Positive results from sampling programme

Mineral indicator analyses of stream sediment samples indicate prospectivity for nickel, copper and platinum mineralisation

Results of microprobe analysis show high zinc oxide values

Chromites with Fe-Ni-S inclusions observed

Highly anomalous area outlined

Karelian Diamond Resources PLC (AIM: KDR) is pleased to announce that indicator mineral and microprobe analysis results from a stream sampling programme in Northern Ireland confirms the prospectivity of the Company's licence area for nickel, copper and platinum group metals. The sampling programme was a follow up to an earlier sampling programme which suggested the potential of the area for these metals (the results of which were announced by the Company on 10 November 2021).

Thirty three stream sediment samples, with an average weight of circa 18kg per sample, were collected across the three licences, totalling an area of approximately 750km2, now held by the Company in Northern Ireland. The samples were despatched to Overburden Drilling Management Limited ("ODM") in Canada for mineral concentration, picking and analysis for indicator mineralogy using ODM's trade-marked metamorphic/magmatic massive sulphide indicator minerals (MMSIM'S) technique. ODM has been a key contributor to numerous discoveries worldwide, including the Voisey's Bay nickel-copper-cobalt deposit in Labrador, Canada.

The results of this programme, taken in conjunction with results from the previous programme, indicate a highly anomalous river catchment area. This area has yielded five samples each having over 1,000 indicator minerals. The indicator minerals are primarily Chromite and Forsterite with some Chalcopyrite and gold grains.

In addition, microprobe analysis on a number of Chromite grains from samples taken from this area during the original sampling programme in 2021 showed that four samples had Chromites with high zinc oxide values. Such high zinc oxide values can be a signature of sulphide rich Nickel-Copper Group Elements deposits. It was also noted that a number of the Chromites have inclusions of iron, nickel, sulphur as well as on the Chromite margins, which is significant as it indicates the presence of nickel mineralisation.

The Company is planning a follow up programme focused on the highly anomalous river catchment area, together with some additional microprobe analysis, with a view to identifying one or more drilling targets.

Further results will be issued by the Company as the exploration programme proceeds.

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 and 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:

"I am very pleased that the Company's exploration programme for Nickel-Copper-Platinum Group metals in Northern Ireland has yielded such encouraging results and we look forward greatly to the planned follow up work programme."