Diamond Exploration Update

04 September 2014 Diamond Exploration Update * Extensive Till Sampling Completed in Three Target Regions * Kimberlite Indicator Minerals Processing Underway __________________________________________________________________________________ Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDRI), the diamondexploration company focused on Finland, is pleased to announce the completionof an extensive till sampling programme on three of the Company's diamondtarget regions in Finland - Kuhmo, Kuusamo and Kuopio - Kaavi. The samples have now been dispatched for laboratory analysis. The targetssampled included the Riihivaara target in the Kuhmo region where the Companyhas previously identified positive G9 and G10 diamond indicator minerals and isseeking to define the origin of these indicator minerals. Karelian's diamondexploration programme in this region has at Seitaperä already delineated thelargest (6.9 hectare) known diamondiferous kimberlite in Finland. Other sampling in the Kuhmo region included sampling at Havukkasuo which liesto the immediate north of Seitaperä. Samples have also been collected in the newly granted diamond exploration claimreservations in the Kuusamo and Kuopio - Kaavi regions. The sampling programme was carried out on behalf of the Company by the FinnishGeological Survey (GTK). Professor Richard Conroy, Chairman commented: "I am delighted that further progress has been madeat several sites, especiallyatthe Riihivaara targetwhere we already havepositive G9 and G10 indicatorminerals present. We have also initiated work on our newly granted diamondexploration claim reservations in the Kuusamo and Kuopio - Kaaviregions." Further Information: Professor Richard Conroy, Chairman,Karelian Diamond Resources plc Tel: +353-1-661-8958 Virginia Bull / Simon Clements,Sanlam Securities UK Limited (Nomad) Tel: +44-20-7628-2200 Ger Heffernan,IBI Corporate Finance Limited (ESM Adviser) Tel: +353-7662-34800 Jon Belliss/Abigail Wayne,Hume Securities PLC (Broker) Tel: +44-20-3693-1493 Michael Padley,Lothbury Financial Services Limited Tel: +44-20-3440-7620 Don Hall, Hall Communications Tel: +353-1-660-9377

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