Kennady Diamonds Announces Kelvin Mini-Bulk Sample Grade of 2.59 carats per tonne

TORONTO , Dec. 24, 2014 - Kennady Diamonds Inc. ("Kennady Diamonds," the "Company") (KDI.V) is pleased to announce the diamond recovery results from the Kelvin summer/fall mini-bulk sample program. The mini-bulk sample was recovered by drilling at the north lobe of the Kelvin kimberlite and was processed by dense media separation at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council, which is accredited to the ISO/IEC 17025 standard by the Standards Council of Canada as a testing laboratory for diamond analysis.

Commenting, Kennady Diamonds CEO Patrick Evans said: "We are very pleased with the latest diamond recovery results, which confirm that the Kelvin kimberlite has the potential to host a high-grade diamond resource. Based on drilling and sampling completed to date, we estimate that the Kelvin – Faraday kimberlite cluster has the potential to host between 9 and 12 million tonnes. Drilling to extend the strike of the Kelvin kimberlite to the northwest will resume in mid-January."

Under the guidance of SRK Consultants, Vancouver, B.C. , three zones of kimberlite have been defined at the Kelvin kimberlite, described as zones A, B and C. Zone B has been further subdivided. The thickness of the zones is variable along strike. Each of the zones was processed separately in order to understand the variability in diamond size and grade.

The summer/fall mini-bulk sample grade of 2.59 carats per tonne is approximately 40 percent higher than the 25 tonne mini-bulk sample recovered last winter/spring. The summer/fall mini bulk sample was recovered from the north lobe of the Kelvin kimberlite, while the winter/spring sample was recovered from the shallower and partly outcropping southeast lobe.

Table 1 below summarizes the diamond recovery results from the summer/fall mini-bulk sample.

Table 1 – Kelvin Diamond Recovery Results

*Includes DMS recovery cleanup

Table 2 below describes the kimberlite zones present in the Kelvin kimberlite.

Table 2 Kelvin kimberlite zones

The four largest diamonds recovered from the Kelvin mini-bulk sample are described by the SRC as:

• 1.11 carat off-white, transparent, aggregate with inclusions;
• 1.10 carat white/colorless, transparent, irregular with inclusions;
• 0.95 carat off-white, transparent, octahedral, no inclusions; and
• 0.90 carat white/colorless, transparent, dodecahedron, no inclusions.

A total of approx. 27,200 meters was drilled at the Kelvin – Faraday kimberlite corridor in 2014, resulting in the recovery of approx. 55 tonnes of kimberlite. In addition to the results from the mini-bulk sample detailed above, four tonnes of kimberlite from Kelvin has been processed by caustic fusion at the SRC, and one tonne has been processed by caustic fusion at the Rio Tinto diamond laboratory in Thunder Bay, Ontario . Diamond recovery results from the caustic fusion samples will be available in mid-January 2015 .

Mr. Evans concluded: "2014 has been a remarkably successful year for Kennady Diamonds. Our project has developed rapidly since the listing of Kennady in 2012. Results to date confirm that our 100 percent controlled Kennady North project is Canada's most exciting new diamond discovery. We are currently preparing to take a 500 to 700 tonne bulk sample from Kelvin in early 2015 while we continue delineation drilling at the Kelvin and Faraday kimberlites. We also look forward to commencing our exploration drill program at the diamond-bearing MZ and Doyle kimberlites as well as a number of new exploration targets."

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About Kennady Diamonds
Kennady Diamonds Inc. controls 100 percent of the Kennady North diamond project located immediately to the north, west and south of the Gahcho Kué diamond mine currently under development by De Beers and Mountain Province Diamonds.

Kennady Diamonds aims to identify a resource along the Kelvin – Faraday kimberlite corridor of between a 9 and 12 million tonnes and also to identify new kimberlites outside of the corridor. The Kelvin – Faraday kimberlite corridor is a target for further exploration and the tonnage estimate is based on the drilling completed to date. The potential quantity is conceptual in nature as there has been insufficient drilling to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

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Qualified Persons
This news release has been prepared under the supervision of Carl G. Verley , P. Geo., who serves as the Qualified Person under National Instrument 43-101. Mr. Howard Coopersmith , P. Geo., an independent consultant to the diamond industry, is Kennady's independent, external Qualified Person for sample processing and diamond recovery.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.

FORWARD LOOKING INFORMATION
This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, the Company's strategic plans, future operations, future work programs and objectives. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Kennady Diamonds Inc.

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