Diamond Mining Permit Received

1 June 2016

DIAMOND MINING PERMIT RECEIVED

• The Diamond Mining Permit over the Lahtojoki diamond project has been transferred to Karelian Diamond Resources plc.

• Transfer approval from the Finnish Government Agency ("TUKES") has also been received.

• Claim Reports and additional technical data have been delivered to Karelian.

Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDRI), the diamond exploration company focused on Finland, is pleased to announce that the Diamond Mining Permit over the Lahtojokidiamond project, the acquisition of which was announced on 19 April 2016, has been formally transferred from A&G Mining Oy to Karelian, along with all claim reports and additional technical material.

Transfer approval from the Finnish Safety and Chemical Agency ("TUKES") has also been received. The Lahtojokidiamondiferous pipe is situated in a 55 hectare claim area in the Kuopio-Kaaviarea of Finland, a highly favourable location with excellent infrastructure including good road access and power availability. The Company believes that the Lahtojoki kimberlite pipe has the potential to become a profitable low strip open pit diamond mine.

Professor Richard Conroy, Chairman, Karelian Diamond Resources plc commented:

"I am delighted that the formalities regarding the acquisition have been completed. We look forward to immediately reviewing the technical data which has been received. The acquisition of the Lahtojokidiamond pipe mining permit complements our existing licences and is a major step forward for our diamond programme in Finland".

Further Information:

www.kareliandiamondresources.com