1 July 2015

     RIIHIVAARA KIMBERLITE SHOWS POSITIVE MINERAL CHEMISTRY RESULTS FOR DIAMONDS   

      * Diamond Indicator Group I Type Eclogitic Garnets Abundant
       
      * Diamond Type Chromites Also Present
       
      * Ilmenite Analysis Indicates a Good Diamond Preservation Index
       
      * More Than One Diamondiferous Source May Be Present
       
        _____________________________________________________________________________
       
        Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDRI), the
        diamond exploration company focused on Finland, is pleased to announce that
        results from the mineral chemistry analyses carried out by the Geological
        Survey of Finland show that the right geochemical conditions exist to host
        diamonds in the Riihivaara Kimberlite, which was recently discovered by the
        Company in the Kuhmo area of Eastern Finland.
       
        The new results are significant in that they show that the Riihivaara
        Kimberlite sampled a portion of the Earth's mantle that has a high
        potential to be diamondiferous.
       
        A 20kg sample collected from the discovery pit shows positive mineral
        chemistry results. These results were obtained from the coarse (0.5 to
        1.0mm) size fraction. Eclogitic garnets (including Diamond indicator Group
        I type) are abundant (54% of the garnet indicator minerals) in the sample.
        Group I eclogitic garnets tend to be associated with diamonds. Similarly,
        G10 harzburgitic garnets were also present in the sample and these are also
        associated with the presence of diamonds.
       
        The kimberlite chromite population in the sample shows a high percentage
        (18%) of diamond inclusion type chromites indicating that the kimberlite
        has a high potential to host diamonds.
       
        Ilmenites discovered in the kimberlite indicate a good preservation index.
        Results from the ilmenite analyses indicate derivation from low oxidation
        mantle source rocks, which is important for the growth and preservation of
        diamonds.
       
        Geochemical and petrographic analyses confirm the kimberlite to be an
        olivine-rich, micaceous kimberlite similar to the Company's diamondiferous
        Seitaperä Kimberlite.
       
        Comparisons between the kimberlite indicator mineral populations in the
        kimberlite sample and those previously observed in till sampling show
        differences which may indicate additional diamondiferous sources in the
        exploration area.
       
        This release has been approved by Kevin McNulty PGeo, who is a member of
        the Company'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 by the London Stock Exchange in respect of AIM Companies,
        which outlines standards of disclosure for mineral projects.
       
        Professor Richard Conroy, Chairman commented:
       
        "The sample results are excellent.  The mineral chemistry analyses carried
        out by the Geological Survey of Finland are very encouraging and show that
        the Riihivaara Kimberlite has high potential to be diamondiferous.  The
        results confirm that the geochemical conditions exist for the area to host
        diamonds."
       
        Further Information:
       
    Professor Richard Conroy, Chairman,                  Tel: +353-1-661-8958          
    Karelian Diamond Resources plc                                                     
                                                                                       
    Virginia Bull / Simon Clements,                      Tel: +44-20-7628-2200         
    Sanlam Securities UK Limited (Nomad)                                               
                                                                                       
    Ger Heffernan / Jan Fitzell,                         Tel: +353-7662-34800          
    IBI Corporate Finance Limited (ESM Adviser)                                        
                                                                                       
    Jon Bellis, Elliot  Hance,                           Tel: +44-20-7382-8300         
    Beaufort Securities Limited (Broker)                                               
                                                                                       
    Michael Padley,                                      Tel: +44-20-3290-0707         
    Lothbury Financial Services Limited                                                
                                                                                       
    Don Hall,                                            Tel: +353-1-660-9377          
    Hall Communications                                                                

    http://www.kareliandiamondresources.com