Archangel Diamond Corporation

Archangel Diamond Corporation

April 29, 2009 18:28 ET

Archangel Diamond Corporation Announces Delay in Filing Annual Financial Statements in Canada

TORONTO, ONTARIO--(Marketwire - April 29, 2009) - Archangel Diamond Corporation ("Archangel" or the "Corporation") (TSX VENTURE:AAD) announces that it will not be able to file its 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, within the 120 day period prescribed for the filing of such documents under Parts 4 and 5 of National Instrument 51-102.

The Corporation expects to file the 2008 Annual Financial Statements shortly. Archangel is not currently in a position to file the 2008 Annual Financial Statements primarily as a result of the time required to reflect and account for the outcome of any significant pending debt refinancing in the 2008 Annual Financial statements and to complete the necessary accounting analysis.

The Corporation confirms that it 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 it remains in default as a result of its late filing of the 2008 Annual 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.

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.

Archangel has made an application to the applicable Canadian securities regulatory authorities for a management cease trade order. There is no certainty that such order will be granted. The applicable Canadian securities regulatory authorities may issue general cease trade orders against the Corporation for failure to file the 2008 Annual 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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