Drilling Target Revealed in Green Diamond Target

24 January 2025

Description: Description: Karelian

Karelian Diamond Resources PLC

("Karelian" or "the Company")

HIGH PRIORITY DRILLING TARGET REVEALED BY GEOPHYSICAL INTERPRETATION OF UAV ELECTROMAGNETIC SURVEY DATA IN GREEN DIAMOND TARGET AREA

Semi-airborne UAV-based electromagnetic field survey completed and data processed over the green diamond target area
Two diatreme-shaped electromagnetic anomalies identified up-ice of the existing Kimberlite Indicator Mineral fan

Karelian Diamond Resources PLC (AIM: KDR) is pleased to announce that a semi-airborne unmanned aerial vehicle ("UAV") based detailed electromagnetic ("EM") survey has been conducted and the EM data has been processed by Radai Oy, on behalf of Karelian, over the Company's green diamond target area in the Kuhmo region of Eastern Finland. A UAV-based EM survey is a geophysical method used to map the electrical conductivity of the subsurface.

The geophysical interpretation of electromagnetic data has identified two diatreme-shaped anomalies that could represent the kimberlitic source of the green diamond (and the indicator mineral fan) that is the focus of the Company's exploration in the area. The anomalies are up-ice of the two highly anomalous basal till sample locations documented in the pitting programme carried out in 2023 (announced by the Company on 19 December 2023) and the green diamond previously discovered in till by the Company (as announced by the Company on 31 January 2017).

The 3D resistivity mesh model obtained from the inversion of the EM data, from three layers (at the depths of 10 metres, 60 metres and 110 metres below the surface), reveal a weak (resistivity > 300-1000 m) but confined pipe-like conductivity anomaly, located to the northwest of the Company's existing Kimberlite Indicator Mineral ("KIM") fan. At increasing depths, another smaller conductivity anomaly appears close to the former.

Weak electromagnetic anomalies are typically related to certain zones of kimberlites or lamproites which can be highly weathered into clay minerals at the surface. Combined with the Company's existing high resolution magnetic data, there is a negative magnetic anomaly overlapping with the main EM anomaly of the 3D resistivity model. The Company is classifying the resultant target as a high priority for drilling and has incorporated the testing of this target into its plans for 2025.

The semi-airborne EM survey was carried out using specialised measurement equipment created by Radai Oy, attached to a UAV. In this specialised EM measurement system, the aerial device tows an EM receiver approximately 30 metres behind it. The receiver, together with a transmitter located on the ground, is capable of measuring the electrical conductivity of the ground and bedrock.

The EM survey was flown on a Northeast-Southwest orientation with 38 flight lines at 50 metres spacing and 5 Northwest-Southeast tie-lines 500 metres apart at a height of circa 40 metres. The survey comprised 70 line-kilometres, covering an area of 3 km2. The survey was made using multiple transmitter loop locations, making the total length of flights over 600 kilometres.

Maureen Jones, Managing Director of Karelian, commented:

"We are delighted that this new innovative UAV geophysical survey has been so successful in the identification of a diatreme shape kimberlite target and possible source of the green diamond. This kimberlite target is further supported by the kimberlite indicator mineral fan, making it a very exciting and high priority drilling target. We look forward to progressing our exploration programmes both in Northern Ireland and Finland in addition to moving the Lahtojoki mining project forward as it moves to the next phase."

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