Agoracom

SUDBURY, ON, June 26 - Canadian Arrow Mines Ltd. (CRO: TSX-V)

(the "Company") is pleased to report its metallurgical testing program for the

Kenbridge Nickel Project has achieved excellent metal recoveries for nickel

and copper. Estimated average locked cycle flotation test (LCT) recoveries

from a blended representative sample of open pit and underground material,

which was selected by CRO, grading 0.85% Ni and 0.38% Cu were 90% and 93% for

nickel and copper, respectively. A sample of lower grade material from the

open pit portion of the deposit grading 0.41% Ni, 0.20% Cu returned average

LCT recoveries of 84% and 90% for nickel and copper, respectively. These

results represent a significant increase in the metallurgical recoveries

predicted in the Preliminary Economic Assessment (PEA), where an average

nickel recovery of 74% was used. The metallurgical program was completed by

Xstrata Process Support (XPS) in Sudbury, Ontario under the direction of XPS

metallurgists David Middleditch and Dominic Fragomeni. Richard Gowans, senior

metallurgist and Vice President of Micon International, advised the company on

the program and is the independent qualified person (QP).

The objectives of the metallurgical program were to determine optimized

flotation conditions and grinding design criteria for the Kenbridge

feasibility study and to maximize metal recoveries. Mining at Kenbridge would

be done with a combination of open pit and underground methods. Locked cycle

flotation tests were conducted on representative samples of open pit material

and a 50/50 blend of open pit & underground materials to produce bulk

nickel-copper concentrates. Calculated average metal recoveries are presented

in Table 1.

A final flow sheet developed during the metallurgical program was used

for the locked cycle tests. Test work determined that a regrind mill, which

was included in the preliminary PEA design, is not required, further

simplifying the process and reducing operating costs. The flotation circuit

includes primary & secondary rougher cells with a rougher bypass and two

stages of cleaning.

A grinding circuit design report has also been completed by XPS. This

design comprises a conventional SABC circuit, comprising a semi-autogenous

grinding (SAG) mill, pebble crusher and ball mill combination to achieve the

selected flotation feed grind size. The design incorporates the 23' x 9' SAG

mill already owned by CRO.

Garett Macdonald, Canadian Arrow's VP of Operations noted "We are very

pleased with the results of the metallurgical program. The recent flotation

results show that the Kenbridge project can deliver excellent metal recoveries

and a saleable concentrate product with a simple & proven process from

relatively low grade material. The results indicate that more saleable nickel

pounds can be recovered with insignificant change to operating costs or effort

as evaluated in the January 2008 PEA."

Mr. Macdonald adds, "This strong metallurgical response is what makes

Kenbridge stand out. It is important to note that although higher grade zones

occur within the Kenbridge deposit, the robust metallurgical recoveries allow

for efficient and economic extraction of the lower grade halo as well, thus

providing full value optimization."

An updated NI 43-101 resource estimate for Kenbridge is expected in the

next few weeks and will include the recent metallurgical test results

described above and the remainder of the diamond drilling from the 2007

season. This will include intersections from the high grade underground

plunges identified by holes such as KB-07-180 that intersected 2.95% Ni,

0.82% Cu over 21.5 metres, including 7.20% Ni, 0.67% Cu over 5.5 metres,

(reported in a previous news release, 02/28/2008). Canadian Arrow will provide

an update of the PEA after reviewing the metallurgical results and the

resource estimate.

About Canadian Arrow Mines, Ltd.

Canadian Arrow Mines, Ltd. is an established Canadian exploration and

development Company committed to developing and advancing base metal deposits

close to existing infrastructure through exploration, development and

acquisition. Shares of Canadian Arrow Mines trade on the TSX Venture Exchange

under the symbol "CRO".

Investors are able to e-mail all questions and correspondence to

CRO@agoracom.com where they can also request addition to the investor

e-mail list to receive future press releases and updates in real time.

If you would like to receive press releases via email please contact:

mirna@chfir.com

For further information: visit the website at www.canadianarrowmines.ca or

call toll free, 1-877-262-6354, or contact: Canadian Arrow Mines, Ltd., R. Kim

Tyler, P. Geo, President, Tel: (705) 673-8259, E-mail:

kim@canadianarrowmines.ca CHF Investor Relations, Barry Leung, Tel: (416)

868-1079 ext. 222, E-mail: barry@chfir.com or Alison Tullis, Tel: (416)

868-1079 ext. 233, E-mail: alison@chfir.com