Archangel Diamond Corporation: Negotiations of Proposed Private Placement of Common Shares Terminated

Archangel Diamond Corporation ("Archangel" or the "Corporation") (TSX
VENTURE:AAD) announces that it has received notice from the investor group under
the non-binding private placement term sheet announced June 4, 2009 that the
investor has determined not to proceed on the terms contemplated in that term
sheet and has, therefore, terminated it.


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.