Discovery of Potential New Diamond Source

20 March 2015

                   DISCOVERY OF POTENTIAL NEW DIAMOND SOURCE                   

  * New Kimberlite Body Discovered in Kuhmo Area of Eastern Finland
   
  * First Discovery of a Kimberlite Body in Finland in Approximately 10 Years
   
  * Diamondiferous Kimberlite Indicator Minerals Previously Identified in Till
    Samples in the Area
   
  * The New Kimberlite Body will now be Assessed for Extent and Tested for
    Diamond Content
   
_____________________________________________________________________________

Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDRI), the diamond
exploration company focused on Finland, is pleased to announce that it has
discovered a potential new diamond source in the Kuhmo region of Finland.

The potential new source occurs in a new Kimberlite body discovered during
follow-up pitting in an area where infill samples containing high
concentrations of kimberlitic indicator minerals have been found. Subsequent
scanning electron microscopy ("SEM") analysis of samples taken from these
kimberlitic indicator minerals suggest that they were derived from the diamond
stability field of the Earth's mantle. Importantly, the results confirmed the
presence of Group I eclogite garnets, which can be associated with high diamond
grades.

The material recovered from the pit was confirmed as being kimberlitic by Dr.
Hugh O'Brien of the Geological Survey of Finland ("GTK"), an acknowledged
expert in the field.

The newly discovered kimberlite body, which is the first kimberlite body to be
discovered in Finland for approximately 10 years, is located to the southeast
of Seitapera where the Company has outlined the largest diamondiferous
kimberlite discovered to date in Finland.

The new kimberlite body will now be assessed for extent and tested for diamond
content.

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:

"This discovery of a potential new diamond source is veryexciting news for the
Company. It is a major step forward in the Company'sexploration programme which
has the objective of discovering a world class diamond deposit in the
KarelianCraton in Finland,comparable to the world class deposits found on the
Russian portion of the Karelian Craton."

Further Information:

Professor Richard Conroy, Chairman, Karelian Diamond Resources plc  Tel: [phone]
Virginia Bull /Simon Clements, Sanlam Securities UK Limited (Nomad) Tel: [phone]
Elliot Hance, Beaufort Securities Limited                           Tel: [phone]
Ger Heffernan, IBI Corporate Finance Limited (ESM Advisor)          Tel: [phone]
Michael Padley, Lothbury Financial Services Limited                 Tel: [phone]
Don Hall, Hall Communications                                       Tel: [phone]

http://www.kareliandiamondresources.com