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Karelian Diamond Res. PLC (KDR)

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Monday 27 February, 2006

Karelian Diamond Res. PLC

Initial Drilling of Seitapera Kimberlite

                                  (AIM: KDR)                                   

                                                              27 FEBRUARY, 2006


                    'SIGNIFICANT DIAMOND CARRYING CAPACITY'                    

  * Massive Hypabyssal Core Surrounded By 50 metre Brecciated Zone
  * Overall Shape And Size Of Pipe Now Better Defined
  * Kimberlite Sample Collected For Micro-Diamond Analysis
Karelian Diamond Resources plc (Karelian) is pleased to announce that first
phase drilling of the known diamondiferous Seitaperä pipe on its licences near
Kuhmo, Finland, has been highly encouraging. It has shown the pipe to have a
massive hypabyssal kimberlite core surrounded by a 50m-wide zone of explosively
emplaced breccia comprising 30 per cent. - 70 per cent. kimberlite.

Two angled holes totalling 172.8m were drilled over the geophysical anomaly at
Seitaperä by the Geological Survey of Finland (GTK), operating under contract
to Karelian.

Detailed logging of the rock types encountered, particularly those in the
explosive breccia zone, shows that the original magma had a high volatile
content, indicating a significant mantle diamond carrying capacity. In
addition, the GTK has undertaken temperature studies on pyrope garnet indicator
mineral grains, particularly those of G10 composition, which it collected from
the Seitaperä area. These indicate that significant sampling of the mantle
within the diamond stability field took place as the kimberlite from which the
indicators are derived rose to surface.

A 10kg sample of kimberlite has been taken from the second drill hole and will
be sent for micro-diamond analysis

The Seitaperä pipe has a surface area of approximately 4 hectares and was
subject to very limited drilling by the previous licence holders who completed
a few shallow vertical holes on the property. The angled holes now completed by
Karelian have delineated the northern and southern extent of the kimberlite
body in the drilled area, thus helping to define the overall shape and size of
the pipe.

This was one of the three objectives of the Company's drilling programme, the
other two being to estimate the relative diamond-bearing capacity of the rock
types and to obtain sufficient sample material for micro-diamond testing.

Commenting today, Karelian chairman, Professor Richard Conroy, said: 'The
success of the first phase of our drilling programme on the Seitaperä pipe is
very encouraging. We look forward, subject to the result of the micro-diamond
analysis, to further possible drilling at Seitaperä and, of course, to drilling
our other diamond targets in the highly prospective Kuhmo area of Finland.'

Further Info:

Professor Richard Conroy, Chairman Karelian Diamond Resources plc. Tel: +

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

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

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


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