Results in Finnish Exploration Programme

21 October 2013

         Further Encouraging Results in Finnish Exploration Programme          

  * Diamondiferous Kimberlite Indicator Minerals Found In Kuusamo Area
   
  * Applications Lodged For Exploration Claim Reservations in Area
   
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Karelian Diamond Resources plc ("Karelian") (AIM:KDR, ESM: KDR.I) is pleased to
announce that, following its review of exploration results in its Kuusamo
diamond exploration target area in Finland, it has submitted applications for
two exploration claim reservations in the area.

Kuusamo is located in the Northeast of Finland just south of the Arctic Circle
and is bordered to the East by Russia.

Interrogation of airborne geophysics by the Company together with till sampling
and integration of data made available to Karelian under its agreement with Rio
Tinto Mining and Exploration has led to the decision to apply for claim
reservations in the area. A claim reservation gives exclusive rights to apply
for exploration claims within the reservation area.

In the first area 121 kimberlitic indicator minerals were recovered, with 76
kimberlitic indicator minerals recovered in the second area, which are very
positive. Further studies including microprobe analysis confirmed that both
areas had diamondiferous kimberlitic indicator minerals.

Professor Richard Conroy, Chairman,commented:

"I am delighted at these excellent results and the possibility of new
discoveries in the Kuusamo area.These results complement the positive ones at
the Riihivaaratargetannounced last month.

Finland has the potential to host diamond deposits comparableto the world class
diamond deposits found in similar geology across the border in Russiaandby
utilising the Rio Tinto data alongside our own we are seeing very encouraging
signs that that potential may be realised."

This release has been approved by Kevin McNulty PGeo, who is a member of the
Company's technical staff, who holds a BSc/MSc in Geology and Remote Sensing,
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.

Further Information:

Professor Richard Conroy, Chairman, Karelian       Tel: [phone]        
Diamond Resources plc                                                          
                                                                               
Simon Clements/Virginia Bull, Sanlam Securities UK Tel: [phone]       
Limited (Nomad)                                                                
                                                                               
Brian Farrell, IBI Corporate Finance Limited (ESM  Tel: [phone]        
Adviser)                                                                       
                                                                               
Jon Belliss, XCAP Securities PLC (Broker)          Tel: [phone]       
                                                                               
Michael Padley/Michael Spriggs, Lothbury Financial Tel: [phone]       
Services Limited                                                               
                                                                               
Don Hall, Hall Communications                      Tel: [phone]        

                    http://www.kareliandiamondresources.com