Diamond Exploration Claim Reservations Granted

20 January 2014 Diamond Exploration Claim Reservations Granted * Two Claim Reservations granted in Kuusamo region of Finland * Both reservation areas have been shown to contain diamondiferous indicator minerals ______________________________________________________________________________ Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDRI), the diamondexploration company focused on Finland, is pleased to announce that TUKES (TheFinnish Mining Authority) has granted Karelian the first two of fourexploration claim reservations in the Kuuusamo area for which the Company hasmade applications. The decision to apply for the reservations was based on analysis of airbornegeophysics together with till sampling and integration of data made availableto Karelian under its agreement with Rio Tinto Mining and Exploration. In both areas, kimberlitic indicator minerals were recovered in till samplesand further studies, including microprobe analysis, showed the presence ofdiamondiferous kimberlitic indicator minerals. Kuusamo is located in the North-East of Finland just south of the Arctic Circleand is bordered to the East by Russia. A Claim Reservation gives exclusive rights to apply for exploration claimswithin the reservation area. 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: "We are delighted to have been granted these claim reservations in an area ofFinland which we believe to be highly prospective for diamonds. Following therecent successful fundraising, the Company will now proceed with itsexploration programme in the area." Further Information: Professor Richard Conroy, Chairman, Karelian Tel: +353-1-661-8958Diamond Resources plc Simon Clements/Virginia Bull, Sanlam Securities UK Tel: +44-20-7628-2200Limited (Nomad) Ger Heffernan, IBI Corporate Finance Limited (ESM Tel: +353-7662-34800Adviser) Jon Belliss/Abigail Wayne, XCAP Securities PLC Tel: +44-20-7101-7070(Broker) Michael Padley/Michael Spriggs, Lothbury Financial Tel: +44-20-3440-7620Services Limited Don Hall, Hall Communications Tel: +353-1-660-9377

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