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Karelian Diamond Res. PLC (KDR)

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Monday 24 November, 2014

Karelian Diamond Res. PLC

Report and accounts and extension of warrants


                                                                               
                                                               24 November 2014

                        Karelian Diamond Resources plc                         

                         ("Karelian" or "the Company")                         

         Publication of Report and Accounts and Extension of Warrants          

Karelian (AIM: KDR, ESM: KDRI), the diamond exploration company focused on
Finland, announces that following the release on 21 November 2014 of its
audited results for the year ended 31 May 2014, it has posted its annual report
and accounts for the year to shareholders. A copy of the report and accounts is
also available to download from the Company's website at http://
www.kareliandiamondresources.com

In addition, the Company also announces a proposed five year extension to the
expiry date of 12,852,377 unexercised warrants held by directors of the
Company, details of which are set out below.

The warrants were originally granted in 2007. The directors had at that time
waived their entitlement to all amounts of unpaid fees and salaries that
accrued to them since incorporation of the Company, totaling an aggregate of €
639,777.

The directors have continued to support the Company having made further fee and
salary sacrifices. In addition, the exercise price of the warrants remains at a
significant premium to the current share price of the Company's ordinary
shares. Accordingly, after careful consideration by the board and subject to
ratification by the shareholders at the Company's annual general meeting, the
board considers it appropriate to extend the life of the warrants. The
directors' interests and the terms of the warrants subject to the extension are
as follows:

Director                   Number of Exercise price       Previous     Proposed
                            warrants                   expiry date  expiry date
                                                                               
Professor R Conroy         5,521,049          €0.10     16/11/2017   16/11/2022
                                                                               
Maureen Jones              4,191,275          €0.10     16/11/2017   16/11/2022
                                                                               
Jim Jones                  2,604,389          €0.10     16/11/2017   16/11/2022
                                                                               
Seamus Fitzpatrick           232,201          €0.10     16/11/2017   16/11/2022
                                                                               
Louis Maguire                232,201          €0.10     16/11/2017   16/11/2022
                                                                               
Roger Chaplin                 71,262          €0.10     16/11/2017   16/11/2022
                                                                               
                          12,852,377                                           

The entry into the warrant extension with the directors referred to above
constitutes a related party transaction as defined by the AIM Rules. The
independent director, being Dr Sorca Conroy, having consulted with the
Company's Nominated Adviser and ESM adviser, considers that the terms of the
warrant extension are fair and reasonable insofar as shareholders are
concerned.

Further Information:

Professor Richard Conroy, Chairman, Karelian       Tel: +353-1-661-8958        
Diamond Resources plc                                                          
                                                                               
Virginia Bull / Simon Clements, Sanlam Securities  Tel: +44-20-7628-2200       
UK Limited (Nomad)                                                             
                                                                               
Ger Heffernan, IBI Corporate Finance Limited (ESM  Tel: +353-7662-34800        
Adviser)                                                                       
                                                                               
Jon Belliss/Abigail Wayne, Hume Securities PLC     Tel: +44-20-3693-1493       
(Broker)                                                                       
                                                                               
Michael Padley, Lothbury Financial Services        Tel: +44-20-3440-7620       
Limited                                                                        
                                                                               
Don Hall, Hall Communications                      Tel: +353-1-660-9377        

http://www.kareliandiamondresources.com

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