First Tranche of Data Received From Rio Tinto

17 Jan 2011 07:00

17 January 2011 KARELIAN DIAMOND RESOURCES PLC

FIRST TRANCHE OF DATA RECEIVED FROM RIO TINTO MINING AND EXPLORATION LIMITED

* Over 53,000 surface samples * 122 diamonds present in the samples * Over 600 probe results (of kimberlite indicator minerals) from over 200 locations across Finland

Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDR.I), the diamond exploration company focused on Finland, is pleased to announce that it has received its first tranche of confidential information from Rio Tinto Mining and Exploration Limited ("Rio Tinto") in accordance with its confidentiality agreement with Rio Tinto, as announced on 22 July 2010, relating to samples taken across Finland.

The data comprises over 53,000 surface samples and over 600 analytical probe results and other kimberlitic mineral data, kimberlitic indicator minerals reported from over 200 locations. 122 diamonds were recovered from various locations in Finland.

Karelian will integrate Rio Tinto's data with that gathered from its own exploration programme to assist in identifying potential targets in Finland.

Karelian Chairman, Professor Richard Conroy said:

"I am delighted that the agreement with Rio Tinto has already yielded such a vast amount of data that is relevant to our diamond exploration programme in Finland, which has itself already led to the delineation by Karelian of the largest diamoniferous kimberlite pipe yet discovered in Finland. The data from Rio Tinto will be of enormous value in relation to the Company's ongoing exploration programme, the objective of which is to make a major economic diamond discovery in Finland comparable to the world class discoveries already made on the Russian side of the Karelian Craton."

Further Information:

Professor Richard Conroy, Chairman, Karelian Diamond Tel: +353-1-661-8958 Resources Plc

Simon Clements/Virginia Bull, Merchant Securities Limited Tel:(Nomad) +44-20-7628-2200 John Grant/ Karen Kelly/ David Lawman, XCap Securities Plc Tel:(Broker) +44-20-7101-7070 John Tuite, IBI Corporate Finance Limited (ESM Adviser) Tel: +353-1-637-7800 Michael Padley/Michael Spriggs, Lothbury Financial Tel:Services Limited +44-20-7868-2010 Don Hall, Hall Communications Tel: +353-1-660-9377

http://www.kareliandiamondresources.com