Mr. Patrick Evans reports

KENNADY DIAMONDS EXTENDS STRIKE OF FARADAY AND INTERSECTS 52 METERS OF KIMBERLITE

Kennady Diamonds Inc. has intersected kimberlite over 52 metres in delineation drill hole KDI-15-005b. The Faraday 2 pipe-like body has now been defined over a strike length of approximately 90 metres from southeast to northwest. Based on the intersections in holes KDI-15-005a and 005b, the pipe-like body appears to be at least 30 metres wide and 70 metres in height and also appears to be increasing in volume on strike to the northwest.

Kennady Diamonds chief executive officer Patrick Evans commented: "We are very encouraged by the good widths of the latest intersections at Faraday 2 and plan to continue testing the continuity of [the] pipe-like body on strike to the northwest as well as to the southeast of the discovery holes. Based on the excellent results achieved to date at Faraday 2, the company will be reviewing its current tonnage guidance for the kelvin-Faraday kimberlite corridor, which currently stands at between 10 million and 13 million tonnes."

The table provides details of the latest Faraday 2 drill results.

      FARADAY 2015 SPRING DRILL PROGRAM

                  Kimberlite intercepts (m)
Drill
hole           From         To   Intercept*
  
KDI-15-004b   79.51     112.80        33.29
KDI-15-005a   54.95      86.16        31.21
KDI-15-005b   67.14     119.29        52.15

* Intercepts in subvertical holes are not 
true widths.

Up to the end of 2014, Kennady Diamonds had recovered approximately one tonne of kimberlite from Faraday by drilling. Processing of the Faraday core samples by caustic fusion at Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council yielded 4.76 carats greater than 0.85 millimetres, with a resultant commercial sample grade of 4.54 carats per tonne.

Kennady Diamonds is also pleased to report that good progress continues to be made with the bulk sampling of the Kelvin kimberlite. The bulk sample is being recovered using two large-diameter reverse-circulation drill rigs. Approximately 390 tonnes have so far been recovered, most of which have already been delivered to the SRC.

Up to the end of 2014, Kennady Diamonds had recovered a total of 53.15 tonnes of kimberlite from Kelvin by drilling. Processing by dense media separation and caustic fusion methods yielded 124.90 carats greater than 0.85 millimetres. The largest diamond recovered from that sample weighed 2.48 carats.

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.

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