Kennady Diamonds Intersects 80 meters of Kimberlite at Kelvin

Kelvin Bulk Sample Drilling Commences

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TSX-V: KDI

TORONTO, Feb. 24, 2015 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds," the "Company") (TSX-V: KDI) is pleased to announce that kimberlite has been intersected over approx. 80 meters in the latest Kelvin delineation drill hole KDI-15HQ-002, a vertical (minus 90 degree) hole drilled approx. 50 meters to the NW of drill hole KDI-HQ14-033a.

Kennady Diamonds CEO Patrick Evans commented: "The latest intercept at Kelvin returned approx. 80 meters of kimberlite, which is very encouraging. Combined with the previous drill hole KDI-15HQ-001b, a minus 70 degree delineation hole that intersected approx. 54.5 meters of kimberlite, this confirms the continuity of the Kelvin kimberlite to the northwest. As these holes are being drilled from land rather than ice, further delineation drilling at the NW lobe of Kelvin will resume next summer."

Mr. Evans added: "The core rig is now being moved to the Faraday kimberlite to resume delineation drilling from ice at Faraday Lake where drilling last winter resulted in the discovery of a kimberlite 'blow' at an area called Faraday 3. An intercept of over 40 meters was recovered last winter which leads us to believe that the potential exists for substantial tonnage at the high grade Faraday kimberlite."

Table 1 below provides details of drill hole KDI-15HQ-002.

Table 1
Kelvin 2015 Winter Drill Program

Kennady Diamonds is also pleased to announce that the bulk sampling of the Kelvin kimberlite has commenced using two large-diameter reverse circulation drill rigs. The Company plans to recover a 500 to 700 tonne bulk sample, which is expected to result in the recovery of diamonds weighing more than 1,200 carats. This diamond parcel will be used for revenue modeling of the Kelvin kimberlite.

Up to the end of 2014 Kennady Diamonds had recovered a total of 53.15 tonnes of kimberlite from Kelvin by drilling. Processing by dense media separation and caustic fusion methods yielded 124.90 carats greater than 0.85mm. The largest diamond recovered from that sample weighed 2.48 carats.

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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 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 kimberlite 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 whether further exploration will result in the target being delineated as a mineral resource.

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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.