Kennady Diamonds Announces Kelvin Diamonds Recovery Results

Kelvin South Lobe "Commercial" Sample Grade 3.64 carats per tonne
Kelvin Sheet "Commercial" Sample Grade 5.95 carats per tonne

TORONTO, April 23, 2015  - Kennady Diamonds Inc. ("Kennady Diamonds," the "Company") (TSX-V:KDI.V -) is pleased to announce further diamond recovery results from the Kelvin 2014 summer/fall core drilling program. Approximately 1.83 tonnes of kimberlite from the Kelvin South Lobe and 47.62 kilograms from the Kelvin Sheet was processed by caustic fusion at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council ("SRC"). The 1.83 tonne Kelvin South Lobe sample was recovered by HQ diamond drilling and these core holes also served as pilot holes for the 2015 Kelvin bulk sample that was recovered using large diameter reverse-circulation drill rigs.

Kennady Diamonds CEO Patrick Evans commented: "We are very pleased with these excellent diamond recovery results, which returned a sample grade of 3.64 carats per tonne from the Kelvin South Lobe and 5.95 carats per tonne from the Kelvin Sheet for diamonds having commercial characteristics. These results support the potential for the Kelvin kimberlite 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 10 and 13 million tonnes at a grade of between 2 and 2.5 carats per tonne."

Table 1 below summarizes the caustic fusion diamond recovery results from the Kelvin South Lobe.

Table 1 – Kelvin South Lobe 2014 Caustic Fusion Diamond Recovery Results

*Sample grade of diamonds greater than 0.85mm: 3.64 carats per tonne

The four largest diamonds recovered from the Kelvin South Lobe sample are described as:

• 1.36 carat off-white, transparent, macle with inclusions;
• 0.68 carat off-white, transparent, broken tetra-hexahedron with inclusions;
• 0.44 carat off-white, transparent, fragment with minor inclusions; and
• 0.44 carat off-white, transparent, octahedral with inclusions.

Table 2 below summarizes the caustic fusion diamond recovery results from the Kelvin Sheet.

Table 2 – Kelvin Sheet 2014 Caustic Fusion Diamond Recovery Results

*Sample grade of diamonds greater than 0.85mm: 5.95 carats per tonne

The largest diamond recovered from the Kelvin Sheet sample is described as a 0.12 carat white/colorless, transparent octahedral with minor inclusions.

As with previous Kelvin samples the number of transparent white/colorless and off-white diamonds is very high. Of the 366 individual diamonds from the above samples described by the SRC, 46 percent are described as white/colorless and 51 percent as off-white. Six are described as yellow and only 5 as brown. There are no gray diamonds in the sample. Mr. Evans noted: "Together with grade, diamond quality is a key indicator of value."

In addition to the above, Kennady Diamonds also has 2.73 tonnes of kimberlite from the Kelvin North Lobe that is now being processed by caustic fusion at the SRC. The diamond recovery results from this sample are expected by the end of Q2. Also, processing of the 436 tonne Kelvin bulk sample through the SRC dense-media separation plant will commence before the end of May and the diamond recovery results are expected before the end of Q3.

****

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 10 and 13 million tonnes at a grade of between 2 and 2.5 carats per tonne and also to identify new kimberlites outside of the corridor. The Kelvin – Faraday corridor is a target for further exploration. 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.

****

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.

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.