Drilling resumed at Seitaperä

23 June 2011

                        Drilling resumed at Seitaperä

  * Drilling programme at Seitaperä resumed
   
  * Extent of diamondiferous kimberlite at Seitaperä to be further tested
   
  * Further exploration in Finland based on Karelian and Rio Tinto data
   
Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDRI), is pleased
to announce that it has resumed drilling on its Seitaperä diamondiferous
kimberlite pipe, in the Kuhmo region of Finland.

The drilling at Seitaperä will consist of five or more drill holes. The
objective is to further test the extent of the diamond-bearing kimberlite
facies and the shape of the Seitaperä kimberlite pipe to a depth of
approximately 100 metres.

The Seitaperä pipe, at 6.9 hectares, is the largest known kimberlite pipe in
Finland. Previous drilling by the Company resulted in the recovery of 67
diamonds from 100kg including six macrodiamonds and 61 microdiamonds, some of
which may be fragments of a larger diamond or diamonds which were present in
the mantle xenoliths and broke apart during processing. These earlier findings
suggest that there is potential for larger diamonds in Seitaperä with the
majority of the kimberlite remaining untested.

The Company is also conducting exploration in other parts of Finland, based on
the results of the first review and integration of the extensive database,
including the results from over 53,000 till samples, which Rio Tinto has made
available to the Company under the terms of the Confidentiality Agreement
entered into with Karelian in July 2010.

Professor Richard Conroy, Chairman commented:

"I am delighted to see the resumption of drilling at Seitaperä. Having already
delineated the largest diamondiferous kimberlite discovered in Finland, we look
forward to achieving further success both in Seitaperä and in the Kuhmo region
in general and elsewhere in Finland."

Further Information:

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

http://www.kareliandiamondresources.com