Kennady Diamonds Intersects over 100 meters of Kimberlite at Kelvin

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TSX-V: KDI

TORONTO, Aug. 12, 2013 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce that over 100 meters of kimberlite has been intersected in two further infill drill holes at the north lobe of the Kelvin kimberlite. The infill drill program is designed to define the size and shape of the Kelvin kimberlite from which high-grade samples have been recovered. Table 1 below details the most recent drill results.

Table 1

*Not true widths

Patrick Evans, Kennady Diamonds CEO, commented: "We are very encouraged by the excellent widths we continue to intersect at the north lobe of the Kelvin kimberlite. The delineation and infill drilling is contributing to our understanding of the kimberlite geology and is expected to enable us to develop 3D models of the kimberlite. Delineation drilling to determine the limits of the kimberlite emplacement the northwest of the main Kelvin body is continuing."

The current summer drill program is expected to result in the recovery of approximately 2,000 kilograms of kimberlite, which is nearly double the 1,103 kilograms recovered during last winter's 5,000 meter drill program. At the conclusion of the drill program later in August, the kimberlite will be dispatched to the Geoanalytical Laboratories Diamond Services at the Saskatchewan Research Council for recovery of diamonds by caustic fusion.

Mr. Evans concluded: "Diamond recovery results are expected to be released early in the fourth quarter. 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".

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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. A 5,000 meter drill program conducted during the winter of 2013 returned an exceptional sample grade of 8.44 carats per tonne. The largest three diamonds recovered were a 2.48 carat off-white transparent octahedral, a 0.90 carat off-white transparent irregular, and a 0.75 carat off-white transparent octahedral. The recovery of diamonds of this size and quality from a 1.1 tonne sample is very encouraging.

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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.