Archangel Files Motion for Reconsideration of Colorado Court's Jurisdiction Decision.

Business Editors

DENVER--(BUSINESS WIRE)--Oct. 22, 2002

Archangel Diamond Corporation (TSX VENTURE:AAD.CX) (the "Corporation") announced today that it has filed a motion with the Colorado State Court for the City and County of Denver seeking the Court's reconsideration of its October 15, 2002, order dismissing the Corporation's action against Lukoil and Arkhangelskgeoldobycha ("AGD"). The Corporation believes that the Court's previous decision was erroneous for a number of reasons, including the Court's failure to consider the Corporation's fraud and other tort claims against Lukoil and AGD as a basis for personal jurisdiction.

Mr. Timothy J. Haddon, President and Chief Executive Officer, stated, "After reviewing the Court's earlier decision to dismiss the lawsuit, we believe that there is a clear basis for asking the Court to reconsider its position. We remain hopeful that the Court will reconsider and reverse itself on this matter."

With respect to the ongoing license transfer dispute, the Corporation has been advised that the Arbitrazh Court of Arkhangel'sk ruled on Monday, October 21, that the 1994 Memorandum between the Corporation and AGD is unconcluded. This decision will be appealed and, until such time as the appeal is heard, the ruling will not come into effect. Commenting, Mr. Haddon stated, "While this Russian-court decision was not a great surprise, it again illustrates the difficulty of doing business in Russia. An agreement, which both sides acknowledged was valid and honoured until AGD was privatized in 1996, is now considered invalid because the signature of AGD's representative, Dr. Grib, was ruled to have been signed by someone other than himself."

Archangel Diamond Corporation is an international diamond exploration company that holds the right to earn a 40% interest in all profits from the mining of diamonds from the 400 square kilometer Verkhotina Area, which hosts the Grib Pipe, in the Oblast of Arkhangel'sk in northwestern Russia. De Beers Consolidated Mines Ltd. stated in a technical assessment study based on all exploration work completed through November 3, 1999, that the Grib Pipe has an estimated resource of approximately 98 million tonnes of kimberlite to a depth of 500 meters, containing some 67 million carats of recoverable +1 mm diamonds at an average mining grade of 69 carats per hundred tonnes and an average life-of-mine revenue value of US$79 per carat. The Grib Pipe was discovered in the spring of 1996 as part of the joint exploration program of the Corporation and AGD.

On behalf of Archangel Diamond Corporation Timothy J. Haddon, CEO and President.

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