Karelian Regulatory News (KDR)

20 March 2015 DISCOVERY OF POTENTIAL NEW DIAMOND SOURCE * New Kimberlite Body Discovered in Kuhmo Area of Eastern Finland * First Discovery of a Kimberlite Body in Finland in Approximately 10 Years * Diamondiferous Kimberlite Indicator Minerals Previously Identified in Till Samples in the Area * The New Kimberlite Body will now be Assessed for Extent and Tested for Diamond Content _____________________________________________________________________________ Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDRI), the diamondexploration company focused on Finland, is pleased to announce that it hasdiscovered a potential new diamond source in the Kuhmo region of Finland. The potential new source occurs in a new Kimberlite body discovered duringfollow-up pitting in an area where infill samples containing highconcentrations of kimberlitic indicator minerals have been found. Subsequentscanning electron microscopy ("SEM") analysis of samples taken from thesekimberlitic indicator minerals suggest that they were derived from the diamondstability field of the Earth's mantle. Importantly, the results confirmed thepresence of Group I eclogite garnets, which can be associated with high diamondgrades. The material recovered from the pit was confirmed as being kimberlitic by Dr.Hugh O'Brien of the Geological Survey of Finland ("GTK"), an acknowledgedexpert in the field. The newly discovered kimberlite body, which is the first kimberlite body to bediscovered in Finland for approximately 10 years, is located to the southeastof Seitapera where the Company has outlined the largest diamondiferouskimberlite discovered to date in Finland. The new kimberlite body will now be assessed for extent and tested for diamondcontent. This release has been approved by Kevin McNulty PGeo, who is a member of theCompany's technical staff, who holds a BSc/MSc in Geology and Remote Sensing,in accordance with the guidance note for Mining, Oil & Gas Companies issued bythe London Stock Exchange in respect of AIM Companies, which outlines standardsof disclosure for mineral projects. Professor Richard Conroy, Chairman commented: "This discovery of a potential new diamond source is veryexciting news for theCompany. It is a major step forward in the Company'sexploration programme whichhas the objective of discovering a world class diamond deposit in theKarelianCraton in Finland,comparable to the world class deposits found on theRussian portion of the Karelian Craton." Further Information: Professor Richard Conroy, Chairman, Karelian Diamond Resources plc Tel: +353-1-661-8958Virginia Bull /Simon Clements, Sanlam Securities UK Limited (Nomad) Tel: +44-20-7623-2200Elliot Hance, Beaufort Securities Limited Tel: +44-20-7382-8300Ger Heffernan, IBI Corporate Finance Limited (ESM Advisor) Tel: +353-7662-34800Michael Padley, Lothbury Financial Services Limited Tel: +44-20-3440-7620Don Hall, Hall Communications Tel: +353-1-660-9377

http://www.kareliandiamondresources.com