Karelian Regulatory News (KDR)

24 November 2014 Karelian Diamond Resources plc ("Karelian" or "the Company") Publication of Report and Accounts and Extension of Warrants Karelian (AIM: KDR, ESM: KDRI), the diamond exploration company focused onFinland, announces that following the release on 21 November 2014 of itsaudited results for the year ended 31 May 2014, it has posted its annual reportand accounts for the year to shareholders. A copy of the report and accounts isalso available to download from the Company's website at http://www.kareliandiamondresources.com In addition, the Company also announces a proposed five year extension to theexpiry date of 12,852,377 unexercised warrants held by directors of theCompany, details of which are set out below. The warrants were originally granted in 2007. The directors had at that timewaived their entitlement to all amounts of unpaid fees and salaries thataccrued to them since incorporation of the Company, totaling an aggregate of €639,777. The directors have continued to support the Company having made further fee andsalary sacrifices. In addition, the exercise price of the warrants remains at asignificant premium to the current share price of the Company's ordinaryshares. Accordingly, after careful consideration by the board and subject toratification by the shareholders at the Company's annual general meeting, theboard considers it appropriate to extend the life of the warrants. Thedirectors' interests and the terms of the warrants subject to the extension areas follows: Director Number of Exercise price Previous Proposed warrants expiry date expiry date Professor R Conroy 5,521,049 €0.10 16/11/2017 16/11/2022 Maureen Jones 4,191,275 €0.10 16/11/2017 16/11/2022 Jim Jones 2,604,389 €0.10 16/11/2017 16/11/2022 Seamus Fitzpatrick 232,201 €0.10 16/11/2017 16/11/2022 Louis Maguire 232,201 €0.10 16/11/2017 16/11/2022 Roger Chaplin 71,262 €0.10 16/11/2017 16/11/2022 12,852,377 The entry into the warrant extension with the directors referred to aboveconstitutes a related party transaction as defined by the AIM Rules. Theindependent director, being Dr Sorca Conroy, having consulted with theCompany's Nominated Adviser and ESM adviser, considers that the terms of thewarrant extension are fair and reasonable insofar as shareholders areconcerned. Further Information: Professor Richard Conroy, Chairman, Karelian Tel: +353-1-661-8958Diamond Resources plc Virginia Bull / Simon Clements, Sanlam Securities Tel: +44-20-7628-2200UK Limited (Nomad) Ger Heffernan, IBI Corporate Finance Limited (ESM Tel: +353-7662-34800Adviser) Jon Belliss/Abigail Wayne, Hume Securities PLC Tel: +44-20-3693-1493(Broker) Michael Padley, Lothbury Financial Services Tel: +44-20-3440-7620Limited Don Hall, Hall Communications Tel: +353-1-660-9377

http://www.kareliandiamondresources.com