EXHIBIT 4.05


                                     RELEASE
                                     -------

TO:              ARCHANGEL DIAMOND CORPORATION ("Archangel")
AND TO:          the officers and directors thereof.

     The  undersigned,  RICHARD  WAKE-WALKER  (the  "Releaseor"),  for  valuable
consideration  the receipt and sufficiency is hereby  acknowledged,  DOES HEREBY
REMISE,  RELEASE  AND  FOREVER  DISCHARGE  Archangel  including  its  respective
directors, officers, employees,  servants, agents, predecessors,  successors and
assigns,  and each of them  (individually  a  "Releasee"  and  collectively  the
"Releasees") of and from any and all actions, causes of action, claims, demands,
damages,  interest,  costs,  expenses and  compensation  of whatsoever  kind and
howsoever arising, whether known or unknown (collectively, a "Claim"), and which
the Releasor now has or at any time hereafter can, shall or may have, in any way
resulting or arising from any cause,  matter or thing whatsoever  existing up to
the present time with respect to the Releasees,  and in particular,  but without
restricting  the generality of the foregoing,  of and from or in connection with
any  business,  directorship  or  employment  arrangement  between  or among the
Releasor or his affiliates and any or all of the Releasees and any  remuneration
obligation or settlement related thereto, SAVE AND EXCEPT for:

     (a)  any outstanding  stock options or other rights to purchase  granted or
          issued to the  Releasor in any capacity by Archangel up to the date of
          this Release; and

     (b)  any claim or right of indemnity  from Archangel for the benefit of The
          Releasor in accordance  with Yukon  corporate law in connection to any
          Claim made  against  the  Releasor  in his  capacity as an employee or
          officer of Archangel.

     The  Releasor  hereby  acknowledges  and agrees  that any and all powers of
attorney  granted to the  Releasor by Archangel  are  cancelled,  terminated  or
revoked, as the case may be, and of no further force and effect.

     The Releasor acknowledges and agrees that:

     (a)  neither the Releasor nor his  affiliates  shall make any claim or take
          any  proceedings  against any other  person or  corporation  who might
          claim  contribution  or indemnity  from the  Releasees or any of their
          officers,  employees,  servants, agents,  predecessors,  successors or
          assigns;

     (b)  the Release  herein is intended to be a general  Release in respect of
          any claim or potential claim, known or unknown,  that the Releasor may
          have against any of the Releasees;


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     (c)  he has had the  opportunity  to seek  independent  legal  advice  with
          respect to the terms of  settlement as set forth herein as well as the
          effect of the Release herein and he fully understands the contents and
          the effect thereof; and

     (d)  he has  read  this  Release  herein  and  hereby  confirms  that  this
          Agreement  Release the entire agreement between the parties hereto and
          the  terms of the  Release  herein  are  contractual,  and not  merely
          recital.

This  Termination  Agreement  shall enure to the benefit of and be binding upon,
the heirs, executors,  administrators and legal personal  representatives of the
parties to this Termination Agreement. This Termination Agreement is governed by
and  interpreted  in  accordance  with  the laws  from  time to time in force in
Ontario and the laws of Canada applicable herein.

IN WITNESS  WHEREOF the  Releasor,  intending  to be bound,  has  executed  this
Release this 19th day of December, 2002.

SIGNED, SEALED AND DELIVERED        )
by RICHARD WAKE-WALKER in           )
the presence of:                    )
                                    )
Gerald E. Davis                     )      /s/ R.A. Wake-Walker         (Seal)
-----------------                   )      -----------------------------------
Witness                             )      RICHARD WAKE-WALKER
                                    )
/s/ Gerald E. Davis                 )
-------------------                 )
Print Name                          )