Archangel Diamond Corporation

Archangel Diamond Corporation

August 01, 2008 17:16 ET

Archangel Files Application With New Russian Regulator

TORONTO, ONTARIO--(Marketwire - Aug. 1, 2008) - Archangel Diamond Corporation (TSX VENTURE:AAD), a junior Canadian diamond company, is one of the first companies to file an application with the Russian Federal Anti-Monopoly Service (FAS), newly empowered to review foreign investments in strategic Russian assets.

Archangel Diamond today submitted an application for approval to acquire a 49.99% equity interest in Arkhangelskoe Geologodobychnoe Predpriyatie (AGD) from LUKoil. AGD holds the license for Verkhotina, a property located approximately 115 km north, northeast of the city of Archangelsk, in northwest Russia. Verkhotina is the site of the Grib pipe, one of the largest known undeveloped kimberlites in the world.

A new law governing foreign investments in strategic sectors was brought into effect May 7, 2008. On July 6, 2008 the Russian government passed a resolution appointing FAS as the agency responsible for reviewing applications and managing the process for obtaining government consent. A Commission, headed by Russian Prime Minister Vladimir Putin, has been created and has the power to grant consent.

About Archangel Diamond Corporation

Archangel Diamond Corporation is a junior Canadian diamond company traded on the Toronto Venture Exchange under the symbol AAD. On April 15, 2008 Archangel signed definitive agreements with LUKOIL to acquire a 49.99% equity interest in LUKOIL's subsidiary AGD. Details of the proposed share purchase agreement are found in Archangel Diamond's news release of April 15, 2008.

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.

The TSX Venture Exchange does not accept responsibility of the adequacy or accuracy of this release.

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