AGM Statement

14 November 2005

                    Karelian Diamond Resources Plc ('KDR')                     

                                 AGM Statement                                 

KDR finds kimberlitic material in preliminary trenching on Kuhno Diamond claims

At the Annual General Meeting of KDR, to be held at the Westbury Hotel, Grafton
Street, Dublin 2 at 12 noon today, Professor Richard Conroy, the Chairman of
KDR, will make the following statement:

'I am pleased to announce that kimberlitic material has been intersected during
a preliminary trenching programme on its diamond exploration acreage in the
Finnish sector of the Karelian Craton.

A previously reported heavy mineral survey near the city of Kuhmo in Eastern
Finland, undertaken on behalf of KDR by the diamond research facility of the
Geological Survey of Finland (GTK), produced a number of kimberlitic indicator
mineral anomalies in well-defined fans. A detailed ground magnetic survey
covering the source area of one of the most interesting fans was completed
during the autumn. This identified a number of targets which are of interest
because their position suggests they could represent the source of the
indicator minerals recovered.

Follow-up of these targets has begun with a trenching programme designed to
expose bedrock in an attempt to explain the observed magnetic anomalies. This
work is also being carried out by the GTK. At the same time, additional basal
till samples have been collected to further evaluate the diamond prospectivity
of the potential drilling targets.

The first phase of the trenching programme is nearing completion and results to
date are encouraging. One of the four trenches contains what is believed to be
narrow anastomosing dikelets of kimberlitic material at the edges of an 8m wide
'hole' in the bedrock surface caused by differential glacial scouring of
weathered, soft material. Two other trenches also revealed similar 'holes' in
the bedrock which are further examples of preferential glacial removal of
intensely altered rock types.

The bedrock surface in these 'holes' is too deep for the excavator to reach,
but information gained from the trenching has considerably improved the
selection of drill sites to test for the presence of wider kimberlite bodies.
Drilling of a selection of the best targets will commence as soon as a rig
becomes available this winter and field conditions permit.

KDR believes the Finnish sector of the Karelian Craton, given its size and
potential, is under-explored and, by analogy with the Russian side, has the
potential to host world-class diamond deposits.

This is an excellent start to find kimberlitic material at such an early stage
of trenching and I'm delighted'

Further Information:

Professor Richard Conroy, Chairman Karelian Diamond Resources plc. Tel:
[phone]

Charles Dampney, City Capital Securities Limited. Tel: [phone]

Jeffrey Coburn, John East & Partners Limited .Tel: [phone]

Ron Marshman/John Greenhalgh, City of London PR Limited. Tel: [phone]