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Karelian Diamond Res. PLC (KDR)

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Tuesday 07 January, 2014

Karelian Diamond Res. PLC

Issue of Equity

                                                                 7 January 2014

                           Placing to raise £750,000                           

  * Placing of 37,500,000 new ordinary shares at 2 pence per share to raise £75
    0,000 before expenses on the back of demand from private retail clients
  * Proceeds of the placing to be applied to accelerate ongoing programmes at 
    the Company's various diamond prospects in Finland

Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDRI), the diamond
exploration company focused on Finland, announces that it has conditionally
raised £750,000, before expenses, through a placing ("the Placing") of
37,500,000 ordinary shares ("Placing Shares") of EUR0.01 in the capital of the
Company ("Ordinary Shares"). The Placing Shares have been placed at a price of
2 pence per Placing Share ("the Placing Price"), a 33.3% increase on the
previous placing announced on 11 December 2013.

The Placing is conditional, inter alia, on admission of the Placing Shares to
trading on AIM and the Enterprise Securities Market operated by the Irish Stock
Exchange Limited ("ESM"). The New Shares will rank pari passu with the existing
issued ordinary shares of EUR 0.01 in the capital of the Company ("Ordinary

The Company intends to use the net proceeds of the Placing primarily to
accelerate further the Company's ongoing programmes at its various diamond
prospects in Finland and for working capital generally.

Application has been made to AIM and ESM for the Placing Shares to be admitted
to trading. Admission and trading are expected to commence on 10 January 2014.

On admission of the 37,500,000 Placing Shares, the Company will have
207,700,008 Ordinary Shares in issue in total. Professor Richard Conroy holds
68,356,701 Ordinary Shares in the Company, representing approximately 32.91 per
cent. of the Company's enlarged share capital and total voting rights following
the Placing.

Professor Richard Conroy, Chairman, commented:

"The Company is delighted that due to exceptional further demand from private
retail clients XCAP were able to raise another substantial amount to fund the
Company's diamond prospects in Finland. With the Company's strong share price
in the market recently, we are very pleased to have continued support from
investors. The placing has been done at a 33.3% price increase to the placing
in December, 2013."

Further Information:

Professor Richard Conroy, Chairman, Karelian       Tel: +353-1-661-8958        
Diamond Resources plc                                                          
Simon Clements/Virginia Bull, Sanlam Securities UK Tel: +44-20-7628-2200       
Limited (Nomad)                                                                
Ger Heffernan, IBI Corporate Finance Limited (ESM  Tel: +353-7662-34800        
Jon Belliss/Abigail Wayne, XCAP Securities PLC     Tel: +44-20-7101-7070       
Michael Padley/Michael Spriggs, Lothbury Financial Tel: +44-20-3440-7620       
Services Limited                                                               
Don Hall, Hall Communications                      Tel: +353-1-660-9377

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