12 February 2016

                            Karelian Diamond Resources Plc                         

                               ("KDR" or the "Company")                            

                                  Holding in Company                               

    Karelian (AIM: KDR, ESM: KDRI), the diamond exploration company focused on
    Finland, has received notification that Mr Alan Osborne now holds 8,739,045
    ordinary shares, representing 3.05 per cent. of the issued share capital of the
    Company.

    Further Information:

    Professor Richard Conroy, Chairman, Karelian Diamond           Tel: +353-1-661-8958
    Resources plc                                                                      
                                                                                       
    Virginia Bull / Simon Clements, Sanlam Securities UK           Tel:                
    Limited (Nomad)                                      +44-20-7628-2200              
                                                                                       
    Ger Heffernan/Jan Fitzell,  IBI Corporate Finance              Tel: +353-7662-34800
    Limited (ESM Adviser)                                                              
                                                                                       
    Jon Belliss/ Elliot Hance, Beaufort Securities Plc             Tel:                
    (Broker)                                             +44-20-7382-8300              
                                                                                       
    Michael Padley, Lothbury Financial Services Limited            Tel:                
                                                         +44-20-3290-0707              
                                                                                       
    Don Hall,  Hall Communications                                 Tel: +353-1-660-9377

    http://www.kareliandiamondresources.com