close 2020. Udachnya and Mir diamond mines have recently closed. Very little global diamond exploration since the 2008 GFC. No new significant discovery since 1990’s.

Source: Bain & Company 2018

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• No. of Players

Top 5 Control 70% ~100 ~5,000 ~10,000 35% of Market Controlled by largest Retailers Margins 22-24% 1-3% 2-4% 9-11% $US Value $16B per annum $25B per annum $87B per annum diamond Component $176B total jewelry

Production Sales

Cutting and polishing

Sales

Jewelry manufacturing

Retail Rough Diamonds Polished Jewelry

Source: Bain & Consulting 2018

DIAMOND PIPELINE – PRODUCERS HAVE THE HIGHEST PROFIT MARGINS

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EXPLORATION STEPS TO PRODUCTION

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MULTI BILLION DOLLAR DIAMOND MINE DISCOVERY

Buddy Doyle (Photo above) leader of the exploration team that discovered the Diavik Diamond Mine in Canada. Diavik has produced over 100 million carats since 2003. Vice President Exploration Arctic Star Exploration Inc. Diavik is operated by Rio Tinto and sold 40% to the Washington Group for $1.2B.

DIAVIK MINE

Roy Spencer (Photo above) leader of the team that discovered the Grib Diamond Mine in Russia. Same geological setting as our Timantti diamond project. Otkritie Industrial Investments purchased Grib for 1.45B. AGD Diamonds recently consolidated with Otkritie 9

MULTI BILLION DOLLAR DIAMOND MINE DISCOVERY

GRIB MINE

10 TIMANTTI : This is the word for Diamonds in Finnish. The Worlds most recently recognised new diamond bearing kimberlite field. Finland Was Ranked as World’s #1 Mining Jurisdiction in the world by the Fraser Institute 2018. Same Geological belt. The Baltic Sheild, as Grib & Lomonosov. Both Mines Are Multi Billion Dollar Producers.

TIMANTTI PROJECT FINLAND – A NEW DIAMOND BEARING KIMBERLITE FIELD

Timantti Project

11 Exploration Reservations 193,700 Ha Exploration Permit. 289 Ha Explortion Permit application 1000 Ha Timantti project East of the town of Kuusamo. White, Black and Grey Wolf kimberlites Vaasa Dykes Kasama Kimberlites All Diamond bearing A NEW LARGE DIAMONDIFEROUS KIMBERLITE FIELD 100% OWNED . KUUSAMO ARCTIC STAR ARCTIC STAR

FINLAND RUSSIA

ICE DIRECTION AND LOCATION OF BORDER INDICATOR ANOMLAIES KNOWN KIMBERLITES Kasama Wolves

ARCTIC STAR TITLE KIMBERLITE TIMANTTI – DIAMOND IN FINNISH

The Timantti project lies between Kuusamo and the Russian border to the east. It has excellent

• infrastructure. It is possible to get

taxi from the airport to our first kimberlite discoveries 24 kilometers away. The municipality has a population

• f approx. 15800 people. Its main

industries are Tourism, forestry, Reindeer herding, government and light industry. 12

TIMANTTI – WORLD CLASS INFRASTRUCTURE

Air photo Kuusamo.

Source Kuusamo city website.

Kuusamo lies on crossroads of two major highways

Source Photo commons.

Part of the national energy grid Adven owns a 6MW electricity plant in town which uses sawmill rejects. Map shows grid Source Fingrid website Kuusamo International airport, daily flights to Helisinki

Source visit finland.

Ruka Finlands’ most popular Ski resort lies 27km north of town outside the project area

Source Ski finland.

