you last data set started on row 2 so i edited the macro to start at row 2, bellow is code to start at row 1
Sub makelist()
Dim arSheet1(), arSheet2() As String
Dim str1, str2
ActiveWorkbook.Sheets(1).Select
ReDim arSheet1(1 To Range("A100000").End(xlUp).Row)
For r = 1 To Range("A100000").End(xlUp).Row
arSheet1(r) = Range("A" & r).Value
Next
ActiveWorkbook.Sheets(2).Select
ReDim arSheet2(1 To Range("A100000").End(xlUp).Row)
For r = 1 To Range("A100000").End(xlUp).Row
arSheet2(r) = Range("A" & r).Value
Next
ActiveWorkbook.Sheets(3).Select
r = 1
For Each str2 In arSheet2()
For Each str1 In arSheet1()
Range("A" & r).Value = str2
Range("B" & r).Value = str1
r = r + 1
Next
Next
End Sub
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