Karelian Diamond Resources plc (“Karelian”) diamond projects in Finland are based on the diamond prospectivity of the Karelian Craton. The Karelian Craton, which is comparable in size to the diamond rich Slave Lake Craton in Canada, stretches across north eastern Russia and northern Finland.

The world class Lomonosov and Grib Pipe diamond deposits have been discovered in the Russian Sector of the Craton and ALROSA, the Russian company which is the world’s largest diamond miner, has indicated that this diamond region will represent almost all of its future growth. Karelian believes that the Finnish sector of the Craton could be equally prospective.

Karelian has therefore being carrying out an extensive diamond exploration programme in Finland.

The Company’s major diamond projects in Finland comprise:

• The Lahtojoki diamond project over which Karelian has acquired a Mining concession.

• The Seitaperä diamondiferous kimberlite pipe, the largest known kimberlite pipe in Finland.

• The Riihivaara diamond exploration project where Karelian has discovered a new kimberlite body.