Archangel Diamond Corporation

Archangel Diamond Corporation

June 05, 2009 16:05 ET

Archangel Diamond Corporation Updates Delay in Filing Annual Financial Statements

TORONTO, ONTARIO--(Marketwire - June 5, 2009) - Archangel Diamond Corporation ("Archangel" or the "Corporation") (TSX VENTURE:AAD) announces further to its original April 29th notice of default with respect to filing annual financial statements, accompanying management's discussion and analysis ("MD&A") and related CEO and CFO certifications (collectively, the "2008 Annual Financial Statements") for the financial year ended December 31, 2008 and the most recent default status report disseminated on May 20, 2009 that the auditors have not finalized the audit of the 2008 Annual Financial Statements. The Corporation had announced in its April 29th news release that it believed that the 2008 Annual Financial Statements would be filed by May 31, 2009. However, the Corporation is now targeting completion of the audit over the coming weeks which should facilitate filing before the end of June, 2009.

As a result of the delay in filing the 2008 Annual Financial Statements, the Corporation will not be able to file its interim financial statements, accompanying MD&A and related CEO and CFO certifications (collectively, the "Interim Financial Statements") for first quarter interim financial statements for the period ended March 31, 2009, which are due to be filed by June 1, 2009. Upon completion and filing of the 2008 Annual Financial Statements, the Corporation will file its Interim Financial Statements.

Further, the Corporation confirms that it is postponing the Annual Meeting of shareholders originally scheduled for June 25, 2009 to a future date yet to be determined upon resolution of the delay in filing the 2008 Annual Financial Statements.

The Corporation confirms that there are no insolvency proceedings against it as of the date of this press release. Archangel also confirms that there is no other material information concerning the affairs of Archangel that has not been generally disclosed as of the date of this press release.

The Corporation confirms that its intends to satisfy the provisions of the alternative information guidelines found at sections 4.3 and 4.4 of National Policy 12-203 for so long as they remain in default as a result of the late filing of the 2008 Annual Financial Statements and Interim Financial Statements. During the period of default, Archangel will issue bi-weekly default status reports in the form of further press releases, which will also be filed on SEDAR.

Archangel has been granted a management cease trade order by the Ontario Securities Commission as principal regulator with respect to the original default. Any applicable Canadian securities regulatory authorities may issue general cease trade orders against the Corporation for failure to file the 2008 Annual Financial Statements and/or the Interim Financial Statements within the prescribed time period.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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