Archangel Diamond - Latest Hole to Intersect Diatreme Returns Over 200 Carats per 100 Tonnes.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 23, 1996-- Archangel Diamond Corporation and their joint venture partner, Archangelskgeoldobycha are pleased to announce further confirmation of high grade kimberlite at their Pipe 441 on the Verkhotina licence area, in NW Russia.

Archangelskgeoldobycha has now released results from the second hole to intersect the diatreme: -0-

PIPE 441 - HOLE 49 RESULTS (+0.5mm crystals)

Interval       Diamonds        Total      Sample    Grade    Comments
  (m)          (mm) (1)        Weight     Weight    (carat/
            -4+2 -2+1 -1+0.5    (mg)       (kg)      100t)

74.3-190.5   1     17    32    164.35      918.4      89    Crater
           33.75  99.7  30.9                                facies and
             mg    mg    mg                                 weathered
                                                            crust (2.4m)

190.5-306     6    21    46    451.95    1,068.1     212    Kimberlite
          327.25  90.45 34.25

74.3-306      7    38    78    616.30    1,986.5     155    Average
          361.00 190.15 65.15                               for hole

Grade by Diamond Size (1) (carat/100t)

                       +1mm           +2mm
Crater Facies            75             19
Kimberlite              196            153
Average for Hole        139             91

(1) Measured in one dimension (by gravity processing of 90mm
diameter core at Archangelskgeoldobycha's processing plant at
Pomorye)

These results added to those previously announced by the Company
give the following impressive accumulated results for the whole pipe
thus far:

                      Sample Weight    Grade (carats/100t)
Crater Facies                2.83               43
Diatreme Facies              1.77              194
Total Kimberlite             4.6               102

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Elisey Verichev, State Prize Winner for his discovery of the Lomonosova field and Chief Geologist of Archangelskgeoldobycha at Verkhotina states;

"The results from our two holes in the diatreme of pipe 441 show grades 50 percent to 100 percent higher than the richest pipes of the Lomonosova field."

The largest stone recovered to date is 0.5 carats in size. The macro diamonds inspected by the Company's Exploration Manager, Roy Spencer, are mainly colourless octahedrans.

To define the limits of the pipe, drilling and ground geophysics continues. Hole 48 was stopped in kimberlite at 301m and the core is currently being processed. Hole 51 failed to intersect the kimberlite thus establishing an approximate boundary to the south. Hole 46, now at 107m, intersected crater facies at 65m.

On behalf of the Board Franco Boulle, Chairman and CEO -0-

Note to Editors: The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CONTACT: RHK Limited

Franco Boulle, 416/861-3080