New Kimberlite Source Indicated in Target

Karelian Diamond Resources Plc - New Kimberlite Source Indicated in Target

PR Newswire

London, September 24

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

Karelian Diamond Resources plc

(“Karelian” or “the Company”)

25 September 2017

NEW KIMBERLITE SOURCE INDICATED IN DIAMOND DISCOVERY TARGET

High Kimberlite Indicator Mineral Count

Results Suggest Sample is within a Couple of Hundred Metres of a New Kimberlite Source

Karelian Diamond Resources plc (“Karelian”) (AIM: KDR, ESM: KDRI), is pleased to announce that it has received results for 22 samples from the ODM Laboratory*, that show high concentrations of kimberlite indicator minerals (“KIMs”). They were taken in the Kuhmo region in the target area around where the team previously discovered a diamond in a till sample, a rare event which was reported on 31 January 2017.

One of the new samples produced 36 KIMs which comprised 10 purple to red peridotitic garnets (G9/10 Cr-pyrope), 19 chromite grains and one Fosterite grain in the 0.25 to 0.5 mm size range, plus three purple to red peridotitic garnet (G9/10 Cr-pyrope) and three chromite grains in the 0.5 to 1.0 mm size range. This suggests that the sample is within a couple of hundred metres of a kimberlite source. Two further samples down ice from this sample also had high KIMs, 20 and 22 respectively.

The anomaly has also been closed off 500m in an up-ice direction from the sample containing the 36 KIMs.

The diamond discovered in January was in one of seven samples from the Kuhmo region of Eastern Finland. It is a clear, pale green dodecahedron and measures 0.7 x 0.75 x 0.7 mm.

*ODM Laboratory holds a Certificate of Authorization from the Association of Professional Geoscientists of Ontario and is used by diamond explorers in all parts of Canada and the world. During the Canadian diamond rush of the 1990s and early 2000s, ODM contributed to many kimberlite discoveries by processing and logging more than 50,000 samples.

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 & Gas Companies issued by the London Stock Exchange in respect of AIM Companies, which outlines standards of disclosure for mineral projects.

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

“I am delighted at these results, they confirm the prospect of another new kimberlite discovery by our team in the area where we discovered that beautiful green diamond we announced in January.”

Further Information:

www.kareliandiamondresources.com