REG-Karelian Diamond Res.: Lahtojoki South Diamond Exploration Update

Karelian Diamond ResourcesAnnouncement

04/05/2021 09:05

Karelian Diamond Resources plc

(“Karelian Diamonds” or “the Company”)

4 May 2021

LAHTOJOKI SOUTH DIAMOND EXPLORATION UPDATE
* Mantle garnet minerals observed in Boulder Material
* Cut section reveals purple to red garnets and ilmenites
* Results provide further evidence of undiscovered, potentially Diamondiferous
Kimberlite in the vicinity of Lahtojoki Diamond Deposit
Karelian Diamond Resources plc (AIM: KDR), the diamond exploration company
focused on Finland, is pleased to announce new results from its ongoing
diamond exploration programme in the Lahtojoki South exploration area. A cut
and polished section of the kimberlite boulder material (details of which were
announced by the Company on 5 March 2021) has revealed the presence of mantle
garnets.

Observations of the cut and polished section of the boulder made by the
Geological Survey of Finland (GTK) in their Espoo Laboratory have revealed a
number of purple to red peridotitic garnets (G9/10 Cr-pyrope), several orange
mantle or crustal garnets, and a number of large ilmenite grains*.

These minerals are typical of mantle detritus found in kimberlite that
indicate that this boulder material represents cooled magma derived from the
Earth’s mantle.

The results are further evidence that an undiscovered, potentially
diamondiferous, kimberlite body may exist in the vicinity of the Lahtojoki
diamond deposit.

These findings will be followed up by a petrographic microscope investigation
of thin sections from the boulder material and Electron Probe Micro Analyzer
(“EPMA”) analyses of the mantle garnets and a determination if the
ilmenite is high Magnesium Oxide (MgO) picroilmenite typical of kimberlites.

The EPMA analyses of mantle garnets minerals may confirm whether the mantle
minerals of purple to red peridotitic garnets are derived from similar depths
to where diamonds are formed thus indicating whether the kimberlite sampled
within the diamond stability field.

The discovery of the kimberlite boulders in the Lahtojoki south exploration
permit licence area, and the subsequent studies which proved the boulders to
be altered hypabyssal kimberlite, a different form of kimberlite from that
present in the Lahtojoki deposit, confirms that these boulders are not derived
from the Lahtojoki diamondiferous kimberlite pipe.

Kimberlites tend to occur in clusters and as such these findings suggest the
probability of an additional, potentially diamondiferous source in the
vicinity of the Lahtojoki diamond deposit.

Photo 1: Two purple to red garnet grains and two generations of olivine
pseudomorphs

Photo 2: One orange garnet and olivine pseudomorphs

*Images of the polished boulder can be viewed on the Company website:
http://www.kareliandiamondresources.com/

This release has been approved by Kevin McNulty PGeo, who is a member of the
Company's technical staff

and 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, Karelian Diamond Resources plc commented:

“The results are further encouragement that an additional kimberlite source
could exist in the vicinity of the Lahtojoki diamond deposit which the Company
is working to develop as the first diamond mine in Europe (outside of
Russia).”

Further information:

 Karelian Diamond Resources plc  Professor Richard Conroy, Chairman  +353-1-479-6180   
 Allenby Capital Limited (Nomad)  Nick Athanas / Nick Harriss        +44-20-3328-5656  
 First Equity Limited (Broker)  Jason Robertson                      +44-20-7330-1883  
 Lothbury Financial Services  Michael Padley                         +44-20-3290-0707  
 Hall Communications  Don Hall                                       +353-1-660-9377   

http://www.kareliandiamondresources.com



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