Kennady Diamonds Announces Kelvin North Sample Grade of 2.53 carats per tonne

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TSX-V: KDI

TORONTO, Nov. 19, 2015 /CNW/ -Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce the diamond recovery results from the first batch of a Kelvin 2.67 tonne sample recovered by core drilling at the Kelvin North Lobe during the spring of 2015. Approximately 0.97 tonnes out of the total 2.67 tonne sample has been processed by caustic fusion at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council ("SRC") and returned a sample grade of 2.53 carats per tonne for diamonds of commercial size.

Kennady Diamonds CEO Patrick Evans commented: "Kelvin North Lobe drill samples continue to return excellent diamond recovery results. A recent 443 tonne bulk sample from Kelvin's Southeast Lobe returned an average grade of 2.02 carats per tonne. Based on diamond recovery results to date from the North Lobe it's evident that Kevin has the potential to host an overall diamond grade of between 2 and 2.5 carats per tonne. To confirm this, planning is underway to recover an approximate 500 tonne bulk sample from the North Lobe in February/March next year with results expected by mid-2016."

Table 1 below summarizes caustic fusion diamond recovery results from the first batch of the Kelvin North Lobe 2015 spring drill program.

Table 1 – Kelvin North Lobe 2015 Spring Caustic Fusion Diamond Recovery Results

*Sample grade of diamonds greater than 0.85mm: 2.53 carats per tonne

The three largest diamonds recovered from the Kelvin North Lobe sample are described as:

• 0.21 carat off-white, transparent fragment with inclusions;
• 0.17 carat off-white, transparent broken octahedral with no inclusions; and
• 0.15 carat off-white, transparent octahedral with minor inclusions.

The latest Kelvin North Lobe caustic fusion sample grade of 2.53 carats per tonne is in line with the following North Lobe sample grades reported over the past 12 months:

1. 2.60 carats per tonne from a 2.4 tonne sample reported on October 5, 2015:
2. 2.74 carats per tonne from a 2.7 tonne sample reported on June 22, 2015; and
3. 2.57 carats per tonne from a 5 tonne sample reported on January 26, 2015.

Processing of the balance of the 2.67 tonne sample has been put on hold to fast track processing of a separate 2.28 tonne North Lobe sample, which results are required to complete grade modeling for the NI 43-101 resource statement currently in preparation. Processing of the balance of the 2.67 tonne sample will be completed following the processing of the 2.28 tonne sample. Kennady Diamonds expects to report a NI 43-101 resource statement for the Kelvin kimberlite by the end of 2015.

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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 under development 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 a 13 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. 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 Persons
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.