Update on Riihivaara Diamond Stability Field

1 December 2014 SAMPLE MATERIAL AT RIIHIVAARA FROM DIAMOND STABILITY FIELD * Scanning Electron Microscopy Confirms Sample Material at Riihivaara Comes f rom the Diamond Stability Field * Results Also Confirm Presence of Eclogitic Indicator Grains in the Sample _____________________________________________________________________________ Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDRI), is pleased to announce that further to its announcement of 16th October 2014, the sample material from its Riihivaara target in the Kuhmo region of Finland has been confirmed as being derived from the diamond stability field of the Earth's mantle and that eclogitic grains are also present in the sample. The presence of eclogite mantle materials is significant, as these tend to be associated with richer diamond grades. The sample material was sent for analysis by Scanning Electron Microscopy at the Geological Survey of Finland (GTK) laboratory in Helsinki. The detailed laboratory results show 27 Group 2 eclogite grains, 8 Harzburgitic G10 garnets including a G10(D), 33 Lherzolite G9 garnets, 27 megacrysts and 1 Wehrlitic grain. The presence of the Harzburgitic G10 garnets including a G10 (D) confirms that the sample material is derived from the diamond stability field of the Earth's mantle. 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. Dr. Hugh O'Brien, a diamond specialist with the GTK stated that: "These new results, in addition to the Harzburgitic G10 garnets, contain a significant eclogitic component which could translate into an enhanced diamond potential for the mantle source of these indicator minerals. The fact that eclogite garnets are rare down ice, suggests that the source of the newly discovered Karelian eclogite garnet grains is probably relatively proximal." Professor Richard Conroy, Chairman commented: "I am delighted with the further significant results fromthe Kuhmo exploration area in Finland. The presence of eclogitemantle materials is particularlypromisingas such material is oftenassociated with richer diamond grades. "The prospect of a new kimberlite discovery in this area following on fromthe discovery inSeitaperä, where the Company has already outlined the largest diamondiferous pipe yet discovered in Finland,isveryencouraging." 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