Polar Star announces $2.8 million raised from warrant exercise

/NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

TORONTO, Aug. 18, 2010 /CNW/ - Polar Star Mining Corporation (TSXV: PSR) ("Polar Star" or the "Company") announces that further to the press release dated January 11, 2010, an additional 6,486,715 of the warrants expiring on August 13 and 17, 2010 have been exercised including all 1,115,708 of the broker warrants expiring August 13 and 17, 2010 at $0.35, and 5,371,007 of the warrants expiring on August 13 and 17, 2010, at $0.45. Proceeds from the exercise of these warrants totalled $2,807,451. In aggregate 99.5% of the warrants expiring on August 13 and 17, 2010 were exercised during 2009 and 2010. The Company's cash balance as at August 18, 2010 is approximately $17.3 million. For complete details of the currently outstanding warrants, please visit the Investors section of the Company's website at www.polarstarmining.com.

The Company also announces its Q2 2010 financial statements and Management Discussion and Analysis have been filed and are available on the Company's website and on SEDAR at www.sedar.com.

Forward-Looking Statements

This press release may contain forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual events or results could differ materially from the Company's expectations and projections. Investors are cautioned that forward-looking statements involve risks and uncertainties. Accordingly, readers should not place undue reliance on forward-looking statements. When used herein, words such as "anticipate", "will", "intend" and similar expressions are intended to identify forward-looking statements. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to Polar Star Mining Corporation's filings with Canadian securities regulators available on www.sedar.com or the Company's website at www.polarstarmining.com.

About Polar Star Mining Corporation

Polar Star Mining Corporation (TSXV: PSR) is an emerging exploration company with a focus on building value in Chile through discovery and development. The company has approximately 257,000 hectares prospective for gold and copper-gold.

Share Capitalization

Shares Outstanding: 90,076,670 as of August 18, 2010.

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: Adam Rochacewich, Chief Financial Officer, Polar Star Mining Corporation, (416)-368-3496, [email protected]