REG-Karelian Diamond Res.: Update re. National Land Survey proceedings

Karelian Diamond ResourcesAnnouncement

14/12/2022 15:15

Karelian Diamond Resources plc

(“Karelian Diamonds” or “the Company”)

14 December 2022

LAHTOJOKI DIAMOND DEPOSIT

LAND POSSESSION FOR DURATION OF MINE GRANTED
* National Land Survey proceedings completed
* Mining concession area established
* Compensation for land owners decided and announced
* Land possession for duration of mine granted
Karelian Diamond Resources PLC (AIM: KDR) is pleased to announce that the
National Land Survey of Finland proceedings in relation to the Lahtojoki
diamond deposit were completed today, with the announcement by the National
Land Survey at a public meeting held in the Municipal Hall of Tuusniemi in
Finland, of the compensation to be paid by the Company to landowners in
relation to the establishment of the mining concession area, for the duration
of the proposed Lahtojoki diamond mine.

The compensation to be paid amounts in total to €162,815. This compensation
will be paid within three months from 28 December 2022 and the Company expects
to fund this through existing cash resources.

A mining concession over the Lahtojoki diamond deposit had already been
approved by TUKES (the Finnish mining authority). The National Land Survey of
Finland, on the order of TUKES, was carrying out the proceedings to establish
the mining concession for the applied area.  The process involved two public
meetings in relation to ground rental compensation for local landowners. This
is now completed.

The Lahtojoki diamond mining project comprises a mining concession covering 71
hectares (c.176 acres) which includes a kimberlite pipe with a surface area of
16 hectares (c.40 acres).

The Lahtojoki diamond deposit, as well as containing high quality colourless
gem diamonds, also contains coloured diamonds, including pink diamonds which
are highly sought after and can command prices up to 20 times that of normal
coloured diamonds.

Professor Richard Conroy, Chairman of Karelian Diamond Resources PLC,
commented:

“I am delighted that The National Land Survey process has at last been
completed. Karelian is now free to progress with the proposed development of
the Lahtojoki diamond deposit. The development of a diamond mine at Lahtojoki
will, I believe, not only bring significant benefits to the Company, but also
to the entire surrounding Kuopio Kaavi area and, when in production, it will
be the first diamond mine in Europe outside 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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