Delineation drilling commenced at Seitapera Pipe

15 September 2008

                        Karelian Diamond Resources plc                         
                ("Karelian Diamond Resources" or the "Company")                

          DELINEATION DRILLING COMMENCED AT SEITAPERÄ KIMBERLITE PIPE          

  * 1,000 metres of drilling planned in 7+ hole programme
   
  * Drilling will extract approximately 500kg of samples for micro-diamond a
    nalysis
   
  * Work to concentrate on delineating the central portion of the kimberlite p
    ipe where previous high micro-diamond counts were obtained
   
Karelian Diamond Resources plc (AIM:KDR), the AIM-listed diamond exploration
company focussed on Finland, is pleased to announce commencement of an
exhaustive delineation drilling programme on its Seitaperä kimberlite. The
drilling is intended to accurately delineate the central portion of the
kimberlite pipe, which has previously yielded (as announced on 8 July 2008) a
high micro-diamond count (67 diamonds from 100kg including six macro-diamonds
with one dimension greater than 0.5mm) from a single 100kg sample. Drilling is
being undertaken by the GTK, Geological Survey of Finland, and is being
supervised on-site by the Company.

In total, approximately 1,000 metres of drilling is planned at seven or more
locations. The objective is to thoroughly test the shape of the pipe and the
extent of the diamond-bearing kimberlite facies on a nominal 25 metre line
spacing to a depth of approximately 100 metres. This drilling is also intended
to provide approximately 500kg of representative sample material, distributed
throughout the central portion of the kimberlite, for additional micro-diamond
analysis.

This will give a sufficient population of micro- and macro-diamonds to enable
statistically reliable grade modelling to be undertaken from the diamond
population size distribution statistics. At the same time the Company will use
the lithological data from the extracted core to plan a large diameter bulk
sampling programme (anticipated at 500 tonnes or more) in the event that the
modelled grade data warrants such a programme.

Samples will be sent to SGS Lakefield Research Ltd in Canada for micro-diamond
analysis on completion of the drilling, provisionally intended to be in early
October 2008. A further announcement setting out the results of this testing
will be made in due course.

Professor Richard Conroy, Chairman of Karelian, commented:

"Our work on the Seitaperä kimberlite continues to forge ahead. We are now
moving from the exploration phase into the evaluation phase following the
encouraging results from the central portion of the kimberlite obtained
previously. This drill programme will hopefully confirm and expand on these
initial positive results and enable grade modelling to commence."

This release has been approved by Dr. Stephen Grimmer of the Company's
technical staff, who holds a PhD in Geochemistry/MSc in Exploration Geology, 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.

Further Information:

Professor Richard Conroy, Chairman Karelian Diamond Resources plc Tel: +
353-1-661-8958

Charles Dampney, City Capital Corporation Limited Tel: + 44-20-7842-5867

Jeffrey Coburn/Virginia Bull, John East & Partners Limited Tel: +
44-20-7628-2200

Ron Marshman/Michael Padley, Lothbury Financial Tel: + 44-20-7011-9411

http://www.kareliandiamondresources.com