Karelian Regulatory News (KDR)

This announcement contains inside information for the purposes of Regulation 11 of the Market Abuse (amendment) (EU Exit) Regulations 2019/310.

Karelian Diamond Resources plc

("Karelian Diamonds" or "the Company")

19 December 2023

SEARCH FOR SOURCE OF THE KUHMO GREEN DIAMOND NARROWED

Karelian Diamond Resources plc ("Karelian Diamonds") (AIM: KDR) is pleased to announce that the Company has received results, from Overburden Drilling Management Limited ("ODM") in Canada, in relation to basal till samples excavated at various target locations in the Kuhmo region of Finland.  The results suggest that two of the sample locations may be close to the source of the green diamond previously discovered by the Company (as announced by the Company on 31 January 2017). ODM is a specialised laboratory for testing diamondiferous kimberlite indicator minerals.

The targets sampled were up-ice from the location of the green diamond discovery along a kimberlite indicator mineral train and were identified by geophysics and kimberlitic indicator analysis.

Samples from the two locations returned anomalous concentrations of thirty-six purple to red peridotitic garnets (G9/10 Cr-pyropes garnets). Six of the peridotitic garnets were in the large range (0.5 to 1.0mm size). Partial alteration mantles, otherwise referred to as "Kelyphitic rims", were present on the peridotitic garnets. Kelyphitic rims are fragile and tend not be preserved on the peridotitic garnets if they have been transported any large distance.

The presence of G9/10 peridotitic garnets indicates that the material sampled has been derived from the diamond stability field where diamonds are formed.

The number and size of the peridotitic garnets, and the presence of Kelyphitic rims, suggests close proximity to a kimberlite source, from which the green diamond may have been derived.

Orange mantle garnets were also present in samples from these two locations. Orange mantle garnets can include eclogitic pyrope almandine garnets (G3) which, if present, are significant, as they tend to be associated with richer diamond grades. These orange mantle garnets will be tested in due course to establish whether or not eclogitic mantle materials are present.

Kimberlite indicator minerals were absent in locations further up-ice from the two anomalous locations. This, together with geophysical data, suggests that the kimberlite indicator mineral train, up-ice from the green diamond discovery, ends at an electromagnetic geophysical anomaly within which the kimberlite source of the green diamond may be located.

Given that indicator minerals were not present in samples further up ice, the positive sample result provides further evidence that the green diamond kimberlite source is closer to and within our targeted area.

This release has been approved by Kevin McNulty PGeo, who is a member of the Company's technical staff and holds a BSc/MSc in Geology and Remote Sensing, in accordance with the guidance note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM Companies, which outlines standards of disclosure for mineral projects.

Further results will be issued as the programme progresses.

Professor Richard Conroy, Chairman, Karelian Diamond Resources PLC commented:

"These results are most encouraging and are a major step forward in the Company's diamond exploration programme, in the highly prospective Kuhmo region. They also suggest that we may be getting very close to locating the source of the green diamond which the Company discovered."

Further Information:

http://www.kareliandiamondresources.com