AAD Added Capital

Archangel Diamond Corporation ("Archangel" or the "Corporation") (TSX
VENTURE:AAD) announces that it intends to enter into non-binding term sheets
with each of Cencan Societe Anonyme, a subsidiary of the De Beers Group ("De
Beers") and Firebird Global Master Fund Limited and its affiliates ("Firebird")
in connection with a proposed non-brokered private placement of an aggregate of
CDN$6 million principal amount of unsecured, convertible notes (the "Notes").
The Notes mature five years after their date of issue and bear interest at Libor
plus 7.5% per year. The Notes are convertible at the option of the noteholders
at any time up to maturity or payment, as the case may be, into common shares of
the Corporation at CDN$0.065 per share. Any accrued interest is also convertible
at the option of the noteholders into common shares of the Corporation at a
price to be determined on the basis of the market price of the shares at the
time of conversion. For each CDN$0.065 principal amount of Notes, each
noteholder will also receive one share purchase warrant (the "Warrants")
entitling the noteholder to purchase one common share of the Corporation for a
period of five years from the closing at a price per share of CDN$0.10.


Concurrent with, and as a condition of, the proposed private placement the
Corporation will also enter into a debt restructuring arrangement with De Beers.
Under this arrangement approximately CAD$12.3 million of existing indebtedness
will be settled: (1) CDN$4.4 million will be settled in exchange for common
shares of the Corporation; and (2) CDN$7.9M will be settled in exchange for the
issuance of a corresponding principal amount of Notes (without Warrants); both
at a conversion price of CDN$0.065 per share.


De Beers will therefore acquire a total of approximately CDN$10.9 million in
principal amount Notes (CDN$3.0 million private placement and CDN$7.9 debt
restructuring) convertible into approximately 167.6 million common shares of the
Corporation and receive Warrants to acquire a further 46.2 million common shares
of the Corporation. Firebird will acquire approximately CDN$3.0 million in
principal amount Notes convertible into 46.2 million common shares of the
Corporation and receive Warrants to acquire a further 46.2 million common shares
of the Corporation.


De Beers and Firebird currently hold approximately 58% and 19% respectively of
the Corporation's 85.0 million issued and outstanding shares. Upon the closing
of the debt re-structuring the Corporation's share capital will increase to
153.1 million shares and the respective interests of De Beers and Firebird, on
an undiluted basis will be 77% and 11%. Assuming the eventual conversion of the
Notes and the exercise of the warrants the Corporation's share capital will
increase to 459.1 million shares and the respective interests of De Beers and
Firebird will be 72% and 24%. All of these numbers are approximate and subject
to exchange rate fluctuations.


Completion of this proposed private placement and debt restructuring will be
subject to the negotiation, execution and delivery of definitive agreements and
applicable regulatory approvals. Any securities to be issued will be subject to
a hold period of four months from the closing date in accordance with the rules
and policies of the TSX Venture Exchange and applicable Canadian securities
laws.


Participation by De Beers and Firebird in the private placement and the
participation by De Beers in the debt restructuring each constitute a related
party transaction pursuant to MI 61-101 and TSX Venture Exchange Policy 5.9 (the
"Related Party Transactions").


The Board of Archangel consists of six directors, two of whom are unrelated to
De Beers or Firebird, and their respective affiliates, and are otherwise
independent as determined pursuant to Part 7 of MI 61-101.


The Related Party Transactions are exempt from the requirement to obtain an
independent valuation pursuant to Section 5.5(b) of MI 61-101 as Archangel's
shares are listed only on the TSX Venture Exchange. In consideration of the
financial circumstances of the Corporation, the Corporation intends to rely upon
the prescribed exemption from the requirement to obtain minority shareholder
approval pursuant to the financial hardship exemption in Section 5.7(e) of MI
61-101. Both the Board and the independent directors have determined that the
Corporation is in serious financial difficulty and that the Related Party
Transactions are reasonable in the circumstances.


The funds made available through the private placement and the restructuring of
the existing debt will enable the Corporation to meet its normal running costs
including approximately CAD$235,000 interest owing to De Beers and to continue
with its current activities.


The Corporation anticipates that the proposed private placement and debt
restructuring will be completed on or about April 10, 2009.


The securities to be issued pursuant to the proposed private placement and debt
restructuring have not been registered under the United States Securities Act of
1933 (the "Act") and may not be offered or sold absent registration under the
Act or an applicable exemption from the registration requirements thereof. This
news release does not constitute an offer to sell or a solicitation of an offer
to buy, nor shall there be any sale of these securities in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such jurisdiction or an
exemption therefrom.


This news release shall not constitute an offer to sell or the solicitation of
an offer to buy, nor shall there be any sale of the securities in any state in
which such offer, solicitation or sale would be unlawful.


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, completion of the Transaction,
execution of definitive agreements, exercise of future call rights, success of
financing activities, identification or upgrade of mineral resources,
requirements for additional capital, government regulation, results of future
diamond exploration, results of diamond marketing, changes in legal
requirements, changes in the political environment, environmental liabilities
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 news 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 or financial
projections, except in accordance with applicable securities laws.

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