Results from Seitapera drilling

3 October 2011

                        KARELIAN DIAMOND RESOURCES PLC

                        Results from Seitaperä drilling                        

  * New large (52 metre) zone of potentially diamond bearing mantle xenoliths
    in kimberliteidentified
   
  * Kimberlite intersected in all fivedrill holes
   
  * Scope and extent ofSeitaperädiamondiferous kimberlite pipe further
    delineated
   
Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDRI) is pleased to
announce the results of its summer drilling programme on its 6.9 hectare
diamondiferous Seitaperä pipe in Eastern Finland. Kimberlite was encountered in
all five holes drilled and a new large (52 metre) zone of mantle bearing
kimberlite intersected.

The new zone is particularly significant in that many of the diamonds
previously encountered in the Seitaperä pipe were also in mantle xenolith
material. Such material can contain high diamond counts as it is derived from
the earth's mantle where diamonds are formed.

It is approximately 120 metres from where mantle xenolith material was
previously encountered and is in a mica rich brown kimberlite whereas the
previous zone was black serpentinized kimberlite. There are also a number of
sections in the hole that had olivine xenocrysts present in the core which are
also derived from the diamond forming mantle.

The drill holes were all angled holes. They were drilled to a vertical depth of
between 85 and 150 metres. The combined kimberlite intersection from the five
holes was approximately 250 metres of kimberlite and approximately 41 metres of
kimberlite breccia. The drilling programme has added substantial further
information on the scope and extent of this large diamondiferous pipe in the
Company's licence area in Eastern Finland.

This release has been approved by Kevin McNulty PGeo, who is a member of the
Company's technical staff, 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.

Professor Richard Conroy, Chairman commented:

"We arevery pleased with theresults of thelatest drilling,particularlythe
discovery of a new mantle xenolith zoneadjacent to the previous mantle xenolith
zonewhichyielded 67 diamonds, sixof which were macrodiamonds,from a 100kg
sample.

"Wehavehad positive results from all five holesdrilled in this programmeand
havediscovered anotherpotentially diamond bearing mantle richkimberlite zone.
This ishighly encouraging."

Further Information:

Professor Richard Conroy, Chairman, Karelian       Tel: [phone]        
Diamond Resources plc                                                          
                                                                               
Simon Clements/Virginia Bull, Merchant Securities  Tel: [phone]       
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Brian Farrell, IBI Corporate Finance Limited (ESM  Tel [phone]         
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John Grant/Karen Kelly/David Lawman , XCAP         Tel: [phone]       
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Michael Padley/Michael Spriggs, Lothbury Financial Tel: [phone]       
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Don Hall, Hall Communications                      Tel: [phone]        

http://www.kareliandiamondresources.com