Exploration Results on Roberts Lake, Quebec Identifies up to 63.8% Fe Iron Ore Mineralization

Highlights:

• 24 samples were taken and significant values were recorded on the "Magnetite Scale" of a KT-10 Plus magnetite susceptibility meter.  KT-10 values correlated well with the Fe assay values.  Six samples showed Fe values higher than 40% Fe.
• The level of impurities in the samples such as sulphur and phosphorous were extremely low indicating the final product would be ideal for blending with lesser quality iron ores.
• A ground based magnetic survey will be conducted to determine the depth and extent of the mineralization.

TSX-V: AWS

VANCOUVER, July 31, 2012 /CNW/ - Robert L. Card, President of Arrowstar Resources Ltd., ("Arrowstar" or the "Company") (TSXV: AWS), is pleased to report that Phillip Thomas, Vice-President Exploration and Director has completed the chemical analysis on the rock chip samples collected at the Roberts Lake property in Ungava Region, Quebec, Canada.  This property is on a category two land classification where mining is permitted.

The results are very encouraging.  The chemistry of the top six samples are as follows:

Full assay results available on company website at: www.arrowstarresources.com

The high silica can be removed when the ores are crushed to the correct size for export.  Sample one has the correct specification for direct shipping without any beneficiation.  The geophysics survey will determine the likely extent of this section of the mineralization.

The known deposits and more prospective areas are those areas where the iron formation has been deformed and is now flat-lying, or slightly dipping with a strike to the NNE.  This is where sample one in the above table was collected.

Samples are being prepared for the Davis Tube test that will indicate the magnetic beneficiation suitability.  These results will be released when they become available.

Phillip Thomas, BSc, MBus, MAIG, a Qualified Person under National Instrument 43-101, has reviewed the content of this release.

On Behalf of the Board of Directors,
Arrowstar Resources Ltd.

"Robert L. Card"

Robert L. Card
President

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Forward-Looking Statements:

This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning AWS's planned exploration programs and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although AWS believes that its expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading "Risk Factors" and elsewhere in the corporation's periodic filings with Canadian securities regulators.

SOURCE Arrowstar Resources Ltd.