Archangel Adopts Stock Option Incentive Plan

TORONTO, ONTARIO, Sep 05 (MARKET WIRE) --
Archangel Diamond Corporation (TSX VENTURE: AAD) announces that it has
adopted, subject to TSX Venture Exchange acceptance, a 2008 Stock Option
Incentive Plan (the "2008 Option Plan").

Archangel had previously adopted an equity incentive plan (more
specifically, ratified changes to a pre-existing plan and referred to as
the "Amended and Restated 1999 Equity Incentive Plan") in February, 2002.
As at December 31, 2007 there were no further common shares reserved for
issuance pursuant to the Amended and Restated 1999 Equity Incentive Plan
and all stock options granted pursuant to the Amended and Restated 1999
Equity Incentive Plan have been exercised or have expired. The 2008
Option Plan represents a fixed number plan reserving 8,500,000 common
shares under its terms which represents less than 10% of Archangel's
current issued and outstanding share capital. Archangel has no other
equity compensation plans available to its directors, officers or
employees. In accordance with TSX Venture Exchange policy, shareholder
approval is not required and will not be sought.

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 to the
Verkhotina Diamond Project.

The Verkhotina Diamond Project relates to the evaluation and potential
development of a diamond mine at the Grib kimberlite pipe (formerly pipe
441), located approximately 115 km north, northeast of the city of
Archangelsk, in northwest Russia. The Grib Pipe is one of the largest
undeveloped kimberlites in the world and is located in a region that
remains geologically prospective for diamonds.

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.

Contacts:
Archangel Diamond Corporation
Jocelyn Fraser
(604) 731-6164
Email: jocelyn.fraser@archangeldiamond.com

Archangel Diamond Corporation
Paul Hancock
Corporate Secretary
(416) 423-1600
(416) 429-2462 (FAX)
Email: paul.hancock@archangeldiamond.com
Website: www.archangeldiamond.com

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