New Kimberlite Source Indicated

16 October 2014 NEW KIMBERLITE SOURCE INDICATED * Over 100 Kimberlitic Indicator Minerals Reported In A Riihivaara Sample * Results Suggest Sample Recovered is Either Directly Over or Within 100 Metres of New Kimberlite Source _____________________________________________________________________________ Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDRI), ), the AIM-listed diamond exploration company focused on Finland, is pleased to announce that the recovery of high concentrations of kimberlitic indicator minerals ("KIMs") in Riihivaara indicate the nearby presence of a new kimberlite source in the Kuhmo region of Finland. Laboratory results from a sample collected on the Company's Riihivaara target in the Kuhmo region show high concentrations of over 100 kimberlitic indicator minerals. The results include 48 Purple to Red peridotitic garnets (G9/10 Cr-pyrope) and 46 Orange mantle garnets which are 0.25 to 0.5mm in size, plus 5 Purple to Red peridotitic garnets (G9/10 Cr-pyrope) and 3 Orange mantle garnets in the 0.5 to 1.0mm size range. G9/10 garnets are considered significant as they are formed at the same temperatures and pressures as diamonds. Orange mantle garnets can include eclogitic pyrope-almandine garnets (G3) and if eclogite mantle materials are present it is significant, as it tends to be associated with richer diamond grades. The garnets will be tested to establish whether eclogite mantle materials are present. In the Kuhmo region of Finland, high numbers of kimberlitic indicator minerals are normally only seen either directly over or within a hundred metres of a kimberlite source. The Riihivaara target is located to the Southeast of Seitaperä where the Company has outlined the largest diamondiferous kimberlite pipe discovered in Finland to date. The indicator minerals have been sent for analysis by scanning electron microscopy for precise classification which will determine whether any of the sample material is derived from the diamond stability field. A further announcement will be made in due course. 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. Professor Richard Conroy, Chairman commented: "I am delightedat these results.We have for some time been following up the diamondiferous kimberlitic indicator mineral trains thatwe have discovered on our Riihivaara target. We now appear to be getting very close to or immediately over the source." 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