Update on the Kennady North Summer Drilling Program

Kimberlite intersections exceeding 30 meters at Faraday 2 and 3
Both Faraday 2 and Faraday 3 confirmed as extending onto land

Shares Issued and Outstanding: 47,156,970
TSX-V: KDI

TORONTO, Aug. 11, 2016 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to provide an update on the summer drilling program on the Kennady North Project. All six of the drill holes completed to date have intersected kimberlite, with two drill holes at Faraday 2 and one drill hole at Faraday 3 intersecting over 30 meters of kimberlite. Both Faraday 2 and Faraday 3 have also been confirmed as extending from beneath Kennady Lake onto land. Table 1 below summarizes the drill results to date.

Table 1
Faraday 2016 Summer Drill Program

*Intercepts not true widths.  ** Includes minor country rock intercepts.

President and CEO of Kennady Diamonds, Dr. Rory Moore commented: "We are delighted that kimberlite was intersected in all six drill holes completed to date, as the results confirm our exploration model that predicted both Faraday 2 and 3 would continue onto land. The drill holes on Faraday 2 have returned robust kimberlite intersections, and current drilling continues to track the body in a westerly direction. At Faraday 3 the northeastern margin has been established with our latest drill holes, and the next drill holes will define its southwestern margin."  Dr. Moore concludes, "Our systematic approach to expanding the Faraday bodies is exactly the same as that which expanded Kelvin to its present size. We have no doubt that as we continue, additional kimberlite will be discovered with this exploration model."

At the Kennady North project, exploration and delineation drilling is presently being conducted from two land-based setups.  One drill rig is focused on the Faraday 1-Faraday 3 kimberlite complex, and the second rig is active at Faraday 2.  It is anticipated that over 8,000 meters of core drilling will be completed on the Faraday kimberlites by the end of the summer program, with the results incorporated into defining a diamond resource along the Kelvin – Faraday corridor.

****

About Kennady Diamonds
Kennady Diamonds Inc. controls 100 percent of the Kennady North diamond project located in Canada's Northwest Territories immediately adjacent to the Gahcho Kué diamond mine currently being operated by De Beers and Mountain Province Diamonds (T:MPV, NASDAQ:MDM).

Kennady Diamonds aims to identify a resource along the Kelvin – Faraday kimberlite corridor of between 13 million and 16 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. Tonnage estimates are 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 Dr. Tom McCandless, P. Geo., an independent director of Kennady Diamonds and 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.