TORONTO, ONTARIO -- (Marketwire) -- 11/17/08 -- Archangel Diamond Corporation ("Archangel" or the "Corporation") (TSX VENTURE: AAD) announced on October 29, 2008 that, in connection with its proposed acquisition of a 49.99% equity interest in OAO Arkhangelskoe Geologodobychnoe Predpriyatie ("AGD") from OAO LUKOIL (the "Transaction") described in the Corporation's news release dated April 16, 2008, Archangel had received a conditional consent ("Conditional Consent") for such acquisition from the Russian Government Commission for control over foreign investment (the "Commission ") pursuant to the Russian law on foreign investment in strategic assets (the "FISS Law"). The Conditional Consent will not become effective unless Archangel enters into an ancillary agreement with the Russian Federal Anti-Monopoly Service ("FAS"). The ancillary agreement contains an obligation on the Archangel subsidiary which is to acquire the AGD shares which requires that diamonds extracted from the Grib pipe are processed in Russia in volumes to be agreed with the Russian Government. Discussions have been taking place between Archangel and FAS relating to the terms of such ancillary agreement and the Conditional Consent and are still continuing.

There can be no assurance that Archangel and FAS will be able to reach agreement on a final version of the ancillary agreement and there can be no assurance that one party would not unilaterally decide at any time to treat such discussions as at an end.

Archangel continues to seek FAS approval of the Transaction pursuant to the Russian Competition Law.

The condition precedent relating to the receipt by Archangel of all approvals and consents which are required inter alia under the FISS Law for the Transaction and the provisions of the various transaction agreements entered into between the parties in April 2008 is still outstanding and has not been satisfied. The condition precedent relating to the receipt by Archangel of the consent of FAS to the Transaction under the Russian Competition Law also remains outstanding and has not been satisfied.

Given the above, investors in common shares of Archangel are advised to exercise caution.

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, execution of definitive agreement, requirements for additional capital, government regulation, risks associated with diamond exploration, risks associated with diamond marketing, legal risks, political risks, environmental risks 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 press 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 that are incorporated by reference herein, except in accordance with applicable securities laws.

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