Kennady Diamonds Commences Kennady North Summer Drill Program

Kimberlite intersected over more than 120 meters

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TSX-V: KDI

TORONTO, July 15, 2014 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce that the 2014 summer drill program has commenced at the Company's 100-percent controlled Kennady North diamond project located in Canada's Northwest Territories. A minimum of 5,000 meters of drilling will be undertaken with the focus on delineation drilling at the Kelvin and Faraday kimberlites as well as exploration drilling at the MZ and Doyle kimberlites and at four new exploration targets.

Table 1 below provides details from the first two holes drilled at the Kelvin kimberlite.

Table 1

*Includes minor country rock intercepts

Drilling at the Kelvin kimberlite is being undertaken with two drill rigs. The first drill rig is conducting delineation drilling at the northern edge of the Kelvin northwest lobe where last spring's drill hole KDI-14-018 intersected undiluted kimberlite over 80 meters, with substantially all of the kimberlite to the north and outside the current geological model. This drill rig will then move to drill a "fence" of holes from northeast to southwest along the western shore of Kelvin Lake to test the continuity to depth of the Kelvin kimberlite dyke, which dips to the northwest at approx. 15 degrees.

Kennady Diamonds CEO, Patrick Evans, commented: "The Kelvin dyke system extends over more than one kilometer to the southwest of the main Kelvin pipe. Past drilling of the Kelvin dyke has returned kimberlite intercepts ranging from a few meters to over 20 meters. If the current drill program is successful is proving continuity of the dyke system to depth, the potential exists for considerable additional tonnage".

The second drill rig is drilling vertical and near vertical holes along two lines from the lake shore to the northwest along the strike of the northwest lobe of the Kelvin kimberlite. In addition to adding to the Kelvin mini-bulk sample, these holes will also test the depth extent of the kimberlite emplacement along the northwest lobe.

Logging and analysis of the Kelvin 25 tonne mini-bulk sample recovered during last spring's drill program has now been completed (under the supervision of SRK Consulting (Canada) Inc.) and is being shipped to Saskatoon for processing at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council ("SRC"). Results from the Kelvin mini-bulk sample are expected early in the fourth quarter of 2014. In addition, the Faraday one tonne kimberlite sample is currently being processed that the SRC and diamond recovery results are expected during the current quarter.

Kennady Diamonds CEO Patrick Evans concluded: "Our vision is to define a Kelvin – Faraday resource of between 5 and 8 million tonnes with a grade of greater than 2 carats per tonne. We expect to be able to declare our maiden resource by the end of 2014".

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About Kennady Diamonds 
Kennady Diamonds Inc. controls 100 percent of the Kennady North diamond project located immediately to the north, west and south of the Gahcho Kué diamond mine currently under development by De Beers and Mountain Province Diamonds.

Kennady Diamonds aims to identify a resource along the Kelvin – Faraday kimberlite corridor of between a 5 and 8 million tonnes and also to identify new kimberlites outside of the corridor. This 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.

An 8,500 meter drill program conducted in 2013 returned exceptional sample grades. A 4.3 tonne sample from the Kelvin kimberlite retuned a grade of 5.38 carats per tonne. A smaller 116 kg sample from the Faraday kimberlite returned a sample grade of 11.23 carats per tonne. The three largest diamonds recovered from the Kelvin kimberlite were a 2.48 carat off-white transparent octahedral, 1.06 carat off-white broken aggregate and a 0.90 carat off-white transparent irregular. The recovery of diamonds of this size and quality from a 4.3 tonne sample is very encouraging.

Qualified Person
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.