Award of Licences

16 JANUARY 2007

                 KARELIAN AWARDED ADDITIONAL DIAMOND LICENCES                  

                              IN EASTERN FINLAND                               

  * Successful applications following release of sampling data by Geological
    Survey of Finland ("GTK")
   
  * Indicator minerals recovered from basal till samples
   
  * New ground will augment Company's existing Finnish diamond claims
   
Karelian Diamond Resources plc (AIM:KDR), which is exploring for diamonds in
the Karelian Craton of Finland, is pleased to announce that it has been awarded
all 41 claim reservations for which it had applied to augment the diamond
claims already held by the company. The applications followed detailed analysis
of the recent release of data by the GTK from an extensive sampling programme
carried out by them in an area of eastern Finland where there is no current
ongoing diamond exploration but in which Karelian has carried out some regional
exploration.

The programme comprised nearly 500 roadside sites from which samples, mostly
representing basal tills, were collected by an excavator. The sampling data,
made available by the GTK on 15 October 2006, includes the reported recovery of
G9 and G10 pyrope garnet diamond indicator minerals, as well as large
quantities of chromite grains.

Commenting today, Karelian chairman, Professor Richard Conroy, said: "We are
delighted to have been awarded these new claim reservations over ground which
complements our existing diamond claims in Finland. The GTK sampling data
clearly shows that the new ground has potential to host diamond deposits and
will form an integral part of our ongoing exploration strategy."

Prior to the award of the new claim reservations, Karelian held 42 diamond
claims in Finland, grouped geographically into four blocks. The largest block,
Kuhmo, comprises 33 claims which cover the known diamondiferous pipe at
Seitapera and 16 other mineral indicator anomalies identified by the company's
till sampling programmes.

The company believes that Finland has the potential to host world-class diamond
deposits similar to those already discovered in the Russian sector of the
Karelian Craton.

This release has been approved by the Company's technical staff who include,
Kevin McNulty, who holds a BSc/MSc in Geology and Remote Sensing, 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 Conroy Diamonds and Gold Plc. Tel:
00-353-1-661-8958

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

Charles Dampney, City Capital Securities Ltd. Tel: [phone]

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

Karelian Share Price