Archangel Diamond Corporation's Holes 41, 44 and 47 Drill Results Further Confirm Pipe 441 as a Significant Kimberlite Pipe Discovery.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Jan. 23, 1997-- Archangel Diamond Co(VSE AAD.) Archangel Diamond Corporation (VSE: AAD) is pleased to announce additional results from Pipe 441's on-going Evaluation Drilling Programme. The drilling programme to this point has tested approximately one fourth of the 40 hectare magnetic anomaly and has encountered crater facies over an area of approximately 9 hectares, and diatreme over approximately 6 hectares. The yields to date suggest that Pipe 441 could become one of the most economically significant diamondiferous kimberlites to be discovered in recent times. The ongoing drilling programme could result in a pipe of substantially larger dimensions.

PROVISIONAL RESULTS FOR HOLES 44 & 41 - All grades given are for stones greater than 1mm.

- Hole 44, which is located 80 metres south of Hole 41 and 80 metres north of Hole 43, results give a grade of 171 carats/100t from 122 meters of crater facies and 104 carats/100t from 53 metres of diatreme facies. The grades from the crater facies are the highest yet recovered from this unit.

- Hole 41 in the far north of the pipe passed through crater and into country rock, thereby potentially defining the northern boundary of the pipe. Results were of a low grade - 4 carats/100t from 126 metres of the crater facies.

- These results suggest that the northern boundary of the high grade diatreme could be near to Hole 44's position.

PROVISIONAL RESULTS FROM HOLE 47 - All grades given are for stones greater than 1mm.

- Results from the most westerly hole drilled to date have given a grade of 8 carats/100t for the crater facies and 101 carats/100t for the diatreme. Although this diatreme grade is the lowest recovered to date, the hole remains in diatreme facies kimberlite, with the pipe still open in this western direction.

- Hole 47 intersected the kimberlite at 53 metres from the surface, substantially closer to the surface than other intersections elsewhere in the pipe.

SUMMARY OF DRILL SAMPLE RESULTS - All grades given are for stones greater than 1mm.

- The average grade of the diatreme is 153 carats/100t (from 5.1 tonnes). The average grade of the crater is 44 carats/100t (from 7.9 tonnes). The combined grade for the total sample of 13 tonnes is 86 carats/100t. ON-GOING DRILLING

- Hole 112, located 80 metres south of Hole 48 and 80 metres west of Hole 49, is presently drilling at 235 metres. It intersected crater at 71 metres and the diatreme at 175 metres. The hole is still in diatreme faces at 235 metres.

- A total of 12 holes have now been drilled or are in the process of being drilled; 11 have intersected the crater and 8 have also intersected the diatreme.

Notes: Pipe 441 Provisional Result Charts and Drill Plan Schematic are available upon request

ON BEHALF OF THE BOARD Franco Boulle, Chairman and CEO Alex Budzinsky, President

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

CONTACT: R K H Limited

Investor Relations, 416/ 861-3080

416/861-0418 (FAX)

E-mail: [e-mail]