Kennady Diamonds Dispatches 3,454kg's of Kimberlite for Processing

Analysis of Kennady North "Commercial" Size Diamonds

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TSX-V: KDI

TORONTO, Sept. 18, 2013 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce that approximately 3,454 kilograms of kimberlite has been dispatched to the Geoanalytical Laboratories Diamond Services at the Saskatchewan Research Council for recovery of diamonds by caustic fusion. The kimberlite was recovered from the 3,848 meter summer drill program at the 100-percent controlled Kennady North diamond project located in Canada's Northwest Territories. The first results are expected early in the fourth quarter and final results are expected before the end of November, 2013.

Following the successful completion of the 2013 summer drill program, preparations for the 2014 winter exploration program have commenced. This program is expected to include up to 10,000 meters of delineation and exploration drilling, including extraction of a mini-bulk sample of approximately 25 tonnes from the Kelvin kimberlite. The drilling will be preceded by further geophysics over the Kelvin and Faraday kimberlites, as well as new exploration targets outside of the Kelvin - Faraday kimberlite corridor. Further details of the 2014 winter program will be announced shortly.

Kennady Diamonds is also pleased to providing further analysis of the results from the successful 2013 winter drill program. The 5,000 meter drill program resulted in the recovery of 1.1 tonnes of kimberlite which was also processed at the Geoanalytical Laboratories Diamond Services at the Saskatchewan Research Council. As announced on August 6, 2013, the 1.1 tonnes sample returned a total 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.

Table 1 below provides details of the number and weight of the plus 0.85mm "commercial" size diamonds recovered from the Kelvin kimberlite. Diamonds larger than 0.85mm can be sorted into categories with different price points and are referred to, under Canadian Institute of Mining ("CIM") guidelines, as "commercial".

Table 1 - Kelvin "Commercial" Size Diamonds

*Total sample weight 987.24kg
*Total sample grade 8.13 carats/tonne

Table 2 below provides details of the number and weight of the plus 0.85mm "commercial" size diamonds recovered from the Faraday kimberlite.

Table 2 - Faraday "Commercial" Size Diamonds

*Total sample weight 115.86kg
*Total sample grade 11.23 carats/tonne

Table 3 below provides details of the characteristics of the three largest diamonds recovered from the 2013 winter drill program.

Table 3 - Diamond Characteristics

The 110 Kelvin diamonds larger than 0.85mm were recovered from 16 different drill holes across the approximate 1 kilometer strike of the Kelvin kimberlite. The 26 Faraday diamonds larger than 0.85mm were recovered from 5 different drill holes in separate locations at the Faraday kimberlite. The three largest diamonds described above were also recovered from three different drill holes at the Kelvin kimberlite. Based on this, it is apparent that both the Kelvin and Faraday kimberlites host "commercial" size diamonds across the length, breadth and depth of the kimberlites rather than being concentrated in particular areas of the kimberlites.

Photographs of the above octahedral diamonds are available at the following link http://kennadydiamonds.com/project_overview/photos/.

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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.

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.

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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.