Holding(s) in Company

27 July 2010

                        Karelian Diamond Resources plc                         

                         ("Karelian" or "the Company")                         

                              Holdings in Company                              

The Company announces, following notification received today, that Gartmore
Investment Limited now holds 4,592,333 ordinary shares in the capital of the
Company, equivalent to 7.59 per cent. of the voting share capital of Karelian.
The shares are held via Gartmore Fund Managers Limited, A/C Gartmore UK & Irish
Smaller Companies.

Further Information:

Professor Richard Conroy, Chairman, Karelian Diamond       Tel: [phone]
Resources plc                                                                  
                                                                               
Simon Clements/Virginia Bull, Merchant Securities Limited                  Tel:
(Nomad)                                                        [phone]
                                                                               
John Tuite, IBI Corporate Finance Limited (ESM Adviser)     Tel [phone]
                                                                               
Charles Dampney, City Capital Corporation Limited (Broker)                 Tel:
                                                               [phone]
                                                                               
Michael Padley/Michael Spriggs, Lothbury Financial                         Tel:
Services Limited                                               [phone]
                                                                               
Don Hall, Hall Communications                              Tel: [phone]

http://www.kareliandiamondresources.com