CANADIAN ARROW RECEIVES NI 43-101 RESOURCE ESTIMATE FOR TIMMINS NICKEL
PROJECTS: 5.8M LBS OF CONTAINED NICKEL IN INDICATED CATEGORY

SUDBURY, ON, Sept. 22 /CNW/ - Canadian Arrow Mines, Ltd. (CRO: TSX-V) (the "Company") reports it has received the executive summary from P&E Mining Consultants Inc. of Brampton, Ontario regarding the mineral resource estimate for its Alexo and Kelex nickel projects located approximately 70 km east of Timmins, Ontario. The resource estimate was commissioned to support plans for renewed near term production.

The P&E estimate includes the following indicated and inferred resources:

    
             ----------------------------------------------------------------
    Resource                                           cont-   cont-   cont-
    Category:         Ni   Cu   Co   Au   Pt   Pd      ained   ained   ained
    Indicated Tonnes  %    %    %    g/t  g/t  g/t    Ni lbs  Cu lbs  Co lbs
    -------------------------------------------------------------------------
    Alexo
    Open
    Pit*    18,000 1.36 0.16 0.06 0.04 0.16 0.41   540,000  63,000  24,000
    -------------------------------------------------------------------------
    Kelex
    Open
    Pit*   131,000 1.10 0.04 0.04 0.01 0.03 0.06 3,177,000 116,000 115,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total
    Open
    Pit*
    Indi-
    cated    149,000 1.13 0.05 0.04 0.01 0.05 0.10 3,717,000 179,000 139,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Alexo
    Under-
    ground     4,000 0.84 0.11 0.04 0.03 0.11 0.25    74,000  10,000   4,000
    -------------------------------------------------------------------------
    Kelex
    Under-
    ground    90,000 1.00 0.04 0.04 0.01 0.03 0.07 1,984,000  79,000  79,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total
    Under-
    ground
    Indi-
    cated     94,000 0.99 0.04 0.04 0.01 0.03 0.08 2,058,000  89,000  83,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total
    Indi-
    cated    243,000 1.08 0.04 0.04 0.01 0.04 0.08 5,775,000 268,000 222,000


             ----------------------------------------------------------------
    Resource                                           cont-   cont-   cont-
    Category:         Ni   Cu   Co   Au   Pt   Pd      ained   ained   ained
    Inferred  Tonnes  %    %    %    g/t  g/t  g/t    Ni lbs  Cu lbs  Co lbs
    -------------------------------------------------------------------------
    Kelex
    Under-
    ground    54,000 0.84 0.04 0.03 0.01 0.02 0.03 1,000,000  48,000  36,000
    -------------------------------------------------------------------------
    (1) * Designates resources defined within an optimized pit shell.
    (2) The resources for Alexo and Kelex are estimated on the basis of
        approximate 3 year trailing average US$ metal prices of $9.00/lb
        nickel, $3.00/lb copper, $20/lb cobalt with a USD exchange rate of
        C$0.95=US$1.00. NSR cut-offs were C$35/tonne for open pit
        mining and C$85/tonne for underground mining.
    (3) Process recoveries of Ni 85%, Cu 90% and Co 40% along with payables
        of Ni 85%, Cu 90% and Co 50% were utilized in the NSR calculation.
        The open pit resources were defined within an optimized pit shell
        with 50 degree slopes and mining costs of C$3.50/tonne for ore,
        C$2.75/tonne for waste rock and C$2.00/tonne for overburden.
    (4) Mineral resources which are not mineral reserves do not have
        demonstrated economic viability. The estimate of mineral resources
        may be materially affected by environmental, permitting, legal,
        title, socio-political, marketing, or other relevant issues.
    (5) The quantity and grade of reported inferred resources in this
        estimation are uncertain in nature and there has been insufficient
        exploration to define these inferred resources as an indicated or
        measured mineral resource and it is uncertain if further exploration
        will result in upgrading them to an indicated or measured mineral
        resource category.
    (6) The mineral resources in this press release were estimated using the
        Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM
        Standards on Mineral Resources and Reserves, Definitions and
        Guidelines prepared by the CIM Standing Committee on Reserve
        Definitions and adopted by CIM Council December 11, 2005.
    

The Company's NI 43-101 measured+indicated contained nickel metal resource including its flagship Kenbridge nickel project (Sedar Aug. 19, 2008) now totals 103 million lbs. The closing non-LME spot nickel price on September 21, 2010 was quoted at US$10.11/lb.

Canadian Arrow President, Kim Tyler said, "These resource estimates encourage us to accelerate plans to restart production on our Timmins operations. These projects provide an excellent opportunity to generate quick cash-flow with minimal capital outlay as an alternative to equity financing for development of our larger, primary Kenbridge nickel project. The Timmins operations have historically produced 87,000 tonnes averaging 3.06% nickel. Our existing permits allow for an open pit extraction of an additional 20,000 tonnes of near surface high grade available within the larger Kelex resource. With the resource estimate completed the Company will proceed with planning out the economic details of the batch extraction including finalizing custom milling terms, securing contractors and permitting updates. The compilation effort has also identified opportunities to expand the resource through further exploration down dip, along plunge and along strike."

