AGM Statement

6 December 2010                                                                

                        Karelian Diamond Resources Plc                         

                                (the "Company")                                

                                 AGM Statement                                 

At today's Annual General Meeting of Karelian Diamond Resources Plc (AIM: KDR,
ESM: KDRI), the diamond exploration company focused on Finland, the Chairman
Professor Richard Conroy will make the following comments:

"Having already delineated the largest kimberlite pipe found in Finland to
date, the year under review has been one in which we reduced our on-site work
programmes, due to the fall in the diamond price, and focussed on office based
modelling and the acquisition of additional licences in the Kuhmo area.

"Historically there has been only limited exploration in the Kuhmo area of
Finland, however our results to date show that the area has potential for
diamondiferous kimberlites and our new licences, granted post period, cover the
two other known kimberlite occurrences in the area - Kimberlites 18
(Havukkasuo) and 24 (Lentiira).

"We also continue to explore in Joensuu to the South East of Kuhmo and the
results show that the Joensuu prospect could also contain kimberlite pipes.

"As well as continuing our work on our existing licences we entered into a
confidentiality agreement with back in rights with Rio Tinto Exploration
Limited ("Rio Tinto") under which they are disclosing to us their extensive
database and physical samples, compiled over a number of years exploring in
Finland. The data will significantly increase Karelian's knowledge base and
thereby enhance our exploration programmes. In return Rio Tinto has the right
to acquire 51 per cent of any major discovery by paying the direct cash
expenditures incurred in developing the project. As well as diamonds, the
agreement covers the discovery of other resources with an in situ value equal
to or greater than the in situ value of 3 million ounces of gold in a JORC
compliant resource calculation.

"Rio Tinto is one of the largest mining companies in the world with interests
spanning aluminium, copper, diamonds, iron ore, coal, uranium, gold and
industrial minerals. Rio Tinto Diamonds is the third largest supplier of
diamonds in the world with diamond production ranging from the unique pink
diamonds of the Argyle mine in Australia to the spectacular whites of Diavik's
high value gemstones in Canada.

"Overall, the year has been one in which Karelian again moved forward and with
the data from Rio Tinto we can quickly and cost effectively build further upon
the encouraging work which has been done to date. The Board views the future
with increasing optimism and we look forward to continuing to progress towards
our objective of making a world class diamond discovery in Finland comparable
to those made across the border in Russia."

Further Information:

Professor Richard Conroy, Chairman, Karelian Diamond    Tel: [phone]
Resources plc                                                               
                                                                            
Simon Clements/Virginia Bull, Merchant Securities       Tel:                
Limited (Nomad)                                         [phone]    
                                                                            
John Tuite, IBI Corporate Finance Limited (ESM Adviser) Tel: [phone]
                                                                            
John Grant/ Karen Kelly/ David Lawman, XCAP Securities  Tel: [phone]    
PLC (Broker)                                            7070                
                                                                            
Michael Padley/Michael Spriggs, Lothbury Financial      Tel:                
Services                                                [phone]    
                                                                            
Don Hall, Hall Communications                           Tel: [phone]

http://www.kareliandiamondresources.com