Drilling Report

28 NOVEMBER 2007

                        Karelian Diamond Resources plc                         

                         ("Karelian" or "the Company")                         

 KARELIAN PROJECTS POSSIBLE INCREASE IN SURFACE AREA OF SEITAPERÄA KIMBERLITE  
                             PIPE TO 6.9 HECTARES                              

  * Zones With Potentially Diamond-Bearing Mantle Material Encountered
   
  * Significant Pipe Extension Confirmed To The South-West
   
  * Largest Known Kimberlite Pipe In Finland Is 620m Long And 40m-160m Wide
   
Karelian Diamond Resources plc (AIM: KDR) is pleased to announce completion of
a four-hole drilling programme on the Seitaperä kimberlite pipe in the Kuhmo
region of Finland which was designed to delineate the pipe boundaries at depth
in the central and south-western areas. Kimberlite material was intersected in
224.8m of the 294.3m drilled.

Combined with previous Company drilling results (two holes for 172.8m of which
103.9m intersected kimberlite) and re-logging of archive core held by the
Geological Survey of Finland (nine holes for 221.5m - all in kimberlite),
drilling at Seitaperä has now yielded total kimberlite intersections of 550m,
including five wall rock contacts at depths between 45.9m and 76.6m depth
(average 52.7m).

Based on the above, the Company has calculated the minimum area of the pipe to
be 5.22ha at 50m depth. Its total strike length exceeds 620m and pipe width
varies between 40m and 160m (average 90m). When recent surface mapping and
recent and past surface trenching (12 trenches into surface kimberlite) are
included and taking into account associated kimberlite dykes and a probable
pipe extension to the south-west into Lake Kylmälahti, a surface expression of
up to 6.9ha is possible for Seitaperä. This would represent an increase of 65
per cent over the previous size estimate of 4.2ha which itself was the largest
known diamondiferous kimberlite in Finland.

Drill hole SP4 (101.8m of which 85.0m in kimberlite) intersected a significant
zone (+20m) of kimberlite carrying abundant garnet-peridotite xenoliths. This
potentially diamond-bearing mantle material represents between 20 per cent and
40 per cent of the total core. Evaluation of this material will include a
mineral chemistry study of the pyrope garnets and other diamond indicator
minerals present, to determine diamond-bearing potential. If the results are
sufficiently positive, this will be followed by large diameter drilling of this
zone to extract sufficient material for micro-diamond analysis.

This release has been approved by the Company's technical staff who include;
Stephen Grimmer, 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 Info: Professor Richard Conroy, Chairman Karelian Diamond Resources
plc. Tel: [phone]

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

Jeffrey Coburn/Simon Fox, John East & Partners Limited Tel: [phone]

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

Karelian Share Price