Final Results

13 November 2013

                                                                               
                        Karelian Diamond Resources Plc                         

                           ("KDR" or the "Company")                            

                 Final results for the year ended 31 May 2013                  

                 Excellent Results from all Three Target Sites                 

Karelian (AIM: KDR, ESM: KDRI), the diamond exploration company focused on
Finland, announces its results for the year ended 31 May 2013, a year in which
the exploration programme continued to show highly encouraging progress.

Highlights:

  * Further microdiamonds have been recovered at the Seitaperä kimberlite pipe
   
  * 
      + two of the micro-diamonds greater than 60 per cent broken, indicating
        the possibility of larger stone sizes
       
  * Excellent results at the exploration target Riihivaara
   
  * 
      + discovery of G9 and G10 diamondiferous indicator minerals
       
  * New claim applications at Kuusamo following positive test results
   
  * 
      + two areas applied for following results and interrogation of Rio Tinto
        data
       
  * Other targets identified
   
Professor Richard Conroy, Chairman, stated:

"The Rio Tinto data is proving very useful in identifying new targets and in
confirming existing analysis."

"Recent drilling of further potentially diamond bearing mantle xenolith at
Seitaperä, subsequently confirmed as diamondiferous by the recovery of
microdiamonds, and the results from elsewhere is very heartening."

Further Information:

Professor Richard Conroy, Chairman, Karelian       Tel: [phone]        
Diamond Resources plc                                                          
                                                                               
Simon Clements/Virginia Bull, Sanlam Securities UK Tel: [phone]       
Limited (Nomad)                                                                
                                                                               
Ger Heffernan, IBI Corporate Finance Limited (ESM  Tel: [phone]        
Adviser)                                                                       
                                                                               
Jon Belliss/ David Lawman, XCAP Securities PLC     Tel: [phone]       
(Broker)                                                                       
                                                                               
Michael Padley/Michael Spriggs, Lothbury Financial Tel: [phone]       
Services Limited                                                               
                                                                               
Don Hall, Hall Communications                      Tel: [phone]        

                    http://www.kareliandiamondresources.com                    

CHAIRMAN'S STATEMENT

I have pleasure in presenting your Company's Annual Report and Financial
Statements for the year ended 31 May 2013. During the year further highly
encouraging progress has been made towards achieving your Company's objective
of discovering a world class diamond deposit in Finland comparable to those
which have been found in similar geology in Russia. Further microdiamonds have
been recovered at your Company's Seitaperä kimberlite pipe, excellent results
have been achieved at your Company's exploration target Riihivaara, and
positive results at Kuusamo have led to new claim applications.

Seitaperä

Your Company has shown that the diamondiferous kimberlite pipe located at
Seitaperä is, at 6.9 hectares, the largest known diamondiferous kimberlite pipe
in Finland. The identification during recent drilling of further potentially
diamond bearing mantle xenolith, subsequently confirmed as diamondiferous by
the recovery of microdiamonds, is highly encouraging. The micro-diamonds
observed were white in colour, transparent and octahedral. Two of the
micro-diamonds, including the largest stone, were greater than 60 per cent
broken indicating the possibility of larger stone sizes.

Riihivaara

At Riihivaara, a till sampling programme resulted in the discovery of G9 and
G10 diamondiferous indicator minerals - so called because they are formed
within the ultramafic rocks underlying the earth's crust at the same
temperatures and pressures as diamonds. G3 and G4 garnets were also found,
suggesting the presence of eclogitic mantle material which is significant as it
tends to be associated with higher grades of diamonds.

The Riihivaara claim reservation lies approximately 10km southeast of the
Company's Seitaperä kimberlite target. A claim reservation gives exclusive
rights to apply for exploration claims within the reservation area. Your
Company's Riihivaara exploration target is in the Kuhmo municipality in Eastern
Finland and is bordered to the east by Russia.

Kuusamo

Interrogation of airborne geophysics by the Company together with till sampling
and integration of data made available to Karelian under its agreement with Rio
Tinto Mining and Exploration has led to the decision to apply for claim
reservations over two areas in the Kuusamo region. Kuusamo is located in the
Northeast of Finland just south of the Arctic Circle and is also bordered to
the East by Russia. In the first area at Kuusamo, 121 kimberlitic indicator
minerals were recovered, with 76 kimberlitic indicator minerals recovered in
the second area, which are very positive. Further studies including microprobe
analysis confirmed that the kimberlitic indicator minerals in both areas were
also indicating diamondiferous potential.

The possibility of new discoveries in the Kuusamo area complements the positive
results at your Company's Riihivaara target area and the confirmation of the
diamondiferous nature of the Seitaperä kimberlite pipe. Other targets in the
Kuhmo area include the Havukkasuo and Lentiira kimberlite pipes.

Agreement with Rio Tinto

The agreement with Rio Tinto has led to further highly encouraging progress.
Under the agreement, Rio Tinto discloses to Karelian confidential information
and physical geological samples relating to exploration in Finland for the
purpose of Karelian considering that information in relation to Karelian's
potential and existing exploration programmes in Finland.

In consideration of Rio Tinto disclosing the confidential information to it,
Karelian has agreed that Rio Tinto will have the option to earn a 51 per cent.
interest in any project identified by Karelian in Finland by Rio Tinto paying
the direct cash expenditures incurred in developing the project subject to the
following conditions:

1. For diamond projects the option will be triggered if Karelian completes 10
tonnes or more of bulk sampling for diamond exploration; and

2. For all other minerals the option will be triggered if Karelian discovers a
resource with an in situ value that is equal to or greater than the in situ
value of 3 million ounces of gold in a JORC compliant resource calculation.

