Exploration Update

Karelian Diamond Resources plc

(“Karelian Diamonds” or “the Company”)

1 September 2020

LAHTOJOKI EXPLORATION UPDATE

• Exploration Commences on Area adjacent to the Company’s Lahtojoki Diamond Deposit

• Programme Designed to Recover Further Kimberlite Boulders

• Glacial Ice Direction Will Also Be Delineated

Karelian Diamond Resources plc (“Karelian Diamonds”) (AIM: KDR), the diamond exploration Company focused on Finland, is pleased to announce that it has commenced a fieldwork exploration programme on its Lahtojoki South Exploration Permit, adjacent to its Lahtojoki diamond deposit in the Kaavi region of Finland. The Land Survey of Finland has recently granted the Company rights of way for the Lahtojoki diamond deposit and adjacent exploration area (announced 17 August 2020).

Kimberlite boulders have previously been discovered in the Lahtojoki South area. Analysis showed that the boulders are a type of Kimberlite unlikely to be derived from the Lahtojoki kimberlite (announced 12 January 2017).

It is therefore likely that the boulders originated from a yet to be discovered kimberlite body, up ice from the initial discovery site of the boulders.

The current programme is designed to recover further kimberlite boulders and to delineate the glacial direction, with a view to identifying the source of the kimberlite boulders.

Professor Richard Conroy, Chairman, Karelian Diamond Resources plc commented:

“I am delighted that it has been possible to start the exploration so soon after the granting of rights of way.

We look forward to receiving the results of the exploration programme as it proceeds.”

Further Information:

Karelian Diamond Resources plc Professor Richard Conroy, Chairman	[phone]
Allenby Capital Limited (Nomad) Nick Athanas / Nick Harriss	[phone]
Brandon Hill Capital (Broker) Jonathan Evans	[phone]
Lothbury Financial Services Michael Padley	[phone]
Hall Communications Don Hall	[phone]

http://www.kareliandiamondresources.com