Archangel Diamond Corporation Negotiating a Private Placement of Common Shares

  Archangel Diamond Corporation ("Archangel" or the "Corporation") (TSX VENTURE: AAD) announces that it has entered into a non-binding term sheet with an arms' length party in connection with a proposed non-brokered private placement of common shares in the capital of the Corporation at a price not to exceed CDN$0.05 per share. The funds made available through the private placement will be used to settle current debts of the Corporation, provide funds to continue pursuit of its legal claims in Stockholm and Colorado and provide funds for necessary working capital.

Completion of this proposed private placement is subject to a decision by the proposed subscriber on or before June 12 2009 to proceed following due diligence; the negotiation, execution and delivery of definitive agreements; and applicable regulatory approvals.

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.

Contacts: Archangel Diamond Corporation - Vancouver, British Columbia Ms. Jocelyn Fraser Media Enquiries 604-731-6164 [e-mail] Archangel Diamond Corporation - Toronto, Ontario Mr. Steven Thomas Chief Financial Officer 416-423-1600 [e-mail]