Analysis of Kimberlite boulder in Lahtojoki south

Karelian Diamond Resources plc

(“Karelian Diamonds” or “the Company”)

6 October 2021

RESULTS OF ANALYSIS OF KIMBERLITE BOULDER IN LAHTOJOKI SOUTH

• Microprobe analyses of thin sections of kimberlite boulder indicates potential for the presence of diamonds

• Analysis of grains from the boulder indicates good potential diamond survival

• The results are further confirmation that the kimberlite boulder does not come from the Lahtojoki Diamond deposit

Karelian Diamond Resources plc (AIM: KDR) is pleased to announce that results from analysis undertaken by the Geological Survey of Finland (the “GTK”) of thin sections from a kimberlite boulder recovered from the Company’s Lahtojoki South exploration area (announced by the Company on 5 March 2021) indicate potential for the presence of diamonds from the kimberlite source.

Four polished thin sections were made from the kimberlite boulder by a specialist laboratory in Canada, Vancouver Petrographics. Scanning electron microscope (“SEM”) and electronic probe micro analyser (“EPMA”) analyses of the thin sections were undertaken by the GTK.

The data demonstrates that the kimberlite has sampled eclogitic and perridotitic rocks that are known to be diamondiferous in other kimberlites from the area.

The GTK report also states that the compositional data of picroilmenite grains from the boulder are “outstanding” and “an important indicator for good potential diamond survival”.

Pressure and temperature data indicate that the kimberlite has sampled within the diamond stability field.

The GTK report also highlights that chromites, which are relatively rare in the Lahtojoki kimberlite diamond deposit, appear to be more common in the boulder and is therefore further confirmation that the boulder does not derive from the Lahtojoki deposit. The report further noted that garnets, with high chromium oxide “wehrlite” compositions, which are not seen in the Lahtojoki kimberlite, are present.

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 and 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 of Karelian Diamond Resources plc, commented:

“The results from the GTK report, which has been commissioned by Karelian, further confirm that the boulder is not from the Lahtojoki deposit and also that the source of the boulder has excellent potential for diamonds being present. This increases the possibility of there being additional diamond potential in the Lahtojoki South exploration area.”

Further Information:

Karelian Diamond Resources plc Professor Richard Conroy, Chairman	[phone]
Allenby Capital Limited (Nomad) Nick Athanas / Nick Harriss	[phone]
First Equity Limited (Broker) Jason Robertson	[phone]
Lothbury Financial Services Michael Padley	[phone]
Hall Communications Don Hall	[phone]

http://www.kareliandiamondresources.com