Kennady Diamonds Final Step-out Drilling Intersects Kimberlite at Kelvin

Kimberlite intersected in 14 out of 15 Kelvin Drill Holes

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TORONTO, Sept. 3, 2013 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce that kimberlite has been intersected in the final two step-out drill holes on strike to the north-west of the main Kelvin kimberlite. Fourteen out of the fifteen Kelvin infill and step-out drill holes intersected kimberlite during the current summer drill program.

Drill holes KDI-13-044 and KDI-13-045 were drilled approximately 100 meters from Kelvin Lake and more than 300 meters from the main Kelvin kimberlite. Based on the lengths of the kimberlite intersects, it is believed that these holes define the north-west limit of the Kelvin kimberlite emplacement.

Table 1 below details recent drill results.

Table 1

*Not true widths

Patrick Evans, Kennady Diamonds CEO, commented: "We are very pleased with the high success rate we've achieved during the current Kelvin drill program. Fourteen out of fifteen drill holes intersected kimberlite enabling us to recover more than 3 tonnes of kimberlite from approximately 3,000 meters of drilling. We are particularly encouraged that the step-out drilling continued to intersect kimberlite more than 300 meter to the north-west of the main Kelvin kimberlite".

Following the successful conclusion of the Kelvin drill program, drill testing of three geophysical targets at the south end of Faraday Lake has commenced. Drilling of these targets is expected to be completed within ten days. At the conclusion of the drill program, the recovered kimberlite will be dispatched to the Geoanalytical Laboratories Diamond Services at the Saskatchewan Research Council for recovery of diamonds by caustic fusion.

About Kennady Diamonds
Kennady Diamonds Inc. 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.

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.

Kennady Diamonds aims to identify a resource along the Kelvin - Faraday kimberlite corridor of between 5 and 8 million tonnes, and also to identify new kimberlites outside of the corridor. This 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 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.