Results from Seitapera drilling

3 October 2011 KARELIAN DIAMOND RESOURCES PLC Results from Seitaperä drilling * New large (52 metre) zone of potentially diamond bearing mantle xenoliths in kimberliteidentified * Kimberlite intersected in all fivedrill holes * Scope and extent ofSeitaperädiamondiferous kimberlite pipe further delineated Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDRI) is pleased to announce the results of its summer drilling programme on its 6.9 hectare diamondiferous Seitaperä pipe in Eastern Finland. Kimberlite was encountered in all five holes drilled and a new large (52 metre) zone of mantle bearing kimberlite intersected. The new zone is particularly significant in that many of the diamonds previously encountered in the Seitaperä pipe were also in mantle xenolith material. Such material can contain high diamond counts as it is derived from the earth's mantle where diamonds are formed. It is approximately 120 metres from where mantle xenolith material was previously encountered and is in a mica rich brown kimberlite whereas the previous zone was black serpentinized kimberlite. There are also a number of sections in the hole that had olivine xenocrysts present in the core which are also derived from the diamond forming mantle. The drill holes were all angled holes. They were drilled to a vertical depth of between 85 and 150 metres. The combined kimberlite intersection from the five holes was approximately 250 metres of kimberlite and approximately 41 metres of kimberlite breccia. The drilling programme has added substantial further information on the scope and extent of this large diamondiferous pipe in the Company's licence area in Eastern Finland. 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: "We arevery pleased with theresults of thelatest drilling,particularlythe discovery of a new mantle xenolith zoneadjacent to the previous mantle xenolith zonewhichyielded 67 diamonds, sixof which were macrodiamonds,from a 100kg sample. "Wehavehad positive results from all five holesdrilled in this programmeand havediscovered anotherpotentially diamond bearing mantle richkimberlite zone. This ishighly encouraging." 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 Adviser) 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 http://www.kareliandiamondresources.com