Kennady Diamonds Intersects 116 meters of Kimberlite at Kelvin

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TSX-V: KDI

TORONTO, Aug. 7, 2013 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce that the first five Kelvin infill drill holes have intersected kimberlite over widths ranging from 21.49 meters to 116.10 meters. The result of the first infill drill hole (KDI-13-030), which intersected 73 meters of kimberlite at Kelvin, was announced on July 25, 2013. Table 1 below details the kimberlite intersects in the subsequent drill holes at the Kelvin kimberlite.

Table 1

*Not true widths
**Includes 5.24m granite

Patrick Evans, Kennady Diamonds CEO, commented: "We are very encouraged by the wide kimberlite intercepts we're achieving at the north lobe of the Kelvin kimberlite. The high success rate of our infill drill program has already resulted in the recovery of more than 1,200 kilograms of kimberlite from just the first five drill holes. We are currently planning to drill at least eight and possibly as many as ten infill drill holes at Kelvin by the end of August."

Mr. Evans added: "By the time we have completed our planned 2,500 meter summer drill program we expect to have recovered more than 1,600 kilograms of kimberlite, which well exceeds the 1,103 kilograms recovered during last winter's 5,000 meter drill program".

Kennady Diamonds announced yesterday that the 1,103 kilograms of kimberlite processed at the Geoanalystical Laboratories Diamond Services of the Saskatchewan Research Council retuned an exceptional macro-diamond sample grade of 8.44 carats per tonne.

Mr. Evans concluded: "Diamond recovery results from the kimberlite recovered during the current drill program are expected to be released early in the fourth quarter of 2013. The additional data will facilitate progress towards the first resource statement for the Kennady North project and also add significantly to the diamond data base".

Besides the above Kelvin infill drill holes, one geophysical target to the northwest of the Kelvin-Faraday cluster was drill tested without intersecting kimberlite. Further analysis of the new geophysical targets is currently underway to gain a better understanding of the anomalies and indicator mineral trains which apparently emanate from them.

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About Kennady Diamonds
Kennady Diamonds controls 100 percent of the Kennady North project which comprises thirteen leases and claims located immediately to the north and west of the four leases controlled by the Gahcho Kué Joint Venture between De Beers Canada (51%) and Mountain Province (49%) located in Canada's Northwest Territories.

Kennady Diamonds aims to identify a minimum 5 million tonne resource along the Kelvin - Faraday kimberlite corridor and also to identify new kimberlites outside of the corridor.

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Qualified Person
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.

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.