Karelian Share Price (KDR)

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* Further microdiamonds identified in Seitaperä pipe * Additional diamondiferous indicator minerals discovered in Riihivaara * Applications made for further licences in Finland Professor Richard Conroy, Chairman, said: "The results of your Company's exploration programme in Finland continue to encourage us to believe that diamond discoveries could be made in the Finnish sector of the Karelian Craton comparable to the world class diamond deposits in the Russian sector of the Craton."

announced its half yearly report for the six months ending 30 November 2012. The loss for the period was EUR72,545 (2011: loss EUR84,691). The net assets of the Company at 30 November 2012 were EUR4,491,981 (2011: EUR4,609,197). The recovery of microdiamonds in the mantle xenolith identified during this year's drilling confirmed that the xenolith encountered was diamondiferous. It is a further indication of the diamond potential of the Seitaperä diamondiferous kimberlite pipe, which at 6.9 hectares is the largest known kimberlite pipe discovered to date in Finland. The microdiamonds most recently identified in your Company's Seitaperä pipe are white in colour, transparent and octahedral. The broken nature of the microdiamond suggests the possibility of larger stone sizes. This is of relevance both in the exploration of the pipe and its diamond and economic potential.

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Karelian Diamond Resources plc ("Karelian" or "the Company") Half-yearly results for the six months ended 30 November 2012 FURTHER ENCOURAGING RESULTS FROM DIAMOND EXPLORATION PROGRAMME IN FINLAND Karelian Diamond Resources plc (AIM: KDR; ESM: KDR.I), the diamond exploration company focused on Finland, announces its results for the six months ended 30 November 2012. Highlights: * Further microdiamonds identified in Seitaperä pipe * Additional diamondiferous indicator minerals discovered in Riihivaara * Applications made for further licences in Finland Professor Richard Conroy, Chairman, said: "The results of your Company's exploration programme in Finland continue to encourage us to believe that diamond discoveries could be made in the Finnish sector of the Karelian Craton comparable to the world class diamond deposits in the Russian sector of the Craton." Further Information: Professor Richard Conroy, Chairman/ Karelian Diamond Tel: +353-1-661-8958 Resources plc Simon Clements/Virginia Bull/ Merchant Securities Limited Tel: (Nomad) +44-20-7628-2200 Jon Belliss/XCAP Securities PLC (Broker) Tel: +44-20-7101-7070 Brian Farrell/IBI Corporate Finance Limited (ESM Adviser) Tel +353-766-234-800 Michael Padley/Michael Spriggs/ Lothbury Financial Tel: Services +44-20-7868-2567 Don Hall/ Hall Communications Tel: +353-1-660-9377 Visit the website at: www.kareliandiamondresources.com CHAIRMAN'S STATEMENT Dear Shareholder, I have great pleasure in presenting your Company's Interim Report for the six months ended 30 November 2012, a period of continued progress for your Company. The recovery of microdiamonds in the mantle xenolith identified during this year's drilling confirmed that the xenolith encountered was diamondiferous. It is a further indication of the diamond potential of the Seitaperä diamondiferous kimberlite pipe, which at 6.9 hectares is the largest known kimberlite pipe discovered to date in Finland. The microdiamonds most recently identified in your