New diamond licenses at Kuhmo applied for

24 June 2008

                        Karelian Diamond Resources plc                         

                ("Karelian Diamond Resources" or the "Company")                

Overall Prospectivity of Kuhmo Area In Finland Leads To Karelian Taking
Dominant Position

  KARELIAN APPLIES FOR NEW DIAMOND LICENCES AT KUHMO PROMPTED BY CONSISTENTLY  
                                     GOOD                                      

                     MINERAL CHEMISTRY RESULTS IN THE AREA                     

  * Two Applications For Known Kimberlites To North Of Seitaperä Diamondiferous
    Pipe
   
  * Total 61.5km2 Of Claim Reservations Awarded in Kuhmo Area
   
  * New Magnetic Targets Lined Up In Anticipation Of Positive Ice Drilling
   
  * Major Micro-Diamond Sample From Seitaperä Sent For Analysis
   
__________________________________________________________________________________

Karelian Diamond Resources plc (AIM:KDR) is pleased to announce that the
Company has been awarded seven claim reservations in the Kuhmo area of Eastern
Finland. The Company has also applied for four further mineral claims in the
same area.

In addition, a 100kg sample from the Company's diamondiferous Seitaperä
kimberlite pipe has been sent (early June) for micro-diamond analysis to SGC
Lakefield Laboratories in Canada. The material was selected from two boreholes
in the centre of the pipe at depths of between 20m and 50m and includes about
20p.c. of mantle xenolith material. Subject to laboratory turn-around times,
the results are expected in the near future.

The claim applications cover two further known kimberlite occurrences to the
immediate north of the Seitaperä, known as Havukkasuo (Kimberlite 18) and
Lentiira (Kimberlite 24). Only limited work previously has been carried out on
these kimberlites, but this included 17 drill holes into Havukkasuo (340 m),
five of which intersected kimberlite, and 12 holes into Lentiira (182 m), 11 of
which intersected kimberlite. In addition, Karelian has been granted a series
of seven claim reservations totalling 61.5 km² in area around Seitaperä and
Riihivaara target areas.

The decision to acquire and investigate the additional known kimberlites in the
Kuhmo area has been prompted by ongoing and consistently favourable mineral
chemistry results from the area, as well as encouraging results from the
Seitaperä kimberlite itself.

DISTINCTIVE PYROPE GARNETS PRESENT

In particular, pyrope garnets from the Seitaperä kimberlite show a distinct
sub-population (14 per cent.) of harzburgitic G10 garnets, including hi-chrome
G10s (15 per cent.), the presence of which is a consistent feature of most
economically diamondiferous kimberlites.

Similarly, chromites recovered from the Seitaperä kimberlite and the local and
regional till show encouraging chemistry. Some 23 per cent. of all chromites
recovered from the actual kimberlite have chemistries consistent with formation
in the diamond-stability field (so-called DI or diamond intergrowth and diamond
inclusion chromites). In glacial till associated with the Seitaperä kimberlite,
12 per cent. of chromites are DI-type, and the regional Kuhmo till still yields
over 0.6 per cent. DI-chromites. Unlike pyrope garnets, the vast majority of
chromites recovered from till can have a non-kimberlite origin and the
kimberlitic grains are distinguished on the basis of their mineral chemistry.

In view of these positive results obtained by the Company on its Seitaperä
kimberlite, and given the pipe's recent significant increase in size and
increased diamond potential, the overall prospectivity of the Kuhmo area has
been re-assessed, and is now considered to warrant a more detailed evaluation -
hence the application for further claim reservations and claims.

WORK TO ADVANCE SEITAPERÄ KIMBERLITE

Work will concentrate on advancing the Seitaperä kimberlite, evaluating the
adjacent known kimberlites, and discovering any associated kimberlites which
may form part of a wider cluster of pipes and/or dykes. Drilling through lake
ice at Kuhmo on a five hectare anomaly, the most promising target there, was
postponed through mild weather, and is rescheduled for this coming winter. In
anticipation of positive results, Karelian has continued the search nearby and
recently identified a number of new magnetic targets which would also then be
tested.

Commenting today, Professor Conroy, Chairman of Karelian Diamond Resources,
said: "Our recent and consistently encouraging results from Seitaperä show that
kimberlites previously considered as dykes can in fact be substantial pipes
with significant diamond potential. As kimberlites normally occur in clusters
of related pipes, it is prudent to acquire and evaluate all known bodies
associated with the Seitaperä kimberlite, and at the same time reserve adjacent
ground to fully test all identifiable anomalies. These claims and reservations
go a long way to securing a dominant position in the highly prospective Kuhmo
kimberlite field in Eastern Finland".

This release has been approved by Dr. Stephen Grimmer, who is a member of the
Company's technical staff, who holds a PhD in Geochemistry/MSc in Exploration
Geology, 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.

Details of the mineral chemistry and geophysical results to date can be viewed
on the Company's website at: http://www.kareliandiamondresources.com/projects/
kuhmo.php

Further Information:

Professor Richard Conroy, Chairman Karelian Diamond Resources plc. Tel:
+-353-1-661-8958

Charles Dampney, City Capital Corporation Limited. Tel: + 44-20-7842-5867

Jeffrey Coburn/Virginia Bull, John East & Partners Limited Tel:
+-44-20-7628-2200

Ron Marshman/John Greenhalgh, City of London PR Limited. Tel: +-44-20-7628-5518