Micro-diamond sampling results

8 July 2008

                        Karelian Diamond Resources plc                         

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

               MICRO-DIAMOND RESULTS PROVIDE CONCLUSIVE EVIDENCE               

               THAT SEITAPERÄ KIMBERLITE PIPE IS DIAMONDIFEROUS                

  * 67 diamonds recovered from 100 kg Seitaperä kimberlite sample
   
  * Diamond population includes 61 micro-diamonds and six macro-diamonds
   
  * Stones show good colour characteristics and high level of preservation
   
  * Good access and infrastructure enhance overall status of project
   
Karelian Diamond Resources (AIM:KDR) is pleased to announce highly positive
results from micro-diamond analysis of the 100 kg sample from its Seitaperä
kimberlite in Finland. In total 67 diamonds were discovered in the sample, of
which 61 were micro-diamonds and the remainder were macro-diamonds, the largest
of which measured 0.63 mm by 0.48 mm by 0.38 mm. The analysis was carried out
by SGS Lakefield Research Limited ("SGS-Lakefield") in Canada.

The diamond colour is largely white (42 per cent) or off-white (52 per cent)
with the remainder grey. In addition, the micro-diamonds exhibit high levels of
preservation, greater than 75 per cent in the case of 91 per cent of the
diamonds measured.

The material analysed consisted of 100.20 kg of drill core taken from holes
SP10 & SP10A which were drilled in March 2008. This material contained zones of
up to 50 per cent mantle xenoliths, but the overall content of mantle material
in the sample was estimated at about 20 per cent. Micro-diamond counts from the
mantle-rich intersections alone could potentially be significantly higher.

The micro-diamond size distribution is shown in the table below:

Size Fraction        No. of Stones  
                                    
+300 µm*                   7        
                                    
+212 -299 µm*              4        
                                    
+150 -211 µm*              28       
                                    
+105 -149 µm*              28       
                                    
                                    
                                    
Total                      67       
                                    
*1000 µm = 1 millimetre             

The total diamond population included six macro-diamonds, defined as crystals
with one dimension in excess of 0.5 mm (500 µm). Details of the macro-diamonds
are shown below:

 Stone #    X (mm)      Y (mm)      Z (mm)  
                                            
    1        0.63        0.48        0.38   
                                            
    2        0.57        0.43        0.38   
                                            
    3        0.54        0.48        0.33   
                                            
    4        0.60        0.43        0.29   
                                            
    5        0.68        0.43        0.22   
                                            
    6        0.54        0.37        0.29   

The Company is currently awaiting the physical receipt of the recovered
diamonds from SGS-Lakefield and will then undertake a preliminary statistical
evaluation of the stones.

A future drilling programme with the objective of expanding the currently
inferred boundaries of the diamondiferous kimberlite facies is now being
planned.

Professor Richard Conroy, Chairman of Karelian, commented: "This is a very
positive result which, together with the previously announced favourable
mineral chemistry, provides conclusive evidence that the Seitaperä kimberlite
pipe is diamondiferous. The preliminary diamond potential of a kimberlite is
often expressed in terms of the number of micro-diamond crystals per kilogram
of kimberlite: on this basis, the Seitaperä kimberlite compares well with many
recent discoveries world-wide. Given our project's attractive location in terms
of access and infrastructure, and its significant surface area of 6.9 ha, such
a high micro-diamond count is very encouraging".

This release has been approved by Dr Stephen Grimmer, who is a member 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/John Greenhalgh/Michael Padley, Lothbury Financial Tel: +
44-20-7011-9411

http://www.kareliandiamondresources.com