A total of 210 holes totalling 26,695 metres of drilling and including 2,840 assay samples comprise the Alexo and Kelex database. Inverse distance squared grade interpolation was utilized to determine block model grades using parameters set by variographic analyses. The Alexo/Kelex mineral resource models were constructed in Gemcom using a geostatistical block model approach constrained by net smelter return, (NSR), wireframes considering interpreted geological controls, nickel, copper, cobalt, gold, platinum and palladium composite grades. Block size was set at 5 m x 5 m x 5 m. Assays were composited to 1.5 m lengths with assay detection limit values assigned to unsampled intervals. An image of the block model can be viewed on the Company's website at www.canadianarrowmines.ca

Drilling to date has focused on the surface to upper 100 metre horizon of the deposits at a 15 metre section drill density to define the near-surface nickel sulphide resource. The surface to 100 metre depth comprises the bulk of the indicated resource. Drilling below the 100 metre horizon comprises the bulk of the inferred resource. Widths and continuity of both the Kelex and Alexo zones indicate amenability for bulk minable open pit and selective underground extraction.

    
    Further Exploration Potential:
    ------------------------------
    

The deposits are classified as Kambalda-style after similar type-deposits occurring in Western Australia typified by clusters of high grade nickel sulphide pods and lenses settling at the stratigraphic bottom of komatiitic ultramafic flows. The Alexo and Kelex deposits are also composed of clusters of massive to semi-massive high grade nickel sulphide lenses overlain by haloes of lower grade stringer and disseminated nickel sulphide lying along the footwalls of two parallel, steeply dipping komatiitic volcanic flows. The opportunity remains for more such pods and lenses to be discovered.

Alexo drill programs and past production have defined a 45 metre eastern plunge extension of the Alexo Main sulphide lens to the 120 metre depth. No drilling or exploration has been conducted below this elevation. Nickel bearing massive sulphide mineralization was also intercepted in the Alexo East zone located approximately 125 metres east of the Main Zone Extension. The 125 metre plunge interval between the Main Zone Extension and the East Zone remains untested by drilling although a down-hole mise a la masse geophysical survey conducted in 2001 indicated the two zones were conductively connected. Drilling beyond the East Zone is limited. Alexo is further enhanced by significant copper, cobalt, platinum and palladium values.

The Kelex zones discovered to date are defined by a string of five lenses of higher grade massive sulphides within a broader lower grade nickel sulphide halo that extend along a 600 metre strike length and to 100 metres below surface. Below the 100 metre horizon additional mineralization has been intercepted to the 350 metre elevation with drilling over wider drill spacings averaging 75 metres. Potential within and below this horizon remains unexplored at depth and along strike.

A copy of the full NI 43-101 Technical Report will be available on the SEDAR website within 45 days of this press release. The Alexo and Kelex resource estimates were prepared by Eugene Puritch, P. Eng, Kirstine Malloch, P.Geo, and Antoine Yassa, P.Geo of P&E Mining Consultants Inc., independent qualified persons as defined by NI 43-101 in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves (December 2005). Mr. Puritch has reviewed and approved of the technical content of this press release.

The information in this release was prepared under the direction of Mr. Kim Tyler, P. Geo., President of the Company, a qualified person as defined by National Instrument 43-101.

About Canadian Arrow Mines:

Canadian Arrow Mines Limited is developing two advanced nickel/copper mining projects located near existing infrastructure in Ontario, Canada. Its principal asset is the Kenbridge nickel-copper sulphide deposit located near Kenora, Ontario that remains open in three directions, is equipped with a 620 m shaft built and explored by Falconbridge Limited and has never been mined.

Highlights of an updated NI 43-101 Preliminary Economic Assessment Technical Report (PEA) reported on Sept. 4, 2008 include an operating cash cost/lb payable net of copper credits of US$3.47/lb nickel. At life of mine metal prices of US$10/lb Ni and US$2.50/lb Cu; a CD$1.00:US$0.90 exchange rate and a 7.5% discount rate the PEA concludes a Net Present Value of CD$253M is achievable. In addition to the work that Falconbridge expended, Canadian Arrow has additionally expended over $9M since acquiring the project.

The Company also owns the past producing Alexo and Kelex mines located in the Abitibi nickel district east of Timmins Ontario. The Alexo and Kelex mines have historically produced 87,000 tonnes averaging 3.06% nickel and are under review to re-start production.

Canadian Arrow Mines trades on the TSX-V under the symbol "CRO" and has 117,073,950 shares issued and outstanding. Closing share price as of September 21, 2010 was $0.05 per share.

Additional information relating to Canadian Arrow is available on SEDAR at www.sedar.com

This press release may contain "forward-looking statements" within the meaning of the Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this press release and the Company does not intend, and does not assume, any obligation to update these forward-looking statements.

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.

For further information: visit the website at www.canadianarrowmines.ca, or contact Mr. Andreas Curkovic, Investor Relations, [phone].