13 4 Diamond Bearing Kimberlites Discovered Ground Geophysics Complete: Magnetic, Gravity and EM Surveys Excavator Till Sampling: 20 Samples ~50lbs Drilled Approximately 600m

TIMANTTI HISTORY – 2018 WORK PROGRAM

14 Grey Wolf White Wolf Black Wolf Vasa Dykes Location of drill collars and Kimberlites discovered to date Grey background Digital Elevation model Ice direction characterized by drumlins Scale bar 500m

TIMANTTI – DRILL COLLARS

15 Plan showing the drilling at the three wolves, Grey, Black and White left to right. They occur within 300m of each other. They are not classic Kimberlite pipes. Current interpretation is they are part of a dyke, sill system, 30m wide dipping to the North @ 35 degrees There is evidence this system may extensive with similar magnetic anomalies

• n the same trend to the West.

All are significantly diamond bearing

THE THREE WOLVES

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Kimberlite Sample Weight Kg +0.106mm +0.15mm +0.212mm +0.3mm +0.425mm +0.60mm +0.85mm +1.18mm Total Stones White Wolf 2018 262.33 393 168 95 62 18 11 7 3 758 White Wolf 2017 147.60 123 85 41 19 9 5 2 274 Total 409.93 516 253 136 81 27 16 7 5 1,032

TIMANTTI – WHITE WOLF DIAMOND RESULTS

White Wolf has the better results with 12 stones above 0.85mm From only 410kg or 30 commercial stones per tonne

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Kimberlite Sample Weight Kg +0.106mm +0.15mm +0.212mm +0.3mm +0.425mm +0.60mm +0.85mm +1.18mm Total Stones Grey Wolf (Drill) 101.66 29 14 13 8 1 1 66 Grey Wolf (Trench) 99.98 28 18 20 8 1 2 1 78 Black Wolf 349.75 267 138 87 45 16 3 3 559 Vasa Dykes 25.74 1 5 5 11

TIMANTTI – DIAMOND RESULTS

18 KUUSAMO Historic public data and recent till samples taken by Arctic Star show a clear dispersion trains of diamond indicator minerals east of Kuusamo. The Known Kimberlites discovered to date can not explain all the indicator minerals, proof that there are more kimberlites to be found. Red Dots, are sample sites. Red Circles show samples with positive results, the large the circle the more indicators in the sample. Ice Direction Wolves Vaasa

DIAMOND INDICATOR MINERALS

19 Arctic completed a 600 km2 UAV magnetic survey this Summer, adding to our Winter ground Mag Greenstones belts and gabbro sills dominate the image as long linear Mag highs Some of the new targets highlighted, arrows, kimberlite targets Kimberlite targets in the quite quartzites tend to stand

• ut

Comet Wolf Pack Meteor New New Wolf Cubs New New

TIMANTTI – NEW TARGETS

20 Wolf Cubs Gen 2 New Drill Targets Vasa Discovery Wolf Pack Discovery Comet Target (Drill Target) Meteor Target (Drill Target) 38 New untested drill targets for 2019. Red arrows point to the top priority targets. As little as 1-3 m overburden. The Wolves seem to form an East-West trend (Wolf Cubs). Plan to begin excavator sampling in March 2019, drill testing in June 2019

TIMANTTI – NEW TARGETS CONTINUED

21 Mag filter designed to highlight kimberlite like targets. Boxes highlight targets in new Exploration permit. Blue arrows show targets in current permit.

TIMANTTI – NEW TARGETS CONTINUED

22 Diavik has produced over 100 million carats of diamonds since 2003. It’s currently operated by Rio Tinto and sold 40% to the Washington Group for $1.2B. The Diagras Property (40% Arctic Star & 60% Margaret Lake) consists of 29 contiguous claims encompassing an area of 22,595 hectares. Arctic Star & Margret Lake is using new gravity and EM geophysical surveys to find new potential kimberlites.

CANADA – DIAGRAS PROJECT

23 Diagras property in Blue JV Arctic Star (40%) & Margret Lake (60%). The Property contains 13 known kimberlites discovered by DeBeers with Mag in the 1990's. We are targeting non-magnetics using new and improved gravity technology. Green Diamonds are kimberlites. Blue Diamonds are Kimberlites with mine plans that have Greater than 1ct/t.

