Archangel Diamond Corporation Discovers New Kimberlite Pipe At Verkhotina Project

Business Wire, Feb 16, 1996

VANCOUVER, British columbia--(BUSINESS WIRE)--Feb. 16, 1996 --ARCHANGEL DIAMOND (VSE:AAD) Archangel Diamond Corporation (VSE-AAd) is pleased to announce with their joint-venture partner, Arkhangelskgeologia ("AGE"), the discovery of a new kimberlite pipe (#441) on their Verhotina project in north western Russia.

Pipe 441 is the first kimberlite pipe to be discovered in the Archangelsk Diamond Province since 1989 and the first by a western funded joint- venture. The new pipe appears to be on a structure distinct from that controlling the cluster of five pipes which until recently have been the focus of evaluation on the Verkhotina tenement. Processing of the core recovered to date has started and results will be announce as they become available.

Detailed ground geophysics indicates that the new pipe has a surface area of approximately 11 hectares, which is comparable to the surface dimensions of four of the five pipes comprising the Lomonsova deposit, reportedly one of the richest diamond deposits in the world.

As a result of he discovery, 10 ground geophysical anomalies in the vicinity of the discovery have been designated high priority targets and will be drilled during the next few months. The joint venture is also reprocessing airborne magnetic data to determine if more subtle magnetic anomalies can be identified.

On the Windy Ridge joint venture, the winter drill program using two drill rigs commenced in January. Results will be announced as they become available.

The Company has completed its due diligence with respect to the proposed acquisition of Ellendale Resources NL, Australia, and the Board of Directors has determined not to proceed with the acquisition.

ON BEHALF OTHER BOARD Mark Godsy Director

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

CONTACT: Archangel Diamond Corporation

Bill Trenaman, 604/687-4452

or

Skyline Capital Corp.

Investor Relations, 416/601-9278