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Karelian Diamond Res. PLC (KDR)

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Friday 09 December, 2011

Karelian Diamond Res. PLC

Diamond indicator minerals at Riihivaara target

                                                                9 December 2011

                         KARELIAN DIAMOND RESOURCES PLC


  * Positive basal till sampling results - Twelve garnet indicator minerals
  * One grain determined to be eclogitic (G3) and one pyroxenitic (G4)
  * Three G10 and five G9 diamond indicator minerals also recovered
Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDR.I) is pleased
to announce positive results from a basal till sampling programme on its
Riihivaara target in the Kuhmo area, near the Company's 6.9 hectare
diamondiferous Seitaperä kimberlite pipe in Eastern Finland. The results
suggest that a diamondiferous kimberlite pipe or dyke is likely to exist in the
Riihivaara area.

The till sampling programme at Riihivaara resulted in the recovery of twelve
garnet indicator minerals, comprising three G10's, five G9's, one G4, one G3
and two G1's. Six of the positive results, including the G4 pyroxenitic garnet
occurred within a single till sample. The adjacent sample had two positive
results, including the eclogitic G3 garnet.

These garnets and other mantle-derived minerals are used to locate kimberlites
and are referred to as kimberlite indicator minerals. Some of these garnets,
the G10's and certain G9's, are created under similar conditions to diamonds
within the ultramafic mantle rocks underlying the crust and are therefore used
as predictors of the presence of diamonds. There is a strong statistical
correlation between G10 and certain G9 garnets, like those found in Riihivaara,
and the presence of diamonds.

The sampling programme was undertaken on Karelian's behalf by the Geological
Survey of Finland (GTK) in conjunction with the Company's technical staff.
Sample analysis was undertaken in the GTK laboratories.

Dr. Hugh O'Brien, a diamond specialist with the GTK stated: "G3 (eclogitic) and
G4 (pyroxenitic) garnets are very unusual for eastern Finland. It is surprising
to find eclogite-derived grains in this area, because the kimberlites found to
date in the Kuhmo-Lentiira-Kostomuksha area are very poor in eclogite
component, being rather much more dominated by peridotite indicators."

Eclogite mantle material is significant as it tends to be associated with a
much higher grade of diamonds than peridotite mantle material.

Professor Richard Conroy, Chairman commented:

"I am very pleased with the latest sample results which show a strong
correlation with the presence of diamonds and the discovery of eclogitic
material which tends to be associated with higher diamond grades, both very
positive indicators."

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: +353-1-661-8958        
Diamond Resources plc                                                          
Simon Clements/Virginia Bull, Merchant Securities  Tel: +44-20-7628-2200       
Limited (Nomad)                                                                
Brian Farrell, IBI Corporate Finance Limited (ESM  Tel: +353-1-637-7800        
John Grant/Karen Kelly/David Lawman , XCAP         Tel: +44-20-7101-7070       
Securities PLC (Broker)                                                        
Michael Padley/Michael Spriggs, Lothbury Financial Tel: +44-20-7868-2010       
Services Limited                                                               
Don Hall, Hall Communications                      Tel: +353-1-660-9377

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