Kennady Diamonds Drills 194 meters of Kimberlite at Kelvin

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TSX-V: KDI

Infill drilling expands existing Kelvin geological model

TORONTO, May 27, 2015 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce the latest drill results from the 100 percent-controlled Kennady North diamond project located in Canada's Northwest Territories. The Kennady North project is immediately adjacent to the new Gahcho Kué diamond mine currently under development by De Beers Canada and Mountain Province Diamonds.

Kennady Diamonds CEO Patrick Evans commented: "Following the successful completion of the Faraday ice-based spring drill program, land-based infill/delineation drilling has commenced at the north lobe of the Kelvin kimberlite. This drilling is designed to increase confidence in the Kelvin geological model in preparation for a maiden resource statement expected prior to yearend."

Table 1 below details the first drill results from the Kelvin 2015 spring drill program. Approximately twenty infill/delineation drill holes are planned as part of the Kelvin spring program.

Table 1

Kelvin North Lobe 2015 Spring Drill Program

*Intercepts in sub-vertical holes not true widths
**Includes country rock intercepts

Mr. Evans added: "While the 194 meter intersect in hole 010 confirmed the existing geological model, the 187 meter intersect in hole 009a expanded the existing model by approximately 80 meters. This will positively impact the Kelvin tonnage estimate."

Drilling with two core rigs at the Kelvin North Lobe is expected to continue until mid-June at which time the Company expects to be able to commence land-based exploration/delineation drilling at the Faraday 2 kimberlite. One drill rig is currently on standby at Faraday 2.

Ice-based drilling over two months to mid-May successfully defined the Faraday 2 kimberlite over a strike of approximately 200 meters and the Faraday 1 kimberlite over a strike of approximately 120 meters. Similar to the Kelvin kimberlite, both Faraday 1 and Faraday 2 trend from southeast to the northwest. Land-based drilling at Faraday 1 is expected to commence as part of the 2015 summer drill program.

On April 23, 2015 the Company announced exceptional diamond recovery results from a 1.8 tonne sample recovered from the Kelvin South Lobe. A further 2.7 tonne sample from the Kelvin North Lobe is currently being processed at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council ("SRC"). The results from this sample are expected by mid-June.

On completion of processing of the Kelvin 2.7 tonnes sample, processing of approximately 1 tonne of kimberlite from Faraday 2 will commence. The diamond recovery results from the Faraday sample are expected by late July. In addition, the diamond recovery results from the Kelvin 436 tonne bulk sample are expected before the end of Q3 2015.

Updated location maps of drilling at Kelvin North Lobe will be available on the homepage of the Company's website at www.kennadydiamonds.com.

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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 a 12 and 15 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 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 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.

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.