Mr. Patrick Evans reports

KENNADY DIAMONDS UPDATES KELVIN KIMBERLITE DRILLING

Kennady Diamonds Inc. has provided an update on resource drilling at the company's 100-per-cent-controlled Kennady North diamond project located in Canada's Northwest Territories.

Kennady Diamonds chief executive officer Patrick Evans, noted: "Our 2014 winter drill program continues to make good progress. The delineation drilling is providing confirmation of the dimensions of the high-grade Kelvin kimberlite and increasing our confidence in the geological model. In addition, our larger-diameter drilling is recovering wide intercepts in vertical and near-vertical holes, which is very encouraging."

Sixteen Kelvin delineation drill holes have been completed to date with one drill rig continuing delineation drilling. Two drill rigs are now drilling to recover the minibulk sample. The attached table details the latest delineation drill results.

            KIMBERLITE INTERCEPTS -- APPROXIMATE

Drill hole          From         To    Intercept*    End of hole 
                      (m)        (m)          (m)             (m)  
                                  
KDI-14-011        106.96     136.15**      26.42             181           
KDI-14-012         88.62     133.18**      43.21             178           
KDI-14-013         17.44      93.64**      37.34             106           
KDI-14-014         19.40      61.37**      38.05              97            
KDI-14-015         76.82     105.08        28.26             139           
KDI-14-016         93.40     158.91**      61.25             166           

*  Not true widths
** Includes minor country rock intercepts

The attached table details results from the first five drills recovering the minibulk sample.

            KIMBERLITE INTERCEPTS -- APPROXIMATE

Drill hole          From         To    Intercept*    End of hole 
                      (m)        (m)          (m)             (m) 
                     
KDI-14-001a        22.20     107.00*       83.33             115            
KDI-14-001b        18.29     113.63*       88.25             121            
KDI-14-002a        20.32      69.00*       46.19              76             
KDI-14-003a        25.96     115.99*       81.44             121            
KDI-14-003b        35.19     123.35        88.16             133            
KDI-14-004a        38.00     121.23        83.23             127            

* Includes minor country rock intercepts

Approximately 2,340 metres of delineation drilling has been completed at the Kelvin kimberlite resulting in the recovery of approximately 680 metres of kimberlite. Larger-diameter drilling has recovered an additional 475 metres of kimberlite for a combined kimberlite recovery of approximately 6.5 tonnes out of a planned 25 to 30 tonnes.

Delineation drilling at the Kelvin kimberlite is expected to be completed shortly, following which one of the drill rigs will be moved to the Faraday kimberlite to commence delineation drilling focused on targets identified by the recently completed ground geophysics program.

Qualified person

This news release has been prepared under the supervision of Carl G. Verley, PGeo, who serves as the qualified person under National Instrument 43-101.

We seek Safe Harbor.