DIAGRAS – JOINT VENTURE

Gravity surveys show contrasts of Pyroclastic Kimberlite and kimberlite breccia revealing rock that is less dense than the surrounding country rock. 24

MAG SURVEY 2017

Yellow Dots (De Beers) Red Dots (Majescor) previous drill holes.

DIAGRAS – BLACK SPRUCE KIMBERLITE GRAVITY SURVERY 2017

New Drill Targets

Diamond Size (mm) Kimberlites Of Interest Sample Wt (kg) 0.074 0.104 0.15 0.212 0.3 0.45 Jack Pine 436.26 248 89 42 12 4 Jack Pine 359.75 186 80 25 6 2 Black Spruce 167.15 7 3 2 2

Spring 2017 ground geophysical surveys Color image Ohm Mapper EM results, 380m Elevation Slice Contours Ground Magnetics Red and yellow dots previously drilling by previous explorers Red arrow large untested EM anomaly 25

DIAGRAS – JACK PINE KIMBERLITE

Gravity Survey

Gravity EM Suzanne Kimberlite is assumed to be a magnetic low, (blue arrow). Ground Geophysical surveys conducted in spring 2017. A second drill target has been discovered showing a separated gravity low, and linear Em anomaly coincident with a break in a Diabase dyke. 26

DIAGRAS – SUZANNE KIMBERLITE

Two drill holes where previously drilled into a magnetic low shown by the red arrow. Kimberlite was intersected. The EM anomaly shown above and located on the magnetic image by the black arrow, seems to break a Diabase dyke 27

DIAGRAS – HL02 KIMBERLITE

STEIN PROJECT - LOCATION & OPTION WITH GGL

The STEIN project is 85 km Northwest

• f Taloyoak, Nunavut

Taloyoak

GGL Resources Corp. has the

• ption to earn into Arctic Star’s

Stein Project up to 60% by conducting ground geophysics

• n high priority drill targets and

discovering kimberlite by drilling, trenching or in outcrop Stein property owns 4 permits covering 1,065 km2 $1.5 mil of exploration expenditures by previous

• explorers. Never drill tested.

Kimberlitic indicator minerals are showing high chrome, low calcium G10 pyrope garnets were followed up-ice direction 28

29 Indicator minerals include diamond inclusion chemistry Numerous high priority targets with kimberlite-like airborne geophysical signatures up-ice of indicator minerals Nearest known kimberlites is 240km to SE; perpendicular to regional ice flow No previous drilling Potential to be a new kimberlite district Detailed ground geophysical surveys required to refine and prioritize targets for drilling

INDICATOR MINERALS ON AIRBORNE MAGNETICS

Garnets

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85 km Northeast of Prince George, BC

• Canada. Good Infrastructure, Forestry.

21 Mineral tenures covering 10,482ha Outcropping 0.96% Nb Niobium is a Strategic Mineral mandated by the Trump Administration First mineralized carbonatite discovered in Canada in over a decade Available for Joint Venture 24 m to 95.66 m 0.35% Nb2O5 across 10.42 m, including 2.26 m of 0.63% Nb2O5 87 m to 118.50 m 19.63 m of 9.94% P2O5, including 2.55 m of 20.97% P2O5 1 m to 138.5 m 2.4 m of 0.81% TREO 30

CAP PROJECT – DRILL HOLE CAP 17-004

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ARCTIC STAR- CAPITAL STRUCTURE

Ticker TSX-V: ADD Shares Issued 112,351,363 Options 9,341,661 Warrants 32,137,100 Total Shares Outstanding 153,830,124

14TH FLOOR - 1111 W. GEORGIA ST. VANCOUVER, B.C. V6E 4M3 WWW.ARCTICSTAR.CA Patrick Power, President & CEO 604-689-1799 INFO@ARCTICSTAR.CA

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