Exploration Permit Granted

Karelian Diamond Resources plc

(“Karelian Diamonds” or “the Company”)

27 October 2017

DIAMOND EXPLORATION PERMIT GRANTED / PROPOSED DATE OF AGM

• Diamond Exploration Permit Granted in Kuhmo Region of Finland

• Exploration Permit Over Area which May Contain the Source of Green Diamond Discovery

• 21 December 2017 Set as Proposed Date of Annual General Meeting

Karelian Diamond Resources plc (“Karelian Diamonds”) (AIM: KDR, ESM: KDRI), is pleased to announce that it has been informed that TUKES (The Finnish Mining Authority) has granted Karelian Diamonds an exploration permit in the Kuhmo region of Finland.

The permit covers an area of 601.68 ha surrounding the location where the Company discovered a diamond in till (31 January 2017). The permit has been granted for a period of four years. An exploration permit provides the holder with an exclusive right to apply for a mining permit.

The Company also announces that 21 December 2017 has been set as the proposed date of its Annual General Meeting. A notice convening the Annual General Meeting will be posted to shareholders in due course.

Professor Richard Conroy, Chairman, Karelian Diamond Resources plc commented:

“I am very pleased that we have been granted an exploration permit surrounding the location of our significant discovery of a green diamond and look forward to continued results from the Company’s exploration programme in the region.”

Further Information:

Professor Richard Conroy, Chairman, Karelian Diamond Resources plc	Tel: [phone]
Virginia Bull / James Thomas / Nick Harriss, Allenby Capital Limited (Nomad)	Tel: [phone]
Ger Heffernan / Jan Fitzell, IBI Corporate Finance Limited (ESM Adviser)	Tel: [phone]
Jon Belliss / Elliot Hance, Beaufort Securities Limited (Broker)	Tel: [phone]
Michael Padley, Lothbury Financial Services Limited	Tel: [phone]
Don Hall, Hall Communications	Tel: [phone]

www.kareliandiamondresources.com