Kennady Diamonds Drills 46 meters of Kimberlite at Faraday 2

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TSX-V: KDI

TORONTO, June 16, 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 Gahcho Kué diamond mine currently under development by De Beers Canada and Mountain Province Diamonds.

Kennady Diamonds CEO Patrick Evans commented: "The spring land-based drill program at the Faraday 2 kimberlite has got off to an excellent start with wide kimberlite intercepts in the first two holes. Recent drill intercepts indicate that the northwest lobe of the Faraday 2 pipe has a vertical thickness of approximately 70 meters and a width of approximately 50 meters. Since the start of exploration drilling at Faraday 2 we've defined a pipe-like body over a strike length of approx. 200 meters trending from southeast to northwest."

Table 1 below details the latest drill results from the Faraday 2 2015 spring drill program.

Table 1
Faraday 2 2015 Spring Drill Program

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

Mr. Evans added: "The land-based drill program is designed to test the continuity of the Faraday 2 pipe further to the west-northwest. Based on results to date, it's apparent that the Faraday 2 pipe is increasing in volume as it trends to the northwest. This is remarkably similar to the Kelvin kimberlite pipe."

Kennady Diamonds is also pleased to report that processing of core samples by caustic fusion is continuing on schedule with the diamond recovery results from a 2.7 tonne Kelvin North sample expected before the end of June and the results from a 1 tonne Faraday 2 sample expected in early July. Processing of the Kelvin 436 tonne bulk sample by dense-media separation is progressing satisfactorily and the results are expected in the third quarter. Processing of all the samples is taking place at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council.

Location maps of drilling at the Faraday 2 kimberlite 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.