New Kimberlite Source Indicated

16 October 2014 NEW KIMBERLITE SOURCE INDICATED * Over 100 Kimberlitic Indicator Minerals Reported In A Riihivaara Sample * Results Suggest Sample Recovered is Either Directly Over or Within 100 Metres of New Kimberlite Source _____________________________________________________________________________ Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDRI), ), theAIM-listed diamond exploration company focused on Finland, is pleased toannounce that the recovery of high concentrations of kimberlitic indicatorminerals ("KIMs") in Riihivaara indicate the nearby presence of a newkimberlite source in the Kuhmo region of Finland. Laboratory results from a sample collected on the Company's Riihivaara targetin the Kuhmo region show high concentrations of over 100 kimberlitic indicatorminerals. The results include 48 Purple to Red peridotitic garnets (G9/10Cr-pyrope) and 46 Orange mantle garnets which are 0.25 to 0.5mm in size, plus 5Purple to Red peridotitic garnets (G9/10 Cr-pyrope) and 3 Orange mantle garnetsin the 0.5 to 1.0mm size range. G9/10 garnets are considered significant asthey are formed at the same temperatures and pressures as diamonds. Orangemantle garnets can include eclogitic pyrope-almandine garnets (G3) and ifeclogite mantle materials are present it is significant, as it tends to beassociated with richer diamond grades. The garnets will be tested to establishwhether eclogite mantle materials are present. In the Kuhmo region of Finland, high numbers of kimberlitic indicator mineralsare normally only seen either directly over or within a hundred metres of akimberlite source. The Riihivaara target is located to the Southeast of Seitaperä where theCompany has outlined the largest diamondiferous kimberlite pipe discovered inFinland to date. The indicator minerals have been sent for analysis by scanning electronmicroscopy for precise classification which will determine whether any of thesample material is derived from the diamond stability field. A furtherannouncement will be made in due course. 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: "I am delightedat theseresults.We have for some time been following up the diamondiferous kimberliticindicator mineral trains thatwe have discovered on our Riihivaara target. Wenow appear to be getting very close to or immediately over the source." 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

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