Cencan S.A. increases existing loan to US$8.8 million

Archangel Diamond Corporation’s major shareholder, Cencan S.A., is increasing its unsecured non-convertible, interest bearing loan to Archangel to US$8.8 million from US$4.5 million. The additional funds provide Archangel Diamond Corporation with sufficient income to meet short term working capital requirements.

Archangel Diamond’s Board of Directors consider the commercial terms of the loan to be reasonable and not less advantageous to the Company than if the loan was obtained from an arm’s length party. The original terms and conditions of the loan, as described in a news release issued November 28, 2007, remain unchanged and repayment shall be by April 30 2009.

The amendment of the existing term loan constitutes a related party transaction pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders In Special Transactions (“MI 61-101″) and is exempt from the minority approval requirement pursuant to Section 5.7(f) – Loan to Issuer, No Voting or Equity Component of MI 61-101 and is otherwise exempt from the requirement to obtain an independent valuation pursuant to Section 5.5(b) – Issuer Not Listing On Specified Markets of MI 61-101.

About Archangel Diamond Corporation

Archangel Diamond Corporation is a junior Canadian diamond company traded on the Toronto Stock 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 Arkhangelskoe Geologodobychnoe Predpriyatie (AGD) which 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.

For further information

www.archangeldiamond.com, Jocelyn Fraser, (604) 731-6164, jocelyn.fraser@communicate-pa.ca

Source: Archangel Diamond Corporation