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Karelian Diamond Res. PLC (KDR)

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Monday 30 April, 2007

Karelian Diamond Res. PLC

Progress on Appraisal of Diamondiferous Seitape...

                                                                 APRIL 30, 2007


                       OF DIAMONDIFEROUS SEITAPERÄ PIPE                        

  * Potential For Substantial Volumes Of Kimberlite In Multi-Phase Pipe
  * Pipe-Wall Rock Boundary Now Well Defined At Two Locations
  * Two Mineral Indicator Trains Traced To Immediate Sources In Kuhmo Area
  * Final-Phase Till Sampling Planned To Identify Drill-Ready Targets
Karelian Diamond Resources plc (AIM: KDR) is pleased to announce continuing
progress from its diamond exploration programme near Kuhmo in Finland,
including evaluation of the known diamondiferous Seitaperä kimberlite pipe
where the pipe-wall rock boundaries are now well-defined at two locations.

The Company has recently completed the re-inspection and evaluation of diamond
drill core from two angled holes it drilled early last year at Seitaperä,
confirming the (combined) intersection of 115.5m of kimberlite to a maximum
vertical depth of 74m, the limit of the drill rig used. Karelian says these
drill holes demonstrate the presence of both tuffisitic kimberlite breccia
(TKB) facies, and at least two events of kimberlite magma emplacement.

Commenting today, Karelian Chairman, Professor Richard Conroy said: "We are
very pleased with the progress we are making at Seitaperä, particularly the
identification of TKB facies which typically represents the near-surface
section of a kimberlite pipe. Its presence at Seitaperä indicates the potential
for substantial preservation of the underlying diatreme facies, and thus of a
significant volume of kimberlite. Multiple magma emplacements significantly
increase the likelihood that the kimberlite sampled a diamondiferous mantle


As part of its ongoing programme to evaluate the 4.2ha Seitaperä pipe, Karelian
has arranged for drill core from holes completed in the 1990s and now held by
the Geological Survey of Finland, to be re-logged. These results will be
integrated with the Company's own data to construct a detailed internal facies
model of the pipe to assist in the proposed comprehensive sample selection for
micro-diamond analysis. The outcome of this work will determine if the
programme moves on to the collection of a mini-bulk sample from selected facies
of the kimberlite.

The Seitaperä kimberlite pipe has been previously sampled on a very limited
basis from drill holes, and returned a grade of 1.09 carats per hundred tonnes
from one spot location within the pipe. Any future sampling programme will
therefore be determined by micro-diamond results, and will take into account
the distribution of the various facies, with the objective of being
representative of the pipe as a whole.


Elsewhere in the Kuhmo area, new till sampling results have further refined two
indicator mineral trains within the Company's licences. This data suggests that
both trains originate within very localised areas over which Karelian also has
ground magnetic survey coverage showing several concomitant anomalies. The
Company is now planning a concluding programme of deep basal till sampling over
these areas prior to any decision on drilling the previously identified
geophysical anomalies.

This release has been approved by the Company's technical staff who include,
Kevin McNulty, 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 Diamond Resources plc. Tel:

Charles Dampney, City Capital Securities Limited. Tel: +-44-20-7822-7107

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

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


a d v e r t i s e m e n t