Archangel Diamond Corporation Aware of Press Reports Indicating Russian Government Consent for Its Acquisition of a 49.99% Equity Interest in AGD Under the New Foreign Investment Law

Archangel Diamond Corporation ("Archangel" or the "Corporation") (TSX VENTURE: AAD) announces that, in connection with the Corporation's proposed acquisition of a 49.99% equity interest in OAO Arkhangelskoe Geologodobychnoe Predpriyatie ("AGD") from OAO LUKOIL ("LUKOIL") (the "Transaction") described in the Corporation's news release dated 16 April 2008, it has been reported by press agencies that the newly appointed Russian Government Commission has today given its consent to the Transaction pursuant to the Russian law concerning foreign investment in strategic assets (see Archangel's news release dated 7 May 2008). Accordingly, Archangel is seeking to obtain official confirmation of these reports from the Russian Federal Anti-monopoly Service ("FAS") as well as full details of the decision of the Commission (including what conditions are attached to such consent).

Archangel is also continuing its efforts to obtain information from FAS in regard to its application for approval of the Transaction under the Russian law on protection of competition, the final condition precedent to the Transaction.

CAUTIONARY NOTE TO SHAREHOLDERS CONCERNING FORWARD LOOKING STATEMENTS AND FINANCIAL PROJECTIONS - This news release contains "forward-looking statements", within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the outcome of future negotiations, completion of the Transaction, execution of definitive agreements, exercise of future call rights, success of financing activities, identification or upgrade of mineral resources, requirements for additional capital, government regulation, results of future diamond exploration, results of diamond marketing, changes in legal requirements, changes in the political environment, environmental liabilities and title disputes. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual outcomes, results, level of activity, performance or achievements of Archangel Diamond Corporation to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks described in the above news release; those risks set out in Archangel's disclosure documents and its annual, interim management discussion and analysis and annual reports. Although Archangel has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Archangel does not undertake to update any forward-looking statements or financial projections, except in accordance with applicable securities laws.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contacts: Media Enquiries: Archangel Diamond Corporation Ms. Jocelyn Fraser (604) 731-6164 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Archangel Diamond Corporation Mr. Steven Thomas Chief Financial Officer (416) 423-1600 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Website: www.archangeldiamond.com

SOURCE: Archangel Diamond Corporation

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