Arctic Hunter Completes First Tranche of Non-Brokered Private Placement

ARCTIC HUNTER URANIUM INC.

Suite 501 - 675 West Hastings Street · Vancouver · British Columbia · V6B 1N2 Telephone: (604) 681-3131 Facsimile: (604) 408-3884

NEWS RELEASE

December 31, 2010 CNSX Trading Symbol: AHU ________________________________________________________________________________________

ARCTIC HUNTER COMPLETES FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT

Calgary, Alberta - Arctic Hunter Uranium Inc. (CNSX: AHU) (the “Company”) announces that it has completed the first tranche of its previously announced non-brokered private placement. The Company issued a total of 560,000 flow-through units (“FT Units”) of the Company at a subscription price of $0.25 per unit and 660,000 non-flow-through units (“NFT Units”) of the Company at a subscription price of $0.20 per unit, for total gross proceeds of $272,000. Each FT Unit consists of one flow-through common share of the Company and one-half of one share purchase warrant (“FT Warrant”). Each flow-through share qualifies as a “flow-through share” for the purposes of the Income Tax Act (Canada). Each NFT Unit consists of one common share of the Company and one-half of one share purchase warrant (“NFT Warrant”). Each whole FT Warrant is exercisable into a common share of the Issuer at a price of $0.35 per share for a period of 12 months from the closing date. Each whole NFT Warrant is exercisable into a common share of the Issuer at a price of $0.25 per share for a period of 12 months from the closing date.

The shares underlying the units purchased pursuant to the private placement and any shares which may be acquired pursuant to the exercise of the warrants underlying the units will be subject to resale restrictions and may not be resold until April 23, 2011 and May 1, 2011.

The proceeds from the offering will be used to fund exploration on the Company’s resource properties, which will constitute Canadian exploration expenditures (as defined in the Income Tax Act (Canada)) and will be renounced for the 2010 tax year.

ABOUT ARCTIC HUNTER

The Company is a Canadian resource exploration and development Company that is involved in the acquisition, exploration and development of oil and gas properties in Western Canada and mineral exploration projects throughout North America. The Company is an Alberta based, junior heavy oil producer with interests located in the Lloydminster area of west-central Saskatchewan. The Company is currently producing in aggregate at an average rate of 240 bbls/d gross of heavy oil from its three wells

(3) on its Landrose, Saskatchewan heavy oil property (80 bbls/d net after payout to the Company). The Company has plans to continue growing its current daily production base, and plans on maximizing future production growth, by implementing a series of strategic property acquisitions and increasing its proposed exploration drilling activities proposed for 2011-2012. The Company also intends to devote a large portion of its corporate efforts to reviewing the assessment and acquisition of additional oil and gas exploration properties, which is expected to fuel the Company’s coming production growth plans and continued growth in the oil and gas sector for 2011 and 2012.

The Company maintains a strong balance sheet and has a qualified management team in field exploration, exploration drilling, well operations and has access to the necessary manpower to develop its natural resource and production properties. The Company and its management is committed to creating long term shareholder value, by increasing and selecting additional strategic oil and gas properties for exploration and development. The Company plans on increasing exploration and development of its current petroleum and natural gas resources and plans on increasing its daily aggregate oil production and increasing reserves through its planned exploration activities. The Company will also consider reviewing advanced stage base and precious metal property acquisitions and will seek to acquire additional prospective exploration, development and production resource projects.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Tim Coupland, President and CEO Arctic Hunter Uranium Inc.

Tel: (604) 681-3131 Fax: (604) 408-3884 [email protected]

or

Robert Hall, Director Arctic Hunter Uranium Inc.

Tel: (604) 488-0860 [email protected]

Neither the CNSX Venture Exchange nor its Market Regulator, (as the term is defined in the Policies of the CNSX) accepts responsibility for the adequacy or accuracy of this release.

The calculation of barrels of oil equivalent (“boe”) are based on a conversion rate of six thousand cubic feet (“mcf”) of natural gas to one barrel of crude oil. Boe’s may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is base on energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Reader Advisory

Certain information in this Press Release is forward-looking within the meaning of certain securities legislation, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to Arctic Hunters beliefs, plans, expectations, anticipations, estimates and intentions, including the licensing, completion and success of future drilling and development activities, the performance of existing wells, the performance of new wells, general economic conditions, availability of required equipment and services and prevailing commodity prices. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this Press Release describes Arctic Hunter’s expectations as of the date of this Press Release.

Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, risks arising from general economic conditions and adverse industry events, risks arising from operations generally, changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks, commodity price and exchange rate fluctuations; reliance on contractual rights such as licenses and leases in the conduct of its business, reliance on third parties, reliance on key personnel, possible failure of the business model or business plan or the inability to implement the business model or business plan as planned, competition, environmental matters, and insurance or lack thereof.

Arctic Hunter cautions that the foregoing list of material factors is not exhaustive, is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. When relying on Arctic Hunter’s forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.