Karelian Diamond Resources Plc – FUNDRAISING OF £290,000 & OPERATIONAL AND CORPORATE UPDATE

PR Newswire

LONDON, United Kingdom, March 20

PRIOR TO PUBLICATION, THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT WAS
DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF
REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.
WITH THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INFORMATION IS NOW CONSIDERED TO
BE IN THE PUBLIC DOMAIN.

IN ADDITION, MARKET SOUNDINGS WERE TAKEN IN RESPECT OF CERTAIN OF THE MATTERS
CONTAINED WITHIN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS BECAME
AWARE OF INSIDE INFORMATION. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THOSE PERSONS THAT RECEIVED INSIDE INFORMATION
IN A MARKET SOUNDING ARE NO LONGER IN POSSESSION OF SUCH INSIDE INFORMATION,
WHICH IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

[Description: Description: Karelian]

Karelian Diamond Resources plc

(«Karelian» or the «Company»)

20 March 2026

FUNDRAISING OF £290,000

OPERATIONAL AND CORPORATE UPDATE

Karelian Diamond Resources PLC (AIM: KDR), the diamond and natural resources
exploration company focused on Finland and Ireland, is pleased to announce a
fundraising of £290,000. The fundraise has been undertaken via an issue of
unsecured convertible loan notes («CLNs» or «Loan Notes») to a combination of
new investors and existing shareholders in the Company (the «Fundraise»).

Highlights

· £290,000 raised from new and existing investors.
· Unsecured and unlisted CLNs issued.
· Conversion price of 1.5 pence per share, a 300% premium to the closing mid
-market price of 0.375 pence for the Company’s ordinary shares of €0.00025
(«Ordinary Shares») on 19 March 2026 (last practicable date prior to this
announcement).
· The proceeds from the Fundraise will support:
· ongoing initial drilling at Anomaly 5 in Finland within the current
weather window;
· the progress of exploration on the Company’s licences in Northern Ireland
in which it has already identified significant potential for Nickel-Copper
-Platinum Group Elements (PGE); and
· the continued interaction with potential strategic and financial partners
for its projects in addition to providing working capital for the Company.

Key Terms of CLNs

Further Background

The Company has decided to raise these funds via an issue of unsecured
convertible loan notes rather than through a conventional placing of new equity.
In making this decision, the Board was mindful of the absolute need to avoid
immediate and potentially material dilution for shareholders, with Karelian’s
share price currently at a level which the Board believes undervalues the
current and future prospects of the Company.

With this in mind, the Board is particularly pleased that a number of new
investors and existing shareholders have recognised this material undervaluation
of the Company’s shares, by subscribing for Loan Notes with a conversion price
of 1.5 pence per share, compared to the closing mid-market price of 0.375 pence
of the Ordinary Shares of Karelian on 19 March 2026.

Operational Update

The Company has been progressing with follow on exploration work building on the
outcomes of Dr Larry Hulbert’s report (announced by the Company in June 2024)
and in late 2025 entered into an enterprise partnership with Trinity College
Dublin on a work programme jointly funded by Research Ireland to be carried out
on the Platinum Group Element potential of the Company’s licence areas in
Ireland over the coming years.

In June 2025 the Company announced that it had identified the site of the
historic Cappagh Copper Mine as a significant new target for investigation
within the relevant licence area (KDR4). This provides the Company with a
tangible copper target in addition to the targets identified by Dr Hulbert’s
report and an initial exploration programme has been planned to help unlock the
full potential of the Company’s licence areas.

A clear work programme and strategy have been identified for the Company’s
exploration assets in Finland as the Company is focusing its efforts on
carefully progressing exploration work, positioning the Company well for a
recovery in the retail sentiment towards natural diamonds while seeking an
industry focused partner to progress its assets including the Lahtojoki Deposit.
Carrying out an initial drilling programme in the current weather window at the
geophysical «Anomaly 5» target in the Kuhmo region is part of this strategy. It
lies up-ice of the green-diamond find and carries a near-source kimberlitic
indicator minerals signature from glacial till sampling.

Corporate Update

The Board is also working on a plan to address the payables owing to current and
former board members in relation to both salaries and directors’ fees which
continue to be deferred by both current and former directors. The plan would
look to effectively align the payments of amounts owed with future Company
success.

In addition, as most recently announced on 2 February 2026, the Company remains
in discussions to formalise an extension of the term of its existing convertible
loan of £112,500 with Conroy Gold and Natural Resources plc (the «Conroy CLN»)
(details of which were originally announced on 19 May 2023). The term of the
Conroy CLN ended in November 2024 and the parties have already agreed in
principle to extend the term of the Conroy CLN to, as a minimum, 30 November
2026. As previously announced the parties are also in discussions to amend the
conversion price of the Conroy CLN as part of the variation agreement. This
remains subject to,inter alia, finalisation of a variation agreement and any
necessary regulatory approvals under the AIM Rules for Companies. At this stage
the parties have not reached agreement on the terms of any variation and a
further announcement will be made in due course.

The Company has also appointed AlbR Capital Limited as Corporate Broker to the
Company.

Mr Brendan McMorrow, the Company’s Chairman, commented:

«The Board welcomes this fundraising which supports the Board’s view of the
Company’s assets being materially undervalued at present as both new and
existing shareholders have taken part at a clear premium to the current market
price of our Ordinary Shares. The Company is looking forward to progressing
with the work programmes on its highly prospective Nickel, Copper and Platinum
Group Element targets in Northern Ireland together with the ongoing drilling
programme in the current weather window at its Anomaly 5 prospect in Finland.
The completion of this fundraise at a significant premium underpins the Board’s
confidence regarding the prospects for the Company.»

Further Information:

Karelian Diamond Resources plc +353-1-479-6180

Brendan McMorrow, Chairman / Maureen Jones, Managing Director
Allenby Capital Limited (Nomad) +44-20-3328-5656

Nick Athanas / Nick Harriss
Albr Capital Limited (Broker) +44-20-7469-0930

Lucy Williams / Duncan Vasey
Lothbury Financial Services +44-20-3290-0707

Michael Padley
Hall Communications +353-1-660-9377

Don Hall

http://www.kareliandiamondresources.com

This information was brought to you by Cision http://news.cision.com
https://news.cision.com/karelian-diamond-resources-plc/r/fundraising-of–290-000–operational-and-corporate-update,c4324696
The following files are available for download:
https://news.cision.com/karelian-diamond-resources-plc/i/4324696-0-jpeg,c3521604 4324696_0.jpeg

Autor

PR News