Further re Related Party Transaction

9 November 2009                                                              

                        Karelian Diamond Resources Plc                         

                           ("KDR" or the "Company")                            

                     Further re: Related Party Transaction                     

Further to the final results announcement released on 5 November 2009, Karelian
(AIM: KDR), diamond exploration company focused on Finland, announces the
further terms of the loans advanced by Professor Conroy to support the working
capital requirements of the Company.

As set out in the Chairman's statement dated 5 November 2009, during the year
ended 31 May 2009 Professor Conroy advanced aggregate loans of €238,022. These
loans were made in accordance with a letter of support dated 12 November 2008,
which was renewed on 4 November 2009. The renewed letter of support provides
confirmation of support from Professor Conroy for the current financial period
ending 31 May 2010.

The loans have been and will continue to be made on normal commercial terms.
The interest on the loans is currently accruing at a rate of 8.25 per cent per
annum. The loans may be repaid at anytime but Professor Conroy has confirmed
that he will not request repayment, other than in exceptional circumstances,
within a period of less than one year.

Further enquiries:

Karelian Diamond Resources Plc                                               
                                                                             
Professor Richard Conroy                               Tel: [phone]
                                                                             
Merchant John East Securities Limited (Nominated Adviser)                    
                                                                             
Simon Clements / Virginia Bull                             Tel: [phone]
                                                                             
City Capital Corporation Limited (Broker)                                    
                                                                             
Charles Dampney                                            Tel: [phone]
                                                                             
Lothbury Financial Limited                                                   
                                                                             
Ron Marshman / Michael Padley                              Tel: [phone]

http://www.kareliandiamondresources.com