Mr. Patrick Evans reports

KENNADY DIAMONDS CLOSES SECOND TRANCHE OF C$20 MILLION NON-BROKERED PRIVATE PLACEMENT

Kennady Diamonds Inc. has closed the second tranche of the previously announced non-brokered private placement of common shares for gross proceeds of $10,509,425.05. The company has issued 2,115,331 common shares at a price of $3.55 per share for gross proceeds of $7,509,425.05 and 600,000 flow-through common shares at a price of $5.00 per share for gross proceeds of $3-million. The shares are subject to a four-month hold period, expiring on June 24, 2015. Together with the first tranche, completed on Feb. 18, 2015, the company has issued 4,351,635 common shares and flow-through shares for aggregate gross proceeds of $16,318,304.25. The company anticipates closing a third tranche of the private placement on or about Feb. 27, 2015. Proceeds of the private placement will be used primarily for the company's 2015 winter exploration program at the Kennady North project and for general working capital.

Qualified person

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

We seek Safe Harbor.