North Arrow Provides Update on Northern Diamond Projects and Announces Intention Of Financing

July 16, 2010

North Arrow Minerals Inc. (NAR: TSXV) is pleased to provide an update on its Lac de Gras diamond exploration project. The project is located within the prolific Lac de Gras diamondiferous kimberlite field in Canada's Northwest Territories and directly adjoins the mineral leases that host the Diavik diamond mine, located only 10 km to the north. The Ekati diamond mine is located within 40 km to the northwest. The kimberlites of the Diavik and Ekati diamond mines are among the richest diamond deposits in the world.

A legal survey of 32 claims totaling 80,420.5 acres is underway that will take the claims to mining lease status. As well a ground investigation of 70 priority kimberlite targets that have been identified from high resolution airborne geophysical data is being carried out. The targets were selected using a proprietary processing technique developed by Dr. Chris Jennings and that has a proven track record of diamondiferous kimberlite discovery in the Lac de Gras kimberlite field. The ground investigation will rank targets for follow up ground magnetic and electromagnetic geophysical surveys planned for early August.

North Arrow's application for a land use permit to allow diamond drilling at the Lac de Gras project was deemed complete by the Mackenzie Valley Land and Water Board on July 8th. Permit issuance is expected within 42 days of the acceptance date. If the permit is issued at this time, it would allow for an early September, 1500 metre diamond drilling program of approximately ten to twelve targets prioritized by the August ground geophysical program.

Ground geophysical surveys are also planned for August on the Company's diamondiferous Hammer pipe located in the Coronation area, NU. The property is owned jointly by Stornoway Diamond Corporation (75%) and North Arrow (25%). This survey will help to define the size and shape of the kimberlite, which is poorly exposed. Drilling permits are already in place for this property.

North Arrow proposes to raise up to $360,000 by way of a non-brokered private placement of 2,000,000 flow-through units (the "FT Units") at a price of $0.18 per FT unit. Each FT unit will consist of one flow-through common share of the Company and one half of one non-flow--through share purchase warrant. Each full warrant will entitle the holder to purchase one additional common share of the Company for a period one year from the closing date at a price of $0.25. A finder's fee may be payable in cash, common shares and/or warrants to acquire common shares to accredited arm's length parties in respect of sales made to purchasers referred to North Arrow by finders. The private placement and the finder's fee, including any common shares or finder's warrants issued as part of the finder's fee, are subject to certain conditions, including regulatory acceptance. All securities issued as part of this private placement are subject to a four month hold period. Insiders of North Arrow will participate in this financing, and will do so on the same terms as the arm's length subscribers.

The proceeds from the financing will be used primarily to advance the Lac de Gras diamond project.

North Arrow's exploration programs are conducted under the supervision of Gordon Clarke, P.Geol (NT&NU), Vice President, Exploration for North Arrow and a qualified person under NI 43-101.

North Arrow Minerals Inc.

/s/ "D. Grenville Thomas"
D. Grenville Thomas
President and CEO

For further information, please contact:
D. Grenville Thomas
President and CEO
Tel: 604-668-8355
Email: [email protected]

Gordon Clarke
Vice President, Exploration
Tel: 867-873-8483

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



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