Karelian Diamond Res.

Holding(s) in Company

Karelian Diamond Resources plc

(“Karelian” or “the Company”)

28 March 2017

Holding in the Company

Karelian Diamond Resources plc (“Karelian”) (AIM: KDR, ESM: KDRI), announces that it was informed earlier today that Alan Osborne is now interested in 20,813,224 ordinary shares of €0.00001 in the capital of the Company, equal to approximately 5.05 per cent. of Company’s issued ordinary share capital.

Further Information:

Professor Richard Conroy, Chairman, Karelian Diamond Resources plc           Tel: +353-1-661-8958
Virginia Bull / James Thomas / Nick Harriss, Allenby Capital Limited (Nomad)           Tel: +44-20-3328-5656
Ger Heffernan / Jan Fitzell, IBI Corporate Finance Limited (ESM Adviser)           Tel: +353-7662-34800
Jon Belliss / Elliot Hance, Beaufort Securities Limited (Broker)           Tel: +44-20-7382-8300
Michael Padley, Lothbury Financial Services Limited           Tel: +44-20-3290-0707
Don Hall, Hall Communications           Tel: +353-1-660-9377

www.kareliandiamondresources.com