May 27th

Arctic Star Diamond Corp.: Massive Sulphides From First Exploration Drill Hole Return Nickel, Copper and Cobalt at Credit Lake, Providence Lake Greenstone Belt NT

Arctic Star Diamond Corp. (TSX VENTURE:ADD) (\"Arctic Star\" or the \"Company\") is pleased to announce significant nickel, copper and cobalt assays from its 100% owned new massive sulphide discovery at Credit Lake Northwest Territories (NT).

As reported in the news release dated May 15 2008, at the end of the Credit Lake diamond exploration drill program, the Company drilled a single angled hole (08CR-10) targeting a MaxMin HLEM conductor within the Providence Lake Greenstone (PLG) Belt to investigate the potential for Ni-Cu sulphides near anomalous Ni-Cu soil samples collected in 2007. The PLG belt includes large volumes of mafic and ultramafic rocks, dated as being 2.7 billion years old and includes tholeiitic basalts, komatiites, serpentinized peridotite, and gabbro intrusions. The PLG belt features deep- penetrating faults, sulphur-bearing sediments in the form of sulphide bearing iron-formation and black shales, and massive sulphides. The various rock units within the belt are strongly deformed and have similarities to lithologic sequences that are known to host world-class nickel deposits such as the Thompson fold belt in Manitoba, the Raglan deposits in Quebec and the Kambalda deposits in Western Australia.

Disseminated, stringer and massive sulphides were intersected 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) between 117.6 m and 118.8 m depth. The massive sulphide lenses consist of pyrrhotite and minor chalcopyrite, and have returned significant copper, nickel, and cobalt assays as described in table 1:

Table 1: - RUSH ASSAY RESULTS: - see note below table

------------------------------------------------------------------------
Hole #      from      to  interval  Copper  Nickel  Cobalt   Lead   Zinc
------------------------------------------------------------------------
              (m)     (m)       (m)      %       %       %      %      %
------------------------------------------------------------------------
O8CR-10    117.6   117.8       0.2    2.92    1.34   0.125   0.16   0.40

           118.2   118.8       0.6    0.46    1.77   0.164   0.01   0.01
------------------------------------------------------------------------
The samples were derived from split BX core and hand delivered to the ALS
Chemex laboratory in Thunder Bay, Ontario. The split core was crushed
and pulverized and then assayed using aqua-regia or 3-acid digestion
with atomic absorption spectrometry finish. Intervals reported are from
an angled hole drilled at a dip of -45 degrees and and azimuth 180
degrees. The true width of the interval is not known as the strike and
dip of the zones intercepted remains to be determined. This will require
more drilling and mapping.

This is the first significant base metal discovery in the PLG belt, which extends for 21 kilometers on the Credit Lake property, and up to 16km on the New Bigg property. Disseminated and stringer sulphides (1-4mm seams) from the same drill hole were also sampled between 52.7-53.95m, 102-103m, 105.1-110.6m, 118.8-125.7m, and 131.4-134.7 m. ALS Chemex will analyze these samples for intermediate and trace levels of copper, nickel, cobalt, PGE\'s and other elements.

Arctic Star awaits data from 739 line-km of time domain electromagnetic surveys using a VTEM system completed by Geotech Ltd, of Aurora Ontario. This airborne geophysical survey covers the extent of the greenstone belt within the Credit Lake and New Bigg properties and will provide drill-ready conductors and an excellent dataset for follow-up base metal exploration.

Crews are being assembled for the next phase of base metal exploration that will include prospecting, geological mapping, soil sampling, ground geophysics and diamond drilling. The exploration program will be designed to determine the nature and extent of this new discovery, and find new occurrences within the PLG on the Credit Lake and New Bigg properties. Mobilization of crews will occur when the property is accessible with float plane.

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,

Patrick Power, President

This news release contains Forward Looking Statements regarding our intentions and plans. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices and success and failure of the exploration and development carried out at various stages of the program. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company.

SOURCE: Arctic Star Diamond Corp.

Arctic Star Diamond Corp. Patrick Power President (604) 689-1799 (604) 689-8199 (FAX)