Licence Award

10 November 2010

KARELIAN DIAMOND RESOURCES PLC

AWARDED TWO DIAMOND LICENCES AT KUHMO IN FINLAND

  * Licences cover known Kimberlite bodies to the North of Seitaperä 
    Diamondiferous Pipe
   
  * Reassessment of area is justified in view of consistently good geochemistry
    and diamondiferous results at Seitaperä
   
Karelian Diamond Resources plc ("Karelian") (AIM:KDR, ESM: KDRI), is pleased to
announce that the Company has been awarded licences over two kimberlite bodies
in the Kuhmo area of Eastern Finland.

The claims cover kimberlite occurrences at Havukkasuo (Kimberlite 18) and
Lentiira (Kimberlite 24) to the north of the Seitaperä kimberlite pipe where
the Company has shown a significant increase in size and increased diamond
potential.

Work has been carried out by previous operators on these kimberlites including
seventeen drill holes in Havukkasuo (340 metres), five of which are reported as
intersecting kimberlite and twelve into Lentiira (182 metres), eleven of which
intersected kimberlite.

However, in view of the positive results obtained by the Company on the
Seitaperä kimberlite and the overall prospectivity of the Kuhmo area which has
demonstrated consistently good mineral chemistry the Board believes that a
reassessment of these known kimberlites is merited.

Karelian Chairman, Professor Richard Conroy commented:

"I am delighted with the award of these licences and look forward to the
results of our work on them. The Company's objective remains to make a major
diamond discovery in Finland comparable to the world class discoveries already
made on the Russian side of the structure."

Further Information:

Professor Richard Conroy, Chairman, Karelian       Tel: [phone]        
Diamond Resources plc                                                          
                                                                               
Simon Clements/Virginia Bull, Merchant Securities  Tel: [phone]       
Limited (Nomad)                                                                
                                                                               
John Tuite, IBI Corporate Finance Limited (ESM     Tel [phone]         
Adviser)                                                                       
                                                                               
Charles Dampney, City Capital Corporation Limited  Tel: [phone]       
(Broker)                                                                       
                                                                               
Michael Padley/Michael Spriggs, Lothbury Financial Tel: [phone]       
Services Limited                                                               
                                                                               
Don Hall, Hall Communications                      Tel: [phone]        

http://www.kareliandiamondresources.com