Archangel Diamond Corporation receives formal decision of Russian government conditional consent for its acquisition of a 49.99% interest in AGD



    TORONTO, Oct. 29 /CNW/ - Archangel Diamond Corporation ("Archangel" or
the "Corporation") (TSXV:AAD) announces that, in connection with its proposed
acquisition of a 49.99% equity interest in OAO Arkhangelskoe Geologodobychnoe
Predpriyatie from OAO LUKOIL (the "Transaction") described in the
Corporation's news release dated April 16, 2008, the Russian Federal
Anti-Monopoly Service ("FAS") has now provided the Corporation with a
"formalised decision" (the "Decision") of the Russian Government Commission on
control over foreign investment (the "Commission") pursuant to the Russian law
on foreign investment in strategic assets (the "FISS Law").
    Archangel confirms that the Commission has given its consent to the
Transaction on the condition (the "Condition") that diamonds extracted from
the Grib pipe are processed in Russia in volumes to be agreed with the Russian
Government. It is a requirement that the Condition be included in an ancillary
agreement (the "Ancillary Agreement") to be entered into between the
Corporation and FAS by November 15, 2008. The Decision will become effective
only upon agreement and execution of the Ancillary Agreement.
    Archangel and De Beers Société Anonyme ("De Beers") and other members of
the De Beers group are therefore in the process of reviewing the Decision, the
Condition and the draft of the Ancillary Agreement provided by FAS in order to
understand their impact on the Transaction and the agreements relating to the
Transaction.
    With respect to the Competition Law approval, FAS has advised Archangel
that its conditional approval will be issued shortly after the execution of
the Ancillary Agreement. At this point, the Corporation is still to be
formally appraised of the conditions attached to such approval.

    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 FOR THE ADEQUACY
    OR ACCURACY OF THIS RELEASE
    





For further information:

For further information: Ms. Jocelyn Fraser, Archangel Diamond
Corporation - Media Enquiries, Vancouver, British Colombia, Canada, Tel: (604)
731-6164, jocelyn.fraser@communicate-pa.ca; Mr. Steven Thomas, Chief Financial
Officer, Archangel Diamond Corporation, 65 Overlea Boulevard, Suite 400,
Toronto, Ontario, M4H 1P1, Canada, Tel: (416) 423-1600,
steve.thomas@ca.debeersgroup.com

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ARCHANGEL DIAMOND CORPORATION

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