Update on the Kennady North Winter Drilling Program

Shares Issued and Outstanding: 54,012,599
TSX-V: KDI

New 51.8-meter intercept on Faraday 2 NW Extension
Third rig arrives on site to drill exploration targets

TORONTO, April 5, 2018 /CNW/ - Kennady Diamonds Inc. ("Kennady", the "Company") (TSX-V: KDI) is pleased to provide an update on the winter drilling program at their Kennady North Project. Drilling is progressing steadily with a total of 2,597 meters completed to date. Included in today's release are one delineation hole and one geotechnical/delineation hole completed on the Faraday 2 kimberlite. All thirteen drill holes completed on the program to date have intersected kimberlite.

Both drill rigs are currently drilling on the northwest extension to the Faraday 2 kimberlite. The northwest extension was discovered during the summer 2017 program and extends the Faraday 2 kimberlite by over 150 meters (see news release, September 11, 2017). Detailed core logging has confirmed that the geologic units within the inferred resource continue into the northwest extension (see news release, March 7, 2018). Information from the current drilling will be used to advance the pipe shell model to an inferred level of confidence. A preliminary plan map of drilling to date at Faraday 2 can be seen on the Company's website at www.kennadydiamonds.com.

Table 1 summarizes the 2018 winter drill results on the Faraday 2 kimberlite since the last update.

Table 1:  Faraday 2 2018 Winter Drill Program

*Intercepts are not true widths. 

President and CEO of Kennady Diamonds, Dr. Rory Moore commented: "While the delineation and geotechnical programs on the Faraday kimberlites have been very successful, we are anxious to take advantage of the improving weather conditions and longer daylight hours to move on to exploration drilling as soon as possible. For this reason, the decision was taken to add a third drill rig to the program". He went on to say, "The new rig arrived on site on March 30 before the winter road was closed for the season, and we expect to be drilling the first of several exploration targets in the Kelvin-Faraday Corridor on the weekend". Dr. Moore emphasized that the addition of the third rig will not require a budget revision as program timelines will be shortened with the improved production rate.

Financing

Kennady has also closed the third tranche of the private placement of common shares announced in connection with the transaction with Mountain Province Diamonds Inc. (see news release dated January 29, 2018). The Company has issued 1,000,000 common shares at a price of $2.50 per share for proceeds of $2,500,000. The shares are subject to a four month hold period expiring on July 29, 2018.

Proceeds of the offering will be used to fund the Company's 2018 winter exploration program on the Kennady North Project and for general corporate purposes.

About Kennady Diamonds

Kennady Diamonds Inc. controls 100 percent of the Kennady North diamond project located in Canada's Northwest Territories. Kennady North is adjacent to the Gahcho Kué Diamond Mine, a joint venture between De Beers Canada (51%) and Mountain Province (49%). Kennady is focused on expanding its high-grade diamond resources along the Kelvin–Faraday kimberlite corridor, as well as identifying new kimberlites outside of the corridor. To date an indicated resource of 13.62 million carats of diamonds contained in 8.50 million tonnes of kimberlite, with a grade of 1.60 carats per tonne and an average value of US$63 per carat has been defined for the Kelvin kimberlite and an inferred resource of 5.02 million carats contained in 3.27 million tonnes of kimberlite, with a grade of 1.54 carats per tonne and an average value of US$98 per carat has been defined for the Faraday kimberlites using a 1mm diamond bottom cutoff size. The Kelvin – Faraday corridor is also a target for further exploration.

Qualified Persons

This news release has been prepared by Dr. Rory Moore, P.Geo., President and CEO of Kennady Diamonds. The technical contents of this news release have been reviewed and approved by Dr. Tom McCandless, P.Geo., an independent director of Kennady Diamonds and 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.

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