Finance

The loss after taxation for the year ended 31 May 2013 was €179,995 (2012: €
207,980) and the net assets as at 31 May 2013 were €4,422,130 (2012: €
4,526,967).

As in previous years, I have supported the working capital requirements of the
Company and the balance of the loans due to me at the period end was €
1,221,975. The loans have been made on normal commercial terms.

The other Directors consider, having consulted with the Company's Nominated
Adviser and the Company's ESM Adviser, that the terms of these loans are fair
and reasonable in so far as the Company's shareholders are concerned.

Auditors

I would like to take the opportunity to thank the partners and staff of
Deloitte and Touche for their services to your Company during the course of the
year.

Directors, Consultants and Staff

I would also like to express my deep appreciation of the support and dedication
of the directors, consultants and staff, which has made possible the continued
progress which your Company has achieved.

Future Outlook

Your Company has made significant progress in its diamond exploration programme
in Finland and looks forward to building on these achievements.

Professor Richard Conroy

Chairman

12 November 2013

INCOME STATEMENT

FOR THE YEAR ENDED 31 MAY 2013

                                                             2013          2012
                                                                €             €
                                                                               
Operating expenses                                      (165,604)     (194,582)
                                                                               
Finance income - bank interest receivable                       -            97
                                                                               
Finance costs - Interest on shareholder loan             (14,351)      (13,495)
                                                                               
Loss Before Taxation                                    (179,955)     (207,980)
                                                                               
Taxation                                                        -             -
                                                                               
Loss RETAINED for the year                              (179,955)     (207,980)
                                                                               
Loss per ordinary share                                 (€0.0019)     (€0.0023)

STATEMENT OF FINANCIAL POSITION

AS AT 31 MAY 2013

                                                             2013          2012
                                                                €             €
                                                                               
Assets                                                                         
                                                                               
Non-current Assets                                                             
                                                                               
Intangible assets                                       6,801,539     6,390,694
                                                                               
Investment in subsidiaries                                      4             4
                                                                               
Property, plant and equipment                                 333           501
                                                                               
                                                        6,801,876     6,391,199
                                                                               
Current Assets                                                                 
                                                                               
Trade and other receivables                                11,691        47,382
                                                                               
Cash and cash equivalents                                   2,506        10,054
                                                                               
                                                           14,197        57,436
                                                                               
Total assets                                            6,816,073     6,448,635
                                                                               
Equity and Liabilities                                                         
                                                                               
Capital and reserves                                                           
                                                                               
Called up share capital                                   922,083       922,083
                                                                               
Share premium                                           4,621,158     4,621,158
                                                                               
Share based payments reserve                              450,157       375,039
                                                                               
Retained earnings                                     (1,571,268)   (1,391,313)
                                                                               
Total equity                                            4,422,130     4,526,967
                                                                               
Non-current liabilities                                                        
                                                                               
Financial liabilities                                   1,171,968     1,007,214
                                                                               
Total non-current liabilities                           1,171,968     1,007,214
                                                                               
Current liabilities                                                            
                                                                               
Trade and other payables                                1,221,975       914,454
                                                                               
Total Current Liabilities                               1,221,975       914,454
                                                                               
Total Liabilities                                       2,393,943     1,921,668
                                                                               
Total Equity and Liabilities                            6,816,073     6,448,635

Cash Flow Statement

For the Year Ended 31 May 2013

                                                             2013          2012
                                                                €             €
                                                                               
Cash used in operations                                  (50,768)      (58,631)
                                                                               
Tax paid                                                        -             -
                                                                               
Net cash used in operating activities                    (50,768)      (58,631)
                                                                               
Cash flows from investing activities                                           
                                                                               
Investment in exploration and evaluation assets         (292,105)     (509,687)
                                                                               
Net cash used in investing activities                   (292,105)     (509,687)
                                                                               
Cash flows from financing activities                                           
                                                                               
Increase in accrued director's remuneration               242,325             -
                                                                               
(Repayment)/Advances of Shareholder loans                  93,000     (125,000)
                                                                               
Interest paid                                                   -      (42,633)
                                                                               
Interest received                                               -            97
                                                                               
Net cash generated from financing activities              335,325     (167,536)
                                                                               
(Decrease)/Increase in cash and cash equivalents          (7,548)     (735,854)
                                                                               
Cash and cash equivalents at beginning of year             10,054       745,908
                                                                               
Cash and cash equivalents at end of year                    2,506        10,054

Notes to the Financial Statements

1. Publication of non-statutory accounts

The financial information set out in this preliminary announcement is
abbreviated from the accounts as defined in Section 19 of the Companies
(Amendment) Act 1986.

The financial information for the year ended 31 May 2013 have been extracted
from the Company's financial statements to that date which have received an
unqualified auditors' report but have not yet been delivered to the Registrar
of Companies.

2. Earnings per share

The calculation of the loss per share of €0.0019 (2012 - €0.0023) is based on
the loss for the financial year of €179,955 (2012 - €207,980) and the weighted
average number of ordinary shares in issue on a basic and fully diluted basis
during the year of 92,208,342 (2012 - 92,208,342).

The effect of share options and warrants is anti-dilutive.

3. Dividends

No dividends were paid or are proposed in respect of the year ended 31 May
2013.

4. Copies of Accounts

A copy of the Annual Report and Financial Statements will be available on the
Company's website www.kareliandiamondresources.com and will be available from
the Company's registered office, 10 Upper Pembroke Street, Dublin 2. It will
also be forwarded to shareholders who requested a hard copy. Notice of the
Annual General Meeting to be held on 9 December 2013 and Proxy Form was sent to
shareholders on 13 November 2013 and are also available on the website.