Diamond Exploration Update

04 September 2014

                          Diamond Exploration Update                           

  * Extensive Till Sampling Completed in Three Target Regions
   
  * Kimberlite Indicator Minerals Processing Underway
   
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Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDRI), the diamond
exploration company focused on Finland, is pleased to announce the completion
of an extensive till sampling programme on three of the Company's diamond
target regions in Finland - Kuhmo, Kuusamo and Kuopio - Kaavi.

The samples have now been dispatched for laboratory analysis. The targets
sampled included the Riihivaara target in the Kuhmo region where the Company
has previously identified positive G9 and G10 diamond indicator minerals and is
seeking to define the origin of these indicator minerals. Karelian's diamond
exploration programme in this region has at Seitaperä already delineated the
largest (6.9 hectare) known diamondiferous kimberlite in Finland.

Other sampling in the Kuhmo region included sampling at Havukkasuo which lies
to the immediate north of Seitaperä.

Samples have also been collected in the newly granted diamond exploration claim
reservations in the Kuusamo and Kuopio - Kaavi regions.

The sampling programme was carried out on behalf of the Company by the Finnish
Geological Survey (GTK).

Professor Richard Conroy, Chairman commented:

"I am delighted that further progress has been madeat several sites, especially
atthe Riihivaara targetwhere we already havepositive G9 and G10 indicator
minerals present. We have also initiated work on our newly granted diamond
exploration claim reservations in the Kuusamo and Kuopio - Kaaviregions."

Further Information:

Professor Richard Conroy, Chairman, 
Karelian Diamond Resources plc                               Tel: [phone]        
                                                                               
Virginia Bull / Simon Clements, 
Sanlam Securities UK Limited (Nomad)                         Tel: [phone]       
                                                                               
Ger Heffernan, 
IBI Corporate Finance Limited (ESM Adviser)                  Tel: [phone]        
                                                                               
Jon Belliss/Abigail Wayne, 
Hume Securities PLC (Broker)                                 Tel: [phone]       
                                                                               
Michael Padley, 
Lothbury Financial Services Limited                          Tel: [phone]       

Don Hall, Hall Communications                                Tel: [phone]        

http://www.kareliandiamondresources.com